Large companies are increasingly investing in Ethereum, viewing this cryptocurrency not just as a store of value but as a productive asset. Key players in the financial market are analyzing the prospects and potential risks of this approach.
FGF’s $5B Ethereum Fundraising Plan
Companies like Fundamental Global Inc. (FGF) plan to raise $5 billion to purchase Ethereum. The primary goal is to hold ETH long-term, stake it, and use it in DeFi to increase reserves. FGF intends to use a phased share issuance model to flexibly respond to market changes, raising $4 billion through an at-the-market sales agreement.
Ethereum vs. Bitcoin Competition
The question arises whether Ethereum can surpass Bitcoin in market value. Ethereum co-founder Joe Lubin points out that if companies continue adding ETH to their balance sheets, it is possible. However, Vitalik Buterin warns against excessive borrowing and risks that could negatively affect the overall market.
Wall Street's Growing Interest in Ethereum
Wall Street's interest in Ethereum is on the rise. For instance, BitMine has accumulated 566,776 ETH in just 16 days, and SharpLink Gaming raised $2.6 billion. Analysts like Tom Lee suggest that ETH could soar to $60,000. This new wave of Ethereum treasuries indicates that Ethereum is starting to be seen as a productive asset.
Large companies are building their Ethereum reserves, which could lead to significant changes in the cryptocurrency market. While there are potential benefits, it is also important to be aware of the associated risks.
