Analysis: The ETH treasury strategy with a scale of 1 billion dollars can generate up to 50 million dollars in annual returns

ChainCatcher news, according to a report released by Wall Street brokerage Bernstein on Monday, an increasing number of companies are using Ethereum treasuries in new ways: not only treating cryptocurrency as a reserve asset but also viewing it as a capital tool that can generate yield. In recent months, some companies have launched treasury management strategies based on Ethereum, obtaining passive income through ETH staking. These companies include BitMine Immersion Technologies (BMNR) and SharpLink Gaming (SBET).

These companies are building treasuries around the second-largest cryptocurrency, generating operational income while supporting network economic security through staked assets. In contrast, Bitcoin treasuries prefer liquidity and passive holding, as seen in MicroStrategy's (MSTR) strategy. Meanwhile, ETH treasuries tend to seek staking yields, which are currently slightly below 3%, historically fluctuating between 3% and 5%. Bernstein estimates that if an institution allocates $1 billion in ETH as treasury assets, the annual yield could range from $30 million to $50 million.

However, obtaining such yields does come at a cost. Ethereum's staking mechanism distributes rewards to holders rather than miners, meaning companies must actively deploy capital and engage in more complex risk management. Unlike MicroStrategy's highly liquid Bitcoin reserves, ETH staking introduces liquidity constraints—unstaking typically takes several days, which could lead to asset liquidity mismatches during market volatility.

Additionally, more advanced strategies, such as re-staking or DeFi-based yield farming, bring extra risks related to smart contracts and security. Bernstein points out that financial managers need to optimize yields while building infrastructure with institutional-level custody and risk control systems.