Bitmine’s ETH staking generated $45.7M, 98% of revenue

Bitmine Immersion Technologies reported that Ethereum staking generated $45.7 million in the quarter ended May 31, representing 98% of the company’s $46.5 million in revenue, according to a Form 10-Q filed with the U.S. Securities and Exchange Commission. Total revenue rose from $2.05 million in the same quarter a year earlier as the company moved into institutional ETH staking.

The company completed the acquisition of Australian validator operator Pier Two in March and launched the MAVAN platform, the Made in America Validator Network, to provide institutional staking infrastructure for custodians, investors and other ecosystem participants. Staking and validation services were the primary revenue source for the quarter. Self-mining generated $624,000 and consulting revenue was $168,000. Bitmine reported no revenue from leasing or mining equipment sales after winding down those businesses.

Bitmine posted a net loss of $82.2 million for the quarter, compared with a net loss of $480,000 in the year-ago period. The result included a $92.1 million loss on derivative contracts and a $15.4 million unrealized loss on digital asset holdings. Those charges were partly offset by a $16.5 million gain from warrant liabilities and $5.3 million in interest income.

On its balance sheet, the company reported holdings of 5.42 million ETH and 203 bitcoin with a combined reported fair value of about $10.9 billion as of May 31. The filing showed $340.3 million in cash and working capital of $433.1 million.

Chairman Tom Lee projected annualized staking rewards would reach $284 million once all of Bitmine’s ETH is staked through MAVAN and its partners.

The prior-year quarter’s revenue was primarily from machine leasing and bitcoin mining before those operations were wound down and the company shifted focus to institutional Ethereum staking.