If ETH reaches 5000 USD, how much can SBET rise?

ETH pump, these Ethereum strategic reserve stocks can capture more sentiment premium.

Written by: EeeVee

In the past month, Ethereum (ETH) has skyrocketed from $2100 to $3000. During this pump, US companies and mining firms have announced their purchases of ETH as part of their "strategic reserves," and some mining companies have even sold all their BTC to buy ETH with cash.

According to statistics, the Ethereum Strategic Reserve Company purchased more than 545,000 Ether in the past month, with a total value exceeding 1.6 billion USD.

SharpLink (SBET), as the first company to use ETH as a strategic reserve, saw its stock price rise from 3 dollars to over 100 dollars after announcing the purchase of ETH, only to fall back to single digits, drawing criticism from the market. Currently, the stock price has once again reached over 20 dollars.

Recently, SBET has aggressively purchased nearly 50,000 ETH within just 5 days, and its total ETH holdings have surpassed those of the Ethereum Foundation.

In addition, SBET has staked part of its held ETH on-chain to earn staking rewards. As of July 8, its staking position has earned 322 ETH.

Currently, there are 5 US stock companies that use ETH as a "strategic reserve":

• SharpLink Gaming (SBET)
• BitMine Immersion Technologies (BMNR)
• Bit Digital (BTBT)
• Blockchain Technology Consensus Solutions (BTCS)
• GameSquare (GAME)

The ETH holdings of each company are as follows:

mNAV is the ratio of Market Capitalization to Net Asset Value (NAV), calculated as follows:

The mNAV of the ETH Strategic Reserve Company is mainly estimated by its "total market capitalization of circulating stocks" / "total value of held ETH".

Is the market experiencing FOMO?

mNAV represents the disconnection between a company's market value and its assets, and it also reflects the market's sentiment premium towards a particular concept or stock. When mNAV is high, it often indicates a heavier market speculation sentiment; conversely, it represents that investors are in a relatively rational state regarding a particular concept or stock.

Based on the premium rate of BTC strategic reserve companies, as of May 2025, the market value of MicroStrategy (MSTR) is approximately 1.78 times its Bitcoin net asset value (mNAV), which fluctuated between 1 times and 4.5 times from August 2022 to August 2024.

The mNAV curve of MSTR reflects how the sentiment in the crypto market dominates the valuation of such companies.

Its peak, such as 4.5 times, usually occurs during the BTC bull market cycle and the period when MSTR significantly increases its BTC holdings, indicating strong investor enthusiasm. In contrast, the low point of 1 time corresponds to the bear market and consolidation period of the crypto market, showing that investors are unwilling to pay the emotional premium for it.

If mNAV is within the range of 2-2.5, it represents a relatively neutral investment sentiment and premium.

Using this as a standard to measure these 5 Ethereum strategic reserve companies: SBET and BTCS are currently within this range, while the mNAV of BMNR and BTBT is slightly high.

It is important to note that BMNR and BTBT were originally mining companies and may still hold other assets besides ETH, the value of which has not yet been accounted for.

Overall, the current coin stock of Ethereum's strategic reserves is still in a relatively rational valuation range, and the market's enthusiasm has not yet reached FOMO.

Ethereum rises to 5000, how many times can these companies multiply?

If the price of ETH continues to rise to 5000 USD in the coming months, assuming these companies hold a constant total amount of ETH and do not conduct any fundraising through additional issuance, the estimated stock price and potential increase, based on a more rational premium (mNAV = 2), would be:

Investors need to be aware that mNAV = 2 is a relatively neutral premium rate. If ETH really rises to 5000 dollars, the market may be willing to pay a higher emotional premium for these ETH strategic reserve companies.

During this time, the staked ETH by these companies will also generate returns, increasing the amount of ETH they hold.

Ethereum Value Discovery? Why Has It Suddenly Become a Hot Commodity for Institutions

When these companies with strategic reserves of Ethereum discuss why they choose ETH, the reasons mentioned mainly include the following three aspects:

• The success of BTC reserve companies like MSTR
• The staking yield of ETH
• The potential of ETH in narratives such as stablecoins and RWA in the future.

Sam Tabar, the CEO of Bit Digital, is very optimistic about replicating the MSTR model on ETH and is confident that ETH will rise to $10,000:

"(Establishing Ethereum reserves) We are just getting started. This is just a warm-up. Think about how Saylor is continuously issuing his stock to acquire BTC, and then BTC keeps rising, enabling him to repeat this entire process."

Primitive Ventures emphasized the potential of ETH staking yields as a reason for betting on SBET:

"ETH has natural earning capabilities in staking and the DeFi ecosystem, making it a true productive asset, whereas Bitcoin lacks such mechanisms. SBET is expected to directly leverage ETH's on-chain mechanism for compound growth, providing shareholders with real and quantifiable returns."

The CEO of Bitmine Immersion Technologies is more optimistic about the potential of ETH in the RWA and TradFi narrative, stating in an interview:

"In my view, the reason why Ethereum is attractive is that it is the first layer blockchain for the tokenization of real-world assets. As more and more things in the financial world and the real world are tokenized, financial institutions like Goldman Sachs, JPMorgan, and Amazon, Walmart will also want to stake Ethereum itself, just like they do with stablecoins. We are doing what these companies will do in the future."