If ETH reaches $5,000, how much can SBET go up?

By EeeVee, BlockBeats

In the past month, Ethereum (ETH) has jumped from $2,100 to $3,000, and in this wave of rise, U.S. stock companies and mining companies have announced the purchase of ETH as their "strategic reserves", and some mining companies have even sold all BTC and bought ETH in cash.

According to statistics, Ethereum Strategic Reserve has purchased more than 545,000 Ethereum in the past month, with a total value of more than $1.6 billion.

SharpLink (SBET), the first company to use ETH as a strategic reserve, has seen its stock price soar from $3 to over $100 and then back to single digits after announcing the purchase of ETH, and is now trading above $20 again.

Recently, SBET bought nearly 50,000 ETH in just 5 days, and its total ETH holdings have surpassed that of the Ethereum Foundation.

In addition, SBET has staked some of its ETH holdings on-chain to earn its staking rewards, and as of July 8, it has earned 322 ETH from its staking position.

At present, there are 5 main U.S. stock companies that use ETH as a "strategic reserve":

SharpLink Gaming (SBET)
BitMine Immersion Technologies (BMNR)
Bit Digital (BTBT)
Blockchain Technology Consensus Solutions (BTCS)
GameSquare (GAME)

Each company's ETH holdings are as follows:

mNAV is the ratio of Market Capitalization to Net Asset Value (NAV), which is calculated as:

The mNAV of ETH Strategic Reserve is mainly estimated by its "total market value of shares outstanding"/"total value of ETH held".

Is the market FOMO?

The higher the mNAV, it often represents a heavier speculative sentiment in the market, and vice versa, it means that investors are in a relatively rational state of a concept or a stock.

As of May 2025, MicroStrategy (MSTR) has a market capitalization of about 1.78x its Bitcoin Net Asset Value (mNAV), which fluctuated between 1x and 4.5x between August 2022 and August 2024.

MSTR's mNAV curve reflects how sentiment in the crypto market dominates the valuations of such companies.

Its highs, such as 4.5x, typically occur during the BTC bull cycle and during the MSTR's massive increase in BTC holdings, showing strong investor enthusiasm. The 1x low corresponds to a bear market and a consolidation period in the crypto market, indicating that investors are reluctant to pay an emotional premium for it.

An mNAV in the range of 2-2.5 represents relatively neutral investment sentiment and premium.

Using this as a yardstick, the 5 Ethereum strategic reserve companies: SBET and BTCS are currently in this range, while BMNR and BTBT have slightly higher mNAV.

It is important to note that BMNR and BTBT were originally mining companies and may also hold other assets other than ETH, the value of which has not yet been calculated.

On the whole, the current Ethereum strategic reserve of currency stocks is still in a relatively rational valuation range, and the market sentiment has not yet reached FOMO

Ethereum rises to 5000, how many times can these companies multiply?

If the ETH price continues to rise to $5,000 in the coming months, assuming that these companies hold the same total amount of ETH and do not raise additional funds, they are estimated at a more rational premium (mNAV = 2), then the stock price and potential increase are:

Investors need to note that mNAV = 2 is a relatively neutral premium, and if ETH does rise to $5,000, the market may be willing to pay a higher sentiment premium for these ETH strategic reserve companies at that time.

And during this time, the ETH staked by these companies will also generate income for them, increasing the amount of ETH they hold.

Ethereum Value Discovery? Why did it suddenly become an institution?

When these companies in Ethereum's strategic reserve talk about why they chose ETH, they mentioned the following three main reasons:

The success of BTC reserve companies such as MSTR
ETH staking yield
ETH's future potential in terms of narratives such as stablecoins and RWAs.

Sam Tabar, CEO of Bit Digital, is optimistic about replicating MSTR's model to ETH and is confident that ETH will rise to $10,000:

"We're just getting started. It's just a warm-up. You think about how Saylor recycled his stock to buy BTC, and then the BTC kept going up, making him more capable of repeating the whole process."

Primitive Ventures, on the other hand, highlighted the potential of ETH staking in its reasons for betting on SBET:

"ETH is a truly productive asset with the natural profitability of the staking and DeFi ecosystem, while Bitcoin lacks such a mechanism. SBET is expected to directly leverage ETH's on-chain mechanism to compound interest growth and achieve real and quantifiable returns for shareholders."

The CEO of Bitmine Immersion Technologies is more bullish on ETH's potential for the RWA and TradFi narrative, saying in an interview:

"In my opinion, Ethereum is attractive because it is the first layer of blockchain where real-world assets are tokenized. As more and more things in the financial world and the real world are tokenized, financial institutions like Goldman Sachs, JPMorgan Chase and Amazon, Walmart, like they did with stablecoins, will also want to stake Ethereum itself, and we're doing what these businesses will do in the future."

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