Bitcoin losing its appeal? Four listed companies bet on Ethereum's new "money-making" playbook
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Bitcoin losing its appeal? Four listed companies bet on Ethereum's new "money-making" playbook
Amid the Bitcoin frenzy, four listed companies are taking an alternative approach by betting on Ethereum for their treasury reserves.
Navigating Web3 tides with focused insightsBy Christopher Rosa
Translation: Saoirse, Foresight News
Michael Saylor's innovative strategy at Strategy (formerly MicroStrategy, ticker MSTR) has been groundbreaking. His use of financial instruments to aggressively accumulate Bitcoin sparked a wave of corporate emulation. Since then, over 50 companies have followed his lead in adopting Bitcoin-centric treasury strategies, a number that continues to grow. However, a new cohort of forward-thinking firms is now charting a different course: they are not only seeking exposure to cryptocurrencies but are also deeply integrating with Ethereum’s own economic engine.
In this report, we examine the first four U.S.-listed public companies building Ethereum treasuries. We analyze their financing activities, assess their "ETH concentration" (measured as ETH held per share), and evaluate the market premium investors assign to these Ethereum-backed balance sheets. Beyond these metrics, we explore the broader implications for Ethereum’s network health, staking ecosystem, and DeFi infrastructure—highlighting how these treasury strategies do more than reshape corporate balance sheets; they channel capital directly into the core of Ethereum’s decentralized economy.
SharpLink Gaming (SBET)
Company Background
SharpLink Gaming Ltd. (NASDAQ: SBET), founded in 2019, is a technology company that converts sports fans into bettors by matching them with timely sports betting and interactive gaming services via its proprietary platform. The company also develops free-to-play games and mobile apps, and provides marketing services to sports media outlets, leagues, teams, and betting operators to deepen fan engagement. Additionally, SharpLink operates live fantasy sports and simulation games, serving over two million users with nearly $40 million in annual spending. It holds operating licenses in all U.S. states where fantasy sports and online gambling are legally permitted.
Last month, SharpLink began accumulating Ethereum (ETH) on its balance sheet, funding these purchases through a combination of private investment in public equity (PIPEs) and at-the-market (ATM) offerings. Management stated that this strategic shift stems from strong conviction in Ethereum’s future, viewing it as a yield-generating, programmable digital asset that can provide returns through staking and related opportunities. Despite this novel financial approach, SharpLink remains fully committed to its core gaming and interactive betting business—the Ethereum treasury strategy serves as a complement, not a replacement.
Financing & ETH Acquisition
SharpLink’s equity financings in 2025 have steadily funded the purchase of over 215,634 ETH, signaling a rapid transition toward an Ethereum-backed treasury model.
ETH Deployment & Staking
SharpLink has fully staked its entire Ethereum holdings. Between June 28 and July 4, it earned 100 ETH in rewards, bringing total staking rewards to 322 ETH since the program launched on June 2.
Key Takeaways
SharpLink Gaming’s move into Ethereum positions it as the public company currently holding the largest Ethereum treasury. Through multiple equity financings—including a $425 million PIPE and subsequent ATM offerings—it has rapidly amassed the largest ETH position in the sector. While this strategy carries risks, including volatility in ETH’s price, it also unlocks significant potential staking yields, highlighting the appeal of proof-of-stake digital assets as treasury reserves. By staking 100% of its ETH, SharpLink not only earns yield but actively contributes to Ethereum’s network security and stability—enhancing validator diversity and aligning corporate capital with protocol health.
BitMine Immersion Technologies (BMNR)
Company Background
BitMine Immersion Technologies Inc. (NYSE American: BMNR), headquartered in Las Vegas, is a blockchain infrastructure company operating industrial-scale Bitcoin mining facilities, selling immersion cooling hardware, and providing colocation services for third-party mining equipment in low-cost energy regions such as Texas and Trinidad.
On June 30, the company raised approximately $250 million through a private placement of 55.6 million shares at $4.50 per share to expand its Ethereum treasury. As part of the transaction, Tom Lee, co-founder of Fundstrat, was appointed Chairman of BitMine’s Board, adding seasoned crypto-strategy leadership to guide the company’s expanded Ethereum allocation.
Financing & ETH Acquisition
In late June, BitMine Immersion Technologies’ stock revalued following a $250 million private placement, underscoring its pivot to an Ethereum-backed treasury model.
ETH Deployment & Staking
BitMine holds a substantial Ethereum reserve, but as of this writing, there is no public confirmation that any portion has been actively staked or otherwise deployed on-chain.
Key Takeaways
Through its $250 million raise, BitMine added approximately 81,380 ETH to its balance sheet, bringing its total holdings above 163,000 ETH. To support this accumulation, BitMine expanded its diluted share count to over 56 million—a roughly 13-fold increase. This level of dilution highlights the capital-intensive nature of large-scale treasury accumulation in public markets and underscores the reliance on equity issuance to execute such strategies.
Bit Digital (BTBT)
Company Background
Bit Digital Inc. (NASDAQ: BTBT), based in New York, is a digital asset platform founded in 2015 that initially operated industrial-scale Bitcoin mining operations in the U.S., Canada, and Iceland.
In June 2025, the company completed a fully underwritten public offering, raising approximately $172 million. It combined these proceeds with funds from the sale of 280 Bitcoin to reinvest into Ethereum, accumulating a total of about 100,603 ETH. Under CEO Sam Tabar, a seasoned crypto executive, the company has transitioned to an Ethereum staking and treasury model.
Financing & ETH Acquisition
This chart traces Bit Digital’s equity financing, sale of 280 BTC, and reallocation of capital into over 100,000 ETH between June and July, illustrating its shift to an Ethereum-centric treasury strategy.
ETH Deployment & Staking
As of March 31, Bit Digital held approximately 24,434 ETH, of which 21,568 were actively staked, achieving an average annual staking yield of 3.2% in 2024.
Following its strategic shift, Bit Digital significantly expanded its Ethereum holdings to 100,603 ETH through the public offering and BTC sale. While the company has not yet disclosed specific post-transition staking figures or expected yields, its historical behavior suggests continued focus on generating returns via Ethereum staking.
Key Takeaways
Bit Digital’s treasury transformation is particularly notable: it combines traditional public equity financing with the unconventional step of liquidating Bitcoin holdings to buy Ethereum. This dual approach sets Bit Digital apart among listed crypto firms and reflects strong confidence in Ethereum’s yield-generating capabilities—advantages that contrast sharply with Bitcoin’s typically passive role on corporate balance sheets.
GameSquare (GAME)
Company Background
GameSquare Holdings (NASDAQ: GAME), headquartered in Texas, is a gaming media group whose portfolio includes FaZe Clan, Stream Hatchet, and GCN. It specializes in creator-led marketing content for global advertisers targeting Gen Z gamers. In July, the company raised approximately $8 million through a follow-on equity offering and partnered with crypto firm Dialectic to launch an Ethereum treasury initiative, aiming to allocate up to $100 million into ETH with targeted returns of 8% to 14%.
Financing & ETH Acquisition
This table outlines GameSquare’s initial public equity financing, designed to fund its Ethereum treasury strategy in partnership with Dialectic.
ETH Deployment & Staking
As part of a broader digital asset strategy, GameSquare completed its first Ethereum purchase, acquiring $5 million worth of ETH. This marks the company’s formal entry into crypto treasury management, aimed at diversifying assets and supporting long-term innovation.
Key Takeaways
GameSquare’s adoption of an Ethereum treasury strategy represents a bold expansion beyond its core gaming media business. Through its partnership with Dialectic and access to its Medici platform, GameSquare plans to deploy capital into DeFi to achieve returns of 8%–14%, significantly exceeding standard Ethereum staking yields (typically 3%–4%). If successful, this strategy will directly strengthen the Ethereum ecosystem by enhancing liquidity in key protocols and enriching validator participation structures. Corporate capital inflows like this could reinforce the foundational resilience of DeFi infrastructure.
ETH Concentration
The “ETH concentration” metric, pioneered by SharpLink Gaming, offers investors a clear and comparable way to assess public companies’ exposure to Ethereum. It measures ETH holdings per 1,000 diluted shares outstanding, factoring in all potential dilutive instruments such as warrants, stock options, and convertible securities. ETH holdings are either directly disclosed or estimated based on announced financings fully allocated to ETH purchases. Diluted share counts are sourced from regulatory filings, Bloomberg, SEC documents, and financial databases to ensure consistency and accuracy across companies. This metric provides investors with a straightforward tool to evaluate relative ETH exposure on a per-share basis.
This table compares the “ETH concentration” of public companies adopting Ethereum treasury strategies—defined as the amount of ETH held or planned per 1,000 diluted shares.
Market Cap Premium vs. Book Value of ETH Holdings
Comparative analysis of market cap premium versus book value of ETH holdings
The chart above shows each company’s market capitalization relative to the book value of its ETH holdings (calculated as total ETH held × $2,600 cost basis). A higher premium indicates investor valuation attributed to strategic flexibility or future earnings potential beyond the underlying ETH asset value. GameSquare (GAME) leads with a ~13.8x premium, reflecting strong optimism around its early-stage treasury buildout. BitMine (BMNR) trades at ~5x after its latest $250 million raise. Bit Digital (BTBT) and SharpLink (SBET) show more modest premiums, suggesting more conservative market expectations. As with all crypto treasury strategies, however, elevated premiums may amplify downside risk if ETH prices decline sharply.
Ethereum vs. Bitcoin Treasury Models
The rise of Ethereum treasuries marks a significant strategic evolution among crypto-focused public companies. While Bitcoin models center on the “digital gold” narrative—emphasizing passive preservation or appreciation—Ethereum goes further by enabling active yield generation through staking and DeFi, adding a compelling layer of utility.
All four companies explicitly treat Ethereum as a yield-bearing treasury asset. SharpLink and BitMine have committed to (or plan to) stake 100% of their ETH holdings to maximize protocol-level staking rewards. GameSquare, partnering with Dialectic, aims to pursue 8%–14% risk-adjusted returns using more sophisticated DeFi strategies, pushing the model further. This preference for “yielding ETH” stands in sharp contrast to Bitcoin’s “non-yielding, passive” model, signaling a shift in corporate treasury management—from relying solely on price appreciation to actively growing balance sheets through operational execution.
Unlike many Bitcoin treasury firms that rely heavily on convertible debt and leverage (see Galaxy’s latest research report), the leading Ethereum treasury companies—SharpLink, BitMine, Bit Digital, and GameSquare—are funding their ETH accumulation entirely through equity issuance. This eliminates obligations for interest payments or debt maturities and avoids default risks even during crypto market downturns. The non-leveraged approach greatly reduces systemic vulnerability and sidesteps refinancing and dilution risks associated with deep-in-the-money convertibles.
Critically, these Ethereum treasury strategies introduce a structural innovation: productive capital. By staking ETH, these companies earn native protocol yields (typically 3%–5%) while directly contributing to Ethereum’s security and stability. The more ETH these firms stake, the more stable and predictable the validator ecosystem becomes—creating a long-term alignment between corporate capital and protocol health.
In fact, as of July 9, Ethereum’s staking supply reached an all-time high (over 35 million ETH, more than 30% of total supply), and the emergence of corporate treasury holders may be a key driver behind this trend.
Take GameSquare, for example: through partners like Dialectic, it plans to enhance yield by deploying ETH into DeFi-native activities such as lending, liquidity provision (market making), and restaking. This not only amplifies return potential but strengthens the foundational protocols of Ethereum by increasing liquidity and attracting institutional participation into decentralized markets.
Which Companies Face the Highest Equity Dilution Risk?
The graphic compares dilution impacts from PIPEs, ATMs, and public stock offerings, highlighting which companies face the greatest near-term risk.
Investors should carefully assess equity financings that flood the market with new shares, especially PIPE transactions, which dilute existing shareholders and pressure stock prices. BitMine’s large-scale PIPE exposes it to significant near-term dilution risk and price volatility. SharpLink’s combination of PIPE and ATM financing creates both immediate and ongoing incremental dilution. In contrast, Bit Digital and GameSquare used more transparent traditional public offerings, resulting in clearer, more predictable dilution and lower market risk.
Overall, companies using PIPE structures face higher initial market impact risks—especially during volatile periods—compared to ATMs or public offerings. However, all these equity-based strategies avoid the high-leverage, convertible-bond-dependent model employed by Michael Saylor at Strategy.
Conclusion
At first glance, the extreme volatility of Ethereum treasury stocks might resemble the speculative boom-bust cycles typical of meme coins. But the strategies adopted by the first movers in this space are fundamentally different. These companies are not riding hype or holding assets passively. Instead, they position Ethereum as a “productive treasury asset,” earning native yield through staking or, in some cases, deploying capital into advanced DeFi strategies. This contrasts sharply with Bitcoin treasury pioneers, who adhere to a “passive digital gold” model often financed through high-leverage convertible bonds. In contrast, SharpLink, BitMine, Bit Digital, and GameSquare fund their strategies entirely through equity, avoiding debt service obligations and the structural fragility of looming maturity walls.
Moreover, this capital is not idle. By staking ETH, corporations directly contribute to network validator security and protocol stability. And firms like GameSquare, planning to engage with native DeFi yield strategies, could inject vital liquidity into Ethereum’s lending markets and core infrastructure.
While challenges remain—including dilution risk, smart contract exposure, and price volatility—investors can use tools like dilution analysis and premium-to-book ratios to weigh downside risks against upside potential driven by yield and ecosystem growth. Ultimately, this first wave of Ethereum treasury models demonstrates a deeper, more productive form of corporate engagement. Though it introduces a new class of on-chain treasury exposures vulnerable to market swings, it may also become a powerful catalyst for strengthening the Ethereum ecosystem.
Disclosure: As of the date of this report, affiliated entities of Galaxy Digital hold investments in BitMine and SharpLink Gaming.
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