What to Know
- Small firms now hold over 966,000 ETH, a 660% surge since 2024
- Ether’s staking rewards and real-world use cases make it more attractive than Bitcoin to companies.
- Risks remain around volatility and regulation, with analysts warning of sharp corrections and stock swings.
Ethereum is the latest treasure small firms are betting on, and they are adding it to their treasuries in growing numbers. As of July, these firms collectively held 966,304 ETH, which is worth over 3.5 billion, a dramatic surge from just under 116,000 at the end of 2024. Analysts say these so-called “crypto gold rush” purchases reflect Ether’s appeal as both an inflation hedge and a working asset, especially given its usability in staking.
Executives from companies such as Bit Digital and GameSquare have publicly endorsed Ethereum’s dual role: a credible, blue-chip asset with growth potential and a staking yield of roughly 3–4%. This characteristic makes Ether stand out when compared to Bitcoin’s passive store-of-value model.
Why Ether Is the Corporate Favorite
Ether, unlike Bitcoin, can be staked straight without bridging, which means that it earns returns every year. This makes it more appealing for businesses that want active income and price appreciation as well. The DeFi network is mostly powered by Ethereum as a whole, and it is utilized for tokenization, trading, and lending. This makes it more than just a tool for speculation, but also a valuable real-world asset.
Many smaller companies believe that Ethereum is more accessible and perhaps more lucrative than Bitcoin, particularly when the price is lower. “Holding ether is more like owning oil, whereas bitcoin is more one-dimensional, like gold. Ether is the foundation of decentralized finance, not just a pure store of value,” said Anthony Georgiades, general partner at VC firm Innovating Capital.
Ether Risks
According to Reuters, experts are warning people to be careful, even though everyone is excited about ETH’s rally. Sometimes, after Ether news, share prices have gone up and down quickly based on assumptions, like meme stocks. For example, GameSquare’s stock went up more than 120% after ETH plays, but other companies’ stocks went down sharply after they said they were exposed to crypto.
There is still a lot of uncertainty about staking rewards in terms of whether they should be taxed as income and how locked tokens should be shown on balance sheets. Analysts say that if Ethereum prices drop sharply or companies that borrowed money to buy ETH get squeezed, companies could have to sell off a lot of their assets, which would lower the value of both the tokens and the stocks. The uncertainty makes the strategy risky by nature, especially for people who don’t have a lot of experience.
What’s Next for Ether?
Currently, investors are mostly interested in two main things: getting clear on taxes for staking and custodial duties. This makes people either confident or makes them back away. It might be the right move for the treasuries if the price of Ethereum stays high and the return on staking stays high. However, if the price of Ether drops quickly, businesses that don’t want to take chances may have to sell their positions quickly.
Companies like BitMine and GameSquare are also using stock or debt offerings to pay for their ETH purchases, which shows that they are committed to the long term. But the long-term success of this plan depends on both how prices behave and how stable regulations are.
Final Thoughts
The rush of small public companies into Ethereum represents a major shift in how crypto is being perceived by traditional treasuries. With nearly a 660% increase in corporate ETH holdings since year-end and deep involvement from institutional buyers, Ether is thus emerging as a go-to institutional asset, not just a tech play.
Still, there are some risks to consider, such as high volatility, unclear rules about staking, and the fact that share-price “pumps” are based on speculation. For now, Ether’s mix of yield, utility, and exposure in corporate treasuries is changing the crypto landscape. But whether this shift lasts depends on the stability of the market and policy.
Also Read: Massive Whale Inflows Hit ETH: Will Ethereum Price Rally To $3,800?
