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Now, a handful of publicly traded companies, including Sharplink games, are now embracing the Ethereum Finance Company model.
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Just like the Bitcoin Finance Company model, it relies on investors to raise funds from investors to buy cryptocurrencies.
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Whether the Ethereum-created strategy is equally successful remains to be seen.
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10 Better Stocks than Ethereum ›
Something interesting is happening Ethereum (Encryption: ETH) Now. Small, relatively unknown companies are starting to add Ethereum blockchain’s native coin Ether as part of a new strategy aimed at increasing the valuation of its stock market. So far, it is working.
Apt Example: In the past 30 days, Sharplink Games (NASDAQ: SBET) Up to 150% (as of July 18). Sharplink games have attracted a lot of attention with their new encryption strategy and will almost certainly attract other companies.
In a short period of time, Sharplink Gaming has become the largest corporate holder of Ether Coins on Earth. Now, it has 280,706 coins and has a recent price of $960 million. Putting that number on perspective is even more ether than what the nonprofit Ethereum Foundation has.
In early July, the company raised more than $400 million for its Ether War Box. It still has over $250 million for future purchases after the latest purchase in mid-July, so we'll hear more from Sharplink Gaming soon.
If this strategy sounds familiar, it is because the Ethereum Finance Company model is Bitcoin (Encryption: BTC) The financial company model is strategy (NASDAQ: MSTR)The company was formerly known as MicroStrategy. The concept is very simple: instead of using operating cash to fund cryptocurrency purchases, you use the capital market to fund it. Once you line up this money, you can have a cryptocurrency binge.
As long as the price of cryptocurrencies continues to rise, all of this is OK. We've seen this work with Bitcoin, as the price of Bitcoin (except for some of the pullbacks here and there) has been mostly rising over the past 24 months. Ethereum may say the same thing, up 7% in 2025 (as of July 18) after registering losses for most of the year. Whether Ethereum can provide the same type of performance as Bitcoin has grown by 30% over the same period remains to be seen.
For now, only a few publicly traded companies have adopted this strategy. Two other notable examples are bit immersion technology (nysemkt:bmnr) and digits (Nasdaq: BTBT). The two announced the hub of the model in June.
The story continues
Image source: Getty Images.
Now that the basic work has been laid, it is easy to see how other companies can attract them. The Ether price is still only $3,600, which allows investors to raise funds from investors than to buy Bitcoin for about $120,000. Lower entry barriers may be more attractive for smaller companies accessing capital markets.
Currently, I have a different view of Sharplink games, which is also a marketing partner for sports betting books and online casino operators. Just look at this chart and you will understand why I think this is an adventurous gamble:
The company's stock has remained flat in mid-2025. It has nothing to make the stock price go up. Of course, until it was an idea for Ethereum investment.
And I'm not very enthusiastic about Bitmine Immersion technology. Granted, it now has the chairmanship of the renowned investment strategist Tom Lee. This gives investors a lot of power to engage more capital.
But what is a Bitcoin mining company in the world buying Ether? It doesn't make any sense to me. We can ask the same question about BIT Digital, which is now ending its Bitcoin mining business. How do you become an evangelist of Ethereum when your core DNA is rooted in Bitcoin?
That's why I'm starting to appreciate strategies more and more. Michael Saylor, the company’s founder and executive chairman, could stand out in his predictions, but he is a powerful preacher for Bitcoin. My impression is that from the moment he woke up and went to bed, he was thinking about Bitcoin. That's the guy I want to run a cryptocurrency company.
So, before you invest in an Ethereum Finance company, make sure you do your due diligence. Only a few may turn into long-term dramas worthy of your investment.
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Dominic Basulto has positions in Bitcoin and Ethereum. Motley fool has a place and recommends Bitcoin and Ethereum. Motley Fool has a disclosure policy.
Prediction: Sharplink's Ethereum move is only started by Motley Fool