BitMine Relies on Staking for 98% of Its Revenue, 10-Year Contract Complicates Early Exit
BitMine Relies on Staking for 98% of Revenue, 10-Year Contract Complicates Early Exit
BitMine generated $45.743 million in revenue from Ethereum staking and validation during the three months ended May 31, 2026. This accounted for 98.3% of the company’s total revenue of $46.535 million, according to its Form 10-Q filed on July 14.
Nearly all of that revenue came from MAVAN, BitMine’s Ethereum validator network. At the end of the quarter, the company held 5,416,945 ETH, valued at approximately $10.856 billion.
As of June 1, about 4,718,677 ETH, or roughly 87% of BitMine’s total ETH holdings, had been staked. The company also maintains its long-term goal of acquiring 5% of Ethereum’s total supply.
MAVAN’s operations rely on Ethereum Tower. BitMine owns 98% of MAVAN Holdings, while Ethereum Tower holds the remaining 2% as a non-controlling interest.
Under an agreement effective March 24, Ethereum Tower is responsible for strategic planning, validator operations, and staking infrastructure. Meanwhile, BitMine subsidiary BMNR remains the official manager and retains authority over key decisions.
Ethereum Tower’s 2% ownership stake is permanent and remains in place even if the partnership ends, unless the stake is sold or transferred. The company is also entitled to a share of monthly revenue generated from BitMine’s native staking operations, although the exact allocation has not been disclosed publicly. This revenue-sharing arrangement does not apply to third-party staking services.
The agreement has an initial term of 10 years. BitMine can terminate it early with 180 days’ written notice. However, unless the termination is due to reasons such as breach of contract, insolvency, or misconduct by Ethereum Tower, BitMine would still be required to provide compensation.
In that case, Ethereum Tower can either continue receiving a share of staking revenue for the remainder of the contract term, even after it stops managing operations, or receive a lump-sum payment equal to 85% of its highest monthly fee, multiplied by the remaining months of the agreement. Because the revenue-sharing details are redacted, the exact exit cost cannot be determined.
BitMine also acknowledged that its financial performance depends heavily on MAVAN and Ethereum’s staking economics. Lower staking yields, validator downtime, slashing penalties, or unfavorable protocol changes could significantly reduce the company’s revenue and cash flow.
With 98.3% of its revenue coming from Ethereum staking and validation, BitMine’s business strategy depends not only on Ethereum’s network performance but also on its long-term management agreement with Ethereum Tower, which could continue creating financial obligations even if the partnership ends early.
