Bitmine Immersion Technologies told the Securities and Exchange Commission that staking and validation generated 97% of its revenue in the fiscal year ended August 31, according to its annual 10-K filing. The Tom Lee-led ether treasury company booked zero staking revenue a year earlier.

Revenue surges as staking takes over

Total sales jumped to $124.8 million from $6.1 million a year earlier. Of the $124.8 million in total revenue, $121.4 million came from staking. The jump reflects the rapid build-out of Bitmine's validator operations over the past year.

Bitmine launched native staking in November 2025. Staking involves committing ETH to help secure Ethereum's proof-of-stake network — the consensus model Ethereum adopted in place of mining in September 2022 — with validators earning rewards denominated in ETH. The company operates its own ETH on validators through MAVAN, an institutional staking platform it launched on March 25, 2026, as well as through third-party providers acting on its behalf.

One day before the MAVAN launch, Bitmine acquired Australian validator firm Pier Two through MAVAN Holdings. Pier Two generated $10.8 million in staking revenue for the year and now operates under the MAVAN brand. MAVAN also supplies staking for institutional investors, custodians and ecosystem partners.

Staked ETH rewards accrue at a gross annual rate of approximately 2.5% to 4.0%. Legacy business lines are barely registering: self-mining contributed $1.4 million, leasing $1.5 million and consulting $565,000.

“Because our staking rewards are received in ETH, a decline in ETH prices would reduce the U.S. dollar value of our staking revenue, even if the amount of ETH we earn remains unchanged,” the company said in the filing.

Cost of sales rose to $18.3 million from $5.8 million, chiefly due to staking costs. Since September 4, American Validator LLC has been taking a 1.5% fee on Bitmine's staked ETH rewards for advising MAVAN.

The 10-K identifies the revenue concentration as a risk factor. With staking and validation now supplying nearly all sales, the company warned that a disruption at MAVAN, lower staking yields or validator downtime could disproportionately hit revenue.

Unrealized ETH markdowns drive $6.31 billion net loss

The same ETH exposure shaped the bottom line. Bitmine posted a net loss of $6.31 billion, versus net income of $348.6 million a year earlier. Of that total, $6.23 billion stemmed from unrealized markdowns on digital assets — under fair-value accounting rules now in force for companies holding crypto, token holdings are marked to market each reporting period, so paper swings flow straight into net income even when nothing is sold.

Paper losses on the treasury had already surpassed $7 billion in February, when ether was trading at around $2,048. As of August 31, Bitmine held 5,901,837 ETH worth $14.56 billion, on a cost basis of $19.95 billion.

During the year, Bitmine raised $13.2 billion from 395.1 million at-the-market shares — a structure that lets companies sell newly issued stock into the open market over time at prevailing prices — and bought back 20.8 million shares at $17 each on average.

An update dated November 9 showed holdings had reached 6,070,092 ETH by November 8, or about 4.97% of supply, with 5.227 million staked. Lee has said buying stops at 5% of supply, a target he calls the “Alchemy of 5%.” Bitmine was about 187,000 ETH short of that line in August, Cryptopolitan reported.

The company is also moving its fiscal year end to December 31, taking it off the August 31 calendar. Its next filing will be a 10-KT covering September 1 to December 31, 2026 — the first reporting period under the new calendar.