‘Winner takes most’ era dawns for Ethereum treasuries as euphoria wanes

Core Insights - Ethereum treasuries are facing significant challenges as market premiums for shares in companies holding Ether have dropped from 5x in the summer to below 1x by September, indicating a shift from speculative investments to a competitive survival phase [1] - The total Ether held by 71 firms has surpassed four million, valued at approximately $22 billion, with BitMine and SharpLink Gaming accounting for over 50% of this market [2] - Many companies are now valued below their crypto holdings, with one in three public firms holding Bitcoin also trading below their premiums [2] Company Strategies - Unlike Bitcoin treasuries that often utilize convertible debt to manage dilution, Ethereum treasuries are primarily issuing shares, leading to immediate dilution for shareholders [3] - Companies like Strategy have reversed commitments to avoid shareholder dilution, resulting in significant drops in their premium valuations [4] - Seven out of 17 Ethereum treasuries are trading below their net asset value (mNAV), indicating that investors are paying less than the value of the underlying crypto assets [5] Market Dynamics - The leading Ethereum treasury, BitMine, is diversifying investments into alternative opportunities, which may detract from its focus as a pure play in Ethereum [6] - The decline in premiums for both Ethereum and Bitcoin treasuries suggests a broader trend of investor skepticism towards companies that do not effectively manage their equity offerings [4][5]