But the transformation from mining company to leveraged ETH treasury play is creating its own set of pressures.

Self-mining revenue collapsed 86% year-over-year to $219,000 for the quarter. Staking has replaced it entirely, generating $10.2 million of the company’s $11 million in total quarterly revenue.

General and administrative expenses hit $75 million for the quarter, up from $964,000 a year earlier. For the full six-month period, G&A reached $298.6 million against just $13.3 million in revenue. Some of that likely reflects stock-based compensation tied to the equity raises, but the gap between operating costs and operating revenue is stark for a company whose core product is now holding and staking a single token.

The filing also reveals derivatives exposure that wasn’t previously detailed.

Bitmine booked $65.3 million in unrealized losses on derivatives and $24.1 million in option premium income during the quarter, suggesting the company is running options strategies on its ETH holdings, possibly covered calls to generate additional yield.

Chairman Tom Lee said in March that the company views the ether pullback as “attractive, given the strengthening fundamentals,” and noted Monday that Bitmine has accelerated its buying pace over the past four weeks.

Bitmine held $879.6 million in cash as of February 28, along with 198 bitcoin, a $200 million stake in Beast Industries, and an $85 million position in Eightco Holdings.

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(CoinDesk Data)

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What to know:

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