Huobi founder Li Lin is reportedly preparing to establish a $1 billion Ethereum treasury company, a move that could significantly influence ETH demand during a challenging period for the broader crypto market.
According to Bloomberg, Li has joined forces with Fenbushi Capital co-founder Shen Bo and HashKey Group CEO Xiao Feng, two early supporters of Ethereum in Asia, to form a new crypto trust designed to accumulate and hold large quantities of ETH as a long-term reserve asset.
The initiative aims to position Ethereum as a strategic component of institutional treasuries, echoing the growing trend among companies that are increasingly treating digital assets as part of their balance sheet reserves. The investor group is reportedly finalizing the purchase of a Nasdaq-listed shell company to serve as the corporate vehicle for the new entity, with an official announcement expected within the next few weeks.
Funding for the venture has reportedly been secured in full. Li Lin’s Avenir Capital has contributed approximately $200 million, while Asian institutional investors have added around $500 million. The remaining capital is expected to come from a consortium of private investors across the region, bringing the total investment to $1 billion.
If completed, the new firm would become one of the largest corporate holders of Ethereum. Data from Strategic ETH Reserve shows that 70 public and private companies currently hold 5.9 million ETH, valued at roughly $22 billion – nearly 5% of the cryptocurrency’s total supply. A $1 billion allocation would place Li Lin’s company among the top four institutional ETH holders, following BitMine, SharpLink, and Ether Machine.
The plan comes amid a downturn in crypto markets, with Ethereum trading below $4,000 after a 2% decline in the past 24 hours, according to TradingView. Despite the correction, large-scale investors appear to be viewing the weakness as an opportunity to expand their exposure. Tom Lee’s BitMine recently increased its Ethereum holdings by $400 million, while BlackRock also added more ETH to its balance sheet despite subdued ETF inflows.
Market analysts suggest that Li Lin’s initiative could bring renewed optimism to Ethereum’s ecosystem. The creation of a billion-dollar ETH treasury may act as both a stabilizing force and a symbolic endorsement of Ethereum’s role as a long-term institutional asset.
Source: Bloomberg
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