Table of Contents
- ETH Reserves Stocks Are More Attractive
- ETH “Microstrategy” Strategy Is Taking Off
- Reserve Stocks Are Comparable in Scale to ETFs
ETH Reserves Stocks Are More Attractive
Geoff Kendrick points out that these companies are gaining attention not only for holding ETH but also because their financial structures are gradually becoming more appealing to investors. Geoff Kendrick states:
“Recently, the NAV multiples (the ratio of market value to the value of the ETH they hold) of these ETH reserve stocks have started to normalize, making them attractive targets for investors looking to track ETH prices.”
Following the Bitcoin corporate holding strategy promoted by Michael Saylor, an increasing number of publicly listed companies have begun purchasing ETH as a reserve asset, driving short-term stock price surges and subsequently boosting market capitalization and NAV multiples. However, these multiples have recently retreated from their peaks to more reasonable levels. Companies benefiting the most include BitMine Immersion Technologies (BMNR) and SharpLink Gaming (SBET). Kendrick specifically highlights SharpLink Gaming, noting that the company’s NAV multiple reached as high as 2.50 at its peak but has recently fallen back to a near 1.0 “normal level”—indicating that its market value is just slightly above the value of the ETH it holds. Kendrick adds that there is currently no reason to believe these NAV multiples will fall below 1.0, as such companies provide investors with “regulatory arbitrage opportunities.”
ETH “Microstrategy” Strategy Is Taking Off
According to Kendrick’s observations, since June, the amount of ETH purchased by companies employing an Ethereum reserve strategy has equaled that of U.S. listed ETH spot ETFs. Both categories of institutions currently hold approximately 1.6% of the total circulating supply of ETH (roughly just under 2,000 ETH), which reinforces Kendrick’s view that “ETFs and reserve companies provide similar ETH price exposure, but the latter has more investment potential.” Kendrick emphasizes: “At a time when NAV multiples are close to 1, I believe ETH reserve stocks are more worthy of investment than U.S. spot ETFs.”