Bitcoin Hits New All-Time High As Treasury Boom Spills Into Ethereum
Crypto treasury companies keep pumping crypto higher. Don't fight the trend.
Bitcoin just hit a new all-time high north of $118,000 and Ethereum ended the week nearly 20% higher — all thanks to the latest trend in crypto.
What started as Michael Saylor holding Bitcoin on his balance sheet has exploded into $28 billion in paper profits and a whole cottage industry popping up to replicate his success in building a publicly traded crypto treasury company.
But this week was officially the week where the craze spilled into Ethereum in size. As we covered on Monday, one Michael Saylor copy cat even sold his company’s Bitcoin treasury to buy Ethereum instead.
To dig a little deeper, we dedicated an entire episode just to the new holy ETH treasury triumvirate, comprised of Fundstrat’s Tom Lee, Ethereum co-founder Joe Lubin, and Bit Digital’s Sam Tabar. 👀 ⬇️
At this point, the market seems to be appreciating the buy wall that these treasury companies represent. As Bitwise’s Jeff Park explained, for Bitcoin alone, the number is staggering. At $15 billion, the looming Bitcoin corporate treasury buy pressure has swelled to the same amount of inflows for the first half of 2024 after the Bitcoin ETFs were first approved.
“So the structural change we're seeing is a pretty meaningful one. And the other thing I love about these Bitcoin treasury companies, for the most part, these are never gonna sell Bitcoin.”
It seems like it took a week, but the market may be beginning to trust that the Ethereum treasury companies could very well live up to the same promise. Case in point: Joe Lubin’s Sharplink gaming scooped up nearly $25 million worth of ether from the Ethereum foundation in an over-the-counter deal.
The transaction, which was completed at about $2,572 per ETH was the first over-the-counter deal between the Ethereum Foundation and a publicly traded company. It also prevented a massive Ethereum sale from hitting the open market.
With Ethereum crossing $3,000 for the first time since February, these treasury companies may have some wiggle room to continue raising money and buying more. SBET ended the week 60% higher. As expected, Bitmine Immersion Technologies slumped about 60% this week as it announced it was raising $2 billion in a stock offering to buy more Ethereum. Given the early jitters, perhaps the easier trade here for the time being is just to ride the Ethereum wave itself.
What say you, are you a buyer here?
Of course, publicly traded ETH treasury companies aren't the only game in town. Coinage, for example, as a community-owned cooperative, has been running for three years with its treasury in Ethereum. (This week was nice.) And while we may not have as much as the others, we do let all of our members own equal portions of the treasury. That means fewer shenanigans and "financial engineering" that could lead to significant dilution of earlier shareholders. Oh, and you own something way cooler than just ETH…
If you'd like to join Coinage on our journey — feel free to mint a membership to send your ETH into the Coop treasury to become a member and co-own Coinage with our 7,000+ member community. (We’re working to take our rightful place on the bottom of the Ethereum Reserve tracking site. Expect us to be listed on there sometime soon!)
Point being — this trend is not slowing down and it’s clearly putting the spotlight back on ETH ahead of some other chains (like Solana) who have also tried to foster some treasury companies of their own. I’d be buying Ethereum here as Congress prepares to host “Crypto Week” next week, with the stablecoin bill potentially making it over the finish line. A lot to look forward to!
Have a great weekend!