The race to accumulate Ether as a treasury asset is heating up with more than ten companies buying 550,000 ETH worth $1.65 billion in the last 30 days. Crypto entrepreneur Kyle Reidhead disclosed this on X.
According to Reidhead, who is co-owner of crypto newsletter Milk Road, this highlights the massive demand for Ether as more companies continue to pivot to the ETH treasury playbook.
The move to adopt ETH as a treasury asset is inspired by what Strategy (formerly MicroStrategy) has done with Bitcoin. While over 100 companies have bought BTC for their treasury, others are turning to other crypto assets, including ETH.
Reidhead noted that this is still in the early stages, with more companies looking to get involved, while those involved also want to buy more ETH. Thus, he expects the accumulation rate to only increase in the coming months.
He said:
“There are new $ETH treasury companies launching every week (sounds like the biggest is yet to come), and each company is looking to buy more $ETH than they did the previous week. So if the last 30 days is $1.65 billion, then will the next month be $2B and then $3B after that?”
However, he acknowledged that demand will eventually slow down, but added that that will not come anytime soon, given that ETH treasury companies are still in their early stages.
Reidhead also noted that ETH treasury companies do not sell, unlike exchange-traded funds, at least for now, and expect their accumulation to impact ETH performance.
Sharplink is now the biggest ETH holder after accumulation spree
Interestingly, the Milk Road founder highlighted Sharplink Gaming as one of the biggest buyers of ETH, noting that the company has bought 75,000 ETH in the past five days alone. Sharplink’s most recent purchases only continue a trend that has seen it become the biggest ETH holder.
The company, which became an ETH treasury company in early June, has already spent over $700 million on buying Ether in less than two months. Its latest purchase was 24,371 ETH bought from Coinbase Prime less than 24 hours ago for $73 million.
Sharplink latest ETH purchase (Source: Onchain Lens).
With its accumulation, Sharplink ETH holdings are now above 290,000 ETH, more than enough to flip the Ethereum Foundation as the biggest Ether holder. The Foundation holds around 242,000 ETH and recently sold 10,000 ETH to Sharplink.
Meanwhile, Sharplink is not the only company on an ETH accumulation spree. Bitmine Immersion has also been buying, with the company holding over 163,000 in ETH, while former Bitcoin miner BitDigital has more than 100,000 ETH after converting its Bitcoin to ETH.
Interestingly, there appears to be a healthy competition between the top ETH treasury companies, with executives of those companies praising the accumulation rate of one another.
Sharplink chairman Joe Lubin described the group as “The League of Extraordinary ETH Accumulator Gentlemen” and praised Tom Lee of Bitmine, San Tabar of Bit Digital, and Charles Allen of BTCS. He added that competition and coordination between the companies will strengthen and improve them.
ETH slips 2% to fall below $3k again
Meanwhile, the massive accumulation rate of ETH, coupled with a market-wide rally, is impacting Ether performance, with the token going above $3,000 twice in the past few days.
Although it has fallen below $3,000 on both occasions, with a recent 2% drop that saw it trade $2,972, there are positive signs that it would soon recover and find its support above that price level.
Over the past seven days, ETH has climbed up more than 16% and the turnaround is more evident in the long term, with a 90% gain in the past 3 months. However, it is still trading 11% below its price at the start of the year.
