Ether Treasury Firms: A New Playbook

Ether (ETH) treasury firms are emerging with a new strategy: treating the cryptocurrency not just as a reserve asset, but as yield-generating capital.

In recent months, several companies have unveiled ether treasury strategies that generate passive yield through ETH staking. Two notable examples are BitMine Immersion Technologies (BMNR) and SharpLink Gaming (SBET).

According to a report from Wall Street broker Bernstein, these companies are structuring their treasuries around the second-largest cryptocurrency, staking assets to earn operating income while also bolstering the network’s financial base.

While Bitcoin treasuries like MicroStrategy (MSTR) emphasize liquidity and passive holding, ether treasuries are focusing on staking yields, which are currently just under 3% but have historically ranged between 3% and 5%.

Bernstein estimates that a $1 billion ether treasury could generate between $30 million and $50 million in annual yield. However, this income comes with increased complexity. Ethereum’s staking model provides yield to holders rather than miners, necessitating active capital deployment and heightened risk oversight.

Unlike Strategy’s highly liquid bitcoin reserves, ether staking creates liquidity constraints. Unstaking can take several days, leading to potential mismatches during volatile periods.

More sophisticated strategies, like re-staking or decentralized finance (DeFi) yield farming, heighten smart contract and security risks, according to the report. Treasury managers must balance yield optimization with robust custody and risk management.

Still, Bernstein is optimistic that leading ether treasuries will effectively navigate these trade-offs.

With nearly 30% of the ether supply staked and another 10% locked in DeFi, coupled with ongoing ETF inflows, Bernstein indicates strong structural demand for ETH in the near-to-medium term.

Meanwhile, supply remains relatively flat. Analysts maintain a bullish outlook on ether’s capacity to support treasury-scale capital strategies, as long as liquidity and risk management are approached with discipline.

Read more: Analyst Predicts ETH Could Reach $13K by Q4, with a Conservative Target of $8K