The Ethereum Foundation has completed its previously announced goal of staking 70,000 ETH, bringing the total value of staked ether to approximately $143 million. The milestone marks a notable shift in how the organization approaches funding its operations. Rather than relying on periodic sales of ETH, the foundation is now positioned to generate income through staking rewards. The move represents a meaningful change in the foundation’s financial strategy.
Prior to this shift, the foundation had been selling ETH on a regular basis to cover its annual expenses, which run to approximately $100 million per year. Staking the 70,000 ETH is expected to generate between $3.9 million and $5.4 million annually in yield. While this falls well short of covering total operating costs, it reduces the foundation’s dependence on liquidating its holdings. The approach allows the organization to preserve more of its ETH reserves over time.
Despite completing the initial staking commitment, the foundation still holds more than 100,000 ETH that remains unstaked. No announcement has been made regarding whether the organization intends to stake additional holdings beyond the original target. It is also unclear whether the remaining ETH will be kept as liquid reserves for operational flexibility. The foundation has not provided a timeline or plan for addressing the unstaked portion of its treasury.
The decision to stake rather than sell reflects a broader consideration of long-term asset management for the foundation. By earning yield on its holdings, the organization can offset some expenses without reducing its overall ETH position. The estimated annual return from staking, while modest relative to total expenses, provides a more passive and sustainable income stream. Observers will be watching to see whether the foundation expands its staking activity in the months ahead.
Originally reported by CoinDesk.
