FTX and Alameda Stake $79M in Ethereum

FTX and Alameda Research have staked approximately 20,736 ETH, valued at nearly $79 million, as part of their ongoing bankruptcy estate management.

This move signifies a strategic shift towards yield generation and liquidity optimization, impacting Ethereum’s circulating supply and potentially influencing market dynamics.

FTX, Alameda Stake 20,736 ETH as Part of Strategy

FTX Trading Ltd. and Alameda Research have shifted from large token liquidations to staking 20,736 ETH. This significant decision aligns with their court-approved asset management strategy. The companies seek to leverage Ethereum’s proof-of-stake network, optimizing returns for creditors by dynamically reallocating assets between liquid and yield-generating forms.

Ethereum Liquidity Impacted by $79M Staking

The staking of $79 million worth of Ethereum has decreased its circulating supply, affecting its liquidity across exchanges. Analytics firm Lookonchain confirmed this strategic on-chain event.

This action aims to bolster creditor returns by generating passive income. However, it could have broader implications for Ethereum’s market behavior and staking network dynamics.

Staking Over Liquidation: Historical Precedents in Bankruptcy

Similar actions were observed during the bankruptcies of Celsius and Voyager, where assets were staked to earn yields instead of liquidations. FTX’s decision reflects this trend. Potential outcomes include improved creditor returns and a more sustainable financial strategy. Historical precedents suggest that such moves may enhance the long-term viability of distressed assets.

“FTX and Alameda staked 20,736 ETH (~$79M) in a single, highly coordinated on-chain event #Ethereum #FTX.” – Lookonchain