Ethereum treasury companies swell as spot ETFs notch fifth straight month of positive inflows

Ethereum has dropped from the $4,650 level last week to trade around $4,300 Tuesday morning. The price action comes as US spot ethereum ETFs notched over $1 billion in inflows last week, according to SoSoValue.

Ethereum ETFs have now had five consecutive months of positive inflows, totaling close to $11.1 billion or 82% of their cumulative inflows since inception. 

The network’s monthly on-chain volume, which measures economic throughput stemming from transaction transfers and decentralized finance activity, has also climbed to a four-year high, jumping past $346 billion in August. The last time ethereum’s on-chain monthly volume had seen this level was May 2021, per The Block.

Meanwhile, ethereum treasury companies have had a busy Tuesday, making several announcements about their crypto holdings, activity in the decentralized finance ecosystem, and capital raises:

• BitMine Immersion Technologies announced its holdings have grown to about 1.9 million ethereum tokens, 192 bitcoin, and $635 million in cash, bringing its total holdings to almost $9 billion, according to a Tuesday press release. Since launching its treasury strategy at the end of June, BitMine has become the largest ethereum treasury firm and the second-biggest crypto treasury overall, just behind bitcoin behemoth Strategy.

• SharpLink Gaming announced it had purchased 39,008 ethereum tokens for an average purchase price of $4,531 and raised $46.6 million through its at-the-market facility in the week ended August 31. The company’s total has increased to 837,230 ethereum worth more than $3.6 billion.

• ETHZilla, backed by Peter Thiel’s Founders Fund, said it plans to deploy about $100 million of ethereum into decentralized finance protocol EtherFi to generate higher yields on its crypto assets, per a press release. The move, which is ETHZilla’s first engagement with DeFi protocols, comes as the firm said it holds 102,246 ethereum tokens and $221 million in cash equivalents.

• The Ether Machine has raised 150,000 ethereum tokens worth roughly $654 million of committed financing from Jeffery Berns, founder of crypto firm Blockchains. A press release states the company’s total committed crypto holdings have swelled to 495,362 ethereum tokens worth nearly $2.2 billion with $367 million in cash for further acquisition. The Ether Machine, the third-largest ethereum treasury company, behind BitMine and SharpLink, has plans to go public after a pending business combination with Dynamix Corporation and The Ether Reserve LLC. 

• Finally, Yunfeng Financial Group Limited, based in Hong Kong, announced plans for a strategic expansion by increasing its investments in digital currencies. With the firm’s board approval, Yunfeng purchased a total of 10,000 ethererum tokens funded by internal cash reserves. The company is affiliated with Jack Ma, founder of the world’s largest e-commerce platform, Alibaba, said Vivek Raman, the founder of Etherealize.