Wall Street is stacked on ETH, with Bitmine and Sharplink being the major multi-billion dollar purchases.
Ethereum Treasuries generates yields and sets it apart from the valuable role of Bitcoin.
Institutional demand is rising, with $60,000 ETH forecast and BlackRock exploring staking.
Ethereum has attracted a lot of attention from large companies. A recent discussion on Reddit highlights plans to raise US$5 billion and buy most of its Ethereum by Basic Global Inc., a company registered with NASDAQ.
The company wants to hold ETH for a long time, bet it and use it in defi to win more ETH. This makes them a group of about 13 companies now known as Ethereum Treasuries. Their only goal is to collect as much ETH as possible and grow it for shareholders.
Unlike Bitcoin’s Treasury Department, such as Strategy (previously Micro Strategy), Ethereum companies treat ETH not only as a valuable repository, but as a productive and yield generating asset. These companies aim to lock supply and massive staking at scale and increase long-term value for shareholders while deepening Ethereum’s role in institutional finances.
FGF’s $5 billion Ethereum Funding Plan
The $5 billion funding will be made up of phases. According to filings, FGF gradually issues shares, giving them flexibility depending on the market situation. Of the total, $4 billion will be raised through a market (ATM) sales agreement with Thinkequity. This means that stocks can sometimes be sold at a typical market price.
This strategy allows companies to raise capital in batches rather than in one go, reducing pressure from changing market environments.
Ethereum beats Bitcoin
This raised the question of whether Ethereum could be bigger than Bitcoin. Joe Lubin, co-founder of Ethereum, believes that more companies will even be able to pass Bitcoin to market value within a year by adding ETH to their balance sheets. The reason is that Ethereum is not only valuable, but also useful. It can be used to wager and earn rewards, which will have an advantage over Bitcoin.
But Vitalik Buterin has a warning. He agrees that ETH as a financial asset is a good thing, but says that borrowing too much money while holding ETH can cause problems across the crypto market.
Wall Street Fuel Ethereum Treasury
The concerns of these communities are as Wall Street’s appetite for ETH continues to grow. Bitmine has already accumulated 566,776 ETH (2.03B) in just 16 days, targeting 5% of total supply, but Sharplink Gaming has raised $2.6 billion, staking almost all of its holdings, and generating more than 1,300 ETH with rewards. Analysts like Tom Lee believe ETH could skyrocket to $60,000.
This new wave of Ethereum Treasury shows Wall Street is beginning to see ETH as more than just an investment. Bitcoin is often referred to as digital gold, but Ethereum is now considered a productive asset that not only retains value but also earns yields. If more companies follow this trend, the demand for ETH could be much stronger.