Yesterday, July 30th, was the 10-year anniversary of Ethereum’s launch. In today’s Crypto for Advisors newsletter, Alec Beckman from Psalion writes about Ether’s growing role as a treasury reserve asset and highlights growing trends.
Then, Eric Tomaszewski from Verde Capital Management answers questions about Ether as an investment in Ask an Expert.
Thank you to our sponsor of this week’s newsletter, Grayscale. For financial advisors: register for the upcoming Minneapolis event on September 18th.
Ethereum: The Rising Treasury Asset Reshaping Corporate Finance
Ether, the cryptocurrency of the Ethereum blockchain, is rapidly being adopted by public companies as a strategic treasury asset, an evolution that is helping to reshape corporate finance and shift ETH’s market dynamics.
Bitcoin has long dominated the digital treasury conversation. Its capped supply and decentralized nature make it a hedge against inflation and a store of value. Ether is catching up, thanks to its yield potential, economics, real-world utility, and maturing institutional infrastructure.
Why Ethereum Appeals to Treasuries
Ethereum’s 2022 transition to proof-of-stake enabled holders to earn annual staking yields between 2% and 4%, creating a passive income layer that Bitcoin doesn’t offer. The asset has also been deflationary at times, with more ETH burned than issued, supporting a store-of-value thesis.
At the same time, Ethereum powers an ecosystem of decentralized applications, tokenized assets, and smart contracts. For corporations, it can function not only as a reserve asset but also as capital for deploying services and infrastructure.
The ETH Treasury Wave
Several public companies are now building treasury strategies around ETH, following early movers like MicroStrategy in Bitcoin:
- Bit Digital holds over 120,300 ETH and stakes its entire allocation. CEO Sam Tabar calls it a “flywheel model,” where staking yield funds operations. They plan to add more to the tune of > $1b.
- BTCS recently increased its holdings to over 70,000 ETH and was among the first public firms to stake ETH as a treasury strategy.
- Bitmine Immersion is aiming to acquire 5% of total ETH supply. Backed by significant funding and led by Tom Lee, it now holds over 625,000 ETH.
- Sharplink Gaming holds more than $1.67 billion in ETH, adding nearly 80,000 coins in a single week and pursuing staking as a core strategy. Joe Lubin is a board member and running their ETH acquisition strategy.
- Gamesquare has allocated an initial $30 million in ETH with approval to scale to $250 million. It also plans to integrate DeFi and NFT-based yield as differentiators. GameSquare sees the Ethereum Network as Manhattan, with a Financial District (DeFi), an art district (NFTs), and more. Investing in it today is critical for future value and use.
- The Ether Machine, a SPAC-backed vehicle spun out from Publicly Traded Dynamix, is targeting $1.5 billion in ETH as it prepares to go public.
The companies listed above all plan to add significantly more. Other companies have just announced their holdings such as ETHzilla.
These companies aren’t just buying… they’re signaling long-term conviction and, in many cases, building products and revenue streams directly on Ethereum. One example is GameSquare, whose strategy closely aligns with their audience in the gaming, media, and entertainment industries and sees the connection with on-chain products built on Ethereum. It is important to them to foster financial alignment with their audience.
BTCS is implementing a similar strategy to align with its audience, as block building and staking create a vertical stack on the Ethereum Network, resulting in efficiencies in transactions and staking.
The Demand–Supply Imbalance
ETH’s price has climbed steadily in recent months, and public company purchases are one of the primary catalysts for this increase. In a recent 30-day span, over 32 times more ETH was purchased than issued. That includes buying from treasury allocators, staking vehicles, and newly approved ETFs. A continuation of this trend will create a supply shock.
Unlike Bitcoin, where miners often must sell their bitcoin to cover operational costs, Ethereum’s shift to proof-of-stake reduces sell-side pressure and aligns holders with securing the network.
Conclusion
Ethereum is no longer just a platform for developers; it’s now a financial asset that public companies are adopting at scale. With built-in yield, deflationary dynamics, and rising institutional demand, ETH is emerging as a cornerstone of corporate treasury strategy. As more firms move from “interested” to “allocated,” this new wave of ETH buyers may help define the next phase of the crypto cycle.
Special thank you to Sam Tabar, CEO of Bit-Digital, Charles Allen, CEO of BTCS, Justin Kenna, CEO of GameSquare and Rhydon Lee, managing partner of Goff Capital (affiliated with GameSquare) on sharing their insights with me on ETH Treasury Companies, differentiation, and the Ethereum network in general.
– Alec Beckman, vice president of growth, Psalion
Ask an Expert
Q: Why is ETH being discussed as a strategic reserve asset?
A: Ethereum has quietly become financial infrastructure, not just a speculative asset.
Unlike bitcoin (which is mostly a “store of value” ), ETH powers a real economy that ties to smart contracts, tokenized assets, stablecoin transactions, and decentralized financial services. As more economic activity settles on Ethereum, ETH is being considered a reserve asset by institutions, fintech firms, DAOs, and even sovereign actors.
The reason is that ETH is the fuel that makes the system work. It’s similar to holding oil in an energy economy or treasuries in a dollar system.
Q: Should corporate treasuries treat ETH like a cash equivalent, long-duration tech-oriented equity, or a form of intangible infrastructure?
A: In practice, I see this as a new sleeve in the portfolio that I’d call a “digital infrastructure reserve.” It carries tech beta and regulatory risk, but also offers operational utility (smart-contract escrow, settlement, tokenization rails). That’s neither cash nor equity.
Q: How do you translate “ETH as a strategic reserve” into practical implications?
A: For institutions and treasuries:
- ETH serves as the cash and collateral for running on-chain businesses.
- It generates yield (staking) like T-bills.
- It’s held on balance sheets, declared in treasury policies, and audited.
For individuals & families:
- ETH is treated as a long-term strategic asset.
- Allocated thoughtfully (at least 1 — 5%) and separated from short-term needs.
- Used to earn staking income, hedge against fiat devaluation, and gain exposure to Ethereum’s growing role in finance and tokenized infrastructure.
Q: What would prove that ETH deserves to be treated like a serious reserve asset over the next 10 years?
A: If more of the world’s financial activity like tokenized real estate, stablecoins, and large international payments are settling directly on Ethereum, it shows growing trust in the network. As Ethereum becomes core infrastructure for global value transfer, ETH moves from speculation to a legitimate strategic reserve.
Strategicethreserve.xyz is a great source for gauging progression. Beyond that, it’s helpful to watch the innovation and creativity of names like Robinhood and The Ether Machine, to name a few.
– Eric Tomaszewski, financial advisor, Verde Capital Management
Keep Reading
- The White House released its first Digital Asset Policy Report on Wednesday, July 30th.
- Billionaire Ray Dalia recommends a 15% bitcoin exposure in portfolios to hedge against fiat debasement.
- Samsung has partnered with Coinbase to integrate crypto payments for Samsung users.