BitMine reported an annual net loss of $6.3 billion, almost all of it from the unrealized depreciation of its Ethereum holdings.
These are annual report figures through August 31. Over the same period, staking contributed about 97% of revenue. In other words, while its holdings showed a book loss, revenue was supported almost entirely by staking. BeInCrypto reports that the company will soon stop buying ETH, changing the source of its new coins.
· Unrealized losses are accounting figures and do not equal realized losses, but the 97% revenue concentration means operations are highly dependent on staking rewards.
· The source material does not specify where new coins will come from after purchases stop.
Would you look at the staking yield first, or at how the book loss on its holdings changes over time?
These are annual report figures through August 31. Over the same period, staking contributed about 97% of revenue. In other words, while its holdings showed a book loss, revenue was supported almost entirely by staking. BeInCrypto reports that the company will soon stop buying ETH, changing the source of its new coins.
· Unrealized losses are accounting figures and do not equal realized losses, but the 97% revenue concentration means operations are highly dependent on staking rewards.
· The source material does not specify where new coins will come from after purchases stop.
Would you look at the staking yield first, or at how the book loss on its holdings changes over time?
