BitMine earns 98% of revenue from staking; Tower has exit options

BitMine reported in a Form 10-Q filed July 14 that staking and validation generated $45.743 million, or 98.3% of $46.535 million in revenue, in the quarter ended May 31, 2026. The company held 5,416,945 ETH at quarter-end, with that holding valued at $10.856 billion in the filing.

A June 1 update in the filing showed about 4,718,677 ETH staked out of 5,416,901 ETH held, roughly 87% of its holdings. BitMine noted its stated target to acquire 5% of Ethereum’s supply remains forward-looking.

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

The agreement describes Tower’s 2% interest as irrevocable unless sold or assigned. Tower receives monthly revenue participation from BitMine’s native staking operations, with the exact allocation redacted in the filing. The schedule specifies Tower is not entitled to revenue from third-party staking operations.

The contract carries a 10-year initial term. BMNR may terminate for convenience with 180 days’ prior written notice. If BMNR ends the agreement early for reasons other than specified cause tied to Tower, Tower may either continue to receive revenue participation for the remaining term or elect a lump-sum payment equal to 85% of its highest monthly fee in the prior 12 months multiplied by the number of months remaining.

Because the fee allocation schedule is redacted, the filing does not provide a public calculation of the dollar cost to end the agreement early. A covered operator replacement would trigger a separate transition test in which Tower must stop providing services and cooperate while BitMine or a designated replacement takes over validator and technology responsibilities. Tower’s 2% equity interest would remain and the same choice between continuing revenue participation or the formula-based exit payment would apply.

The Form 10-Q states that BitMine’s results are substantially dependent on MAVAN and Ethereum staking economics. The filing identifies risks that could reduce revenue and cash flow, including lower staking yields, validator downtime, slashing penalties and adverse changes to the Ethereum protocol.