Ethereum-backed treasuries are revolutionizing corporate capital management by enabling companies to allocate funds raised through equity to acquire ETH, shifting from mere speculation to productive reserves that generate income via staking and DeFi.

While early adopters benefit from these strategies, they face operational risks such as validator slashing, smart contract vulnerabilities, liquidity constraints due to Ethereum's exit delays, and uncertain regulatory environments affecting staking and token classifications.

Ethereum's structural advantages, including reduced leverage risk and its environmentally friendly Proof-of-Stake model, help mitigate some of these risks and align with ESG trends, while also enhancing network security and decentralization.

The growing institutional adoption suggests that companies could eventually hold up to 10% of all Ethereum, transforming treasury management and integrating blockchain technology into mainstream finance.

Compared to Bitcoin treasuries, Ethereum offers the benefit of yield generation, active network participation, and exposure to DeFi opportunities, making ETH a 'productive asset' rather than just a store of value.

These strategies involve raising capital through ATM or PIPE deals, acquiring ETH via OTC or institutional exchanges, and choosing between native staking, liquid staking, or institutional staking services based on liquidity needs and risk appetite.

Market optimism is reflected in early adopters like GameSquare and BitMine trading at premiums, though investors should remain cautious of volatility and dilution risks as the ecosystem continues to evolve.