- BitMine plans $24.5B raise to expand its Ethereum holdings, strengthening its market position.
- SharpLink aims to acquire nearly 1M ETH, solidifying its place in corporate treasuries.
- Corporate treasuries drive ETH’s rise as its price nears all-time highs, boosting markets.
Corporate treasury companies are intensifying their acquisitions of Ethereum (ETH) holdings, with BitMine Immersion and SharpLink Gaming leading the trend. Adding to this trend, BitMine has filed with US federal regulators to raise its fundraising target to $24.5 billion, a bold move aimed at expanding its Ethereum treasury. As corporate interest in Ethereum grows, these firms are reshaping the landscape of digital asset management.
BitMine Immersion’s Bold $24.5B Fundraise
BitMine Immersion, currently the largest corporate Ethereum owner, plans to sell common stock worth $24.5 billion. This increase in its original stock offering of $4.5 billion shows the company’s commitment to acquiring more ETH. Also, the company is selling stocks at $0.0001 each, though it’s unclear how much of the funds will be directly invested in Ethereum. Currently, BitMine owns more than $2 billion worth of ETH.
The move positions BitMine at the center of a growing trend among publicly traded firms that are accumulating Ethereum as a reserve asset. In line with the approach Michael Saylor has taken with Bitcoin, companies such as BitMine and SharpLink Gaming have made Ethereum a key component of their larger corporate strategy.
SharpLink Gaming’s Surge to 1 Million ETH
Another key player in the Ethereum treasury race, SharpLink Gaming, is also increasing its acquisitions. The firm recently raised $389 million by issuing stocks and aims to allocate a large part of it to Ethereum. SharpLink has already acquired more than $2.64 billion worth of ETH. Its goal is to increase its assets to approximately 1 million tokens.
This trend of ETH amassing has added to the cryptocurrency’s rally, with Ethereum approaching an all-time high. The surge follows an interest by companies and institutional investors in using Ethereum as a reserve asset.
Growing Corporate Adoption and Risks
The rising acquisition of Ethereum highlights an increase in its role as a store of value, which is skyrocketing. At the current market values, ETH trades around $4,600, having gained 40% in value since the start of the year.
Source: CoinMarketCap
Corporate interest and the increasing popularity of Ethereum applications such as decentralized finance (DeFi) protocols fuel the asset’s upward momentum. The presence of Ethereum in the DeFi ecosystem, paired with its increased applications in tokenization, has contributed to its establishment as a major asset in the cryptocurrency market.
Nevertheless, the trend triggers concerns regarding the sustainable future of using ETH as a corporate asset. Ethereum price volatility risks may raise fears about using it as a core balance-sheet asset. Moreover, the volatility of crypto assets may be challenging to manage, especially for a firm run by a risk-averse shareholder like a public company.
Related: Ethereum ETFs Smash Records with $1.01B Inflows, Outpacing Bitcoin ETF
Furthermore, although the price of Ethereum is on the rise, it remains susceptible to market volatility, as does its suitability as a reserve asset within a company treasury. Increased demand for Ethereum is also indicated by the success of Ethereum exchange-traded funds (ETFs), which have reported record inflows. This capital transfer to Ethereum-based funds also reinforces the price of ETH, which indicates the increasing confidence of institutions in the asset.
With corporate treasuries steadily increasing their Ethereum stakes, analysts have suggested that they may own up to 10% of the circulating supply of ETH, a trend that could prove revolutionary to the Ethereum ecosystem and the cryptocurrency market at large.
