A small but growing number of publicly traded companies are adopting an “Ethereum treasury model,” adding the cryptocurrency to their balance sheets to boost stock valuations. This strategy mirrors the successful Bitcoin treasury model, where companies raise capital from investors specifically for cryptocurrency purchases.
SharpLink Gaming is a prominent example of this new trend. The company’s shares surged 150% over a recent 30-day period after it pivoted to this strategy. It has since become the largest corporate holder of Ether, amassing 280,706 coins valued at approximately $960 million, a holding larger than that of the nonprofit Ethereum Foundation. In early July, SharpLink raised over $400 million to fund its Ether acquisitions and retains more than $250 million for future purchases.
This approach replicates the playbook pioneered by MicroStrategy with Bitcoin, which involves tapping capital markets for funding crypto buys rather than using cash from operations. The success of such a strategy is heavily dependent on the sustained price appreciation of the underlying digital asset.
While the model has proven effective for Bitcoin holders during its price surges, whether it will yield similar results for Ethereum remains to be seen. Other companies, including Bitmine Immersion Technologies and Bit Digital, also announced pivots to an Ethereum treasury model in June, with some winding down previous Bitcoin-related operations to do so. The lower price of Ether compared to Bitcoin may present a more accessible entry point for smaller-cap companies looking to adopt a similar strategy.
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