Bitmine Immersion Technologies said staking and validator services became the main driver of its business in the latest quarter ended May 31, bringing in $45.7 million and accounting for 98% of total revenue.
In a 10-Q filed with the U.S. Securities and Exchange Commission on Tuesday, the company reported total quarterly revenue of $46.5 million, up from $2.05 million in the same period last year.
A year earlier, Bitmine still relied on mining machine leasing and bitcoin mining for most of its revenue. The shift came after the company acquired Ethereum validator node operator Pier Two and launched its MAVAN platform, moving into the institutional Ethereum staking market.
MAVAN provides ETH staking infrastructure for digital asset custodians, institutional investors and other ecosystem participants.
Earlier this week, Bitmine Chairman Tom Lee said that if all of the company’s ETH holdings were staked through MAVAN and its partners, annualized staking yield could reach $284 million.
By segment, staking and validator operations supplied nearly all of the quarter’s revenue. Self-mining contributed $624,000, while consulting services added $168,000. Revenue from mining machine leasing and equipment sales fell to zero as the company continued winding down older business lines.
Despite the revenue increase, Bitmine posted a net loss of $82.2 million for the quarter, wider than the roughly $480,000 loss recorded a year earlier.
The loss was mainly tied to $92.1 million in derivative contract losses and $15.4 million in unrealized losses on digital assets. Those were partly offset by a $16.5 million gain from warrant liabilities and $5.3 million in interest income.
As of May 31, Bitmine held 5.42 million ETH and 203 BTC, with a combined fair value of about $10.9 billion. The company also reported $340 million in cash and $433 million in working capital.
Bitmine shares rose 11.5% on Tuesday to close at $16.29 after the results.