The Ethereum Foundation Now Holds $1.6 Billion After ETH Top of the Rally Sale

The Ethereum Foundation released a report detailing that its holdings rose to $1.6 billion after selling some ETH at high prices. The report also describes the annual expenditures specifically for 2021.

Ethereum Foundation Holds $1.6 Billion

Recently, the Ethereum Foundation released a report detailing its 2021 expenditures and amounts currently held. The Ethereum Foundation is the non-profit organization behind the entire Ethereum network. As of March 31st, 2022, the EF had approximately $1.6 billion.

The report indicates that the significant part of the holdings, $1.3 billion was in crypto coins, while the minor part, $300 million, was in non-crypto assets and investments. While sharing this report, the EF also noted that their ETH holding rose in the past year. In the 2021 March report, the EF held about $826 million worth of ETH quoted at $2k. However, recent reports indicate that the EF has $1.294 billion, a 56% increase in Ethereum holdings. The current valuation is based on a $3k Ethereum price.

The report mentioned that EF sold some of its ETH at the peak of its rally in favor of other crypto and non-crypto investments. For instance, out of the $1.6 billion, only $1.294 billion is ETH. The EF holds about $11 million in other crypto assets. The additional about $300 million is held in non-crypto investments.

The report also says that “The EF follows a conservative treasury management policy that ensures we have sufficient resources to fund the EF’s core objectives even in the case of a multi-year market downturn. This part of our budget is immune to changes in the price of ETH on a significant timeline.”

Holding conservative treasury management means the foundation has a lot of confidence in the long-term performance of ETH. As such, they will continue holding more ETH even in 2022.

Expenditure Report for 2021

This same report carried the EF’s expenditure for the year 2021. According to the report, the EF spent $48 million on different activities within 2021.

But the report indicates that their most significant spending was on layer one research, where they spent around $22 million. The EF also spent $2 million on research and development works for L2. Accordingly, the second largest spending for the year was $10 million used on community development.

The third-largest expenditure based on the reports is funding the developer platform, which costs about $5.9 million. However, the EF report noted that the developer platform cost “does not include the $8M donation to the Nomic Foundation, which will be recorded in 2022.”

Internal operations and support cost a little over $5 million. Finally, the EF spent around $3 million on ZK research and development.

Other Recent Ethereum News

Recently there has been some exciting news surrounding the Ethereum network, specifically their Beacon chain merger. For instance, the developers recently affirmed that although the ETH2 merge will be happening in 2022, it won’t be in July. 

A few days ago, the Ethereum developers also managed to do a Shadow fork, which proved successful. The Beacon chain will be bringing many new features that will benefit the Ethereum Foundation, DeFi, NFT, and other stakeholders in Ethereum.