The post Ethereum Treasuries Could Challenge Bitcoin’s Dominance, Analysts Say appeared first on Coinpedia Fintech News Ethereum is getting a lot of attention from big companies. A recent Reddit discussion highlighted how Fundamental Global Inc., a Nasdaq-listed firm, plans to raise five billion US dollars and use most of it to buy Ethereum.  The company wants to hold ETH for the long term, stake it, and use it in DeFi to …The post Ethereum Treasuries Could Challenge Bitcoin’s Dominance, Analysts Say appeared first on Coinpedia Fintech News Ethereum is getting a lot of attention from big companies. A recent Reddit discussion highlighted how Fundamental Global Inc., a Nasdaq-listed firm, plans to raise five billion US dollars and use most of it to buy Ethereum.  The company wants to hold ETH for the long term, stake it, and use it in DeFi to …

Ethereum Treasuries Could Challenge Bitcoin’s Dominance, Analysts Say

4 min read
Ethereum Treasuries Could Challenge Bitcoin’s Dominance, Analysts Say

The post Ethereum Treasuries Could Challenge Bitcoin’s Dominance, Analysts Say appeared first on Coinpedia Fintech News

Ethereum is getting a lot of attention from big companies. A recent Reddit discussion highlighted how Fundamental Global Inc., a Nasdaq-listed firm, plans to raise five billion US dollars and use most of it to buy Ethereum. 

The company wants to hold ETH for the long term, stake it, and use it in DeFi to earn more ETH. This puts them in the group of around thirteen companies now called Ethereum treasuries. Their only goal is to collect as much ETH as possible and grow it for their shareholders.

Unlike Bitcoin treasuries such as Strategy (Formerly MicroStrategy), Ethereum firms are treating ETH not just as a store of value but as a productive, yield-generating asset. By locking supply and staking at scale, these firms aim to boost long-term value for shareholders while deepening Ethereum’s role in institutional finance.

FGF’s $5B Ethereum Fundraising Plan

The $5 billion fundraising will be structured in phases. According to the filing, FGF will issue shares gradually, giving it flexibility depending on market conditions. Out of the total, $4 billion will be raised through an at-the-market (ATM) sales agreement with ThinkEquity, meaning shares can be sold at prevailing market prices from time to time.

This strategy allows the company to raise capital in batches, rather than all at once, reducing pressure from changing market environments.

Will Ethereum Beat Bitcoin

This has raised the question of whether Ethereum can become bigger than Bitcoin. Ethereum co-founder Joe Lubin believes that with more companies adding ETH to their balance sheets, it could even pass Bitcoin in market value within a year. The reason is that Ethereum is not just valuable but also useful. It can be staked and used to earn rewards, which gives it an advantage over Bitcoin.

However, Vitalik Buterin has a warning. He agrees that ETH as a treasury asset is good, but he also says that if companies borrow too much money or take big risks while holding ETH, it could cause problems for the whole crypto market.

  • Also Read :
  •   Ethereum Holds Strong at $4,200 — Traders Eye Make or Break Movement For ETH
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Wall Street Fuels Ethereum Treasuries

These community concerns come as Wall Street’s appetite for ETH continues to grow. BitMine has already accumulated 566,776 ETH ($2.03B) in just 16 days, targeting 5% of the total supply, while SharpLink Gaming raised $2.6B, staking nearly all holdings and generating over 1,300 ETH in rewards. Analysts like Tom Lee see potential for ETH to soar to $60,000, while BlackRock is exploring staking features for its $16B ETH ETF.

This new wave of Ethereum treasuries shows that Wall Street is starting to see ETH as more than just an investment. Bitcoin has often been called digital gold, but Ethereum is now being seen as a productive asset that not only holds value but also earns yield. If more companies follow this trend, the demand for ETH could grow a lot stronger.

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FAQs

What is an Ethereum treasury?

An Ethereum treasury is a company that holds significant amounts of Ethereum (ETH) on its balance sheet, often with the goal of growing its holdings through staking and DeFi.

How is Ethereum different from Bitcoin for corporate treasuries?

Unlike Bitcoin, which is primarily a store of value, Ethereum is seen by corporate treasuries as a productive asset that can generate yield through staking and participation in decentralized finance (DeFi).

What are the potential risks of companies holding large amounts of ETH?

Vitalik Buterin warns that companies borrowing too much money or taking big risks to hold ETH could cause problems for the entire crypto market.

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact [email protected] for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

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BitcoinWorld Crucial US Stock Market Update: What Wednesday’s Mixed Close Reveals The financial world often keeps us on our toes, and Wednesday was no exception. Investors watched closely as the US stock market concluded the day with a mixed performance across its major indexes. This snapshot offers a crucial glimpse into current investor sentiment and economic undercurrents, prompting many to ask: what exactly happened? Understanding the Latest US Stock Market Movements On Wednesday, the closing bell brought a varied picture for the US stock market. While some indexes celebrated gains, others registered slight declines, creating a truly mixed bag for investors. The Dow Jones Industrial Average showed resilience, climbing by a notable 0.57%. This positive movement suggests strength in some of the larger, more established companies. Conversely, the S&P 500, a broader benchmark often seen as a barometer for the overall market, experienced a modest dip of 0.1%. 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