Top 10 Ethereum treasury companies: How do they make money with ETH?

Ethereum is attracting more and more companies to incorporate it into their treasury assets. This article will delve into the top 10 Ethereum treasury companies, analyzing how they leverage ETH through staking and other means to generate "money makes money." (Background: Financial Times: The EU considers using Ethereum, Solana, and other public chains for its digital euro, shifting to a public and transparent ledger) (Background Supplement: BTCS announces the first-ever Ethereum dividend program: shareholders can directly receive ETH) Ethereum is increasingly attracting institutions and companies to incorporate it into their treasury assets or strategic reserves. Since the second half of 2024, a wave of "Ethereum treasury" has emerged, with many listed companies incorporating ETH into their balance sheets or capital reserves, not only as a store of value but also generating income through staking and other methods. According to Strategic ETH Reserve, there are currently 70 listed companies, project parties, or entities that consider Ethereum as a strategic reserve or hold Ethereum (holding more than 100 ETH). The latest data shows that all these entities cumulatively hold over 4.1 million ETH, valued at approximately $17.6 billion, accounting for 3.39% of ETH's supply. Among them, companies that have adopted Ethereum treasury strategies hold a total of approximately 3 million ETH, valued at about $12.86 billion. The companies that have initiated Ethereum treasury strategies include: BitMine, SharpLink Gaming, The Ether Machine, Bit Digital, ETHZilla Corporation, BTCS Inc., FG Nexus, GameSquare Holdings, ETH Strategy, Intchains Group, IVD Medical Holdings IVD, BTC Digital Ltd, Centaurus Energy Inc., Cosmos Health. This article will explore the Ethereum staking strategies and income generation methods of the top 10 Ethereum treasury companies. Overall, these top 10 companies represent the core of "Ethereum treasury companies," not only building substantial asset reserves through large-scale accumulation of ETH but also showcasing diverse characteristics in staking and income strategies: Some companies choose to collaborate with professional staking service providers to achieve stable returns using their technology and resources; some deeply engage in the Ethereum network through self-operated verification nodes and participation in liquid staking; others enhance the comprehensive returns of ETH assets through staking, re-staking, and combining DeFi ecosystems, using diverse methods such as lending, liquidity provision, and MEV optimization; some companies are also exploring advanced strategies like circular lending. These practices reflect the recognition of ETH as a store of value and showcase its potential for generating incremental returns, providing a reference model for more institutions to incorporate ETH into treasury assets, while also driving further maturity of the Ethereum ecosystem. BitMine has become the world's largest ETH corporate holder within less than two months of announcing its Ethereum treasury strategy, with its ETH holdings skyrocketing from 0 to 1,523,373, aiming to accumulate 5% of the ETH supply. Wall Street strategist and co-founder of Fundstrat Global Advisors, Thomas Lee, has joined the BitMine board as chairman. On July 16, according to documents submitted to the SEC, PayPal co-founder and Silicon Valley venture capital pioneer Peter Thiel acquired 9.1% of BitMine Immersion Technologies' shares. BitMine has not yet initiated ETH staking. However, BitMine has stated that a significant feature of Ethereum is its support for smart contracts, with most stablecoin payments, tokenized assets, and decentralized finance applications being conducted on Ethereum. By directly holding ETH funds, the company can participate in native protocol layer activities on the Ethereum network, such as staking and decentralized finance mechanisms. Bill Miller III, an investor behind BitMine (senior advisor at Miller Value Partners), also stated in August, "Once BitMine opens ETH staking, its profitability will be very considerable." Recommended reading: "What signal does 'Silicon Valley venture capital pioneer' Peter Thiel's acquisition of 9.1% of BitMine send?" SharpLink Gaming, a NASDAQ-listed company, was originally an online performance marketing company focused on the US sports betting and global iGaming industry, which confirmed ETH as its main reserve asset in early June this year. Ethereum co-founder and Consensys founder and CEO Joseph Lubin has joined SharpLink Gaming and serves as chairman of the board. As of August 19, SharpLink Gaming holds approximately 740,760 ETH and has staked nearly 100% of its ETH, accumulating 1,388 ETH in rewards through staking. SharpLink Gaming primarily conducts staking through Liquid Collective and Figment. Recommended reading: "Stock price once skyrocketed 700%, how could this gambling company reserve Ethereum?" The Ether Machine On July 21, blank check company Dynamix announced a merger with another entity to form a new company called "The Ether Machine." After the merger, the company plans to hold over $1.5 billion worth of ETH. Currently, The Ether Machine holds a total of (purchased and committed) 345,362 ETH. The chairman and co-founder of The Ether Machine, Andrew Keys, stated that the company's mission is to purchase ETH, stake, re-stake, and deploy it on-chain. In the The Ether Machine Deck, it was found that The Ether Machine's Ethereum strategy includes: 1. Accumulating ETH: Building ETH reserves through purchases and strategic partnerships. 2. Compounding ETH: Native staking and re-staking ETH or operating through staking service providers: obtaining staking rewards and additional re-staking returns through delegation or running verification nodes. Seizing opportunities in the DeFi space: Exploring on-chain opportunities to obtain risk-adjusted attractive returns. Providing institutional-grade staking services: Creating one-stop staking and re-staking solutions for enterprises and funds, continuously generating ETH-denominated returns. 3. Strengthening the Ethereum network, reaching institutional and retail users, etc. Notably, The Ether Machine ...