Ethereum co-founder Joe Lubin shared this morning, 7/29, why ETH is used as the core asset for corporate reserve allocation. He stated that ETH is not only more suitable than BTC as a corporate reserve asset, but it can also be staked, participate in DeFi, and provide tangible returns for company assets.
BTC vs ETH: Which corporate reserve strategy should be chosen?
Since MicroStrategy introduced its Bitcoin (BTC) corporate reserve strategy, many companies have followed suit. Now we are also seeing Ethereum-based reserve companies, the most well-known being the ETH reserve company led by Ethereum co-founder Joe Lubin, SharpLink Gaming, an American online gaming company.
Lubin was the first to state that MicroStrategy founder Michael Saylor has indeed been very successful in the BTC reserve strategy, but ETH is the more promising reserve asset. He pointed out:
"ETH itself is a productive asset that can generate income. We at SharpLink are always thinking of ways to raise more money, then buy more ETH, and then stake it to participate in DeFi to earn returns."
He emphasized that this approach can rapidly increase the amount of ETH held per share faster than BTC reserve companies, and this is not only happening at SharpLink; other companies like Bitmine and Bit Digital have also been buying ETH in large quantities in July.
Currently, Bitmine and Sharplink together hold a total of 927,600 ETH, equivalent to approximately $3.552 billion, completely exceeding the Ethereum Foundation's reserve of 230,000 ETH. They are buying every day, staking what they buy, and considering issuing convertible bonds in the future.
Subsequently, Lubin stated that they raise funds every day through 'At-the-Market Offering Facility' and other methods, then use the funds to buy ETH and immediately stake it for profits on the same day.
Regarding whether to use leverage, Lubin candidly stated that there is currently no use of leverage at all, but in the future, he is considering issuing convertible bonds to introduce slight leverage. He added:
"Regardless, the leverage strategy will proceed steadily and not be too aggressive."
Lubin also emphasized that they believe DeFi will experience explosive growth in the future, and BTC, ETH, and even other currencies will surge as a result. As long as they manage risk well, shareholders will naturally profit.
(SharpLink plans to introduce leverage? Ethereum founder Lubin: Considering issuing convertible bonds)
Why has ETH's acceptance started more slowly?
Why did Ethereum gain corporate attention and adoption so late? Lubin stated that BTC's positioning as 'digital gold' becomes especially important when national fiat currencies depreciate, while Ethereum's value has only gradually emerged in recent years. He pointed out:
"My friend Tom Lee once said, the next Bitcoin is Ethereum."
Lubin further explained that Ethereum is not just an asset, but a decentralized trust mechanism that can program, clarify, and automatically execute transactions, contracts, agreements, and even relationships between people. He stressed that this verifiable, low-cost, and intermediary-free structure makes ETH a highly trusted digital commodity, which will fundamentally change the definition of trust and is expected to drive rapid development of the overall economy.
The SEC halted Bitwise ETF due to technical issues, which does not represent a government opposition to blockchain.
Regarding the U.S. Securities and Exchange Commission (SEC) originally approving 10 cryptocurrency ETFs from Bitwise, but later urgently halting the decision.
Lubin stated that several officials within the SEC actually support blockchain, such as Hester Peirce, who has always been a staunch advocate for decentralized technology. Lubin believes this incident was due to 'technical detail issues' and does not indicate that the SEC opposes cryptocurrency development.
U.S. regulatory easing will usher in a peak of profitability for the cryptocurrency industry.
Finally, the host asked:
"Although BTC and cryptocurrencies are hitting new highs, and the regulatory environment is relatively loose, is the entire industry really starting to make money?"
In response, Lubin said that there are already many companies and agreements within the Ethereum ecosystem that demonstrate strong profitability, and the price of ETH has also rebounded significantly recently.
"Especially the easing of U.S. regulations will trigger a wave of profitability peaks."
He concluded by stating that as long as on-chain projects have scalability, low transaction costs, a good user experience, and regulatory support, the entire industry will have the opportunity to achieve comprehensive profitability.
This article Joe Lubin: SharpLink buys ETH every day, then stakes it for profit first appeared on Chain News ABMedia.
