New York, July 15, 2026, 11:09 (EDT)
- Bitmine is 264,962 ETH short of owning 5% of the company-stated 120.7 million token supply. At its July 12 valuation price, the gap is worth $482.2 million.
- Cash and marketable securities stood at $482 million, leaving the company with a choice between using liquidity, raising more capital or slowing purchases.
- Staking supplied 98.3% of quarterly revenue, yet derivatives and digital-asset marks helped produce an $83.6 million net loss.
Bitmine Immersion Technologies, Inc. NYSE:BMNR is about 264,962 Ether short of its goal of owning 5% of the token’s supply, a gap worth $482.2 million at the $1,820 price used in its latest holdings update. That is almost exactly the $482 million of cash and marketable securities it reported as of July 12.
The near match turns the final roughly 0.2 percentage point into a capital-allocation test. Bitmine can spend most of its liquid funds, issue more common shares and dilute existing holders, or turn again to financing whose cash cost is well above its current staking yield. Ether’s price and circulating supply can change, so the target remains a moving number.
The final step to 5%
| Measure | ETH or value |
|---|---|
| 5% of company-stated supply | 6,035,000 ETH |
| Holdings on July 12 | 5,770,038 ETH |
| Remaining gap | 264,962 ETH |
| Gap valued at $1,820 per ETH | $482.2 million |
| Cash and marketable securities | $482.0 million |
Calculations based on figures in Bitmine’s July 13 holdings release.
The question matters now because Tuesday’s quarterly filing showed a business increasingly able to earn income from its assets, but not yet insulated from their volatility. Staking and validation, locking Ether to help operate the network in return for rewards, produced $45.7 million, or 98.3% of Bitmine’s $46.5 million revenue in the three months through May.
June’s preferred-stock financing makes the economics of marginal purchases less comfortable. Bitmine sold 3.5 million shares of 9.50% Series A Perpetual Preferred Stock NYSE:BMNP for $80 each and received $273.8 million after costs. Dividends accrue on a $100 stated amount, creating a $33.25 million annual obligation, equal to 12.1% of the net proceeds.
Preferred funding against staking income
| Measure | Amount or rate |
|---|---|
| Net preferred-stock proceeds | $273.8 million |
| Annual preferred dividends | $33.25 million |
| Dividend obligation as percentage of net proceeds | 12.1% |
| Bitmine’s disclosed seven-day annualized staking yield | 2.70% |
| Illustrative staking revenue on $273.8 million | $7.4 million |
| Illustrative annual shortfall | $25.9 million |
The illustration assumes all net proceeds are invested in Ether and staked at the disclosed yield. Bitmine may instead use the funds for infrastructure, working capital, strategic investments, digital-asset purchases or common-stock repurchases.
That hypothetical $25.9 million shortfall is negative carry, meaning preferred dividends would exceed staking income before any change in Ether’s price. It is not an immediate coverage problem across the existing treasury. Chairman Thomas Lee said, “Annualized staking revenues are now projected at $242 million,” about 7.3 times the annual preferred dividend. The projection represents revenue rather than cash left after operating costs. Securities and Exchange Commission
The latest quarter shows why that distinction matters. Revenue less cost of sales was $40.8 million, but $37.3 million of general and administrative expense and a $15.4 million unrealized digital-asset loss led to an $11.9 million operating loss. A $92.1 million loss on derivatives then pushed the net loss to $83.6 million, or 15 cents per share.
Investors initially focused on the revenue shift. Bitmine shares closed 11.5% higher on Tuesday at $16.29, then traded little changed at $16.27 late Wednesday morning in New York. The muted follow-through suggests the filing has not settled the funding question.
Common equity has so far done most of the work. During the nine months through May, Bitmine sold 340.7 million shares through its at-the-market program, a facility that places stock into regular trading, and raised $11.87 billion net while spending $11.69 billion on Ether. Shares outstanding reached 603.2 million by July 9, up roughly 160% from 232.4 million at August 31.
Bitmine had staked 4.917 million ETH, or 85% of its holdings, by July 12. “We continue to maintain a steady pace of accumulation throughout 2026,” Lee said. At the 27,801 ETH added during the latest reported week, the remaining gap would equal about 9.5 weeks of purchases, an illustrative run rate rather than company guidance. Securities and Exchange Commission
But the $25.9 million financing shortfall and the 9.5-week purchase estimate are scenarios, not forecasts. Ether appreciation could outweigh the funding cost, and Bitmine may deploy capital elsewhere. Results could also worsen if token prices or staking yields fall, if delays make staked assets hard to sell, or if validator penalties and derivatives losses reduce the cash available for preferred dividends.
For common shareholders, the central measure is no longer only the size of Bitmine’s Ether treasury. It is the amount of ETH represented by each share after the company finances the last stretch to 5%, and whether the cash generated by that treasury can keep pace with claims that rank ahead of common stock.
Related articles: NYSE:BMNR
