Ethereum is attracting significant interest from companies and is viewed as a profitable asset, not just a store of value.
Many public companies have planned to raise capital and accumulate Ethereum (ETH) for staking, participating in DeFi, thereby generating sustainable profits and increasing shareholder value.
MAIN CONTENT
FGF plans to raise $5 billion focused on Ethereum, prioritizing staking and DeFi.
Unlike Bitcoin, Ethereum is seen as an asset that both stores value and generates profit through staking.
The increase in ETH held and used by companies in institutional finance is changing Ethereum's position.
How does FGF plan to raise $5 billion for Ethereum?
FGF plans to raise $5 billion in multiple phases, flexibly adapting to market developments.
The SEC filing shows that $4 billion of this will be raised through an at-the-market (ATM) stock sale in partnership with ThinkEquity, allowing shares to be issued at market prices at any given time. This strategy helps alleviate capital volatility pressure and optimizes the timing of fundraising.
Currently, the phased capital allocation allows FGF to be more proactive in implementing its Ethereum accumulation and staking strategy, maximizing market opportunities.
Does Ethereum surpass Bitcoin in market value?
Joe Lubin, co-founder of Ethereum, predicts that if many companies add ETH to their balance sheets, the market value could surpass Bitcoin within a year.
Ethereum is not only a valuable asset but also useful, capable of being staked for rewards, giving it an advantage over Bitcoin.
Joe Lubin, co-founder of Ethereum, 2024
This indicates that Ethereum is not only viewed as 'digital gold' but is also being utilized as an effective income-generating asset in DeFi and staking. However, Vitalik Buterin warns that over-leveraging or high risks when holding ETH will negatively impact the entire cryptocurrency market.
How is Wall Street driving the development of Ethereum treasury?
The interest from large investment funds and financial institutions on Wall Street is driving a wave of large Ethereum accumulation.
For example, BitMine has accumulated over 566,776 ETH (worth $2.03 billion) in just 16 days and expects to hold 5% of the total ETH supply. SharpLink Gaming raised $2.6 billion, staking almost all of it, earning over 1,300 ETH in rewards. Meanwhile, asset management giant BlackRock is also researching staking features for its $16 billion ETF for ETH.
Ethereum is no longer merely an investment but has become an income-generating asset, changing the perception of institutional markets.
Tom Lee, Cryptocurrency Analyst, 2024
This shift indicates that the demand for storing and using Ethereum in institutional finance will continue to grow, solidifying ETH's position in the global cryptocurrency ecosystem.
Frequently Asked Questions
How does FGF utilize raised capital for Ethereum?
FGF uses raised capital to purchase Ethereum, stake, and participate in DeFi to increase ETH value for shareholders.
Why is Ethereum considered a more profitable asset than Bitcoin?
Ethereum can be staked to earn rewards, creating active profits instead of just storing value like Bitcoin.
What increases the demand for Ethereum from financial institutions?
The ability to stake and create yield helps Ethereum attract large investment funds, driving large-scale ETH accumulation.
What are the risks when companies borrow to hold ETH?
Over-leveraging or financial risks when holding ETH can lead to instability and negatively impact the cryptocurrency market.
What are BlackRock's plans for the $16 billion ETH ETF?
BlackRock is researching staking features for its $16 billion ETF fund to optimize returns for investors.
Source: https://tintucbitcoin.com/ethereum-treasuries-de-doa-bitcoin-dominance/
Thank you for reading this article!
Please Like, Comment, and Follow TinTucBitcoin to stay updated with the latest news about the cryptocurrency market and not miss any important information!
