The Ether Machine becomes third-largest Ethereum holder with $56.9M ETH purchase

The Ether Machine has purchased an additional 15,000 ETH worth $56.9 million, solidifying its position as the third-largest corporate holder of the cryptocurrency.

With total holdings now at $1.28 billion, The Ether Machine has overtaken the Ethereum Foundation—the non-profit organization responsible for the blockchain’s development—in a stunning display of corporate accumulation.

The purchase is part of a broader trend where companies are increasingly stockpiling Ethereum directly rather than relying on ETFs, driven by the ability to stake assets and engage with decentralized finance (DeFi) protocols.

The Ether Machine’s rapid rise to dominance

Formed just last week through a merger between The Ether Reserve, LLC and blank-check firm Dynamix Corporation, The Ether Machine has wasted no time in establishing itself as a major player. Backed by Andrew Keys, former head of business development at ConsenSys, the company plans to list on NASDAQ by Q4 2025.

“Our goal is to provide institutional-grade exposure to Ethereum while leveraging staking and DeFi for growth,” a spokesperson for The Ether Machine told Decrypt.

The company still has $407 million remaining for further ETH acquisitions, indicating its buying spree may be far from over.

With 334,757 ETH already under its control, The Ether Machine trails only Bitmine Immersion Tech ($2.40 billion) and SharpLink Gaming ($1.68 billion) in corporate ETH holdings.

Why corporations are bypassing ETFs for direct ETH holdings

Data from CEX.io reveals a dramatic shift in how institutions are accumulating Ethereum. At the start of 2025, spot Ether ETFs outweighed corporate treasuries by a ratio of 100:1 ($12.1 billion vs. $120 million). By July, that gap had shrunk to less than 4:1, with corporate holdings surging to $6.2 billion.

“For Ethereum, U.S. spot ETFs don’t support staking, making direct holdings more attractive,” a CEX.io analyst explained. “Companies can earn rewards and actively participate in the network instead of passively holding ETF shares.”

The trend highlights Ethereum’s utility beyond mere speculation, with staking yields offering an additional revenue stream. Over 35 million ETH (28.3% of circulating supply) is now staked—a record high, according to Dragonfly Capital’s Hildebert Moulié.

How this affects Ethereum’s future

The Ether Machine’s aggressive accumulation reflects a broader institutional pivot toward Ethereum as a productive asset. Unlike Bitcoin, which is primarily held as a store of value, Ethereum’s staking and DeFi capabilities make it uniquely appealing for corporate treasuries.

However, some analysts warn that concentrated holdings by a few entities could pose risks. “While corporate adoption is positive, over-reliance on large holders could impact decentralization,” said a researcher at CoinShares.

For now, The Ether Machine shows no signs of slowing down. As it prepares for its NASDAQ debut, the company’s strategy could redefine how institutions engage with Ethereum—and blockchain at large.

Key points

• The Ether Machine now holds $1.28 billion in ETH, surpassing the Ethereum Foundation.

• Corporate ETH holdings have surged 50x since January 2025, outpacing ETF growth.

• Staking rewards and DeFi integration are driving institutions to hold ETH directly.