Crypto treasury firm Bitmine Immersion Technologies (NYSE: $BMNR) says that Ethereum (CRYPTO: $ETH) staking generated 98% of its revenue in its latest quarter.
The company, led by Chairman Tom Lee, said Ethereum staking became its dominant source of revenue during the fiscal quarter ended May 31, generating $45.7 million U.S.
Bitmine reported $46.5 million U.S. in total revenue for the quarter, up from $2.05 million U.S. a year earlier.
Lee has forecast that Bitmine’s annualized staking revenue will reach $284 million U.S. once all of the company’s Ethereum holdings are staked.
Staking is the process of locking up cryptocurrency assets to support a blockchain network’s security and operations in exchange for earning passive rewards such as cash or more crypto.
Analysts liken cryptocurrency staking to earning interest from a bank account.
As of May 31, Bitmine held 5.42 million Ethereum and 203 Bitcoin (CRYPTO: $BTC) with a combined market value of $10.9 billion U.S.
The company also reported $340.3 million U.S. of cash on hand and working capital of $433.1 million U.S.
Bitmine reported a net loss of $82.2 million U.S. for its latest quarter, compared with a loss of $480,000 U.S. a year earlier.
BMNR stock has declined 59% over the past 12 months to trade at $16.29 U.S. per share.
