Ether-Linked Stocks Surge as Ethereum Hits Six-Month High, Boosted by Stablecoin Growth and Institutional Interest

Ether-Linked Stocks Jump as Crypto Coin Hits Six-Month High

Cryptocurrency-related stocks saw sharp gains in premarket trading on Friday, with shares linked to Ethereum (ETH) leading the rally after the world’s second-largest cryptocurrency hit a six-month high.

Ether Price Surge:

• Ethereum (ETH) climbed to $3,675.81, its highest level since January 6, 2025.
• ETH was last up 5% at $3,601.40, outperforming Bitcoin (BTC), which slipped 0.7% to $118,961 after hitting a record high earlier this week.

Stocks Driving the Ether Rally

• BitMine Immersion Technologies:
  • Shares surged 14%.
  • Holds approximately $1 billion worth of ether.
  • Tech billionaire Peter Thiel is the top investor; Fundstrat’s Tom Lee serves as board chairman.
  • BitMine accumulated 300,657 ether in just three weeks.
  • The company aims to acquire around 5% of Ethereum’s total supply, which currently stands at 120.71 million ETH.
• Bit Digital: Shares up 4%.
• BTCS: Shares up 12.5%.
• SharpLink:
  • Shares rose 5.6%.
  • Increased its share sale plan from $1 billion to $6 billion to fund the ether treasury accumulation.

Why Ether Is Outperforming Bitcoin

Ether’s rise is driven by:

1. Stablecoin Growth:
   • Most U.S. dollar-pegged stablecoins, such as USDC and USDT, are issued and transacted on the Ethereum blockchain.
   • Increased stablecoin activity leads to higher demand for ETH to pay transaction fees.
2. Institutional Accumulation:
   • According to Matthew Dibb, CIO at Astronaut Capital:
     

     “Ethereum is by far the biggest beneficiary of stablecoin usage.”

   • Ether’s standout institutional appeal is linked to its stablecoin growth prospects, boosted by recent developments like the Circle IPO.
3. Regulatory Developments:
   • The U.S. House of Representatives passed a bill on Thursday establishing a regulatory framework for stablecoins.
   • This is seen as a watershed moment for the digital asset industry.

Ethereum Treasury Strategy: Following Bitcoin’s Footsteps

Several companies are now adopting Ethereum treasury strategies, similar to Strategy (formerly known as MicroStrategy), the largest corporate holder of Bitcoin.

• Strategy acquired its bitcoin stockpile at a sharp discount relative to current prices.
• Analysts suggest Ether treasury companies may try to replicate that success, though performance comparisons with core ETH ETFs remain to be seen.

“Time will tell whether these treasury companies outperform the core ETH ETF, but given the success of Strategy in recent years, it won’t stop them from trying,” said a market observer.