In the latest chapter of the digital asset revolution, corporate ether investments are emerging as a strategic play for small public companies looking to diversify and grow their balance sheets. Ethereum (ETH), the second-largest cryptocurrency by market cap, is gaining favor over Bitcoin as a more dynamic and functional store of value, thanks to its staking rewards and the decentralized finance (DeFi) ecosystem it powers.
According to a Reuters analysis of regulatory filings, publicly listed companies held at least 966,304 ether tokens as of the end of July 2025, representing nearly US$3.5 billion in value. That’s a massive leap from just under 116,000 ETH held at the end of 2024—an increase of more than 700%.
Why Ether is Replacing Bitcoin in Treasury Strategies
Ethereum offers advantages that Bitcoin lacks, particularly in utility and yield. While Bitcoin is primarily viewed as digital gold, ether powers a functional ecosystem and generates income through staking—a process that allows holders to lock their tokens to support the network and earn rewards.
Staking yields currently range between 3% and 4%, adding an active return component that appeals to companies seeking yield on idle capital.
“Ether balances growth potential with the legitimacy of a blue-chip asset,” said Sam Tabar, CEO of Bit Digital (NASDAQ:BTBT), which holds ETH on its balance sheet. “It’s institutional-grade, but still early enough in its adoption curve to benefit from future upside.”
Ether’s Appeal: Not Just a Store of Value
Ether isn’t just a speculative asset—it’s the backbone of decentralized finance. The Ethereum blockchain supports a range of financial applications including lending, trading, and stablecoins, which makes ether comparable to oil, as opposed to Bitcoin’s gold-like qualities.
“Holding ether is more like owning oil,” said Anthony Georgiades, general partner at Innovating Capital. “It’s the foundation of decentralized finance, not just a pure store of value.”
Caution in the Face of Hype
The market has reacted strongly to announcements of ether acquisitions. Shares of BitMine (OTC:BTMN), which is backed by Peter Thiel, soared 3,679%, while GameSquare Holdings (NASDAQ:GAME) jumped 123% following similar disclosures earlier this year.
But not everyone is convinced the gains are sustainable.
“The share price response has the hallmarks of the meme craze,” warned Dan Coatsworth, investment analyst at AJ Bell.
Indeed, ether’s volatility and the complexity of staking mechanisms present challenges for most corporate treasuries. Regulatory ambiguity also continues to cloud adoption.
Regulatory Gray Zones Remain a Barrier
Despite recent signals from the Securities and Exchange Commission (SEC) suggesting a softer stance on staking, legal uncertainties persist. Key questions remain unresolved:
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Are staking rewards considered taxable income?
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Should locked ETH be recorded as a liability or asset?
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Could offering staking services make companies de facto custodians?
“Every staking reward could be landing in a compliance gray zone,” said Michael Ashley Schulman, partner and CIO at Running Point Capital Advisors.
For many CFOs, these unanswered questions are enough to limit exposure.
“Most CFOs would not swap liquid cash for ether,” said Anuj Karnik, managing director at Straitsberg, a Singapore-based treasury advisory firm. “It remains a niche tool best left to tech-forward treasuries.”
Still, Companies Double Down on Ether
Despite the risks, several firms are going all in. BitMine recently raised US$182 million through a stake sale to ARK Invest, led by Cathie Wood. GameSquare CEO Justin Kenna also confirmed the company is considering selling stock to increase its ether holdings.
While it may not yet be mainstream practice, corporate ether investments are undeniably on the rise—and could become a defining trend in treasury strategy for risk-tolerant, forward-looking firms in 2025 and beyond.
Featured Image: Freepik
