Ethereum Stock Strategies: The Growing Trend of ETH Investment Schemes

The idea of buying ETH stocks is gaining attention. Several companies are entering the scene, following a scheme similar to Michael Saylor's Bitcoin strategy—issuing shares to buy and stake Ethereum, aiming to profit from validator rewards. Notable players include SharpLink Gaming, which has purchased 438,000 ETH and funds its reserves through market sales of stocks; BitMine Immersion Tech, which has transitioned from mining to accumulating ETH, rapidly growing its holdings; BTCS Inc., which has issued convertible notes and is heavily invested in ETH; and Bit Digital Inc., which is shifting from Bitcoin mining to acquiring ETH through share issuance and sales. The core model involves issuing stocks, raising capital, buying ETH, and earning from staking rewards. However, this approach carries risks, especially if the market cap surpasses the value of held ETH (measured by mNAV), or if regulatory changes occur—potentially impacting investor confidence and capital flows. A downturn in ETH prices could also diminish the premium (mNAV), leading to forced sell-offs and reduced investments. Overall, while these schemes can generate gains, they are somewhat speculative and sensitive to market and regulatory dynamics.