TL;DR
- Several public companies are adding altcoins like Ethereum, XRP, and Solana to their treasuries through financial instruments.
- SharpLink Gaming purchased 144,501 ETH worth $515 million and staked most of it after the token’s price surged.
- The market reacted strongly, with some crypto-holding companies’ stocks jumping up to 226% in a month, despite the volatility risks.
A growing number of public companies are diversifying their treasuries by incorporating altcoins such as Ethereum, XRP, and Solana. According to a recent report by Animoca Brands Research, these firms are using financial instruments to increase exposure to different cryptocurrencies without buying them directly on the spot market.
This strategy allows them to gradually grow their crypto holdings per share, capitalizing on investor demand for alternatives to Bitcoin. SharpLink Gaming, for instance, became the largest corporate holder of Ethereum after acquiring 32,892 ETH for $115 million in just nine days, reaching a total of 144,501 ETH valued at $515 million.
Its purchase came as Ethereum rose above $3,400, hitting a six-month high. Most of SharpLink’s tokens are staked, generating rewards while also contributing to the network’s security.
This diversification trend follows Strategy’s move to popularize crypto reserve strategies, having amassed over 600,000 Bitcoins as a hedge against inflation. Today, other companies are adopting similar approaches with tokens like BNB, TRX, HYPE, and FET. Many provide access to altcoins for investors who can’t invest in traditional products like ETFs.
Public Companies On the Rise: But at What Cost?
The report also highlights the market’s positive reaction: companies that disclosed altcoin holdings saw their stock prices surge by 150% in a single day, 185% in a week, and 226% in a month. Still, altcoins carry higher risks due to their volatility, lower liquidity, and evolving technology. However, if the tokens are used for staking or network functions, they can help enhance liquidity and security—key factors for broader adoption.
Other public firms following this path include BIT Mining, which plans to allocate between $200 million and $300 million to build a Solana-based treasury, and DeFi Development Corp., which acquired $2.7 million in SOL to strengthen its reserves. Canadian-based Sol Strategies holds over 420,000 SOL and is in the process of listing on Nasdaq to expand its U.S. presence.
