Ethereum treasury firms are diverging from the model built by Strategy and Michael Saylor, according to Sharplink CEO Joseph Chalom. Speaking with The Block's Gareth Jenkinson at Consensus in Miami, Chalom explained that many Ethereum treasury firms are focused on staking income and simpler balance sheets rather than more complicated financing structures. Only a handful of Ethereum treasury companies have survived the recent market downturn, with Sharplink (SBET) and Tom Lee-chaired Bitmine being two that have reached 'exit velocity'. Chalom believes that Ethereum treasury companies can generate returns simply by holding ETH, so there is no need to rely heavily on leverage. He contrasted this approach with Strategy's model, which he described as involving 'amazing financial engineering'. The distinction Chalom is drawing is particularly significant as ETH's utility layer — not just its price — is what makes it a compelling treasury asset, a thesis that diverges sharply from the pure store-of-value case made for BTC.
Sharplink currently holds 868,699 ETH worth around ₹1,600 crore ($1.96 billion), according to The Block's Ethereum treasury tracker, making it the second-largest public Ethereum treasury behind Bitmine's 5,180,131 ETH. Chalom emphasized that 'ether is a better treasury token than bitcoin' due to staking yield being one of the biggest differences compared to the bitcoin treasury model. Ethereum treasury firms can generate returns directly from holdings rather than leaning as heavily on leverage or increasingly complicated financing structures. Despite the positive outlook, the value of many Ethereum treasury company shares is down significantly from their summer 2025 peaks, as their market cap-to-net asset value ratios have sharply contracted. Chalom noted that several Ethereum treasury firms struggled after issuing preferred shares or convertible debt too early.
Chalom referenced comments made earlier this year by Larry Fink at the World Economic Forum meeting in Davos, describing Ethereum as the 'toll road to tokenization'. He highlighted several developments pushing tokenization further into traditional finance, including plans for 24/7 trading at the New York Stock Exchange and Nasdaq, work by the Depository Trust & Clearing Corporation around tokenized collateral, and Bullish's acquisition of Equiniti. Chalom described the Equiniti acquisition as 'massively bullish' that public equities could move onchain faster than many investors expect. 'Nobody in this building had heard about Equiniti,' Chalom said, emphasizing the significance of this development. These developments are expected to further drive tokenized assets into the traditional financial system. If the tokenization wave continues to build, ETH treasury firms would be positioned as infrastructure plays, not just leveraged crypto bets, as the distinction between utility and speculation becomes clearer.
Despite the positive outlook, the value of many Ethereum treasury company shares is down significantly from their summer 2025 peaks, as their market cap-to-net asset value ratios have sharply contracted. Chalom noted that several Ethereum treasury firms struggled after issuing preferred shares or convertible debt too early. Sharplink shares remain 91% below their 2025 highs, though the company focused more on equity raises and staking income while keeping the balance sheet relatively simple through volatility. Chalom expressed disappointment that bitcoin and ether for the last year and a half have been trading more like a risk-on asset, pointing to tighter correlations with tech stocks and geopolitical events. However, he expects ether to separate itself more from bitcoin as stablecoins, tokenized assets, DeFi, and AI-related applications expand on Ethereum.
Chalom expressed optimism about Ethereum's long-term prospects, stating that growing institutional adoption of stablecoins and tokenization could strengthen Ethereum's role as infrastructure for onchain assets. Over time, he anticipates ether to separate itself more from bitcoin as stablecoins, tokenized assets, DeFi, and AI-related applications expand on Ethereum. As these applications continue to expand, Ethereum will gradually diverge from Bitcoin's development path. The combination of tokenization infrastructure and growing institutional adoption is expected to strengthen Ethereum's position as the preferred platform for onchain assets. If the tokenization wave continues to build, ETH treasury firms would be positioned as infrastructure plays, not just leveraged crypto bets, as their utility becomes increasingly clear to institutional investors.
