- Bitmine generated $45.7 million from Ethereum staking in Q3 2026, accounting for 98% of total revenue.
- Options losses of $92.1 million more than doubled staking gains, leading to a net loss of $83.6 million for the quarter.
- The company staked 85% of its ETH holdings via the MAVAN platform, with annualized staking revenue projected at $242 million.
- Shareholder dilution accelerated as Bitmine issued 340.7 million shares to fund ETH purchases, increasing outstanding shares by 149%.
Bitmine Immersion Technologies, the largest publicly traded holder of Ethereum, has reported a dramatic shift in its revenue mix. The company’s latest quarterly filing shows that
But here’s the catch: while staking income soared, the company’s broader treasury strategy took a hit. Options losses on Ethereum-linked derivatives reached $92.1 million during the same period, more than wiping out the gains from staking. The result? A net loss of $83.6 million for the quarter, compared to a loss of just $623,000 a year ago. The numbers paint a picture of a company that’s successfully building a recurring revenue stream, but whose aggressive financial maneuvers are creating new risks.
Record Revenue from Staking, But Costs Mount
Bitmine’s total revenue for the quarter hit $46.5 million, with staking and validation services accounting for the lion’s share. The remainder came from self-mining Bitcoin ($624,000) and consulting services ($168,000). The company’s pivot to Ethereum began in earnest earlier this year with the launch of MAVAN, an institutional-grade staking platform. MAVAN, short for Made in America Validator Network, was originally built to manage Bitmine’s own ETH holdings but has since been opened to institutional investors, custodians, and exchanges seeking U.S.-based validation infrastructure.
As of July 12, 2026, Bitmine had staked 4.9 million ETH—about 85% of its total 5.77 million coin portfolio. That represents 4.8% of Ethereum’s entire supply. The staking operation is generating an annualized yield of around 2.70%, translating to projected annualized staking revenue of $242 million. Tom Lee, Bitmine’s chairman, has forecast that once all ETH holdings are fully staked, annualized staking rewards could reach $284 million.
Options Losses and Net Loss: The Dark Side of the Strategy
While staking revenue covered the company’s cost of sales and administrative expenses before crypto valuation changes, the options strategy proved costly. Bitmine recorded a $92.1 million loss on Ethereum-linked derivatives during the quarter, with $78.6 million from expired contracts and $14 million from exercised positions. Over the first nine months of the fiscal year, derivative losses totaled $133.3 million—more than double the $56.9 million generated from staking and validation in the same period. The company’s strategy involved selling put options to generate premium income or facilitate asset purchases, but market movements turned against them.
The net loss for the quarter was $83.6 million, but the nine-month figure was far starker: a staggering $9.1 billion loss, driven primarily by non-cash markdowns on ETH holdings. As of May 31, Bitmine’s 5.42 million ETH had a cumulative cost basis of $19.05 billion but a market value of just $10.86 billion, leaving an unrealized loss of about $8.2 billion. That’s 43% below cost, highlighting the volatility risk that comes with holding such a large crypto treasury.
MAVAN Platform and Expansion Plans
Bitmine’s MAVAN platform is central to its staking strategy. Launched in March 2026, it followed the acquisition of Australia-based non-custodial validator operator Pier Two Holdings. The platform is designed to provide best-in-class staking infrastructure for institutional clients. Bitmine has staked more ETH than any other entity in the world, according to Tom Lee, and the company expects to expand MAVAN’s services to external partners. The platform’s 7-day yield of 2.70% annualized is competitive, though it comes with long-term cost commitments.
Bitmine has a 10-year consulting agreement with Ethereum Tower, a third-party service provider, which incurred $12.8 million in quarterly expenses—roughly 28% of staking revenue. Another 10-year management services agreement with Ethereum Tower, tied to the Pier Two acquisition, adds a revenue-linked cost that hasn’t yet appeared in reported margins. These long-term contracts narrow the economics of staking, but management believes staking rewards will exceed management costs over time.
Tom Lee’s Bullish Outlook and Robinhood Chain
Tom Lee, who also co-founded Fundstrat Capital, has been vocal about Ethereum’s potential. In a recent podcast, he said ether’s market cap could eventually reach $5 trillion, citing the growth of decentralized applications and DeFi protocols. He pointed to Robinhood Chain, a Layer 2 mainnet built on Arbitrum that launched on July 1, 2026, as a key catalyst. Robinhood Chain has already exceeded $1 billion in dollar volumes and now has more trading volume than any other decentralized exchange, according to Lee. Since Robinhood Chain uses ETH as its native gas token, Lee argues that everyday users are starting to see ETH as money.
Bitmine was also added to the Russell 1000 Large-cap Index on June 26, 2026, which Lee expects to bring hundreds or thousands of additional institutional investors as equity owners. The company also raised $273.8 million through a Series A Perpetual Preferred Stock offering in June, adding a 9.5% dividend obligation that will cost an estimated $33.25 million annually.
Shareholder Dilution and Capital Market Dependence
Bitmine’s rapid accumulation of Ethereum has been financed primarily through equity sales. During the nine months ended May 31, the company sold approximately 340.7 million BMNR shares through its at-the-market program, raising $11.87 billion. Over the same period, it spent about $11.69 billion purchasing ETH. Outstanding common shares increased by 149%, from 232.4 million to 579.7 million, and further to 603.2 million by July 9. Shareholders approved an increase in authorized common shares from 500 million to 50 billion in January, giving management ample room to continue issuing stock.
The dilution has weighed on BMNR’s stock price, which has declined 59% over the past 12 months to trade at $16.29 per share. The company’s market cap has suffered despite the revenue growth. Bitmine’s model depends on continued access to capital markets; if ETH prices stagnate or investor appetite wanes, the company could face higher financing costs or reduced flexibility. The company has no conventional debt, with $340.3 million in cash and $433.1 million in working capital as of May 31, but it used $287.6 million in cash from operations over nine months.
All things considered, Bitmine has built a staking operation that generates meaningful recurring revenue and covers core operating expenses before crypto valuation changes. Yet the options losses, long-term contract costs, and shareholder dilution present significant headwinds. The company’s long-term success will hinge on whether staking income can consistently exceed treasury costs and options losses, whether it can maintain access to capital, and whether Ethereum’s price recovers enough to narrow the multibillion-dollar gap between the cost and market value of its holdings.
