The Ethereum Foundation staked approximately $93 million in Ethereum (ETH) on Thursday, indicating that its previously announced goal of 70,000 ETH was almost completed. It was noted that the institution recently sent a total of 45,034 ETH, in blocks of 2,047 ETH each, directly from the foundation’s treasury wallet to the Beacon Chain deposit contract, through piecemeal transfers.
Details of the staking process and the foundation’s portfolio
It was stated that with the new staking transactions made during the period when the price per ETH was traded at $ 2,059, the foundation reached a total position of approximately 69,500 ETH. This amount is very close to the target of 70,000 ETH that the institution announced in February.
The Foundation has gradually progressed towards the target since the beginning of the year. Starting with an initial investment of 2,016 ETH in February, approximately 20,470 ETH were added at the beginning of this week. The goal was almost achieved with Thursday’s big transfer.
According to data tracked by Arkham, the Ethereum Foundation has approximately $270.9 million worth of assets in a total of 14 different wallets. The lion’s share of these is ETH assets, with approximately 102,400 ETH. Smaller amounts of USDC, BNB and some bitcoin are scattered throughout the portfolio.
Staking returns and new approach
Staking process; It refers to locking cryptocurrency in order to secure the blockchain and obtain rewards in return. It is known that investment in blood provides regular income to institutions, similar to the purchase of classical bonds.
Looking at current staking rates, Ethereum Foundation’s current investment has the potential to generate approximately $3.9 million to $5.4 million per year. Since the institution’s annual operational expenses are generally around 100 million dollars, this income seems to be more limited than the general budget. Still, the proceeds reduce the foundation’s need to raise cash by selling its ETH assets.
The foundation has long been selling some of its ETH to raise funds for research, grants and operational expenses. The recent depreciation and criticisms have led the institution to turn its internal reserves into a source of income.
“While the Ethereum Foundation earns rewards by staking the ETHs in its vault, it no longer has to sell what it has to finance its operations, thus obtaining a long-term and sustainable resource.”
Still, the staking program does not completely eliminate the sale of ETH. It is stated that ETH exchange can continue if necessary.
On the other hand, reaching the initial goal of 70,000 ETH does not mean that the program is over. The foundation currently has more than 100,000 ETH in its portfolio. It has not yet been shared with the public whether the same strategy will be continued in the future.
During the staked period, the price of ether was at $ 2,059 and lost approximately 4.3 percent compared to the previous week.
