Bitmine Makes Ethereum King, Turns 98% of Revenue Into Staking Windfall

Bitmine Immersion Technologies Inc. generated $45.7 million from Ethereum staking during the third quarter of fiscal year 2026, marking a fundamental shift in the firm’s corporate operating model. In its Form 10-Q filed with the SEC, the company reported that staking and validation operations accounted for approximately 98% of its $46.5 million total quarterly revenue. This contrasts sharply with the prior year, when Bitmine recorded zero staking revenue and relied entirely on mining equipment leases and self-mining vehicles. Bitcoin mining revenue dropped significantly as the company pivoted.

Management accelerated the transition through the March 2026 acquisition of Pier Two Holdings Pty Ltd., an Australian blockchain infrastructure firm, for $27.8 million in preliminary consideration. Bitmine integrated Pier Two into MAVAN, a proprietary institutional staking platform designed to support a rapidly expanding digital asset treasury.

As of May 31, 2026, Bitmine held 5,416,945 ether, valued at $10.85 billion, making it the largest ETH treasury by number of ether on its balance sheet. The company also maintained a legacy reserve of 203 bitcoin, worth roughly $14.9 million. To fund these acquisitions, Bitmine utilized an at-the-market equity program, selling over 340 million shares of common stock over nine months, generating $11.86 billion in net proceeds.

Despite the revenue surge, Bitmine reported a net loss of $83.6 million for the quarter, driven by a $15.4 million unrealized deficit on digital asset holdings and a $92 million net loss on ether options derivatives. Operating expenses ballooned to $37.2 million from $744,000 the prior year, attributed to treasury management fees, custodian costs, and higher employee compensation from the acquisition.

Bitmine also disclosed strategic investments, including a $186 million stake in Beast Industries Co. and a $93.2 million equity method investment in Eightco Holdings. The company warned investors that its financial health is now heavily dependent on Ethereum network conditions, staking yields, and potential U.S. regulatory actions. Following the quarter, Bitmine raised $273.8 million through a Series A Preferred Stock offering to support ongoing treasury strategies and institutional staking operations.

Source: https://news.bitcoin.com/bitmine-makes-ethereum-king-turns-98-of-revenue-into-staking-windfall/