BitMine Bets on U.S. Staking Network Despite $3.7B ETH Losses
Crypto treasury firm BitMine is preparing to launch a major new staking initiative—dubbed the Made in America Validator Network (MAVAN)—as part of its long-term strategy to generate ongoing revenue from its substantial Ether (ETH) holdings.
The company, which holds both ETH and Bitcoin (BTC), said on Friday that it is now piloting the program with three U.S.-based staking infrastructure providers ahead of a full rollout planned for the first quarter of 2026.
The MAVAN network will stake BitMine’s ETH reserves to validate transactions on the Ethereum blockchain. Staking is a fundamental component of proof-of-stake (PoS) networks, allowing participants to earn rewards paid in the network’s native token—in this case, ETH—in exchange for helping secure the blockchain.
“At scale, we believe our strategy will best serve the long-term best interests of our shareholders,” BitMine chairman Tom Lee said in the announcement, framing MAVAN as a sustainable revenue engine for the company’s expanding digital asset balance sheet.
Crypto Treasury Stocks Hit Hard as Market Downturn Accelerates
BitMine’s move comes during one of the most challenging periods on record for crypto treasury companies. These firms—whose business models rely on accumulating large positions in BTC, ETH, or other digital assets—have seen their stock valuations plummet throughout 2025.
A critical metric for the sector, the multiple on-net asset value (mNAV), has collapsed across the industry as crypto prices fall and investor appetite for treasury-backed equities shrinks. This metric typically measures the premium that public markets assign to a company’s crypto holdings. But with markets souring, those premiums have evaporated.
BitMine’s stock has suffered the same fate. Like its peers—including other companies specializing in Ethereum and Bitcoin accumulation—it has tracked sharply lower in recent months as investors rotate away from high-risk growth assets and toward lower-cost, regulated vehicles such as spot exchange-traded funds.
BitMine share price (Source: Google Finance)
The combination of falling token prices, shrinking premiums, and weakening demand has placed the business models of many treasury companies under pressure.
The downturn has even spilled into broader market sentiment, with some analysts speculating about liquidity issues among key market makers.
BitMine Absorbs Over $3.7 Billion in Unrealized ETH Losses
BitMine’s ambitious staking plans arrive at a time when its Ethereum holdings are deep underwater.
According to a Thursday report from 10x Research, the company is currently sitting on more than $3.7 billion in unrealized losses due to Ethereum’s steep decline.
The analysis was based on an ETH price of $3,023, but even that figure became outdated by Friday. ETH slipped toward $2,700, worsening already severe losses for the company.
At current prices, BitMine is more than $1,000 per ETH below its acquisition cost, after accumulating the asset aggressively during its rally to all-time highs in July and August.
Ethereum’s dramatic fall—down from over $4,900 at its August peak—has erased nearly a year’s worth of gains for most crypto treasury firms. Should the decline continue, analysts warn that companies with heavy ETH exposure could face even greater financial pressure.
ETH price (Source: CoinGecko)
“Treasury companies will face a hard reality: attracting new retail investors becomes nearly impossible when existing shareholders are sitting on billions in losses,” 10x Research noted.
Competition From Asset Managers Intensifies
The weakness in crypto treasury stocks is further compounded by a structural shift in how investors gain exposure to digital assets.
Asset-management giants like BlackRock, along with a growing roster of ETF issuers, are increasingly offering lower-cost products that provide both price exposure and staking rewards—traditionally the core value proposition of crypto treasury companies.
These traditional finance entrants have begun chipping away at market share once controlled by specialized crypto firms. With the launch of spot Bitcoin and Ethereum ETFs in 2024, investors have a growing menu of mainstream options that do not rely on the corporate strategies or balance sheets of treasury companies.
This changing landscape raises existential questions about the future of the treasury-model business. BitMine’s MAVAN initiative appears designed to answer at least part of that challenge by transforming its ETH holdings into productive, yield-generating assets rather than purely speculative positions.
Whether that long-term strategy is enough to weather the current storm—marked by collapsing token prices, shrinking valuations, and fierce competition—remains to be seen. But for now, BitMine is betting that U.S.-based staking infrastructure and a formal validator network can help stabilize its financial outlook heading into 2026.
