Crypto treasury firm Bitmine Immersion Technologies (NYSE: BMNR) reported that Ethereum staking generated 98% of its quarterly revenue, totaling $45.7 million. The company's total revenue for the fiscal quarter ended May 31 reached $46.5 million, a sharp increase from $2.05 million a year earlier.
Staking Becomes Core Revenue Driver
Chairman Tom Lee noted that Ethereum staking has become Bitmine's dominant revenue source. The process involves locking up cryptocurrency to support blockchain operations in exchange for rewards, similar to earning interest. Lee projected that annualized staking revenue could hit $284 million once all of Bitmine's Ethereum holdings are staked.
Financial Position and Holdings
As of May 31, Bitmine held 5.42 million Ethereum and 203 Bitcoin, with a combined market value of $10.9 billion. The company also reported $340.3 million in cash and $433.1 million in working capital. Despite revenue growth, Bitmine posted a net loss of $82.2 million for the quarter, compared to a loss of $480,000 a year earlier.
Stock Performance
BMNR shares have fallen 59% over the past 12 months, trading at $16.29. The company's heavy reliance on Ethereum staking revenue highlights both the potential and risks of crypto-focused business models.