Ethereum Near All-Time High: 3 Stocks Stacking ETH in Treasuries

Key Points

• Ethereum, the second-largest cryptocurrency, is nearing new all-time highs thanks to a wave of adoption.
• Regulatory clarity has paved the way for new Ethereum ETFs, and companies are beginning to utilize its diverse platform.
• These three stocks have already accumulated impressive ETH holdings—and all have plans for even more.

Crypto is having a moment again, but the charge is being led by an unlikely source this time. Ethereum, not Bitcoin, is the catalyst for the rally this time, and crypto’s perennial bridesmaid is finally getting a ring from Wall Street. Thanks to a wave of enthusiasm from institutional investors, Ethereum has soared nearly 100% in the last month, and prices are creeping up toward new all-time highs.

What’s behind this sudden rally? Ethereum has long been praised for its utility compared to Bitcoin, and public companies are starting to utilize it in pursuit of long-term gains. Firms like Strategy Inc. NASDAQ: MSTR have already demonstrated the potential of crypto treasury strategies, but investors are beginning to seek diversification away from Bitcoin as this space becomes crowded.

Enter Ethereum, which offers yield in ways Bitcoin can’t, and these three companies are beginning to take notice.

Ethereum vs. Bitcoin: Crypto Strategies for Public Companies

Bearer bonds are a common comparison to BTC since tokens are dispensed to holders who claim all the spoils at a fixed rate.

“To the owner goes the spoils” is undoubtedly a mantra Wall Street can adopt, and investors are willing to pay a premium for stocks with underlying crypto holdings. But while Bitcoin has been compared to digital gold, Ethereum is more like digital oil—fungible, malleable, and able to power a vast ecosystem.

Ether (ETH), the underlying token powering the Ethereum ecosystem, is a yield-bearing asset that offers companies ways of earning income besides just ‘number go up’.

Access to the Ethereum platform allows opportunities for staking, where tokens can be used as collateral for various interest-earning decentralized finance (DeFi) projects. The ability to earn yield through staking is a key difference between Bitcoin and Ethereum, at least in the eyes of Wall Street.

Companies filling their treasuries with ETH tokens surely won’t mind the price going up, but deploying these tokens through the ecosystem can deliver income to public companies without needing to sell.

Regulatory clarity has also paved the way for Ethereum ETFs to begin trading, marking the first time investors have truly embraced a non-Bitcoin cryptocurrency.

3 Stocks Utilizing Ethereum to Enhance Their Value

Owning Bitcoin has turned a non-descript tech sector company like Strategy into practically a household name in just a few short years. Now these three companies are attempting to do the same with Ethereum. As excitement for crypto on Wall Street intensifies, it’s worth remembering that these tokens are still volatile assets with no real-world cash flows, and investors must understand the risks.

Companies stacking crypto in their treasuries tend to be just as volatile as the tokens themselves, so if you buy the ticket, be prepared to take the ride.

SharpLink Gaming: New Hire Leads to New Highs

Just a few years ago, SharpLink Gaming Inc. NASDAQ: SBET was a microcap sports betting platform with minimal revenue and profitability nowhere in sight. Today, it’s still not a profitable company, but its losses are narrowing (loss of 64 cents per share in its Q2 report), and it recently hired Ethereum co-founder Joseph Lubin to chair its board.

SBET has an aggressive Ethereum strategy, planning to purchase more than $3 billion in tokens this year alone. The company’s ETH holdings already top $2.5 billion, and it's also aggressively raised capital, issuing another $400 million direct offering this month to purchase even more Ethereum. Owning a ton of Ethereum isn’t the strategy; Lubin’s decade of expertise on the platform can help SBET efficiently (and safely) deploy its holdings back into the ecosystem to earn yield.

Fundamental Global: Changing Tickers and Strategies

Fundamental Global Inc. NASDAQ: FGF is a fintech firm that is getting a facelift with its new directors and new strategy in cryptocurrency markets. It’s also changing tickers from FGF to FGNX and renaming itself FG Nexus. The company has brought on Ethereum experts Kyle Cerminara and Maja Vujinovic to its board and has initiated bold plans to purchase 10% of the existing Ethereum network.

Owning 10% of the network will require a lot of capital, and FGNX has also been ambitious in its raises. The company recently closed a $200 million private round with crypto investment firms like Kraken and Galaxy Digital. Still, its primary goals are far larger: a $5 billion shelf offering with the proceeds used primarily for Ethereum purchases. Investors seem to approve as the stock has risen 100% in the last month.

BitMine Immersion: An Original Bitcoin Stacker Changing Teams

BitMine Immersion Technologies Inc. NASDAQ: BMNR started as a Bitcoin miner, but recently pivoted to Ethereum treasury accumulation with a team of new institutional investors like Cathy Wood and Peter Thiel. Fundstrat’s Tom Lee also chairs the company’s board of directors, giving it a wide range of digital currency expertise.

BMNR has entered the Ethereum ecosystem as a whirlwind, sapping over one million tokens in just under a month. Its Ethereum holdings are closing in on $5 billion, making the company the third-largest public cryptocurrency treasury behind Strategy and Mara Digital Holdings Inc. NASDAQ: MARA. BitMine recently committed another $250 million to buy Ethereum, and plans to raise an additional $24 billion (!) for crypto purchases through equity offerings.

BMNR’s stock has been cut in half since its $135 all-time high in July, but is still up over 600% year-to-date.