Compass Investments

– The February 28, 2026 balance sheet reporting shows a notable gap between cost and market valuation. As of the balance sheet date, there were 4,473,459 ETH in assets at a fair valuation of US$8.

793 billion, with an accumulated cost of US$16.973 billion. Hence, the average purchase price of about US$3,793 per ETH. Additionally, the company owned 195 BTC worth US$13.072 million and had cash of US$879.577 million.

At the end of the same quarter, total assets reached US$9.894 billion and shareholders’ equity amounted to US$9.858 billion. A large part of this result is due to the company’s active fundraising strategy. Through the issuance of shares in the market, the company received net proceeds of US$10.069 billion. Accordingly, the number of shares outstanding as of the filing date increased to 537,628,819.

In terms of operations, BitMine remains relatively modest. Profit in the second quarter totaled US$11.041 million, of which US$10.201 million came from staking awards. Proprietary mining brought in only USD 219 thousand, while consulting and rental services brought in about USD 621 thousand. When compared to the previous quarter, when revenue was US$1.517 million, this figure is a seven-fold increase. Nevertheless, in the context of the overall balance sheet, this is still an insignificant amount.

Back in February, Fundstrat’s chairman and founder Tom Lee commented on the interim losses on the stock. When the price of ETH fell below $2,000 and cumulative unrealized losses rose to $8 billion, Lee emphasized the purely accounting nature of these write-downs. Under mark-to-market valuation rules, price fluctuations are directly reflected in PandL, but the assets are not actually sold.

At the same time, shareholders approved a substantial increase in the authorized number of shares from 500 million to 50 billion. This tenfold expansion is envisioned for further issuance for venture capital financing (ATM) and, as a consequence, additional ETH purchases. BMNR shares initially reacted to the announcement of the potential capitalization dilution with a 6.4% decline. As of April 14, 2026, the stock price was $21.48. The annual report mentions that the operating model is now explicitly focused on ETH’s treasury management strategy as well as ecosystem services that do not require large capital investments.

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BitMine’s approach follows the model of Strategy, formerly known as MicroStrategy. This firm has held Bitcoin as its primary balance sheet asset since 2020 and now has a $55 billion peg to BTC. The mechanism is identical: raising funds through the stock market, transforming the proceeds into crypto-asset reserves and presenting the shares as leverage to the underlying asset. However, the ETH-based option differs in one key parameter. ETH staking provides a stable annual return of about 3 percent, while BTC reserves are passive.

BitMine currently holds 3,334,637 ETH in steaking, which accounts for 68 percent of its assets, generating annual revenue of about $212 million. On April 9, 2026, the company launched MAVAN, an Ethereum institutional staking platform for its own and third-party investors. During the same period, BitMine completed the process of transferring its listing from NYSE American to the main NYSE exchange. Both moves are designed to position the company for institutional participants as an ETH infrastructure tool, not just a mining operator.

The stated goal is 5 percent of traded ETH, which the company calls the alchemy of 5 percent.