Ethereum-related equities had a huge breakout, driven by smart corporate moves and a crypto bull market wave. SharpLink Gaming just announced its ETH treasury strategy. At the same time, Bit Digital disclosed its exit from Bitcoin mining and revealed a strategic pivot to Ethereum staking. Together, these moves have sent related stocks into the stratosphere. Ethereum value increase acknowledges the reality of more integration of crypto to our traditional markets.
SBET, the stock of SharpLink Gaming (that’s their corporate name), surged over 28% on Wednesday after it announced its ETH treasury strategy. The company holds 198,167 ETH. SharpLink Gaming recently announced a 222 ETH staking rewards yield earned since the last staking period which began on June 2nd. The company in early 2021 raised $162.9 million in proceeds from a share offering to buy Ethereum.
One of Bit Digital’s competitor’s stocks, BMNR, experienced a massive gain, closing up 27.17% on Wednesday. This jump came after Bit Digital’s announcement of its strategy to become a pure-play Ethereum staking and treasury company. This announcement represents a major pivot away from Bitcoin mining for the company.
Ethereum itself has been on an 8.1% value increase spree, with the price skyrocketing to $2601. The bullish momentum in the crypto world has been one of the biggest industry catalysts lifting the stocks directly or indirectly tied to the ETF’s surge. Speculative global demand for stablecoins remains high. At the same time, the tokenizing of real-world assets is fueling an increase in Ethereum-backed stocks.
Devin Ryan, head of financial technology research at JMP Securities, pointed to the real use cases that are starting to emerge, most notably through stablecoins and tokenization. This increasing utility is luring in more institutional investors and accelerating further integration of crypto into the greater financial ecosystem. The explosive popularity of Ethereum-backed equities is indicative of how much inroads cryptocurrencies have made into the mainstream. This trend further emphasizes their power to disrupt traditional financial systems.
