|

What stocks have ETH on their books ahead of the merge?

Ethereum's long-awaited “Merge” is expected to occur around Sept. 15, and is heralding fresh interest for the platform as it transitions to proof of stake from proof of work.

The Merge is considered as the most significant upgrade in Ethereum's history that is expected to reduce the platform's energy consumption by 99.95%.

Considering the benefits and the risks associated with the upgrade, a lot of cryptocurrency and stock investors are cautiously waiting its implementation.

The benefits vs the risks

The Merge will is expected to eliminate the need for energy-intensive mining and instead secures the network using staked Ether, the platform's signature currency and the second-most valuable digital asset after Bitcoin.

The process is tipped to pave the way for scaling upgrades and help solve Ethereum's biggest problems, which is the substantial fees required to use the network.

Unfortunately, along with the benefits come the dangers of proceeding with The Merge.

What Ethereum is attempting is a complicated process, which is probably why it has been delayed for years since it was unveiled more than eight years ago. Crypto venture investor Christopher Calicott said "any time you're making changes to a complex system, there must necessarily arise unintended consequences."

Chandler Guo, a crypto industry veteran who leads a group opposing The Merge noted that "it's very difficult. It's very dangerous." According to some crypto experts, a change of this scale could also make Ethereum vulnerable to hacks or other disruptions.

Public interest

There are 12 public companies with Ethereum on their balance sheets, holding a combined 212,513 Ether (current market value = US $325,994,942).

However, most of these entities are not on major recognisable exchanges. The exceptions being Coinbase Global (NASDAQ: COIN), BTCS (NASDAQ: BTCS), Meitu (HKG: 1357), Galaxy Digital Holdings (TSE: GLXY), and Mogo (TSE: MOGO).

The remaining seven entities, which can be found in over-the-counter or smaller exchanges focused on promoting black-swan type firms, include: Neptune Digital Assets (CVE: NDA), Ether

Capital (OTCMKTS: DTSRF), HIVE Blockchain Technologies (CVE: HIVE), BIGG Digital Assets (CNSX: BIGG), Digihost Technology (CVE: DGHI), FRMO (OTCMKTS: FRMO) and Cypherpunk Holdings (CNSX: HODL).

Considering the scale of The Merge, it could either make or break some of these small cap companies, as well as retail users. Failure of the upgrade could imperil thousands of crypto applications that operate using Ethereum, which collectively handle more than $50 billion user funds.

Because the process is surrounded in much uncertainty, a lot of the predictions for what will happen once the upgrade is started are rooted from speculations. Regardless of the result, The Merge brings about plenty of attention to Ethereum and some traders are expecting the lead-up to the upgrade will see Ether prices rise in the short-term to between $1,850 to $2,000, Blockworks reported.

Ethereum

ETH/USD 1D

Ether has already outperformed bitcoin in the past few weeks due to hype surrounding the upgrade. The number two crypto is up around 47% over a 50-day period to about $1,500 on spot markets, while bitcoin remains relatively flat, trading near $20,000.

Author

Mark O’Donnell

Mark O’Donnell

Blackbull Markets Limited

Mark O’Donnell is a Research Analyst with BlackBull Markets in Auckland, New Zealand.

More from Mark O’Donnell
Share:

Editor's Picks

XRP retreats as ETF interest cools
Ripple (XRP) slides toward the short-term $1.10 support on Friday, as broader crypto market sentiment weighs on crypto assets. The sell-off mainly stems from fears of inflation in the United States (US) amid the ongoing war in the Middle East and rising Oil prices.
Crypto Today: Bitcoin, Ethereum, XRP pare losses as breakout potential builds
Bitcoin (BTC) is edging higher on Friday, albeit gradually, after reclaiming support above $65,000. Meanwhile, Ethereum (ETH) shows signs of stability near the immediate $1,900 hurdle, backed by mild capital inflows. Ripple (XRP), on the other hand, holds above the pivotal $1.10, with its upside structurally constrained below $1.15.
Bitcoin Weekly Forecast: BTC holds firm, but the $100 Oil threat could change the game
Bitcoin (BTC) is modestly recovering, trading at $65,400 on Friday and holding firmly above the key support zone. US-listed spot Bitcoin Exchange Traded Funds (ETFs) supported BTC’s modest recovery as they continued to attract institutional inflows through Thursday, pointing to the third consecutive week of inflows.
Crypto shrugs off a stronger Dollar
Cryptocurrencies have been affected by jitters in traditional financial markets, losing 0.8% of their market capitalisation over the past 24 hours to $2.23T, dipping to a low of $2.21T at the start of active trading in Asia.
Bitcoin: BTC holds firm, but the $100 Oil threat could change the game
Bitcoin (BTC) is modestly recovering, trading at $65,400 on Friday and holding firmly above the key support zone. US-listed spot Bitcoin Exchange Traded Funds (ETFs) supported BTC’s modest recovery as they continued to attract institutional inflows through Thursday, pointing to the third consecutive week of inflows.