Standard Chartered: "Companies holding ETH will survive"

Unlike past bull cycles, the crypto market, which is growing through institutional purchases, has effectively divided industry stakeholders in two. On one side, retail investors believe that the altcoin bull market will not begin until they step into the market, while a significant majority thinks that the old days are behind and that the fate of the market is in the hands of institutional companies.

Not only are there exchange-traded funds (ETF), but there is also a noticeable increase in the number of companies that directly hold crypto assets in their treasuries. Strategy (, formerly known as MicroStrategy), is known for its aggressive Bitcoin purchases and holds assets worth 74 billion dollars, while the Japanese software company MetaPlanet holds approximately 2.3 billion dollars in Bitcoin.

The company engaged in Bitcoin mining has turned its focus to ETH.

In the past, BitMine, which mined BTC but changed its business model to completely focus on Ethereum and started selling its Bitcoin to buy ETH, has approximately 10 billion dollars worth of Ether in its treasury. Another company following an Ethereum-focused growth strategy, Sharplink Gaming, holds 1.3 billion dollars worth of ETH in its treasury.

It is easy to say that the influence of these companies, which manage to be on the agenda every week with their purchases, has increased even more in the market. According to an assessment by the British bank Standard Chartered, companies that have digital assets in their treasury may face certain risks.

Geoff Kendrick, head of Standard Chartered's digital asset research unit, emphasized the ratio of companies' corporate value to their value in crypto assets, i.e., market net asset value, (mNAV). Indeed, this ratio shows the relationship between companies' corporate value and their value in crypto assets. If the mNAV value is above 1, the company can issue new shares and continue to purchase digital assets. If it falls below 1, making purchases becomes both more difficult and risky.

Standard Chartered stated that many companies that include digital assets in their portfolios have fallen below this critical threshold and have lost their ability to make new purchases. According to the bank, this situation will accelerate differentiation and consolidation in the sector. Those that will survive will be the companies with the largest and cheapest access to funding and the ability to earn staking returns.

“Ethereum treasure companies are advantageous in the long run”

Kendrick stated that companies with Ethereum treasuries have the highest survival probability in the long term. Kendrick's reasoning is as follows: ETH provides companies with passive income opportunities through staking returns.

On the other hand, those who believe that Ethereum will differentiate itself from its competitors among institutions are not limited to just Standard Chartered. The CEO of global asset management firm vanEck, Jan van Eck, argued that with the increasing adoption of stablecoins, ETH has become a leading option.

“Total locked assets in Ethereum will experience an explosion”

Likewise, John Gillen, who previously held senior management positions at BlackRock, was another name emphasizing the positive correlation between the increased use of stablecoins and the adoption of Ether: “The potential of stablecoins, the overall infrastructure of Ethereum, and its position in the market support this interest, and this means that money is flowing directly into DeFi. I believe that right now, not only will the ETH price rise, but the total locked value of Ethereum DeFi (TVL) will also experience a surge. Because these companies will stake billions of dollars in ETH.”

This article does not contain investment advice or recommendations. Every investment and trading action involves risk, and readers should conduct their own research when making decisions.