The cryptocurrency treasury company BitMine announced this Friday that it will proceed with the launch of its “Made in America” Validator Network (MAVAN). Despite the recent market collapse, the company reaffirmed its ETH staking plans for the first quarter of 2026. Thomas “Tom” Lee, the firm’s chairman, stated that this strategy will best serve the long-term interests of its shareholders, seeking to generate passive revenue through Ethereum network validation.
Currently, the enterprise is executing pilot tests with three staking infrastructure providers ahead of the official deployment. The goal is to secure the network and earn rewards in native tokens, thus diversifying revenue sources in a volatile environment. This strategic move seeks to counter current financial pressure, offering a yield alternative while they hold their massive digital asset holdings waiting for a future market recovery.
Will the new validation strategy manage to reverse current massive losses?
The announcement comes at a critical time, as the firm faces estimated unrealized losses of 3.7 billion dollars. According to a recent report by 10x Research, the drop in Ether price below 2,700 dollars has left the company with a deficit exceeding 1,000 dollars for each unit it holds. This situation has caused a collapse in the net asset value (mNAV) of its stocks, effectively wiping out nearly all gains accumulated over the last year.
On the other hand, the corporate treasury business model faces fierce competition from new exchange-traded funds. Retail investors now have access to cheaper and regulated options, such as ETFs launched by global asset managers. These financial products offer direct exposure to digital assets and staking rewards with lower costs, making it difficult for companies like BitMine to attract new capital while their current shareholders endure large losses.
Finally, the firm bets that the implementation of MAVAN will restore confidence and add fundamental value to its operations. Although the short-term outlook is challenging due to the market correction, management maintains its conviction in Ethereum’s growth potential. The ability to generate proprietary yields could be the key to surviving this bearish phase and repositioning when macroeconomic and crypto sector conditions improve in the coming years.
