Bitmain Emergent Technologies (BMNR) disclosed holding $11.3 billion in cryptocurrency assets, with 5.77 million ETH valued at $1,820 per ether. The company stakes approximately 4.92 million of those ETH, generating $45.7 million in quarterly revenue from staking rewards.
Staking as Core Revenue Driver
Bitmain's staking strategy has become its primary profit engine. In the quarter ending May 31, Ethereum staking revenue accounted for 98% of total sales. Chairman Tom Li projected that if all ETH were staked via the MAVAN platform, annual staking rewards could reach $284 million. The company also holds 206 BTC and stakes in Beast Industries and Eightco Holdings, with liquid assets and marketable securities valued at $482 million.
The firm's staked ether assets alone are worth approximately $9 billion. This model reduces direct exposure to crypto price volatility by earning rewards from network validation, appealing to institutional investors.
Stock Surge and Market Expansion
Bitmain's stock jumped 11.5% to $16.29 following the asset disclosure and a broader crypto market recovery. It hit an intraday high of $16.94 before closing at $15.79. Trading volume reached 37.42 million shares. While the stock remains about 78% below its 52-week high of $71.74, it has recovered from the 52-week low of $12.80.
The company recently joined the Russell 1000 Index, improving institutional access and potentially driving passive fund inflows. Bitmain is also sponsoring EthSystems, an institutional Ethereum privacy layer launched with ShapLink and Joe Lubin, aiming to expand blockchain infrastructure for institutional investors.
Analysts see growing demand for institutional-grade staking services after Ethereum's transition to proof-of-stake. Bitmain's MAVAN platform positions it to capture this trend, with the Russell inclusion expected to enhance stock stability and liquidity over the long term.