BitMine: 98% of revenue from staking; operator deal limits exit

BitMine’s Form 10-Q filed July 14 shows staking and validation generated $45.743 million, or 98.3% of $46.535 million in revenue for the quarter ended May 31, 2026. MAVAN, the company’s Ethereum validator network, produced nearly all reported revenue for the period.

At quarter-end BitMine held 5,416,945 ETH valued at $10.856 billion. A June 1 update reported 4,718,677 ETH actively staked, about 87% of holdings. The company describes its longer-term target of holding 5% of Ethereum’s supply as a forward-looking objective.

BitMine owns 98% of MAVAN Holdings while Ethereum Tower holds the remaining 2% as a noncontrolling interest. Under a management services agreement effective March 24, Tower performs delegated strategic planning and day-to-day operations for BitMine’s native staking, validator infrastructure and technology systems. BitMine subsidiary BMNR remains the formal manager and retains certain reserved powers.

The management services agreement carries a 10-year initial term. BMNR may terminate the contract for convenience with 180 days’ written notice. Tower’s 2% interest is irrevocable unless Tower sells or assigns it. Tower receives monthly revenue participation tied to BitMine’s native staking operations; the specific allocation of those payments is redacted in the public filing.

If BMNR ends the agreement early for reasons other than specified cause grounds tied to Tower-such as breach, insolvency or misconduct-Tower may choose one of two economic outcomes. It can continue receiving revenue participation for the remainder of the term even after it stops providing services, or it can elect a lump-sum payout equal to 85% of its highest monthly fee during the prior 12 months (or the shorter elapsed period) multiplied by the number of months remaining. The redacted payment schedule prevents a public calculation of the dollar value of the exit option.

The Form 10-Q states that BitMine’s results substantially depend on MAVAN and on favorable Ethereum staking economics. The filing lists risks including lower staking yields, validator downtime, slashing penalties and adverse protocol changes, any of which could reduce revenue and cash flow given the concentration of staking revenue.

The filing also sets out procedures for replacing a covered operator. If Tower must stop providing services, it must cooperate with BitMine or a designee while the company takes over validator and technology responsibilities. Tower’s 2% interest would remain in place and the same economic options would continue to apply.

Parts of the management agreement are redacted in public materials, which prevents outside parties from fully quantifying the cost of an early termination. The filing provides detailed contract terms and the company’s reported ETH holdings and staking levels for the quarter.