12 famous companies, including Coinbase and Galaxy Digital, hold Ethereum instead of SHIB in their portfolios. This is due to the upcoming historical update of the Ethereum network.
Prior to Merge, companies hold ETH instead of SHIB
Ethereum’s long-awaited transition to PoS is expected to occur around September 15. It heralds a new interest as the network has stopped mining. Merge is considered the most important upgrade expected as it will reduce Ethereum’s energy consumption by 99.95%. Given the benefits and risks of the upgrade, many cryptocurrency and stock investors expect careful implementation.
Benefits versus risks
Merge will offer a staking mechanism, eliminating the need for energy-intensive mining. The PoS process helps pave the way for scaling upgrades and solves Ethereum’s biggest problems, the significant fees required to use the network. Unfortunately, along with the benefits come the dangers of going with a merge.
Cryptocoin.comAs you follow, Ethereum merge is an expected update since 2015. This is why the team’s transition to PoS has been delayed for over eight years.
Companies are shrinking their SHIB shares
There are 12 publicly traded companies that have Ethereum on their balance sheet, holding a total of 212,513 Ethereum ($325,994,942). However, most of these assets are not on major recognizable exchanges. The exceptions are Coinbase Global (NASDAQ: COIN), BTCS (NASDAQ: BTCS), Meitu (HKG: 1357), Galaxy Digital Holdings (TSE: GLXY), and Mogo (TSE: MOGO).
The remaining seven assets that can be found on over-the-counter or smaller exchanges focused on promoting Black Swan-type firms include:
- Neptune Digital Assets (CVE: NDA), Capital (OTCMKTS: DTSRF), HIVE Blockchain Technologies (CVE: HIVE). Other companies include BIGG Digital Assets (CNSX: BIGG). Digihost Technology (CVE: DGHI), FRMO (OTCMKTS: FRMO), and Cypherpunk Holdings (CNSX: HODL).
Given the scale of the update, it will hurt small businesses as well as individual users. Failure of the upgrade will endanger thousands of crypto applications running using Ethereum, which collectively manage more than $50 billion in user funds.
As the process is surrounded by a lot of uncertainty, most of the predictions about what will happen when the upgrade begins are based on speculation. Whatever the outcome, merge draws a lot of attention to Ethereum. Also, some investors expect the upside to push the Ethereum price up into the $1,850-2,000 region in the short term.
Ethereum has outperformed Bitcoin in the past few weeks due to the hype surrounding the upgrade. The number two crypto rallied around $1,500 in the spot markets, up about 47% over a 50-day period. Meanwhile, Bitcoin has remained relatively stable, trading around $20,000.
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