Corporations built 95% of their ETH treasuries in Q3

Source Cryptopolitan

Most of the ETH in corporate treasuries was accrued in the past quarter. Playbook companies for ETH are much younger, and are yet to feel a bear cycle. 

Most of the ETH in digital asset treasuries (DATs) accumulated their reserves in the past quarter. The initial buying frenzy coincided with stock price rallies. However, the Ethereum DAT model is yet to prove itself during periods of turbulence or a bear market. 

The rapid adoption for ETH set the pace for other altcoin treasury companies, though for now BTC and ETH are still leading. 

The DAT strategy coincided with Ethereum’s best quarter since 2016, as almost daily buying from high-profile treasuries added to the general market hype. Ethereum DAT companies also boosted attempts to recreate the model with other assets, especially SOL and BNB.

Public companies slow down ETH acquisition

Public companies now hold 5.9M ETH, and have shown signs that the initial exponential buying is slowing down. 

Public companies built 95% of their ETH treasuries in the past quarter.
Public companies slowed down their ETH buying, with BitMine (BMNR) remaining the leading buyer. | Source: Strategic ETH Reserve.

One of the latest big purchases was from BitMine Immersion Tech (BMNR), the current leader with a goal of owning 5% of the ETH supply. BMNR added another 202K ETH on October 11, and the space has been silent since then. 

The latest round of market turbulence, which put ETH just above $4,000, also added to the overall slowdown in treasury-building, as the crypto market showed signs of caution. 

The DAT companies bought up seven times more ETH compared to the new tokens issued for that period. The buying added to the overall accumulation and supply crunch. In total, 14 public companies emerged with ETH treasuries, each using a ‘playbook’ to boost its ability to raise funds. 

Unlike BTC treasury companies, almost no entities are buying ETH just for exposure. Additionally, some of the treasuries come from old ICO reserves, as the companies are keeping their ETH. 

Only three ETH treasury companies trade above asset value

Ethereum DAT companies traded only briefly at multiples of their net asset value. The mNAV metric fell for most of the companies, as only three are trading above 1.0 ratio. 

Public companies built 95% of their ETH treasuries in the past quarter.
BMNR is one of the most active buyers, as most other entities stopped their ETH acquisitions in September. | Source: Strategic ETH Reserve.

BMNR recovered to a ratio of 1.16, BTBT is at 2.0, and GAME has a ratio of 1.05. Most treasury companies have also stopped their common stock issuance after the initial round of expansion, as the playbook has become riskier.

The coming months will show how sustainable the DAT strategy is, and if other buyers will join BMNR with more regular purchases. One of the bids of Ethereum DAT companies is the possibility of passive income through staking or even liquid staking. 

Ethereum has also shown peak on-chain activity and usage for transferring stablecoins. DAT companies bet on long-term developments and a cross-over between institutional finance and on-chain transfers. For now, Ethereum is also showing signs of becoming the main network for financial operations, outcompeting Solana and other chains. 

Claim your free seat in an exclusive crypto trading community - limited to 1,000 members.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Lilly, Novo Nordisk Shares Plummet as Trump Announces Price Cut to OzempicOn Thursday, shares of Eli Lilly and Novo Nordisk fell sharply in after-hours trading after President Donald Trump announced a significant price reduction for the diabetes drug Ozempic.
Author  TradingKey
Yesterday 09: 16
On Thursday, shares of Eli Lilly and Novo Nordisk fell sharply in after-hours trading after President Donald Trump announced a significant price reduction for the diabetes drug Ozempic.
placeholder
WTI slumps to near $56.50 as Trump and Putin summit loomsWest Texas Intermediate (WTI), the US crude oil benchmark, is trading around $56.50 during the early European trading hours on Friday.
Author  FXStreet
Yesterday 09: 12
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $56.50 during the early European trading hours on Friday.
placeholder
Are European Stocks Peaking? SocGen,Citi Turn Bearish on Q4, U.S. Regional Bank Crisis Adds New RiskA series of bad loan incidents in the U.S. are catalyzing a credit crisis in the banking sector, and these concerns are now spreading to Europe’s top-performing bank stocks this year.
Author  TradingKey
Yesterday 09: 07
A series of bad loan incidents in the U.S. are catalyzing a credit crisis in the banking sector, and these concerns are now spreading to Europe’s top-performing bank stocks this year.
placeholder
Gold-backed PAXG hits record volumes, trades at premium to spotPAXG traded at a premium on Binance, based on an anomalous price spike above $5,000, which liquidated short positions.
Author  Cryptopolitan
Yesterday 09: 00
PAXG traded at a premium on Binance, based on an anomalous price spike above $5,000, which liquidated short positions.
placeholder
Meme Coins Price Prediction: Dogecoin, Shiba Inu, Pepe flash bearish potential Meme coins such as Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) are at risk of steeper corrections as the broader cryptocurrency market weakens.
Author  FXStreet
Yesterday 08: 57
Meme coins such as Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) are at risk of steeper corrections as the broader cryptocurrency market weakens.
goTop
quote