Executive Summary

Revenue increased 37% sequentially to $1.225M in Q3 (three months ended May 31, 2024), driven by higher Bitcoin prices and a 6-week lease of 777 miners pre-halving; YoY growth cited at 862% by management .
Gross profit was $0.222M and net loss narrowed to $0.654M (EPS $(0.01)), improving from $(0.903M) in Q2 as operating losses moderated .
Management highlighted a transformer sale (50% deposit received) with revenue recognition expected upon final delivery in August 2024, and ongoing discussions to uplist via a capital raise; also pursuing shareholder‑friendly mergers .
Wall Street consensus estimates via S&P Global were unavailable; no formal beat/miss analysis can be presented this quarter.

What Went Well and What Went Wrong

What Went Well

Revenue rose 37% QoQ to $1.225M, supported by higher Bitcoin prices and a short‑term lease of 777 miners adding ~$319K revenue ahead of the April 19 halving .
Operations stabilized across Trinidad, Pecos (TX), and Murray (KY), enabling sustained self‑mining and incremental hosting revenue in Q3 .
Management is engaging investment banks for a potential uplisting and evaluating merger opportunities: “We continue to speak with several investment banks… uplist… evaluating shareholder-friendly merger discussions” .

What Went Wrong

Gross margin compressed to ~$0.222M (from ~$0.324M in Q2) as halving dynamics and lease economics lifted cost of revenues; total operating expenses were $0.756M in Q3 vs $0.972M in Q2, but other expenses remained elevated .
Self‑mining revenue in Q2 (prior quarter) of $0.861M missed the company’s earlier guidance of ~$0.925–$0.950M for that quarter (ending Feb 29, 2024) .
Continued net losses and reliance on related-party financing (IDI LOC $1.625M principal outstanding at Q3) underscore funding needs despite the potential transformer sale and notes receivable .

Financial Results

Consolidated P&L versus prior quarters

Metric	Q1 2024	Q2 2024	Q3 2024
Revenue ($USD)	$511,308	$891,613	$1,224,992
Gross Profit ($USD)	$104,082	$323,622	$221,687
Gross Profit Margin (%)	20.3%	36.3%	18.1%
Operating Income ($USD)	$(611,880)	$(648,741)	$(534,537)
Net Income ($USD)	$(929,870)	$(902,682)	$(654,228)
Net Income Margin (%)	(181.8%)	(101.2%)	(53.4%)
Diluted EPS ($)	$(0.02)	$(0.02)	$(0.01)

Revenue breakdown by category

Revenue Category ($USD)	Q1 2024	Q2 2024	Q3 2024
Sale of Mining Equipment	$169,721	$20,471	$20,471
Hosting	$11,864	$10,116	$16,762
Self-Mining	$329,723	$861,026	$1,187,759
Total Revenue	$511,308	$891,613	$1,224,992

KPIs and operational metrics

KPI	Q1 2024	Q2 2024	Q3 2024
Total BTC Mined (units)	9.6848	19.5 (3.3 owned + 16.2 hosted)	12.596 (2.546 owned + 10.050 hosted)
Average Revenue per BTC ($)	$34,045	$44,391	~$66,5K (owned $66,526; hosted $66,476)
Cost per kWh – Owned	$0.0415	$0.0443	$0.0500
Cost per kWh – Hosted	$—	$0.0344	$0.0300
Miners Present / Installed	1,462 / 1,429	1,559 / 1,526	1,606 / 1,573

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Self-Mining Revenue ($USD)	Q2 2024 (quarter ended Feb 29, 2024)	~$925,000–$950,000	Actual $861,026	Lower vs guidance
Equipment/Transformer Sale Revenue Recognition	Aug 2024	None	Expect recognition upon delivery (deposit ~50% already received)	New disclosure
Capital Markets/Uplisting	N/A	None	Engaging investment banks to pursue uplisting (NASDAQ/NYSE/AMEX)	New disclosure

Earnings Call Themes & Trends

(Company did not file an earnings call transcript for Q3 2024; themes below reflect MD&A and press release narratives.)

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3)	Trend
Bitcoin halving impact	Expected halving to reduce block rewards by 50%; ordinals fees offset; elevated difficulty and hash rate	Halving occurred April 19; short-term lease of 777 miners added ~$319k pre-halving revenue	Transition management; emphasis on fee dynamics
Ordinals/Transaction fees	Growing share of mining revenue; risk if eliminated	Continued acknowledgement that transaction fees lift revenue	Supportive but uncertain
Site operations (Trinidad)	Electrification resolved; very low power pricing (3.5¢/kWh)	148 miners at TSTT; migration plans ongoing	Operationally improving
Pecos JV (ROC Digital)	JV power agreement; initial losses; hosting capacity challenges	JV losses continue; note receivable amortizing; capacity being refilled	Mixed, focused on utilization
Murray, KY hosting	1,050 miners; low power cost (2.5¢/kWh); 83% uptime guarantee	Added 45 miners in May; fee-sharing terms continue	Scaling modestly
Capital raising/uplisting	Exploring alternatives; engaged banker	Active discussions to uplist; mergers under evaluation	Increasingly strategic

Management Commentary

“We leased 777 additional machines for the 6-week period prior to the April 19, 2024 bitcoin halving, which generated an additional $319,000 of revenue… Revenues were also positively impacted… by an increase in the price of bitcoin.”
“We continue to speak with several investment banks regarding an offering that would enable the Company to uplist from the OTCQX to the NASDAQ or the NYSE/AMEX. We are also evaluating several possible shareholder-friendly merger discussions…”
Halving context and fee dynamics: “The halving reduced the block rewards from mining by exactly 50%. However… transaction fees have made up an ever-increasing share of mining revenue due to the impact of ‘ordinals’…” (see also prior quarter background ).

Q&A Highlights

No Q3 2024 earnings call transcript was found; no formal Q&A available for this quarter [ListDocuments: 36 only].

Estimates Context

S&P Global/Capital IQ consensus estimates were unavailable for BMNR this quarter; as a micro-cap OTC issuer, formal Street coverage appears limited. As a result, we cannot present a beat/miss versus consensus for revenue or EPS this period.

Key Takeaways for Investors

Revenue momentum: +37% QoQ to $1.225M, aided by pre‑halving leasing and better BTC pricing; however, gross margin compressed versus Q2, highlighting cost sensitivity and mix effects .
Operating leverage improving: Operating loss narrowed to $(0.535M); net loss $(0.654M), EPS $(0.01) — watch trajectory as sites stabilize and unit economics adjust post‑halving .
BTC fee tailwinds: Ordinals/transaction fees remain pivotal; any protocol change could impair revenue — monitor chain policy discussions closely .
Balance sheet/liquidity: Reliance on related-party line ($1.625M principal) and notes receivable cash flows; transformer sale recognition in Aug 2024 could provide near-term revenue uplift .
Strategy: Management pursuing uplisting and potential mergers; equity financing could be dilutive but may accelerate scaling and institutional visibility .
Site/unit economics: Low-cost Murray, KY (2.5¢/kWh) and Trinidad (3.5¢/kWh or reserve structure) underpin competitive cost base; utilization and uptime drive cash generation .
Trading implications: Near-term stock narrative likely tracks BTC price/fees, pre‑announced transformer revenue timing, and capital markets updates; medium-term thesis hinges on scaling self‑mining/hosting at favorable power rates and disciplined capex .

Notes:
- Q3 2024 press release and 8‑K: management commentary, revenue summary, and forward-looking statements **[1829311_0001683168-24-004936_bitmine_ex9901.htm:0]**.
- Q3 2024 10‑Q: detailed P&L, breakdowns, KPIs, site operations, liquidity **[1829311_0001683168-24-004815_bitmine_i10q-053124.htm:4]** **[1829311_0001683168-24-004815_bitmine_i10q-053124.htm:5]** **[1829311_0001683168-24-004815_bitmine_i10q-053124.htm:16]** **[1829311_0001683168-24-004815_bitmine_i10q-053124.htm:25]**.
- Q2 2024 10‑Q: prior quarter benchmarks and cost/KPI details **[1829311_0001683168-24-002367_bitmine_i10q-022924.htm:5]** **[1829311_0001683168-24-002367_bitmine_i10q-022924.htm:30]**.
- Q1 2024 10‑Q: earlier baseline **[1829311_0001683168-24-000250_bitmine_i10q-113023.htm:5]** **[1829311_0001683168-24-000250_bitmine_i10q-113023.htm:24]** **[1829311_0001683168-24-000250_bitmine_i10q-113023.htm:27]**.
- Q1 2024 8‑K 2.02 guidance: ~$925k–$950k self‑mining revenue for the quarter ended Feb 29, 2024 **[1829311_0001683168-24-001223_bitmine_ex9901.htm:0]**.

BITMINE IMMERSION TECHNOLOGIES, INC. (BMNR)·Q3 2024 Earnings Summary