BITMINE IMMERSION TECHNOLOGIES, INC.

BITMINE IMMERSION TECHNOLOGIES, INC. Annual Report - Plain English Breakdown for Investors

---

What Does Bitmine Do, and How Was Their Year?

Bitmine operates two core businesses:

1. Building energy-efficient Bitcoin mining rigs (using liquid-cooled "dunked" computers)
2. Managing a $8.3 billion digital asset treasury – the world’s largest stockpile of Ethereum (ETH), plus some Bitcoin (BTC).

This Year’s Big Move: They’re acting like a crypto bank – holding ETH long-term, earning rewards through staking (similar to earning interest), and testing DeFi strategies. They still mine Bitcoin when profitable.

---

Financial Performance: Sales and Growth

• Revenue: $220 million (up 85% from last year!)
• Net Loss: $45 million (20% improvement over last year’s loss)
• Hidden Asset: Their crypto holdings (mostly ETH) are now worth $8.28 billion – more cash than many Fortune 500 companies hold!

Takeaway: Mining sales are growing, but their ETH treasury could redefine their future.

---

Big Wins vs. Challenges

Wins:

• Became the world’s largest ETH holder (bigger than some countries’ gold reserves!)
• ETH’s price rebound added billions to their treasury’s value
• Experimenting with “restaking” to earn extra rewards on staked ETH

Challenges:

• Relies on rented space for Bitcoin mining (no owned facilities until 2026)
• ETH staking rules could lock up their crypto for months
• 60% of revenue still tied to Bitcoin’s volatile price swings

---

Financial Health Check

• Crypto Assets: $8.28B (up 3x since 2024!)
• Cash: $90M (down from $150M as they invest in growth)
• Debt: $200M (up from $120M)

Simplified: Their crypto treasure chest is massive, but they’ll need to sell some to fund daily operations.

---

Key Risks to Watch

• Ethereum’s Success: If ETH loses relevance, their treasury value drops
• Regulatory Traps: Changing staking rules could freeze their assets
• Third-Party Risk: No control over Bitcoin mining facilities until 2026

---

Competitor Comparison

• ETH Treasury: 2x larger than nearest competitor
• Bitcoin Mining: Smaller than giants like Marathon Digital (MARA) but more diversified
• Unique Edge: Their $8B ETH lets them earn “crypto interest” others can’t

---

Future Plans

• Build Their Own Mining Centers: By 2026, aiming to cut costs and reliance on third parties
• DeFi Experiments: Using their ETH stash to generate more income (like earning fees in crypto markets)

---

2024 Outlook

• Double Down on ETH: Grow treasury through staking rewards and strategic buys
• Shift to Self-Mining: Reduce hosting costs once their facilities launch
• New Revenue Streams: Exploring crypto advisory services using their ETH expertise

---

External Factors

• Opportunities: Major banks adopting Ethereum for tokenized assets could boost ETH’s value
• Threats: SEC crackdowns on staking could limit profit options
• Bonus Potential: Their cooling tech is in demand by AI companies – possible new revenue!

---

Bottom Line for Investors

The Good:

• Revenue surged 85%, losses shrank 20%
• $8.3B ETH treasury offers rare stability in crypto’s volatile world
• Positioned to profit if Ethereum becomes the backbone of decentralized finance

The Caution:

• Still losing money overall
• High debt and reliance on crypto market stability
• “Crypto bank” model is unproven long-term

Summary: Bitmine is a high-risk, high-reward bet on Ethereum’s future. Their massive ETH holdings give them a unique advantage, but success depends heavily on crypto market trends and regulatory decisions. Investors should be comfortable with volatility and long-term timelines.

Always do your own research before investing.

---

This summary simplifies complex topics – consult the full annual report for details.