Financial Data and Key Metrics Changes - For Q2 2025, the company reported revenue of $700,000, down from $1,000,000 in Q2 2024, with a gross profit of $200,000, representing 30% of revenue compared to 28.5% in the previous year [35] - The net loss for Q2 2025 was $103,400,000, significantly higher than the $500,000 loss in Q2 2024, primarily due to an $87,800,000 non-cash impairment and $16,400,000 in stock-based compensation [36] - As of June 30, 2025, the company held 24,704 ETH valued at $61,500,000 and 164,731 LSEth valued at $382,400,000 after impairment [32][34] Business Line Data and Key Metrics Changes - The company is focusing on its Ethereum treasury strategy, which aims to accumulate and activate ETH to generate yield, moving beyond traditional holding strategies [22][24] - The affiliate marketing business continues to connect sports books and online casino operators with players, with plans to integrate blockchain technologies into its offerings [30] Market Data and Key Metrics Changes - The total market cap for stablecoins is approximately $240 billion, with projections suggesting it could reach $2 trillion by 2028 [12] - Tokenized securities are currently valued at around $25 billion, with expectations to grow to $16 trillion by 2030 [12] Company Strategy and Development Direction - The company aims to become the world's largest and most trusted Ethereum treasury company, leveraging its strategic relationships and institutional-grade principles [18][25] - The focus is on accumulating ETH and transforming it into a yield-generating asset through staking and participation in DeFi [22][24] - The company is positioned to benefit from the ongoing shift towards a digitized and decentralized economy, with increasing institutional interest in digital assets [15][16] Management's Comments on Operating Environment and Future Outlook - Management highlighted the significant growth potential for Ethereum, emphasizing its role as the backbone of decentralized finance and the increasing institutional adoption [10][69] - The sentiment within the Ethereum ecosystem is positive, with expectations for continued growth and scalability improvements [65][66] Other Important Information - The company has raised over $2.6 billion in investor capital since launching its treasury strategy on June 2, 2025, acquiring more than 700,000 units of ETH [26][27] - The company has a total of $6 billion in ATM capacity to facilitate ongoing capital raising efforts [27] Q&A Session Summary Question: Can you elaborate on the opportunity to activate ETH for yield generation? - The company aims to accumulate ETH long-term and activate it through various yield strategies, including native staking and DeFi participation, while managing risks effectively [40][42] Question: What is the valuation outlook for ETH by 2028? - The company believes ETH could reach valuations between $15,000 and $40,000 by 2028, driven by increased adoption and application development within the Ethereum ecosystem [43][46] Question: Are there other initiatives beyond the ETH treasury strategy? - The company is exploring additional revenue-generating opportunities that complement its existing affiliate marketing business and leverage its partnership with Consensus [49][52] Question: How does the treasury strategy differ from others in the market? - The company emphasizes its ability to generate yield alongside capital appreciation, differentiating itself from competitors by focusing on risk-managed strategies [56][59] Question: What key developments will ensure Ethereum maintains its market lead? - The company highlighted ongoing scalability improvements and institutional adoption as critical factors for Ethereum's sustained leadership in the blockchain space [64][69] Question: What is the approach to capital raising and debt management? - The company has primarily focused on equity raising but is exploring equity-linked securities and other structures to optimize capital efficiency [73][75] Question: How will treasury strategies evolve with increasing competition? - The company believes competition is beneficial and aims to be the most trusted and transparent player in the space, focusing on long-term value creation for shareholders [85][87]