Will Public Companies Gobble Up All New ETH? 🤔💰

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The recent binge of Ethereum by public companies is like a new chapter in a very expensive and slightly confusing book. Experts and market analysts, who are usually as reliable as a weather forecast in the tropics, believe this binge will only get more intense in the future.

Recently, a company decided to sell its Bitcoin, which is a bit like trading in a vintage Ferrari for a new Tesla. This move marks a significant shift in long-term expectations for Ethereum, suggesting it might be the new kid on the block that everyone wants to be friends with.

Why Institutions Might Soon Buy Up All Newly Issued ETH

Since Ethereum’s Merge upgrade in September 2022, the network has sharply reduced ETH issuance. According to Ycharts data, issuers have only circulated around 300,000 new ETH after this upgrade. That’s like finding a needle in a haystack, but the needle is made of gold and the haystack is the size of a small country.

Furthermore, Ethereum burns a portion of transaction fees forever, and validators must lock up large amounts of ETH to secure the network. It’s like a digital version of Fort Knox, where the gold is both the security and the treasure. Companies and institutions ramping up ETH accumulation in 2025 could further push the supply-demand imbalance, making it harder for the little guy to get a piece of the pie.

Ethereum developer Binji compared ETH to an oil field that pumps out just one barrel daily, while Wall Street consumes six barrels. His point is that new ETH issuance is tiny compared to what institutions keep buying and holding. It’s like trying to fill an Olympic-sized swimming pool with a garden hose.

“SharpLink Gaming and BitDigital have, in just one month, eaten up 82% of all the net new ETH issued since the Merge (298,770). Plus, spot ETFs hold 4.11 million ETH, which is 11x the net issuance. Basically, imagine an oil mine that yields one barrel a day while Wall Street swallows six,” Binji explained.

BeInCrypto reported that Bit Digital sold all its Bitcoin holdings — 280 BTC worth around $28 million—and combined the proceeds with the $172 million raised through a public offering to buy 100,603 ETH worth about $254.8 million. Earlier, SharpLink Gaming raised $425 million specifically to buy more Ethereum. It’s like they’re all in a race to see who can hoard the most digital gold.

These moves led well-known crypto analyst Pentoshi to predict that institutions will soon absorb all newly issued ETH. It’s like a game of musical chairs where the music never stops, and the chairs keep disappearing.

“In less than one month, public companies will have bought enough ETH to offset all the ETH that’s been created since the Merge,” Pentoshi predicted.

Pentoshi and Binji both argue that ETH accumulation is still early. They believe ETH could transform into a mainstream deflationary asset, which is a fancy way of saying it might become as rare as a unicorn in a desert.

However, some critics challenge this view. They argue that companies might hold ETH in their treasuries mainly to attract “exit liquidity” — so large investors can sell at higher prices. It’s like buying a house in a ghost town, hoping the next person will pay more for it.

These critics claim narratives that once fueled ETH’s price — like ICOs, DeFi, and NFTs — have lost strength. They say stablecoins now drive ETH demand. However, Ethereum could lose its leading position as more blockchains compete to host stablecoins. It’s like a popularity contest where everyone is trying to be the coolest kid on the block.

“All ETH has for a narrative today is stablecoins. But do we really need a $300 billion decentralized blockchain just to trade IOUs? No. Many stablecoin chains will launch to compete with ETH. As for the ETH treasury companies, that’s just to attract exit liquidity,” investor John Galt said.

At the time of writing, ETH trades around $2,550. ETH’s price is still half of its all-time high from 2021, which is a bit like being halfway up a mountain and wondering if you should turn back or keep climbing.

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2025-07-08 13:39