Two public companies are rapidly accumulating massive amounts of the largest crypto assets in the world. Strategy, led by Michael Saylor, purchased an additional 34,164 BTC for a total of over USD 2.54 billion within one week for an aggregate inventory position of 815,061 BTC (approximately USD 61.2 billion). On the other hand, Bitmine Immersion Technologies reported holding nearly 5 million ETH (4.12% of all ETH) with over 3.33 million ETH staked for a projected annualized yield of approximately 2.88%, and cash reserves exceeding USD 1.12 billion.
The Race for Accumulation
Strategy has funded this most recent acquisition by selling its MSTR common stock as well as STRC perpetual preferred stock via at-the-market transactions, with the resulting 11.5% annually compounded dividends. The company’s goal is to raise an aggregate USD 84 billion in common equity and convertible note offerings to finance Bitcoin purchases through the year 2027 with its “42/42” capital plan. Strategy now holds approximately 3.8% of Bitcoin’s fixed supply.
Bitmine recently uplisted to the New York Stock Exchange (NYSE) and is 82% of the way toward its goal of acquiring 5% of all Ethereum (ETH) by achieving its “Alchemy of 5%” objectives. Chairman Tom Lee indicated that during the war between the United States and Iran, Ethereum has outperformed the Standard & Poor’s 500 (S&P 500) index by 2,280 basis points, further calling it “the best performing asset class in the world other than crude oil.” Bitmine’s staking platform, the Made in America Validator Network (MAVAN), is now open to institutional investors.
Reason for Concern
The Treasury strategies are quite different: Strategy only plays with Bitcoin while Bitmine accumulates Etherium while getting a yield from staking as well as getting a riskier equity stake in companies such as Eightco Holdings and Beast Industries, which are engaged in AI and quantum computing, for an estimated total of USD 330 million per year if all staked.
Both companies anticipate that Corporate Crypto Treasuries will become an established asset class and will be positioned to take advantage of those future prices when they are significantly lower than past peak prices.
