Ethereum's MicroStrategy-Style Treasury Company Launches on Nasdaq

The situation is similar to MicroStrategy's approach but applied to Ethereum. Joe Lubin has orchestrated a move akin to the "MicroStrategy trick" but for ETH. He invests $425 million in the small company SharpLink Gaming ($SBET), initiating the first treasury company on Nasdaq based on ETH. The plan now functions on Ethereum. SharpLink was valued at about $10 million before the deal and essentially had a vacant spot on Nasdaq. The issuance of 69 million new shares at $6.15 allows for over 90% control transfer to an Ethereum community group. Without SPAC, roadshows, or IPO, the ticker is instantly available. With ETH at $3,500, this amounts to approximately 120,000 ETH, most of which is likely to be staked. Therefore, $SBET becomes a high-beta asset based on ETH income — a kind of financial leverage. The flywheel model involves raising capital below net asset value, buying and staking ETH, and if the shares trade above the ETH value per share, attracting more capital, then repeating the cycle. This mirrors MicroStrategy's model but tailored for ETH. Moreover, this is a public proxy for ETH for funds that can't hold tokens directly. Around 120,000 ETH is expected to shift into long-term staking. It simplifies ETH as a digital reserve collateral. Investors should watch the ETH NAV premium (MSTR's premium is about 1.7x to BTC/share). If a premium appears, additional funding rounds are possible. Smaller companies might mimic this model. It's important to note that this isn’t the long-anticipated IPO of ConsenSys but a quick "backdoor" to test investor interest before a potential full listing. For ETH holders, this could mean supply reduction, a new narrative, and leverage via token wrapping in shares. Bullish signals include further steps towards ETH aligning with traditional company balances. Joe Lubin, co-founder of Ethereum and a key figure in its launch in 2015, along with Vitalik Buterin, is also the founder of ConsenSys, which develops Ethereum infrastructure and applications.