Something very interesting is going on with Ethereum (ETH 4.35%) right now. Small, relatively unknown companies are starting to add Ether, the native coin of the Ethereum blockchain, to their balance sheets as part of a new strategy designed to lift their stock market valuations. And so far, it’s working.
Case in point: during the past 30 days, shares of SharpLink Gaming (SBET -20.22%) are up a whopping 150% (as of July 18). SharpLink Gaming has attracted so much attention with its new crypto strategy that it’s almost certain to attract other companies as well.
In a very short time, SharpLink Gaming has become the largest corporate holder of Ether coins on the planet. It now holds 280,706 coins, worth about $960 million at recent prices. To put that figure into perspective, that’s more Ether than even the nonprofit Ethereum Foundation holds.
In early July, the company raised more than $400 million for its Ether war chest. After its latest buy in mid-July, it still has more than $250 million for future purchases, so it’s likely that we’ll be hearing more from SharpLink Gaming soon.
If this strategy sounds familiar, that’s because the Ethereum treasury company model is a replica of the Bitcoin (BTC 0.07%) treasury company model pioneered by Strategy (MSTR -6.06%), the company formerly known as MicroStrategy. The concept is very simple: Instead of using cash from operations to fund crypto purchases, you tap the capital markets for funding. Once you have this funding lined up, you go on a crypto buying spree.
All of this works as long as the price of the cryptocurrency continues to go up. We’ve seen this work with Bitcoin, because the price of Bitcoin — aside from a few pullbacks here and there — has mostly gone up during the past 24 months. The same might be said for Ethereum, which is up 7% in 2025 (as of July 18) after registering losses for much of the year. It remains to be seen if Ethereum can deliver the same type of performance as Bitcoin, which is up 30% in the same period.
For now, only a handful of publicly traded companies have adopted this strategy. Two other notable examples are Bitmine Immersion Technologies (BMNR 0.45%) and Bit Digital (BTBT -4.24%). Both announced their pivots to this model in June.
Now that the groundwork has been laid, it’s easy to see how other companies could be tempted to jump in. The price of Ether is still only $3,600, which makes raising money from investors easier than raising money to buy Bitcoin at about $120,000. The lower barrier to entry is likely to be much more attractive for small-cap companies with relatively limited access to the capital markets.
Right now, I have mixed feelings about SharpLink Gaming, which is also a marketing partner for sports betting books and online casino operators. Just look at this chart, and you’ll see why I think it’s a risky gamble:
In mid-2025, the company’s stock had been flatlining. Nothing it did could get its stock price up. Until, of course, it latched on to the idea of investing in Ethereum.
And I’m not very enthusiastic about Bitmine Immersion Technologies, either. Granted, it now has renowned investment strategist Tom Lee of Fundstrat as its chairman. That gives it a lot of power to reach out to investors for more capital.
But what in the world is a Bitcoin mining company doing buying Ether? It doesn’t make any sense to me. We can ask the same about Bit Digital, which is now winding down its Bitcoin mining operations. How can you be an evangelist for Ethereum when your core DNA is rooted in Bitcoin?
That’s why I’m starting to appreciate Strategy more and more these days. While Michael Saylor, the founder and executive chairman of the company, can be a bit over the top in his predictions, he’s a strong evangelist for Bitcoin. I get the impression that, from the moment he wakes up to the moment he goes to bed, he’s thinking about Bitcoin. That’s the type of person I want running a crypto treasury company.
So before you invest in an Ethereum treasury company, make sure you do your due diligence. Only a small handful of them may ever turn into long-term plays worthy of your investment.
