Ether Treasury Firms Shift Focus to Yield-Generating Strategies Amid Risks

Ether treasury strategies are evolving, with firms treating ETH as yield-generating capital rather than merely a reserve asset. Key developments include:

Companies like BitMine Immersion Technologies and SharpLink Gaming are implementing ether treasury strategies focused on passive yield through ETH staking.
A report from Bernstein highlights that these firms earn operating income by staking ETH, which supports Ethereum's financial framework.
Currently, staking yields are just under 3%, historically ranging between 3%–5%. A $1 billion ether treasury could yield $30 million–$50 million annually.
Ether staking differs from bitcoin treasuries, introducing liquidity constraints due to longer unstaking periods and requiring active capital management.
More complex strategies, such as re-staking and DeFi yield farming, carry additional smart contract and security risks.
Nearly 30% of the ether supply is staked, with another 10% in DeFi, indicating strong demand amid flat supply.
Analysts remain positive about ether's capacity to support treasury-scale strategies if liquidity and risk management are prioritized.