Table of contents

• BTC showdown ETH: Which one should I choose for corporate reserve strategy?
• I buy it every day, pledge it after buying it, and consider issuing convertible bonds in the future
• Why does ETH acceptance start slowly?
• SEC's call for a stop to Bitwise ETF is a technical issue, which does not mean that the government opposes blockchain
• U.S. regulation relaxes, crypto industry will usher in a peak of comprehensive profit

Ethereum co-founder Joe Lubin shared why ETH is used as the core of enterprise asset allocation during an interview on July 29 this morning. He pointed out that compared with Bitcoin (BTC), ETH is more suitable as an enterprise-level reserve asset, not only productive, but also creates continuous returns for the company through pledge and participation in DeFi.

BTC showdown ETH: Which one should I choose for corporate reserve strategy?

Since MicroStrategy took the lead in implementing Bitcoin (BTC) as a corporate reserve strategy, more and more companies have followed suit. Nowadays, a trend of corporate reserves dominated by Ethereum (ETH) is also emerging. The most eye-catching one is SharpLink Gaming, a US online gaming company led by Ethereum co-founder Joe Lubin.

Lubin said that although MicroStrategist founder Michael Saylor has achieved significant success in BTC reserve layout, ETH is the asset with more growth potential. He stressed:

"ETH is a productive asset that generates returns. We at SharpLink are actively financing every day, continuously buying ETH, and immediately pledging or investing in DeFi protocols to obtain returns."

This "buy-as-pledge" strategy has enabled the company's ETH holdings per share to grow rapidly, far faster than companies that only hold BTC. This trend is not limited to SharpLink, and companies including Bitmine and Bit Digital also increased their holdings in ETH in July this year.

Currently, Bitmine and Sharplink have a total of 927,600 ETHs, with a market value of approximately US$3.552 billion, far exceeding the Ethereum Foundation's current reserve scale of approximately 230,000 ETHs.

I buy it every day, pledge it after buying it, and consider issuing convertible bonds in the future

Lubin further explained that the company continues to raise funds through flexible financing methods such as "At-the-Market Offering Facility", and the funds obtained are immediately used to purchase ETH and pledge them to achieve the accumulation of income on the same day.

Regarding whether to use leverage, Lubin made it clear that no leverage has been used yet, but it is not ruled out that the issuance of convertible bonds will be moderately increased in the future. He added:

"Even if leverage is introduced, a steady strategy will be adopted and will never make a rash move."

He is also optimistic that the DeFi sector will usher in explosive growth, when BTC, ETH and other mainstream crypto assets will benefit. As long as risk control is done well, shareholders will be able to share the dividends of industrial growth.

Why does ETH acceptance start slowly?

Regarding why companies adopted Ethereum late, Lubin explained that BTC is widely regarded as "digital gold" and has hedging value when fiat currency depreciates and intensifies inflation, so it has gained favor from enterprises earlier. The deep value of ETH has only gradually been understood by the market in recent years.

"My friend Tom Lee once said that the next bitcoin is Ethereum."

Lubin emphasized that Ethereum is not only an asset, but also a decentralized trust infrastructure that can program, transparently and automatically execute transactions, contracts, agreements and even interpersonal relationships. This no-intermediation, low-cost and verifiable system makes ETH a highly credible digital commodity, promising to redefine “trust” itself and drive a leap in global economic efficiency.

SEC's call for a stop to Bitwise ETF is a technical issue, which does not mean that the government opposes blockchain

Regarding the incident where the SEC briefly approved and subsequently suspended Bitwise multiple cryptocurrency ETFs, Lubin believes this is not a reversal of policy direction.

He said that there are actually many officials within the SEC supporting the development of blockchain. For example, Hester Peirce has always been a staunch advocate of decentralized technology. This suspension is more due to "technical compliance considerations" rather than denying the crypto industry.

"This is just a process adjustment and does not mean that regulators oppose blockchain innovation."

U.S. regulation relaxes, crypto industry will usher in a peak of comprehensive profit

When asked: "Although the BTC and crypto markets have repeatedly set new highs and the regulatory environment has become clearer, has the entire industry really started to make money?" Lubin gave a positive answer.

He pointed out that in the Ethereum ecosystem, a large number of protocols and enterprises have shown strong profitability, and ETH prices have also rebounded significantly in recent years.

"Especially as the US regulatory attitude gradually opens up, a comprehensive wave of profitability will be triggered."

Lubin finally concluded that as long as the on-chain projects have good scalability, low transaction costs, excellent user experience, and are supported by regulations, the entire crypto ecosystem will usher in a real commercial explosion period.

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