Tom Lee’s Bitmine Immersion Technologies (NYSE: BMNR) reported a $6.31 billion net loss for the fiscal year, its 10-K filed 10th November, 2026 shows. Management also concluded its financial reporting controls were not effective for a second year.

Key Facts

  • Unrealized markdowns on digital assets made up $6.23 billion of the loss, as Ether fell about 44% over the fiscal year.
  • Bitmine’s 5,901,837 ETH carried a fair value of $14.56 billion at year-end, about $5.4 billion below its $19.95 billion cost basis.
  • Staking and validation produced $121.4 million of the company’s $124.8 million in revenue, while general and administrative costs reached $376.9 million.
  • Bitmine bought 9,587 more ETH in the week to 8th November, 2026, lifting holdings to 6,070,092 ETH, or 4.97% of supply.

Ether’s slide erased last year’s profit

Bitmine carries its crypto at fair value, so every swing in Ether’s price lands directly in earnings. Ether traded between $1,506 and $4,763 during the year, according to the Form 10-K. The net loss worked out to $13.11 a share, against net income of $348.6 million a year earlier.

Bitmine did not sell its Ether at a loss. The same fair-value line produced an $805 million gain in fiscal 2025. The six months through February alone carried a net loss of more than $9 billion, as Bitmine’s earlier quarterly results showed. The full-year figure came in smaller, so the second half clawed part of that back.

Staking is now the operating business. Bitmine began native staking in November 2025 and later bought validator operator Pier Two, folding it into MAVAN (Made in America Validator Network). Pier Two alone added $10.8 million of staking revenue, the filing shows. Cash used in operating activities still reached $305.1 million.

THE BLOCK: Tom Lee’s Bitmine reported a net loss of $6.3 billion for the fiscal year ended Aug. 31, 2026, primarily driven by ether’s decline. As of the end of August, the firm held around 5.9 million ETH, with around 3.97 million ETH purchased during the fiscal year. ethereum:native dropped around 44% during the period, falling from ~$4,390 to ~$2,466. $BMNR

Shareholders paid for the buildup. Bitmine sold 395.1 million shares through its at-the-market program for $13.2 billion in gross proceeds and spent about $12.6 billion on digital assets. Shares outstanding climbed to 613.3 million by year-end.

The company also bought back 20.8 million shares at an average $17, leaving $3.6 billion under a $4 billion repurchase program. Its Series A preferred stock (NYSE: BMNP) carries a 9.50% dividend.

The 10-K flags weak controls and a new fee deal

Management cited material weaknesses across all five components of the COSO (Committee of Sponsoring Organizations) internal control framework, first reported a year earlier. Remediation includes outside advisers, a new ERP system and added accounting staff, according to the filing. Many of the new controls hadn’t run long enough to prove they work. Bitmine also replaced auditor Bush & Associates with KPMG in April.

Derivatives deepened the hole. Bitmine booked a $143.7 million net loss on ETH-referenced derivative contracts, with none left open at year-end.

The staking setup changed after year-end too. Bitmine ended its management services agreement with Ethereum Tower LLC in early September, with no termination fee. A day later, MAVAN signed a 10-year advisory agreement with American Validator LLC, an Ethereum Tower affiliate. That deal pays 1.5% of staking rewards on Bitmine’s staked ETH, which the company described as simpler and lower-cost.

Buying hasn’t paused, and holdings now sit roughly 40,000 ETH short of the 5% “Alchemy” target after a run of weekly ETH purchases. Of that total, 5,227,037 ETH is staked. “Bitmine’s track record of consistent buying of crypto is unmatched by any public company in the world,” said Lee, the Fundstrat co-founder who chairs Bitmine. The company has said it isn’t obligated to keep buying.

The Bottom Line

For existing BMNR holders, the filing is blunt: management expects ETH price changes to keep causing significant volatility in reported results. Item 9A of later filings will show whether the control weaknesses clear.

Two questions stay open. Will remediation finish before the next report, and will buying stop once the stake reaches 5%?

Bitmine is moving its fiscal year-end to 12/31. A transition report covering September through December 2026 comes next, with a fresh Ether mark and the first test of the controls fix.