Ethereum (ETHUSD) is starting to garner attention from companies looking to add digital assets to their balance sheet outside of Bitcoin.
The price of ETH has jumped back above the $2,400 level to trade at $2,964. The $3,000 level may have limited resistance, with the $4,000 area being a larger obstacle.
Bit Digital said it completed a transition to an ether treasury strategy last week, after accumulating 100k tokens worth around $300M. The purchases were funded in the same way as Michael Saylor’s Strategy has bought BTC, with public equity offerings.
“We believe Ethereum has the ability to rewrite the entire financial system. Ethereum’s programmable nature, growing adoption, and staking yield model represent the future of digital assets,” said Bit Digital CEO Sam Tabar. He said the company is “aligning itself with Ethereum’s long-term potential and positioning itself as a focused Ethereum treasury platform in the public markets”.
The treasury strategy is growing in popularity, with over 200 companies globally now adopting a crypto holding on their balance sheets. US President Donald Trump’s social-media platform, Trump Media & Technology Group, filed last week for an ETF that will hold a selection of assets, including bitcoin, Ethereum, Solana (SOLUSD), and XRP (XRPUSD).
Meanwhile, veteran short seller Jim Chanos has been critical of the BTC treasury approach. He has said it is a sign of speculation when investors are willing to pay a premium for stocks holding BTC, rather than owning the physical asset outright. As more and more companies raise money for bitcoin purchases, it also pushes the price of cryptocurrencies higher, adding to the risk further.
That is good for traders, but could be a worry for long-term buyers at the current levels. Focus will turn to the Congress discussions on crypto bills this week.
