Fair Value Accounting Turns Bitmine's Ethereum Treasury Into a $3.8 Billion Paper Loss
LH
Lyra Harrington
stablecoin US legislation · Apr 16, 2026
Source: DojiDoji Data Terminal
Bitmine recorded a $3.78 billion paper loss for the quarter, a result of fair value accounting rules adopted in 2024 that require the company to record unrealized price movements in its earnings. The loss occurred as Ethereum declined from earlier highs, despite the company's average purchase price of $2,206 per token for its 4.87 million ETH holdings.
To build this treasury, Bitmine doubled its outstanding shares from 232 million to 494 million, raising more than $10 billion in equity capital. The company has shifted its operational model from mining to staking, with staking generating $10.2 million of the total $11 million in quarterly revenue.
General and administrative costs reached $75 million for the quarter, compared to less than $1 million a year earlier. Bitmine's expenses now exceed its revenue.
stablecoin US legislationEthereum ETF
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