QS Research · Michael Burry's Scion Capital analyst template · 2006
BITMINE IMMERSION TECHNOLOGIES, INC. (BMNR)
As of 2026-11-11 · 12/15 boxes filled from SEC filings and market data
Report price $18.08 (close 2026-11-10)
Conclusion: WATCH
Conviction low · base case none · downside -32% · upside +33%
The market is not missing the ETH — the company holds $15,393.6M of assets against $15.12B of book (S22, N22) and the stock prices that book at 0.75x (N25) — it is charging for a vehicle that burned $305.1M of operating cash in FY Aug 2026 (N15), pays roughly $33.25M a year of 9.50% preferred dividends (S29) and diluted 63.1% net in a year (N32). Earnings cannot referee this: FY Aug 2026 (year ended 2026-08-31) EBIT was -$6.50B (N11) and net income to common was -$6.32B GAAP versus -$6.06B adjusted for the -$257.9M own-warrant mark (N14, N29, N30), so the GAAP P/E and the adjusted P/E are both n/m and the only working anchor is book. Base case 0.75x book = about 0% (0.75 x $15.12B = $11.34B vs $11.33B, N22/N25/N8); downside assumes book -20% to $12.10B at a compressed 0.64x = $7.74B, -32%; upside is 1.0x book = $15.12B, +33%. Reward/risk of roughly 1:1 with no evidenced moat (S26) makes this a watch: the discount to a liquid treasury is real, but nothing dated yet forces it shut.
Key numbers
- Share price: $18.08
- Market cap: $11.33B
- Latest financial period: FY Aug 2026 to Aug 31, 2026
- Revenue (FY Aug 2026): $124.8M
- Price / book: 0.75x
- Earnings-quality flags (FY Aug 2026): Mark-to-market on the company's own stock (warrants) -$257.9M (4% of net income)
- Revenue growth (latest fiscal year): +1947.8%
The 15 boxes
- ✓ 1. Long-form business notes
BMNR is no longer the FY2021 Bitcoin immersion-hosting shell: since the July 2025 $250M PIPE it is primarily an Ethereum treasury that funds itself by selling equity and stakes its own ETH, and in FY2026 (ended Aug 31, 2026) staking and validation supplied about 97% of $124.8M of revenue ($121.4M). The P&L is dominated by ETH fair-value moves, not operations: FY2026 operating income was -$6.50B and net income to common -$6.32B on $124.8M of revenue, versus FY2025 operating income of +$444.2M and net income to common of $328.2M on $6.1M of revenue. The balance sheet grew from $4.1M of total equity in FY2024 to $15.12B in FY2026 on 482.29M diluted shares, largely from the ATM ($13,201M gross in FY2026), a $271.48M 9.50% preferred and a newly built institutional staking platform (MAVAN / Pier Two).
- ✓ 2. Competitive advantage
No durable competitive advantage is evidenced. FY2026 (year ended August 31, 2026) revenue of $124.8M is almost entirely commodity-linked staking income ($121.4M, ~97%), earned at a protocol-set 2.5%-4.0% gross APR, and the 10-K names larger, longer-established staking competitors (Coinbase Cloud, Figment, Kiln). What the company actually has is balance-sheet scale and capital-market access — 5,901,837 ETH, $14,558.9M fair value, ~4.9% of circulating supply at August 31, 2026 — not pricing power, switching costs or a licence: operating income swung from +$444.2M in FY2025 to -$6.50B in FY2026 as ETH marked, and operating cash flow was -$305.1M in FY2026.
- ✓ 3. 10-Q takeaways
The latest 10-Q covers the quarter ended May 31, 2026: revenue jumped to $46,535 from $2,052 on staking revenue of $45,743, but the operating loss widened to $(11,865) and the quarter's net loss was $(83,595), driven by a $(92,093) net loss on derivative contracts. For the nine months ended May 31, 2026, revenue was $59,870, the net loss was $9,106,103, and a $9,038,538 unrealized digital-asset loss dominated results; operating cash use was $(287,592), investing used $(12,102,446), and financing provided $12,218,362. Cash was $340,289 at May 31, 2026, with $273.8 million of net Series A Preferred proceeds received subsequent to quarter-end, and the computed 10-K risk-factor diff flags 185 paragraphs with no counterpart in the prior report.
- ✓ 4. Corporate governance
Filled; members read this box.
- ✓ 5. Overview of the prior 3 years of 8-K filings
Filled; members read this box.
- ✓ 6. Other significant filings
Filled; members read this box.
- ✓ 7. Chronology of significant news and events
Filled; members read this box.
- ✓ 8. Comparables valuation interpretation
Filled; members read this box.
- ✓ 9. Insider trading interpretation
Filled; members read this box.
- ○ 10. Earnings-call notes
- ○ 11. Impression of the shareholder letter
- ○ 12. Scuttlebutt overview
- ✓ 13. Valuation and risk/reward summary
Filled; members read this box.
- ✓ 14. Current price suppression and potential catalysts
Filled; members read this box.
- ✓ 15. Conclusions
The call above.
Sign in with a QuantSignals Premium or Gold plan to read every box: each point linked to the SEC filing it came from, the bull and bear case, and the comparables. QS Research powers the signals behind FST, our autonomous trading agent.