On Monday, the Ethereum Foundation (EF) released a financial report which shows that the foundation currently holds $1.6 billion in its treasury. $1.3 billion of Treasury assets are held in cryptocurrencies while the rest of the Treasury is made up of investments and non-crypto assets.
The Ethereum Foundation holds $1.294 billion in Ether
the Ethereum Foundation is a non-profit organization dedicated to fostering growth within the Ethereum ecosystem. The recently published EF Report April 2022 explains that there are different ways in which the EF hardens the Ethereum environment.
EF creates teams focused on improving Ethereum and the network ecosystem, the non-profit organization provides projects with grants to fund other teams outside of the core EF teams, it manages delegated domain allocation and it also leverages third-party funding techniques.
After explaining what the Ethereum Foundation is and what it does, the April 2022 report discusses EF’s treasury and finances. According to EF, it currently holds $1.6 billion in its treasury, and $1.3 billion is made up of digital currencies like Ethereum (ETH).
In fact, according to the EF report, the foundation holds 80.5% of its crypto holdings in ether, representing 0.297% of the total ether supply. EF insists that even during multi-year crypto market downturns, the nonprofit allocates a “conservative treasury” that is “immune to changes in the price of Ethereum.”
The reason EF holds so much Ether is because it represents the nonprofit’s belief in Ethereum’s future potential and that the holdings “represent that long-term perspective.”
EF spends $48 million in 2021
The EF report also revealed that last year the nonprofit spent a total of approximately $48 million, and $20 million of the total spent was on “external expenses” such as grants.
The remaining balance funded teams and projects with the Ethereum ecosystem. The entire balance of expenditures has been placed into single categories which include Layer 1 (L1) Research and Development (R&D), Layer 1 (L2) R&D, Applied ZK Research, Community Development, and internal operating expenses.
The Ethereum Foundation is one of many organizations that hold ether in a treasury, as Bitcoin.com News recently reported on a number of ether hoards on April 10. The report had shown 12 different companies that held nearly $700 million worth of ethereum on their balance sheets.
What do you think of the Ethereum Foundation’s financial report disclosing its current Ethereum holdings? Let us know what you think about this topic in the comments section below.
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