SharpLink is securing its reserves by purchasing Ethereum, contrasting with the predominant use of Bitcoin in corporate treasuries.
SharpLink's Investments in Ethereum
SharpLink made a significant statement by investing $463 million in Ethereum, acquiring 176,271 ETH. This decision challenges the common practice of using Bitcoin as the primary reserve asset for corporations. According to Rob Phythian, CEO of SharpLink:
> "This is a turning point for SharpLink and for the adoption of digital assets by publicly traded companies."
Currently, 95% of the purchased ETH is staked, further confirming the company's long-term commitment to Ethereum.
Who are the Biggest Holders of Ethereum?
Although SharpLink is now one of the largest holders of Ethereum, the Ethereum Foundation, which holds 214,129 ETH, is still in the top position. Additionally, major asset management firms like BlackRock hold 1.7 million ETH in reserve, while cryptocurrency exchanges Binance and Kraken possess 4.4 million and 1.7 million ETH, respectively. Thus, besides the Ethereum Foundation, SharpLink is the largest holder of ETH for its own account.
Ethereum as a Reserve Asset
SharpLink's decision to treat Ethereum as a reserve asset was surprising, yet the stock market reacted positively with a 400% share price increase following the announcement. However, concerns regarding asset movements between wallets led to a 73% stock price drop. Importantly, SharpLink's chairman is Joseph Lubin, one of Ethereum's co-founders.
SharpLink's investment in Ethereum highlights new trends in corporate reserves, yet for Ethereum to be widely accepted as a reserve asset, economic challenges will need to be addressed.
