Bitmine Adds $20M in Ethereum While Reaffirming Deficient Internal Controls

Bitmine Immersion Technologies continued its weekly Ethereum acquisition streak in early November, adding 9,587 ETH worth roughly $20 million, according to public statements. ³ The purchases push the company's holdings to over 6.06 million ETH. ⁶ The buying spree comes alongside the company's annual report to the SEC, which indicated that its internal controls over financial reporting remain ineffective for a second consecutive year. ²

Treasury Nears 5% Supply Target

The latest $20 million ETH purchase brings Bitmine's total Ethereum reserves to 6,070,092 tokens. ³ This represents approximately 4.97% of the total circulating supply of 122.2 million ETH, nearing the company's stated goal of acquiring 5% of all Ethereum. ³

Bitmine has accumulated ETH every week since initiating its treasury strategy on June 30, 2025. ³ According to an announcement from the company, its total assets, including cryptocurrency, cash, marketable securities, and other investments, stood at $14.5 billion as of Nov. 1, 2026. ⁶ The firm reported staking over 5.2 million ETH, which it projects would yield $358 million on an annualized basis. ⁶

Bitmine Chairman Tom Lee highlighted recent comments by Ethereum co-founder Vitalik Buterin that "ETH is a store of value, ETH is money," describing the statement as validation for the company's accumulation strategy. ³

Internal Controls Remain Deficient

While the treasury expanded, Bitmine's annual 10-K report, filed on Nov. 10, detailed ongoing operational challenges. ² The company informed investors that its internal controls over financial reporting were not effective as of Aug. 31, 2026. ²

Management first disclosed material weaknesses spanning the entire COSO internal-control framework at the end of fiscal 2025. ² During the 2026 fiscal year, Bitmine engaged outside advisors, implemented a new enterprise resource planning system, and hired additional accounting staff. ² However, the filing noted that many new controls had not been in place long enough to verify their effectiveness. ² The company also replaced its auditor, bringing on KPMG in April. ²

Fiscal Year Results Detail Losses

The annual report showed Bitmine's ETH treasury carried a fair value of $14.56 billion against a cost basis of $19.95 billion, representing an unrealized loss of approximately $5.4 billion at year-end. ² The firm posted a net loss of $6.31 billion for the fiscal year, a sharp reversal from net income of $348.6 million the previous year, driven largely by markdowns on its digital assets. ²

Bitmine also reported a $143.7 million net loss on ETH-referenced derivative contracts over the fiscal year, with no such contracts open at the end of the period. ² Revenue, primarily from staking and validation, increased to $124.8 million from $6.1 million. ²

Following the close of the fiscal year, Bitmine terminated its management services agreement with Ethereum Tower LLC and subsequently entered a 10-year advisory agreement with an affiliate, American Validator LLC, involving a 1.5% fee on staking rewards. ²