BitMine earns $45.7M from ETH staking as revenue jumps 22-fold

BitMine Immersion Technologies generated $45.7 million from Ethereum staking and validation in the quarter ended May 31, accounting for 98% of its $46.5 million in total revenue, according to its latest 10-Q filing with the SEC.

"BitMine has staked more ETH than other entities in the world," Tom Lee, chairman of BitMine, said. "At scale, the projected ETH staking reward is $284 million on an annualized basis."

The figure represented a 22-fold increase from the $2.05 million in total revenue BitMine reported in the same period a year earlier, when the company relied primarily on machine leasing and Bitcoin self-mining. Staking and validation generated $56.9 million over the nine months ended May 31, or 95% of total revenue for the period.

The results reflect BitMine's pivot from Bitcoin mining to Ethereum staking after the March launch of MAVAN, an institutional-grade staking platform that operates validator infrastructure for its own holdings and external clients. The company acquired Australian non-custodial validator operator Pier Two in March, which contributed $3.53 million of quarterly staking revenue and now operates under the MAVAN brand.

As of July 12, BitMine held 5.77 million ETH, or roughly 4.8% of Ethereum's total supply, with 4,917,189 ETH staked through its operations and partners — about 85% of its holdings. Lee projects annualized staking rewards of $284 million based on a recent seven-day annualized yield of 2.70%, though the company cautioned that lower staking yields, validator disruption or protocol changes could affect future revenue.

Despite the revenue growth, BitMine reported a quarterly net loss of $83.6 million, driven partly by derivative losses and other expenses. Over nine months, the company recorded $9.1 billion in unrealized losses from ETH asset markdowns as prices fell.

Lee highlighted Robinhood Chain, which launched July 1 and has surpassed $1 billion in trading volume. The chain uses ETH as its native gas token, with transaction fees denominated in ETH and finality settled on Ethereum. "Robinhood's 27 million users are paying crypto fees denominated in ETH," Lee said. "Everyday users are starting to see ETH as money."

BitMine's shift has reshaped its revenue mix. Bitcoin self-mining generated just $624,000 in the quarter, while consulting brought in $168,000. Machine leasing and mining equipment sales produced no revenue after the company ended those operations. The company's long-term strategy targets ownership of 5% of Ethereum's total supply, a goal Lee calls the "Alchemy of 5%."

This article is for informational purposes only and does not constitute investment advice.