BitMine reported approximately $2.8 billion in net income for the three months ended August 31, according to financial filings released November 10. However, the profit was driven by unrealized gains on digital assets rather than operating performance.
The quarterly profit came almost entirely from a calculated $2.8 billion unrealized gain on the company's digital asset holdings. Under BitMine's accounting policy, digital assets are measured at fair value, with changes flowing through net income. The cumulative unrealized loss narrowed from approximately $9 billion through May to $6.2 billion for the full year.
Despite the reported quarterly profit, BitMine's operating activities consumed $17.5 million in cash during June-August. For the full year, operating activities used $305.1 million in cash.
BitMine posted a full-year net loss of approximately $6.3 billion, compared with a $9.1 billion loss for the first nine months of the year.
Operating performance
Staking and validation services remained a substantial revenue source. The company generated an estimated $64.4 million from staking and validation revenue in the final quarter, out of $64.9 million in total quarterly revenue. For the full year, the company recorded $3 million in digital asset sale proceeds in operating activities.
The separation between reported earnings and operating cash reflects the noncash nature of the unrealized asset revaluation gains that dominated the quarter's profitability.
