How do treasury companies leverage ETH to make money from money?
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How do treasury companies leverage ETH to make money from money?
A deep dive into the Ethereum staking strategies and yield generation methods of the top 10 Ethereum treasury companies.
Navigating Web3 tides with focused insightsBy KarenZ, Foresight News
Ethereum is attracting increasing numbers of institutions and companies to include it in their treasury assets or strategic reserves. Since the second half of 2025, a wave of "Ethereum treasuries" has emerged, with numerous publicly traded companies adding ETH to their balance sheets or cash reserves—not only as a store of value but also generating yield through mechanisms such as staking.
According to Strategic ETH Reserve, there are currently 70 public companies, projects, or entities (each holding over 100 ETH) that treat Ethereum as a strategic reserve or hold Ethereum. The latest data shows these entities collectively hold more than 4.1 million ETH, valued at approximately $17.6 billion, representing 3.39% of ETH’s total supply. Among them, companies that have launched an Ethereum treasury strategy cumulatively hold about 3 million ETH, worth around $12.86 billion.
The 14 companies that have initiated an Ethereum treasury strategy are: BitMine, SharpLink Gaming, The Ether Machine, Bit Digital, ETHZilla Corporation, BTCS Inc., FG Nexus, GameSquare Holdings, ETH Strategy, Intchains Group, IVD Medical Holdings IVD, BTC Digital Ltd, Centaurus Energy Inc., and Cosmos Health.
This article will explore in depth the Ethereum staking strategies and yield-generation methods of the top 10 Ethereum treasury companies.
Overall, these top 10 companies—core representatives of "Ethereum treasury companies"—have not only built substantial asset reserves through large-scale ETH accumulation but also demonstrated diverse approaches in staking and yield generation:
Some companies choose to partner with professional staking providers to achieve stable returns using their technology and resources; others deeply engage with the Ethereum network by operating their own validator nodes or participating in liquid staking; some enhance overall ETH returns through staking and restaking combined with DeFi activities such as lending, liquidity provision, and MEV optimization; and others are exploring advanced strategies like looping loans.
These practices reflect growing recognition of ETH as a store of value and highlight its potential for generating incremental yield, offering reference models for other institutions considering ETH for treasury allocation, while also advancing the maturity of the Ethereum ecosystem.
BitMine
Less than two months after announcing its Ethereum treasury strategy, BitMine has become the largest corporate holder of ETH, increasing its holdings from zero to 1,523,373 ETH, with a goal of accumulating 5% of ETH’s total supply. Thomas Lee, Wall Street strategist and co-founder of Fundstrat Global Advisors, joined BitMine’s board as chairman. On July 16, according to filings with the U.S. Securities and Exchange Commission, PayPal co-founder and Silicon Valley venture capital icon Peter Thiel acquired a 9.1% stake in BitMine Immersion Technologies.
BitMine has not yet begun staking ETH. However, BitMine stated that one of Ethereum’s key features is its support for smart contracts, where most stablecoin payments, tokenized assets, and decentralized finance applications operate. By directly holding ETH, the company can participate in native protocol-layer activities on the Ethereum network, such as staking and DeFi mechanisms.
Bill Miller III (Senior Advisor at Miller Value Partners), an investor behind BitMine, said in August: "Once BitMine begins staking ETH, its profitability will be very significant."
SharpLink Gaming
NASDAQ-listed SharpLink Gaming was originally an online performance marketing company focused on the U.S. sports betting and global iGaming industries. In early June this year, it designated ETH as its primary reserve asset. Joseph Lubin, co-founder of Ethereum and founder & CEO of Consensys, joined SharpLink Gaming as chairman of the board.
As of August 19, SharpLink Gaming holds approximately 740,760 ETH and has staked nearly 100% of its ETH holdings, earning 1,388 ETH in staking rewards. SharpLink Gaming primarily stakes through Liquid Collective and Figment.
The Ether Machine
On July 21, blank-check company Dynamix announced a merger with another entity to form a new company named "The Ether Machine." The merged company plans to hold over $1.5 billion worth of ETH.
Currently, The Ether Machine holds (through purchases and committed investments) a total of 345,362 ETH. Andrew Keys, Chairman and Co-Founder of The Ether Machine, stated that the company's mission is to buy ETH, stake and restake it, and deploy it into on-chain operations.
The author found in The Ether Machine Deck that its Ethereum strategy includes:
1. Accumulate ETH: Build an ETH reserve through purchases and strategic partnerships.
2. Compound ETH:
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Native staking and restaking ETH, either independently or via staking providers: earn staking rewards and additional restaking yields through delegation or running validators.
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Seize DeFi opportunities: explore on-chain opportunities to generate risk-adjusted attractive returns.
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Provide institutional-grade staking services: build turnkey staking and restaking solutions for enterprises and funds, continuously generating ETH-denominated income.
3. Strengthen the Ethereum network and reach institutional and retail users.
Notably, The Ether Machine also discussed in an Empire interview the use of LST/LRT tokens to implement a looping loan strategy on Aave.
Currently, The Ether Machine has not publicly disclosed specific details of its ETH staking or handling strategy.
Bit Digital
NASDAQ-listed mining firm Bit Digital (BTBT) announced on July 7 that it had completed a full transition to an Ethereum treasury strategy. Bit Digital’s official description—"Bit Digital is a listed digital asset platform focused on Ethereum-native asset management and staking strategies"—clearly defines its positioning.
As of August 11, 2025, its Ethereum holdings amounted to 121,076 ETH. In its Q2 earnings report, Bit Digital disclosed earning 166.8 ETH in staking rewards during the quarter. Additionally, as of August 11, 2025, 105,015 ETH were staked.
According to GuruFocus, during Bit Digital’s Q2 earnings call, CFO Erke Huang responded to the question, "How does Bit Digital handle Ethereum staking? Are there plans to manage validator nodes internally?" by stating that Bit Digital partners with Fireblocks and Figment for staking, achieving approximately 3% yield with costs under 10%. While internal node management has been considered, the company currently relies on the expertise and support of institutional partners.
In addition, according to Arkham data, Bit Digital entities hold 4,719 LSETH (Liquid Collective) and 9,657 ETH (data incomplete).
ETHZilla
ETHZilla was originally an innovative biotech company (formerly known as 180 Life Sciences) and is now expanding its business into software-driven gaming and entertainment. ETHZilla is developing ETH accumulation tools. In August, PayPal co-founder and Silicon Valley venture capital icon Peter Thiel and his investment team acquired a 7.5% stake in ETHZilla, an Ethereum treasury reserve company.
According to ETHZilla’s latest filing, it currently holds 94,675 ETH at an average purchase price of $3,902.20.
Electric Capital serves as ETHZilla’s external asset manager and plans to implement a differentiated on-chain yield generation program, leveraging a combination of staking, lending, liquidity provision, and custom private agreements to go beyond traditional ETH staking. Electric Capital was also one of the investors in the company’s $565 million private placement and convertible bond issuance prior to its rebranding as ETHZilla.
BTCS Inc.
BTCS Inc. (NASDAQ: BTCS) is a U.S.-based blockchain infrastructure technology company dedicated to driving scalable revenue and ETH accumulation through a DeFi/TradFi value flywheel.
As of July 28, 2025, BTCS Inc.’s total ETH holdings reached 70,028 ETH. On July 16, BTCS was added to the Russell Microcap Index.
BTCS Inc. also operates cloud-based validator nodes on the Ethereum blockchain through its NodeOps service to secure the network, earn staking rewards, and enhance shareholder value.
As of August 12, 38% of BTCS Inc.’s ETH holdings are staked through validator nodes operated by BTCS Inc. (Solo Staking), 55% are earning interest on Aave while BTCS borrows stablecoins to purchase additional ETH. Additionally, BTCS Inc. is a professional node operator on Rocket Pool (accounting for 6%), aiming to scale operations, earn staking income, and gain extra pool reward shares.
Moreover, BTCS Inc. uses its core infrastructure Builder+ with sophisticated algorithms to maximize revenue by optimizing block building and transaction ordering through maximal extractable value (MEV), generating scalable income for the company.
According to BTCS Inc.’s Q2 financial report, the Builder+ segment generated $2.51 million in revenue during Q2, compared to just $76,000 in Q2 2024. Additionally, BTCS Inc. earned $4 million in net gains from DeFi lending on Aave using ETH as collateral, stating it provides flexible on-demand liquidity while retaining full ownership and control over the underlying ETH collateral.
After the end of Q2, BTCS Inc. expanded its ETH-backed DeFi lending by increasing ATM sales, issuing convertible notes, and expanding ETH-backed borrowing on Aave, raising over $192 million, bringing its ETH holdings to 70,140 ETH as of August 12, 2025—a 478% increase from its Q2 ending position.
FG Nexus
Fundamental Global Inc., a NASDAQ-listed company, rebranded to FG Nexus Inc. at the end of July and launched its Ethereum treasury strategy, completing a $200 million private placement. Investors include Galaxy Digital, Kraken, Hivemind Capital, Syncracy Capital, Digital Currency Group (DCG), and Kenetic.
In August, FG Nexus filed a $5 billion shelf registration statement with the U.S. Securities and Exchange Commission (SEC) to support its ETH accumulation strategy. On August 11, FG Nexus announced that all net proceeds from the $200 million private placement have been used to purchase ETH, bringing its current holdings to 47,331 ETH.
FG Nexus stated that to enhance its ETH yield, it will conduct staking and restaking, and also explore tokenized RWAs and stablecoin yields.
GameSquare
GameSquare Holdings, Inc. is a NASDAQ-listed media, entertainment, and technology company that launched its Ethereum treasury management strategy in July 2025. As of August 4, GameSquare’s ETH holdings reached 15,630 ETH.
GameSquare has initiated its ETH treasury management strategy via Dialectic’s on-chain yield platform, targeting an annualized return of 8% to 14%. GameSquare stated that all net income from its Ethereum yield strategy will be used to repurchase its stock.
ETH Strategy
ETH Strategy is an autonomous financial protocol within the Ethereum ecosystem. By utilizing long-term convertible bonds, ETH Strategy enables participants to pledge assets to the protocol in exchange for convertible notes, gaining leveraged ETH exposure with downside protection.
Recently, ETH Strategy raised funds through three channels: a private round raising 6,900 ETH, a public round raising 1,242 ETH, and 4,200 ETH from redeemable warrants, totaling 12,342 ETH.
In August, ETH Strategy partnered with Ether.Fi and Lido to allocate part of its funds toward liquid staking.
Intchains Group
Intchains Group is a NASDAQ-listed company focused on altcoin mining products and ETH holdings.
Intchains Group’s ETH treasury management strategy centers on a disciplined dollar-cost averaging (DCA) approach, regularly allocating capital to gradually accumulate ETH.
According to Intchains Group’s official website, as of the end of Q2, it held 8,816 ETH at an average cost of $2,615. Intchains Group intends to deploy part of its ETH holdings into yield-generating activities, including staking and liquidity provision, to generate incremental returns from idle assets.
At the end of July, Intchains Group announced a partnership with FalconX, a prime broker for institutional digital asset investors, to expand its ETH digital asset reserves and explore potential yield enhancement through structured ETH yield strategies. This collaboration focuses on two main areas:
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Optimize ETH Purchases: FalconX will implement customized derivative-based trading strategies, such as funded put selling for Intchains Group.
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ETH Yield Enhancement Strategy: FalconX will support Intchains Group in boosting returns on its ETH holdings through a combination of lending and derivatives strategies. Preliminary models suggest an annualized yield of up to 10% on Intchains’ ETH holdings.
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