The treasury model: Why corporations and nations hold crypto
In recent years, businesses and governments have progressively integrated cryptocurrencies into their treasury strategies. Traditionally, treasuries relied on cash, gold, or government bonds to preserve value, ensure liquidity, and maintain financial stability. Governments maintained gold reserves to underpin their currencies.
However, cash is losing purchasing power. Bonds come with rate and duration risks. Foreign exchange shocks can unexpectedly impact balance sheets. Ideally, you want a reserve that maintains value, facilitates rapid cross-border transactions, and integrates into digital systems. This is why Bitcoin (BTC), Ether (ETH), and, in certain situations, stablecoins now coexist with cash, gold, and T-bills.
For corporations, the objectives are straightforward: hedge against inflation, diversify currency exposure, ensure 24/7 liquidity, and experiment with digital settlement. For sovereigns, the focus broadens to strategic reserves, resilience against sanctions, and access to neutral, global liquidity.
Bitcoin treasuries: The digital gold standard
Since its creation, BTC has occupied a unique role as the first and most prominent cryptocurrency, often termed the digital equivalent of gold. It is an appealing asset for treasuries aiming to protect against inflation and the risks associated with traditional currencies.
Senator Cynthia Lummis in the US has introduced a bill called the Bitcoin Act. If passed, this bill would mandate the US Treasury to acquire 1 million BTC over five years for a federal reserve. Earlier, in March 2025, President Donald Trump announced the Strategic Bitcoin Reserve, a reserve asset financed by forfeited BTC from the US Treasury.
El Salvador attracted attention in 2021 by adopting BTC as legal tender, while countries like Bhutan have quietly incorporated Bitcoin into their reserves. In the corporate sector, Strategy is known for persistently acquiring BTC, making it the primary asset in its treasury.
Bitcoin offers numerous benefits. It boasts high liquidity due to active global markets, scarcity because of its finite supply, and widespread recognition in the financial landscape. To earn from BTC lying dormant, it needs to be paired with external lending or derivative strategies.
While it has drawbacks, such as price volatility impacting balance sheets, the advantages outweigh the disadvantages.
Did you know? Semler Scientific emulated Strategy but on a smaller scale. The firm added 210 more BTC to its balance sheet, acquiring these coins from July 3 to July 16 for around $25 million at the time, averaging $118,974 each.
Ether treasuries: The programmable alternative
While BTC remains the backbone of crypto treasuries, Ether has emerged as an appealing alternative, especially following its transition to proof-of-stake (PoS) in 2022, known as the Merge. This update lowered energy usage and introduced staking, which generates annual returns of 3%-5%, making ETH a productive asset unlike BTC. For treasuries, this positions ETH as both a store of value and an income source.
The Ethereum ecosystem enhances its value. Through decentralized finance (DeFi), treasuries can access liquidity without liquidating their holdings. The increasing utilization of tokenized real-world assets, such as bonds or commodities, fortifies Ethereum’s position as a financial platform.
Adoption of ETH by institutions is on the rise. Companies are beginning to hold ETH, and asset managers have rolled out Ether-based exchange-traded funds (ETFs) for regulated investment.
Even decentralized autonomous organizations (DAOs) are utilizing ETH as a reserve to ensure long-term stability.
Nonetheless, challenges persist. Regulatory uncertainty in key markets, risks connected to staking performance, and Ethereum’s technical intricacies present obstacles. Despite these, by 2025, ETH stands out as a multipurpose treasury asset, merging value retention, income prospects, and practical utility.
Did you know? Long before ETH ETFs debuted in 2024, institutions gained exposure through Grayscale, reflecting early institutional confidence in Ether.
2025 data: Comparing Bitcoin and Ether treasury holdings
As of September 10, 2025, BTC continues to be the preferred choice, with organizations and institutions holding over 1 million BTC. Although ETH is less commonly held, its popularity is growing, with corporations, DAOs, and asset managers increasingly adding ETH to their reserves.
Analytics from blockchain sources reveal varying strategies: while Bitcoin treasury holdings are generally kept idle for long-term preservation, a greater segment of Ether holdings is actively staked, yielding consistent returns.
As of September 10, 2025, Strategy alone controls approximately 638,460 BTC, valued in the billions, showcasing a long-term hodl strategy focused on retention rather than yield generation.
The number of publicly listed companies holding BTC increased from 70 in December 2024 to 134 by mid-2025, accumulating nearly 245,000 BTC.
The yield difference between Bitcoin and Ether is noteworthy. BTC acts as a stable yet inactive reserve, whereas Ether’s 3%-5% staking returns render it a more active, income-generating asset, illustrating the balance between Bitcoin’s dependability and Ether’s growth potential.
Regarding ETH reserves, as of September 10, 2025, 73 entities held 4.91 million ETH, valued at $21.28 billion. Bitmine Immersion Tech (BMNR) was the top ETH holder with 2.07 million ETH, worth $9 billion. SharpLink Gaming (SBET) follows with 837,230 ETH, valued at $3.7 billion.
What are dual strategies?
As the cryptocurrency market evolves, some governments and corporations are implementing a dual treasury strategy, holding both BTC and ETH. This method combines Bitcoin’s stability and worldwide acknowledgment as a reserve asset with Ether’s yield-generating capabilities and programmable features.
Here are two examples of dual treasury strategies.
United States federal government (Strategic Crypto Reserve)
- BTC Reserve: In March 2025, an executive order established the US Strategic Bitcoin Reserve, holding an estimated 198,000-207,000 BTC (around $17 billion-$20 billion) as of September 9, 2025, sourced from seizures and other methods.
- ETH allocation: A US Digital Asset Stockpile has been created for non-Bitcoin assets, including Ether. As of August 29, 2025, this stockpile contained about 60,000 ETH, valued at approximately $261 million, according to an Arkham Exchange analysis of government-owned addresses.
BitMine Immersion Technologies (BMNR)
- BTC Holdings: BitMine, focused on crypto mining and treasury management, maintains a modest Bitcoin reserve of 192 BTC, worth over $21 million as of September 10, 2025.
- ETH Holdings: As noted previously, Bitmine Immersion Tech (BMNR) holds 2.07 million ETH, valued at approximately $9 billion, as of September 10, 2025.
This dual-asset strategy underscores BitMine’s transition from exclusive Bitcoin mining to a more varied crypto reserve strategy, concentrating on merging Bitcoin’s value preservation with Ether’s income-generating capabilities.
Did you know? Institutions are issuing billions of dollars in tokenized government bonds directly on the Ethereum blockchain, intertwining ETH with traditional finance.
Which strategy is winning in 2025?
The rivalry between BTC and ETH treasuries highlights their distinct advantages. As of mid-2025, the trend suggests a future in which treasuries may increasingly adopt both assets.
BTC, for example, is notable for its stability, broad trust, and global recognition, serving as the crypto world’s “reserve currency.” Its role as digital gold makes it the go-to choice for institutions and nations prioritizing long-term wealth preservation and simple liquidity.
Conversely, Ether has gained popularity due to its ability to generate income, provide practical utility, and support a growing ecosystem of tokenized assets. Treasuries holding ETH can earn 3%-5% annual returns through staking, access liquidity via DeFi, and engage in markets for tokenized real-world assets, positioning ETH as an active, income-generating reserve.
The decision hinges on individual goals. Bitcoin caters to those emphasizing capital security and established trust, while Ether appeals to those seeking growth and income opportunities. While BTC currently leads in total treasury holdings, ETH is quickly closing the gap by attracting companies and DAOs that appreciate its programmable financial features.
