Is Bitcoin no longer appealing? Four listed companies bet on Ethereum's new money-making strategy.

In the Bitcoin craze, four listed companies have taken a different approach by betting on Ether's capital reserves. They do not simply rely on Coin Hoarding but instead use methods like staking to make their capital grow, reshaping the logic of corporate assets.

Written by: Christopher Rosa

Compiled by: Saoirse, Foresight News

Michael Saylor's innovative strategy implemented at MicroStrategy (formerly Strategy, stock code MSTR) is quite groundbreaking. He has significantly increased his holdings in Bitcoin through financial instruments, a move that has sparked a trend among businesses. Since then, more than 50 companies have followed his Bitcoin-centric reserve strategy, and this number continues to rise. However, today, a select group of insightful companies are taking a different approach: they are not only pursuing exposure to cryptocurrencies but are also focusing on forming a deep alignment with Ethereum's own economic engine.

In this report, we will focus on the first four publicly listed companies in the United States that have established Ethereum reserves. We will analyze their financing activities in depth, assess their "Ethereum concentration" (i.e., the amount of Ethereum held per share), and dissect the market premium that investors assign to these Ethereum-backed companies' capital reserves. In addition to the aforementioned indicators, we will also explore the broader impact of this phenomenon on the health of the Ethereum network, the staking ecosystem, and the DeFi infrastructure, emphasizing that these capital reserve strategies not only reshape the companies' balance sheets but also inject capital directly into the core areas of the Ethereum decentralized economy.

SharpLink Gaming (SBET)

Company Background

SharpLink Gaming Ltd. (NASDAQ: SBET) was founded in 2019 and is a technology company. The company matches timely sports betting and interactive gaming services for sports enthusiasts through its proprietary platform, thereby converting them into betting users. Additionally, the company develops free games and mobile applications, providing marketing services to sports media organizations, leagues, teams, and betting operators to deepen fan engagement. Moreover, SharpLink also operates real-money fantasy sports and simulation games, with a user base of over 2 million and an annual consumption of nearly $40 million. At the same time, the company has obtained operating licenses in all U.S. states where fantasy sports and online betting are legally allowed.

Last month, SharpLink began accumulating Ethereum (ETH) on its balance sheet and financed these acquisitions through a combination of private investment in public equity (PIPEs) and at-the-market (ATM) offerings. The company's management team stated that this strategic shift stems from their strong confidence in the future of Ethereum, believing that as a revenue-generating, programmable digital asset, it enables the company to profit from staking and related income opportunities. Despite adopting this novel financial strategy, SharpLink remains fully focused on its core gaming and interactive gambling business, with the Ethereum capital reserve strategy serving only as a supplement, rather than a replacement for its core business.

financing and Ethereum acquisition status

SharpLink has steadily used the funds raised through equity financing in 2025 to purchase over 215,634 Ether, indicating that the company is rapidly transforming into a fund reserve model supported by Ether.

Ethereum deployment and stake

SharpLink has staked all of its held Ether reserves, earning a reward of 100 Ether during the period from June 28 to July 4. Since the launch of the staking program on June 2, the total staking rewards have reached 322 Ether.

Key Points

SharpLink Gaming's strategic move into Ethereum has made it the publicly traded company with the largest reserve of Ethereum. Through multiple rounds of equity financing, including a large private equity investment of $425 million and subsequent market offerings, the company has rapidly accumulated the largest Ethereum holdings in the industry. Although this funding reserve strategy carries risks, including the impact of Ethereum price volatility, it also contains considerable staking yield potential, highlighting the appeal of proof-of-stake digital assets as a reserve of funds. By staking 100% of its Ethereum reserves, SharpLink not only generates income but also directly contributes to the security and stability of the Ethereum network. This enriches the diversity of validator participation and creates a synergy between corporate capital and the healthy development of the protocol.

BitMine Immersion Technologies (BMNR)

Company Background

BitMine Immersion Technologies Inc. (NYSE American: BMNR) is a blockchain infrastructure company headquartered in Las Vegas, with business operations that include operating industrial-grade Bitcoin mining farms, selling immersion cooling hardware, and providing hosting services for third-party mining equipment in regions with lower energy costs such as Texas and Trinidad.

On June 30, the company raised approximately $250 million through a private placement of 55.6 million shares (priced at $4.50 per share) to expand its Ethereum reserves. As part of the transaction, Fundstrat co-founder Tom Lee was appointed as the chairman of the BitMine board, adding the guidance of a seasoned cryptocurrency strategist to the company's efforts to scale its Ethereum allocation.

Financing and Ethereum Acquisition Situation

In late June, BitMine Immersion Technologies completed a $250 million private placement, leading to a revaluation of its stock price, highlighting the company's shift towards an Ethereum-supported reserve funding model.

Ethereum deployment and stake

BitMine holds a large reserve of Ether, but as of the writing of this article, there is no public information confirming whether it has used part of the reserve for active staking or deployed it on-chain in other ways.

Key Points

BitMine raised $250 million in funding, adding approximately 81,380 Ethereum to its balance sheet, bringing its total holdings to over 163,000 coins. To support this reserve accumulation, BitMine has expanded its diluted share capital to over 56 million shares, an increase of about 13 times. Such a scale of dilution highlights that the implementation of a large-scale Ethereum reserve strategy requires substantial equity issuance support, while also reflecting the capital-intensive nature of accumulating Ethereum in the public market.

Bit Digital (BTBT)

Company Background

Bit Digital Inc. (Nasdaq: BTBT) is a digital asset platform based in New York, established in 2015, initially operating industrial-grade Bitcoin mining facilities in the United States, Canada, and Iceland.

In June 2025, the company completed a fully underwritten public offering, raising approximately $172 million; at the same time, it combined the funds from the sale of 280 Bitcoins with the proceeds from the offering and reinvested them into Ethereum, holding a total of about 100,603 Ethers. Under the leadership of CEO and cryptocurrency veteran Sam Tabar, the company completed its transition to a staking and capital reserve model in Ethereum.

Financing and Ethereum Acquisition Situation

This chart traces the entire process of Bit Digital's equity financing from June to July, the sale of 280 Bitcoins, and the reallocation of these funds into over 100,000 Ethers, highlighting the company's transition to an Ethereum-centric capital reserve model.

Ethereum deployment and stake

As of March 31, Bit Digital held approximately 24,434 Ether, of which 21,568 were actively staked, with an average annualized yield of 3.2% for Ethereum staking in 2024.

After the strategic adjustment, Bit Digital significantly expanded its Ethereum reserves through public offerings and the sale of Bitcoin, increasing the total holdings to 100,603 coins. Although the company has not disclosed the specific staking quantity and expected returns after the transformation, based on past operations, it will continue to focus on generating income through Ethereum staking.

Key Points

The capital reserve transformation of Bit Digital is particularly noteworthy: it combines traditional public equity financing with the unconventional move of liquidating Bitcoin holdings to purchase Ether. This strategy sets Bit Digital apart among publicly listed cryptocurrency companies, highlighting its strong confidence in Ether's revenue-generating capacity. Compared to the passive role Bitcoin plays on the balance sheet, the advantages of Ether are more prominent.

GameSquare (GAME)

Company Background

GameSquare Holdings (NASDAQ: GAME) is a Texas-based gaming media group that owns brands such as FaZe Clan, Stream Hatchet, and GCN, focusing on creating creator-led marketing content for global advertisers targeting Gen Z players. In July, the company raised approximately $8 million through a follow-on equity offering and partnered with cryptocurrency company Dialectic to launch an Ethereum reserve fund program, which can allocate up to $100 million in Ethereum, with a target return of 8% to 14%.

Financing and Ethereum Acquisition Situation

This table summarizes the situation of GameSquare's initial public equity financing, which aims to provide funding support for its Ethereum reserve strategy launched in collaboration with Dialectic.

Ethereum deployment and stake

As part of a broader digital asset reserve strategy, GameSquare has completed its first Ethereum purchase, acquiring $5 million worth of Ether. This move marks the company's official entry into the cryptocurrency reserve space, aiming to diversify its assets and support long-term innovation.

Key Points

GameSquare's shift towards an Ethereum reserve funding strategy represents a bold expansion beyond its core gaming media business. By collaborating with Dialectic and leveraging its Medici platform, GameSquare plans to invest funds in the DeFi space, aiming for returns significantly higher than the standard Ethereum stake yield (typically 3% to 4%)—projected at 8% to 14%. If this strategy is successfully implemented, it will directly support the stability and development of the entire Ethereum ecosystem by enhancing the liquidity of key DeFi protocols and enriching the structure of validator participation. Active participation from corporate capital will further solidify the foundation of DeFi infrastructure.

Ethereum Concentration

The "Ethereum Concentration" metric was initially proposed by SharpLink Gaming, providing investors with a clear and comparable measure to evaluate the exposure of publicly traded companies that build Ethereum reserves. This metric is centered on the "amount of Ethereum held per 1,000 diluted shares outstanding," and all potential equity dilution factors such as warrants, stock options, and convertible instruments are included in the calculation. The Ethereum holding data presented comes either from direct disclosures by the companies or is estimated based on their announced full equity financing invested in Ethereum. The diluted share count is sourced from company filings, Bloomberg, SEC documents, and financial databases, ensuring consistency and accuracy of data across different companies. This metric offers investors an intuitive tool for assessing the relative level of Ethereum exposure on a per-share basis.

This table compares the "Ether concentration" of publicly listed companies adopting the Ethereum reserve strategy, namely the amount of Ether held or planned to be held for every 1,000 diluted shares.

Market Capitalization Premium and Ethereum Reserve Book Value

A Comparative Analysis of the Market Value Premium of Listed Companies and the Book Value of Their Ether Holdings

The above image shows the relationship between the market value of various companies and the book value of their Ether holdings (book value calculated as "total Ether held × cost price of 2600 USD per unit"). The higher the premium multiple, the greater the investors' valuation of a company's strategic flexibility or future earnings, far exceeding the value of its underlying Ether assets. GameSquare (GAME) ranks first with a premium of approximately 13.8 times, highlighting the market's high optimism regarding its early Ether reserve construction; BitMine (BMNR) has a premium of about 5 times after completing its latest round of financing of 250 million USD; Bit Digital (BTBT) and SharpLink (SBET) have relatively moderate premiums, reflecting more restrained market expectations. However, like all cryptocurrency reserve strategies, if the price of Ether experiences a significant decline, excessive premiums may exacerbate downside risks.

Comparison of Ethereum and Bitcoin Reserve Models

The rise of Ethereum reserves marks a significant evolution at the strategic level for publicly listed companies focused on cryptocurrency business. The model of Bitcoin is primarily centered around "digital gold," emphasizing the passive preservation or appreciation of reserves; in contrast, Ethereum goes a step further by creating active income through staking and DeFi strategies, which gives it additional appeal.

The four companies mentioned above have clearly identified Ethereum as an income-generating reserve asset. SharpLink and BitMine have committed (or plan) to stake 100% of their Ethereum holdings to maximize the returns from staking rewards at the protocol level; GameSquare, through collaboration with the cryptocurrency company Dialectic, aims for a risk-adjusted return of 8%-14% by employing more complex DeFi strategies, pushing this model towards deeper implementation. This preference for "income-generating Ethereum" stands in stark contrast to the "non-yielding passive model" of Bitcoin reserves, marking a shift in corporate fund management from solely relying on asset price appreciation to achieving balance sheet growth through active operations.

Unlike many Bitcoin reserve companies that heavily rely on convertible bonds and leverage (see Galaxy's latest research report), the top four Ethereum reserve companies—SharpLink, BitMine, Bit Digital, and GameSquare—completely finance their Ethereum reserves through equity offerings. This means they do not have to bear the pressure of debt maturity or interest payment obligations, and there is no default risk even when the cryptocurrency market declines. The non-leveraged model significantly reduces systemic vulnerability, avoiding refinancing and equity dilution risks associated with deep in-the-money convertible bonds.

The key is that these Ethereum reserve strategies introduce a structural innovation: productive capital. By staking Ether, these companies can not only earn the usual 3%-5% protocol-native yield but also directly contribute to the security and stability of the Ethereum network. The higher the amount of Ether staked by the enterprises, the more stable and predictable the network validator ecosystem becomes, thereby creating a long-term synergy between corporate capital and the healthy development of the protocol.

In fact, as of July 9, the Ethereum stake has reached a historical peak (over 35 million coins, accounting for more than 30% of the total supply), and the rise of Ethereum reserve companies may be one of the important reasons driving this trend.

Taking GameSquare as an example, it plans to promote yield enhancement strategies through partners like Dialectic, investing its Ethereum reserves into lending, liquidity provision (market making), and re-staking, among other native DeFi fundamental operations. This not only amplifies potential returns but also strengthens the ecological foundation of the Ethereum core protocol by enhancing liquidity and attracting institutional participation in decentralized markets.

Who will face the greatest equity dilution risk?

The image compares the impact of three methods on equity dilution: Private Investment in Public Equity (PIPE), At-the-Market (ATM) offerings, and public stock offerings, highlighting which companies face the greatest short-term risks.

Investors need to carefully assess the behavior of equity financing that adds new shares to the market, especially in private investment in public equity (PIPE) transactions, as this can dilute the equity of existing shareholders and put pressure on stock prices. BitMine's large-scale PIPE issuance exposes it to significant dilution risks and stock price volatility in the short term; SharpLink's combination of PIPE and ATM financing methods will cause immediate dilution and bring continuous incremental pressure. In contrast, Bit Digital and GameSquare adopt a more transparent traditional public offering method, where the dilution situation is clear and controllable, and the market risks are relatively low.

Overall, companies that choose the PIPE structure face a higher initial market impact risk compared to At-the-Market (ATM) and traditional public offerings (especially during periods of market volatility). However, all these equity-centric financing strategies avoid the "high-leverage convertible bonds" feature that Michael Saylor relies on in MicroStrategy.

Conclusion

Superficially, the drastic fluctuations of stocks related to Ethereum reserves may resemble the common "speculative boom and bust cycles" of meme coins, but there are essential differences in the strategies adopted by the first batch of companies positioning themselves with Ethereum reserves. These companies do not rely on hype or passive asset holding; instead, they view Ethereum as a "productive reserve asset," generating native yields through staking or, in some cases, engaging in more complex DeFi strategies. This characteristic sharply contrasts with the pioneers of Bitcoin reserves: the latter follows a "passive digital gold" model and often finances holdings through highly leveraged convertible bonds. In contrast, the four Ethereum reserve companies, SharpLink, BitMine, Bit Digital, and GameSquare, support the implementation of their strategies through equity financing, thereby avoiding the structural vulnerabilities posed by debt pressures and peak debt maturities.

Moreover, this capital is not idle. By staking Ether, companies directly contribute to the security of network validators and the stability of the protocol layer; companies like GameSquare, which plan to layout DeFi native yield strategies, may also inject vitality into liquidity provision, lending markets, and other Ethereum infrastructures with their reserve capital.

Despite the challenges of dilution risk, smart contract exposure, and price volatility, investors can comprehensively assess downside risks and the upside potential driven by returns through tools such as dilution impact analysis and the premium to book value ratio. Ultimately, this initial batch of Ethereum reserve models demonstrates a more deeply engaged and capital-efficient operational approach. While it has spawned a type of on-chain corporate reserve exposed to market fluctuations, this model still has the potential to inject momentum into the strengthening of the Ethereum ecosystem.

Disclosure: As of the date of this report, affiliated entities of Galaxy Digital are currently investing in BitMine and SharpLink Gaming.