CryptoSlate
BitMine's annual filing implies nearly $2.8 billion in net income before preferred distributions for the three months ended Aug. 31, even as the Ethereum treasury company recorded a $6.3 billion full-year net loss. CryptoSlate calculated the quarterly figures by subtracting nine-month results from annual totals.
A calculated $2.8 billion unrealized digital asset gain drove the quarterly profit. BitMine measures digital assets at fair value and records valuation changes in net income, so gains can lift earnings without generating cash receipts.
Operations used an implied $17.5 million in cash during June-August. Staking and validation accounted for a calculated $64.4 million of the quarter's $64.9 million in total revenue, though revenue and cash receipts are different measures.
Frequently asked questions
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How were BitMine's quarterly results calculated?
CryptoSlate subtracted BitMine's nine-month results from its full-year totals to calculate figures for the three months ended Aug. 31.
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Why did BitMine's earnings rise without a corresponding cash receipt?
BitMine records digital assets at fair value, with changes flowing through net income. A valuation gain can increase earnings without generating a cash receipt.
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How much operating cash did BitMine use in the final quarter?
The difference between full-year and nine-month operating cash use implies that operations used $17.5 million during June-August.
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How much of BitMine's quarterly revenue came from staking and validation?
Staking and validation accounted for a calculated $64.4 million of the quarter's $64.9 million in total revenue.
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Did BitMine's final-quarter profit erase its annual loss?
No. Despite nearly $2.8 billion in calculated final-quarter net income before preferred distributions, BitMine reported a $6.3 billion full-year net loss.
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