An openly traded company called Ether Capital added $38 million, or 10,240, to the Ethereum 2.0 staking that the public can see on the stock market. If you look at a press release that was sent to Bitcoinist, the company has a total of $59 million invested in this network’s Proof-of-Stake layer.
This happened in 2021, when Ether Capital became one of the first public companies to invest a lot of money in Ethereum staking. Ether Capital is based in Canada. As part of a treasury strategy, the company wants to help this network grow and become an investment hub for it.
As of now, Ether Capital has more than 44,061 ETH in its portfolio. It plans to put at least 30,000 of these coins into Ethereum 2.0 staking. In other words, this would make up 66% of its total ETH balance. This shows how optimistic the company is about the development of Ethereum’s consensus layer.
In order to reach this goal, the company teamed up with Figment to build and run their own infrastructure for validators. When Ethereum moves to a PoS consensus, it will be more than just investors who help keep the network safe.
According to the press release, the company will also turn 766 of its MakerDAO tokens (MKR) into gross proceeds, which is about $1.9 million, the company says. Those who have money can spend it on things like buying shares or increasing their ETH balance.
This is because the company has $162 million in ETH, which gives them a market value of $166 million. They also had an investment in Wyre, which makes payment APIs.
Why Ethereum Could See More Companies Stake Into Its Consensus Layer
On their recent ETH allocation, Ether Capital CEO Brian Mossoff said the following to show that the company is still very much invested in the Ethereum ecosystem:
“We are thrilled to announce that we are now staking over 20,000 Ether and are well on the path to staking a majority of our Ether balance in the coming months. We are firmly committed to our unique strategy of being a net accumulator of Ether and are proud to provide validation and security to the Ethereum network as it transitions from proof of work consensus to proof of stake.”
Bitcoin recently spoke with the CEO of Ether Capital about their involvement in Ethereum staking, crypto adoption, and their plans for 2022, so this is what they said. When Mosoff was asked if other public companies would be interested in ETH staking, he said that it could.
“I think we’re still a fair bit away from seeing other companies stake ETH, but we can anticipate that eventually, we’ll see more institutional adoption of the asset. Currently, capital markets are fascinated with Bitcoin and will likely dip their toes in the water on that asset before they consider Ethereum. That said, innovations like DeFi and NFTs have turned heads and now institutions with young, eager employees are starting to pay attention to Ethereum, which is a good sign.”
Data from the Eth2 Rewards bots shows that the current rewards for Ethereum staking are 5% a year, as shown below. It’s called the PoS network, and there are more than 290,000 active validators. There are more than 97% of them taking part.
🤑 Reward rate: 5.00%
👨🌾 Participation rate: 97.44%
💻 Active validators: 293,574
⏰ Wait time: 0 hours
💻 Validators: 0
📉 Rewards impact: -0.07%
—Projected Annual Returns—
Ξ 1.6 ($4,599.26)
— Eth2 Rewards Bot (@Eth2Bot) February 14, 2022
As of press time, ETH trades at $2,950 with a 1.9% profit in the past 24-hours.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.