Companies Accumulate $1.6 Billion in ETH in 30 Days

In the past 30 days, over ten firms have collectively purchased 550,000 ETH, valued at over $1.6 billion. This significant accumulation of Ether as a treasury asset highlights a growing trend among companies pivoting towards ETH, inspired by the strategy adopted by Strategy with Bitcoin. While over 100 companies have already incorporated BTC into their treasuries, others are now turning to ETH as a viable alternative.

Crypto entrepreneur Kyle Reidhead, co-owner of a prominent crypto newsletter, noted that this trend is still in its early stages. He expects the accumulation rate to increase in the coming months as more companies join the trend and existing participants continue to buy more ETH. Reidhead anticipates that the next month could see an accumulation of $2 billion, followed by $3 billion thereafter. However, he acknowledges that demand will eventually slow down, though not anytime soon given the current momentum.

Reidhead also pointed out that ETH treasury companies, unlike exchange-traded funds, do not sell their holdings, at least for now. This accumulation is expected to have a positive impact on ETH's performance. One of the notable buyers in this trend is Sharplink Gaming, which has purchased 75,000 ETH in the past five days alone. Sharplink, which became an ETH treasury company in early June, has spent over $700 million on buying Ether in less than two months. Its latest purchase was 24,371 ETH bought for $73 million.

With its recent accumulation, Sharplink now holds over 290,000 ETH, surpassing the Ethereum Foundation as the biggest Ether holder. The Foundation holds around 242,000 ETH and recently sold 10,000 ETH to Sharplink. Other companies on an ETH accumulation spree include Bitmine Immersion, which holds over 163,000 ETH, and BitDigital, which has more than 100,000 ETH after converting its Bitcoin holdings to ETH.

There is a notable competition among the top ETH treasury companies, with executives praising each other's accumulation rates. Sharplink chairman Joe Lubin described the group as “The League of Extraordinary ETH Accumulator Gentlemen” and commended the efforts of Tom Lee of Bitmine, San Tabar of Bit Digital, and Charles Allen of BTCS. He added that competition and coordination between these companies will strengthen and improve their collective efforts.