A growing number of companies are buying %Ethereum (CRYPTO: $ETH), helping to support its price.
Corporate treasuries held at least 966,304 Ethereum tokens on their balance sheets at the end of July, worth $3.5 billion U.S., according to an analysis by the Reuters news agency.
That compares with just under 116,000 Ethereum held by companies on their balance sheets at the end of 2024.
Ethereum is rising in popularity as it is viewed as an inflation hedge and seen as having a strong and secure blockchain.
As a result, Ethereum’s price has risen 43% over the past month while Bitcoin has gained 5%.
Publicly traded companies that are adding Ethereum to their balance sheets are seeing big gains.
After disclosing plans to accumulate Ethereum, %BitMine (NYSE: $BMNR) and gaming company %GameSquare (NASDAQ: $GAME) saw their stocks rise 3,679% and 123%, respectively.
But some analysts are urging caution when it comes to accumulating crypto, saying the reaction from investors is similar to the meme stock craze that ended in tears for many investors.
Skeptics point to the volatility of crypto tokens and current market risks due to tariffs and inflation as reasons to be vigilant.
Still, despite the risks, some companies continue to double down, raising capital through share sales and debt offerings to fund their Ethereum purchases.
BitMine sold a $182 million U.S. stake to ARK Invest in July and GameSquare has announced plans to sell stock to invest money in ETH.
