A division of Bitmain called Tom Lee recorded three-month negative results of $3.8 billion, driven by the declining value of etherium.

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• BitMine recorded net losses of more than $3.8 billion for the three-month period ending in February.

Much of this loss, as the company explains, is due to unrealized or “paper” losses on its Ethereum assets.

BMNR was up about 1% on Wednesday, but it has fallen nearly 60% in the past six months.

BitMine Immersion Technologies, a leading Ethereum custodian, posted a loss of more than $3.8 billion for the quarter that ended Feb. 28, according to a fresh 10-Q report the firm filed with the SEC on Tuesday.

The company’s net loss of $3.81 billion was largely due to an increase in unrealized losses from its Ethereum investments, which accounted for nearly 99% of its total losses. Over a longer timeframe, the amount is even higher, with losses exceeding $9 billion in the six months through the end of February.

“Our operating model is now driven by our ETH ownership strategy and low-cost ecosystem services, the company notes, adding that “ETH market conditions, which affect the value of our assets and the economics of any staking activity, are now a key driver of its financial results.

Overall, the results are markedly worse than the same period last year, when the company reported a loss of just $1.15 million.

the main culprit? Ethereum.

BitMine’s second most capitalized cryptoasset and the main asset in BitMine’s reserves is down nearly 53% from its August peak price of $4,946 and recently traded at $2,346. At the close of trading on Feb. 28, ETH was worth about $1,965, down from about $2,800 at the beginning of December.

BitMine, which has been aggressively building up its reserves, including a $157 million ETH purchase reported this week, now owns 4,874,858 ETH worth over $11.3 billion. However, that’s significantly less than the amount the firm spent to accumulate them: the first 4.

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