By Christopher Rosa
Compiled by: Saoirse, Foresight News
Michael Saylor’s innovative approach at Strategy (formerly MicroStrategy, ticker MSTR) was groundbreaking. His use of financial instruments to significantly increase Bitcoin holdings set off a wave of copycat activity in the corporate world. Since then, more than 50 companies have followed his Bitcoin-centric reserve strategy, and the number continues to climb. However, a group of discerning companies are now taking a different approach: not only are they seeking exposure to cryptocurrencies, but they are also working to deeply align with Ethereum’s own economic engine.
In this report, we will focus on the first four US public companies to establish Ethereum reserves, deeply analyze their financing activities, evaluate their "ETH concentration" (that is, the number of Ethereum held per share), and analyze the market premium that investors attach to these Ethereum-backed corporate reserves. In addition to the above indicators, we will also explore the broader impact of this phenomenon on the health of the Ethereum network, the staking ecosystem, and DeFi infrastructure, and highlight how these reserve strategies not only reshape corporate balance sheets, but also inject capital directly into the core areas of Ethereum's decentralized economy.
SharpLink Gaming（SBET）
Company Background
Founded in 2019, SharpLink Gaming Ltd. (NASDAQ: SBET) is a technology company that converts sports fans into betting users by matching them with timely sports betting and interactive gaming services through its proprietary platform. In addition, the company develops free games and mobile applications, and provides marketing services to sports media organizations, leagues, teams and gaming operators to deepen fan engagement. In addition, SharpLink also operates live fantasy sports and simulation games, with a user base of over 2 million and annual spending of nearly $40 million. At the same time, the company has obtained operating licenses in all U.S. states where fantasy sports and online gambling are legally allowed.
Last month, SharpLink began accumulating Ethereum (ETH) on its balance sheet and financing these acquisitions through a combination of private equity investments (PIPEs) and at-the-market offerings (ATM). The company's management team said that this strategic shift stems from their firm belief in the future of Ethereum as a yield-generating, programmable digital asset that allows the company to profit from staking and related income opportunities. Despite this novel financial strategy, SharpLink remains fully focused on its core gaming and interactive gaming business, and the Ethereum funding reserve strategy is only a supplement, not a replacement for the core business.
Financing and Ethereum Acquisition
Funds raised by SharpLink in 2025 through equity financing have been steadily used to purchase more than 215,634 Ethereum, a move that demonstrates the company's rapid transition to an Ethereum-backed treasury reserve model.
Ethereum deployment and staking
SharpLink has staked all of its Ethereum reserves and received a reward of 100 Ethereum between June 28 and July 4. Since the launch of the staking program on June 2, the cumulative staking income has reached 322 Ethereum.
Key Points
SharpLink Gaming’s strategic move into Ethereum has made it the public company with the largest Ethereum reserves. Through multiple rounds of equity financing, including a large $425 million private equity investment and subsequent market-priced offerings, the company has quickly accumulated the largest Ethereum holdings in the industry. While this reserve strategy has risks (including the impact of Ethereum price fluctuations), it also contains considerable staking income potential, highlighting the appeal of proof-of-stake digital assets as reserve funds. By staking 100% of its Ethereum reserves, SharpLink not only earns income, but also directly contributes to the security and stability of the Ethereum network. This not only enriches the participation diversity of validators, but also synergizes the healthy development of corporate capital and protocols.
BitMine Immersion Technologies (BMNR)
Company Background
BitMine Immersion Technologies Inc. (NYSE American: BMNR) is a Las Vegas-based blockchain infrastructure company that operates industrial-scale bitcoin mining farms, sells immersion cooling hardware, and provides hosting services for third-party mining equipment in areas 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 chairman of the BitMine board of directors, adding a senior cryptocurrency strategist to the company's efforts to expand its Ethereum allocation.
Financing and Ethereum Acquisition
In late June, BitMine Immersion Technologies saw its share price re-rating after completing a $250 million private placement, highlighting the company’s shift to an Ethereum-backed treasury model.
Ethereum deployment and staking
BitMine holds a large reserve of Ethereum, but as of this writing, there is no public information confirming whether it has actively staked or otherwise deployed some of its reserves on-chain.
Key Points
BitMine raised $250 million to add approximately 81,380 Ethereum to its balance sheet, bringing its total holdings to over 163,000. To support this reserve accumulation, BitMine expanded its diluted share capital to more than 56 million shares, an increase of approximately 13 times. This scale of dilution highlights that the implementation of a large-scale Ethereum reserve strategy requires a large amount of equity issuance support, and also reflects the capital-intensive nature of accumulating Ethereum in the public market.
Bit Digital（BTBT）
Company Background
Bit Digital Inc. (NASDAQ: BTBT) is a New York-based digital asset platform founded in 2015 that initially operated industrial-scale Bitcoin mining farms 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, the proceeds from the sale of 280 bitcoins were combined with the proceeds from the offering and reinvested in Ethereum, with a total holding of approximately 100,603 ethers. Under the leadership of CEO and cryptocurrency veteran Sam Tabar, the company completed the transition to an Ethereum staking and fund reserve model.
Financing and Ethereum Acquisition
The chart traces Bit Digital’s equity funding in June-July, the sale of 280 Bitcoins, and the redeployment of those funds into over 100,000 Ethereums, highlighting the company’s transition to an Ethereum-centric treasury model.
Ethereum deployment and staking
As of March 31, Bit Digital held approximately 24,434 Ethereum, of which 21,568 were actively staked, with an average annualized yield of 3.2% on Ethereum staked in 2024.
After the strategic adjustment, Bit Digital has significantly expanded its Ethereum reserves by publicly issuing and selling Bitcoin, with the total holdings increasing to 100,603. Although the company has not yet disclosed the specific number of pledges and expected returns after the transformation, based on past operations, it will continue to focus on earning returns through Ethereum staking.
Key Points
Bit Digital’s transformation of its treasury reserves is particularly noteworthy: it combines traditional public equity financing with the unconventional move of liquidating its Bitcoin holdings to purchase Ethereum. This strategy makes Bit Digital unique among publicly traded cryptocurrency companies and demonstrates its firm belief in Ethereum’s ability to generate income, which is more advantageous than Bitcoin’s passive role on the balance sheet.
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 gamers. In July, the company raised approximately $8 million through a follow-on equity offering and partnered with cryptocurrency company Dialectic to launch an Ethereum Funding Reserve Program that can allocate up to $100 million in Ethereum with a target yield of 8% to 14%.
Financing and Ethereum Acquisition
The table outlines GameSquare’s first public equity funding, which was raised to fund its Ethereum treasury strategy, which it launched in partnership with Dialectic.
Ethereum deployment and staking
As part of a broader digital asset reserve strategy, GameSquare has completed its first Ethereum purchase, purchasing $5 million worth of Ether. The move marks the company's official entry into the cryptocurrency reserve field, aiming to diversify its assets and support long-term innovation.
Key Points
GameSquare's shift to an Ethereum reserve strategy is a bold expansion beyond its core gaming media business. By partnering with Dialectic and leveraging its Medici platform, GameSquare plans to invest in the DeFi space to achieve returns (8% to 14%) that are much higher than the standard Ethereum staking yield (usually 3% to 4%). If this strategy is successfully implemented, it will directly contribute to the stability and development of the entire Ethereum ecosystem by improving the liquidity of key DeFi protocols and enriching the validator participation structure. The active participation of corporate capital will also further consolidate the foundation of DeFi infrastructure.
ETH Concentration
The "Ethereum Concentration" metric, originally proposed by SharpLink Gaming, provides investors with a clear and comparable measure for assessing the exposure of public companies that build Ethereum reserves to Ethereum. The metric is centered on "Ethereum holdings 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 holdings data shown are either directly disclosed by the company or estimated based on the full investment of its announced equity financing in Ethereum. The number of diluted shares is derived from company filings, Bloomberg, SEC filings, and financial databases to ensure consistency and accuracy between different companies. This metric provides investors with an intuitive tool to facilitate the assessment of relative Ethereum exposure levels on a per-share basis.
The table compares the "Ethereum concentration" of public companies that adopt an Ethereum reserve strategy, that is, the amount of Ethereum held or planned to be held per 1,000 diluted shares.
Market Cap Premium and Ethereum Reserve Book Value
Comparative analysis of the market capitalization premium of listed companies versus the book value of their Ethereum holdings
The above chart shows the corresponding relationship between the market value of each company and the book value of its Ethereum holdings (the book value is calculated as "total Ethereum held × cost price of $2,600 per coin"). The higher the premium multiple, the more investors value the company's strategic flexibility or future earnings, which far exceeds the value of its underlying Ethereum assets. GameSquare (GAME) topped the list with a premium of about 13.8 times, highlighting the market's high optimism about its early Ethereum reserve construction; BitMine (BMNR) had a premium of about 5 times after completing its latest round of $250 million in financing; Bit Digital (BTBT) and SharpLink (SBET) had relatively mild premiums, reflecting more restrained market expectations. However, like all cryptocurrency reserve strategies, excessive premiums may increase downside risks if Ethereum prices fall sharply.
Comparison of Ethereum and Bitcoin reserve models
The rise of Ethereum reserves marks an important strategic evolution for listed companies focusing on cryptocurrency businesses. Bitcoin's model is mostly centered on "digital gold", emphasizing the passive preservation or appreciation of reserves; Ethereum goes a step further on this basis, creating active returns through staking and DeFi strategies, which makes it extra attractive.
All four companies have explicitly used Ethereum as an interest-bearing reserve asset. SharpLink and BitMine have committed (or plan) to stake 100% of their Ethereum holdings to maximize the benefits of protocol-layer staking rewards; GameSquare has deepened this model by partnering with cryptocurrency company Dialectic to pursue 8%-14% risk-adjusted returns with more complex DeFi strategies. This preference for "interest-bearing Ethereum" is in stark contrast to the "passive model that does not generate income" of Bitcoin reserves, marking a shift in corporate fund management from relying solely on rising asset prices to achieving balance sheet growth through active operations.
Unlike many Bitcoin reserve companies that rely heavily on convertible bonds and leverage (see Galaxy’s latest research report for details), the four leading Ethereum reserve companies, SharpLink, BitMine, Bit Digital and GameSquare, finance their Ethereum reserves entirely through equity issuance. This means that they do not have to bear the pressure of debt maturity and interest payment obligations, and there is no risk of default even if the cryptocurrency market goes down. The model that does not rely on leverage greatly reduces systemic fragility and avoids the refinancing and equity dilution risks brought by deep real-money convertible bonds.
The key is that these Ethereum reserve strategies introduce a structural innovation: productive capital. By staking Ethereum, these companies not only receive the typical 3%-5% protocol native yield, but also directly contribute to the security and stability of the Ethereum network. The more Ethereum staked by enterprises, the more stable and predictable the network validator ecosystem, thus forming a long-term synergy between enterprise capital and the healthy development of the protocol.
In fact, as of July 9, the amount of Ethereum staked has reached a historical peak (over 35 million, accounting for more than 30% of the total supply). The rise of the Ethereum Reserve Company may be one of the important reasons driving this trend.
Take GameSquare as an example. It plans to promote the yield enhancement strategy through partners such as Dialectic, and invest Ethereum reserves in DeFi native basic businesses such as lending, liquidity provision (market making), and re-staking. This can not only amplify potential returns, but also strengthen the ecological foundation of the Ethereum core protocol by improving liquidity and attracting institutions to participate in the decentralized market.
Who will face the greatest risk of equity dilution?
The graphic compares the impact of private equity (PIPE), at-the-market (ATM) and public offerings on equity dilution, highlighting which companies face the greatest short-term risks.
Investors need to carefully evaluate the addition of new shares to the market through equity financing, especially private equity investment public offering (PIPE) transactions, which can dilute existing shareholders and put pressure on stock prices. BitMine's large-scale PIPE issuance has exposed it to significant dilution risk and stock price volatility in the short term; SharpLink's combination of PIPE and ATM financing methods will cause both immediate dilution and continuous incremental pressure. In contrast, Bit Digital and GameSquare use more transparent traditional public offerings, with clear and controllable dilution and relatively low market risk.
In general, companies that choose PIPE structures face higher initial market shock risks (especially during periods of market volatility) than ATM and traditional public offerings. However, all of these equity-centric financing strategies avoid the "highly leveraged convertible bonds" characteristics that Michael Saylor relies on in MicroStrategy.
in conclusion
On the surface, the wild swings in Ethereum reserve-related stocks may resemble the “speculative boom-and-bust cycles” common to Meme coins, but the strategies adopted by the first companies to deploy Ethereum reserves are fundamentally different. Rather than relying on hype or passive asset holdings, these companies position Ethereum as a “productive reserve asset”, earning native returns through staking, or in some cases investing in more complex DeFi strategies. This feature contrasts it with the pioneers of Bitcoin reserves: the latter follow a “passive digital gold” model and often finance their holdings through highly leveraged convertible bonds. In contrast, the four Ethereum reserve companies, SharpLink, BitMine, Bit Digital, and GameSquare, all implemented their strategies through equity financing support, thus avoiding the structural vulnerabilities brought about by debt repayment pressure and peak debt maturities.
Moreover, this capital is not idle. By staking Ethereum, enterprises directly contribute to the security of network validators and the stability of the protocol layer; and companies like GameSquare that plan to deploy DeFi native income strategies may also inject vitality into Ethereum infrastructure such as liquidity provision and lending markets.
While challenges such as dilution risk, smart contract exposure, and price volatility remain, investors can use tools such as dilution impact analysis and premium-to-book ratios to comprehensively assess downside risk and return-driven upside potential. Ultimately, this first batch of Ethereum reserve models demonstrates a more deeply engaged and capital-productive way of operating. Although it has spawned a class of on-chain corporate reserves that are exposed to market volatility, this model still has the potential to inject momentum into the strengthening of the Ethereum ecosystem.
Disclosure: As of the date of this writing, entities affiliated with Galaxy Digital are currently invested in BitMine and SharpLink Gaming.
