The Ethereum Foundation's Latest Financial Report Shows It Holds $970.2M in Both Crypto and Non-Crypto Assets

The Ethereum Foundation explained that holding the majority of its treasury in ETH aligns with its long-term confidence in Ethereum's growth.

The latest financial report from the Ethereum Foundation reveals that as of October 31, 2024, it holds $970.2 million in both crypto and non-crypto assets. Of this amount, $788.7 million is in cryptocurrencies, with 99.45% of the foundation’s crypto holdings being in ether. This equates to roughly 0.26% of the total ether supply. In addition, the foundation holds $181.5 million in non-crypto investments.

The foundation's large holding of ether is part of its long-term strategy, as it aims to align its treasury with its confidence in Ethereum's growth. The foundation's treasury is dedicated to funding key public goods for the Ethereum ecosystem. It employs a conservative management strategy to ensure stability even during prolonged market downturns. This involves periodically selling ETH to build reserves for future years and boosting fiat reserves during market peaks to fund spending during bear markets.

Recently, the foundation's ether sales have sparked community concerns about transparency, particularly after several large transactions occurred without prior notice.

The foundation's biggest expense in 2023 was $47.4 million on "new institutions," up from $28.6 million in 2022. This primarily went towards funding new organizations that support Ethereum. The foundation also increased spending on Layer 1 research and development to $34.7 million from $32.1 million in the prior year.

Executive Director Aya Miyaguchi stated on social media that the foundation's long-term strategy aims to support Ethereum's sustainable growth by fostering an open and resilient ecosystem.

Meanwhile, Ethereum's network has been expanding steadily, with active addresses reaching 13.7 million in October, up from 12.3 million in September. The on-chain volume also increased to $108.6 billion from $90.9 billion the month before. At the time of reporting, ether was trading at $2,912, having risen by 19% over the past five days amid a broader market rally.