Bitmine forecasts $334M yearly staking income with $15.8B cryptocurrency holdings
With over 5 million ETH now staked, Bitmine has converted the majority of its Ethereum reserves into a steady revenue generator while maintaining its accumulation strategy.
Last week, Bitmine Immersion Technologies expanded its Ethereum portfolio while forecasting annual staking returns in the hundreds of millions of dollars, demonstrating how the company's substantial ETH reserves could deliver consistent income streams regardless of market turbulence.
According to a Monday statement, Bitmine purchased 27,180 ETH during the previous week, pushing its total reserves beyond 5.95 million ETH, valued at approximately $15.4 billion and accounting for about 4.9% of Ethereum's circulating supply. When factoring in cash reserves and additional cryptocurrency assets, Bitmine disclosed aggregate holdings totaling approximately $15.8 billion.
The company revealed that over 5.06 million ETH has been deployed in staking operations, producing an estimated $334 million in annualized staking income based on prevailing rates.
Having staked approximately 85% of its ETH reserves, Bitmine is transforming its cryptocurrency treasury into what could become a substantial recurring revenue stream. By comparison, the Grayscale Ethereum Staking ETF (ETHE), which was the first spot Ether US exchange-traded product, maintains 84.6% of its Ethereum assets in staking positions, based on information from the fund's webpage.
This approach also provides Bitmine with a notable competitive edge compared to Bitcoin treasury firms, whose primary BTC reserves cannot produce native staking returns.
On Monday, Bitmine's stock price showed minimal movement, hovering just under $25 during morning sessions. The equity has climbed almost 38% throughout the past month, though it continues to post negative returns for the year to date, based on data from Yahoo Finance.
Strategy skipped Bitcoin purchases last week
As Bitmine pressed forward with expanding its Ethereum treasury, Michael Saylor's Strategy opted for a second straight week without acquiring Bitcoin (BTC), instead allocating capital toward its preferred stock.
Between Sept. 8 and Sept. 13, Strategy repurchased approximately 1.42 million shares of its STRC preferred stock for $139.3 million. The week prior, the company also executed buybacks worth $176.3 million of STRC, based on a Monday regulatory filing.
As of Sept. 13, Strategy's Bitcoin reserves stood unchanged at 845,050 BTC. The company's most recent acquisition occurred in late August, when it purchased 4,603 BTC for $369.7 million.
During the final week of August, Strategy acquired 4,603 BTC for approximately $370 million, representing its initial Bitcoin acquisition since June. The ensuing hiatus, coupled with the substantial STRC buyback activity over recent weeks, illustrates the company's approach to balancing Bitcoin accumulation efforts with providing support for its preferred stock instrument.