Ethereum treasury companies now control an even bigger percentage of the supply. At the same time, Bitcoin and Solana saw a smaller share of their total supply held by corporate buyers.
Ethereum digital asset treasury (DAT) companies now hold over 4% of the total ETH supply. Ethereum treasuries have surpassed Bitcoin and Solana reserves as percentage of the total supply, and have the potential for higher influence within the Ethereum ecosystem.
Ethereum treasuries expanded in October, controlling a bigger part of the total supply compared to BTC and SOL reserves. | Source: Artemis
The share of Ethereum treasuries shifted ahead since October 14, reflecting the aggressive buying from BitMine (BMNR). The leading DAT company already holds over 3% of the ETH supply, on track to buy up 5% of the tokens.
70 entities hold ETH treasuries from new purchases or ICO reserves
A total of 70 entities hold 6.06M ETH, with 3.31M held in the BitMine treasury. In the past month, the leading treasury increased its holdings by 25%.
For BTC, around 3.6% of all coins are now locked in corporate treasuries, with the bulk held by Strategy, 21Shares, and Metaplanet.
Solana is in the third place, with slower SOL acquisitions in the past weeks, with 2.7% of supply locked in rerserves.
In the case of Ethereum, the significant holdings of entities were accumulated even before the DAT boom. Following the initial 2018 ICO season, some entities still have significant reserves of unallocated ETH, which are counted toward treasury balances. However, as with BTC, there is a smaller group of “playbook” companies moving fiat funds into digital assets.
ETH buying accelerates with DeFi use cases
While a BTC treasury remains mostly passive, an ETH reserve is still useful within the DeFi ecosystem. The recent expansion of DeFi and the potential of stablecoins has increased demand for ETH, as a reserve asset, or for passive income.
There is currently no standard on the usage of DAT treasuries, and each case may be different. Some companies use the buy-to-hold model, while others, like EthZilla, have sold ETH to perform stock buybacks.
BitMine and SharpLink are preparing to use some of the ETH within decentralized ecosystems, with staking, liquid staking, and other sources of passive income.
The stock-buying hype for DAT companies has subsided, as seen by the mNAV metric. Most companies hover around a ratio of 1, with their stock price on par with the digital asset holdings.
In the case of BMNR, the company still has a ratio of 1.14. BMNR trades around $52.54, with no significant crashes for the past few months. BitMine is also one of the few treasury companies with a high public profile, boosted by its founder Tom Lee.
Both ETH and SOL treasuries are growing with the promise of getting exposure to chains capable of carrying significant financial volumes, stablecoin payments, and other applications.
