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July 29, 2025 – ETH Strategy, an innovative treasury accumulation protocol engineered to provide a novel form of leveraged exposure to Ethereum (ETH), today announced the successful close of its pre-launch funding round, securing an impressive 12,342 ETH, equivalent to $46.5 million. This significant capital infusion positions ETH Strategy to revolutionize how users gain amplified ETH exposure within the decentralized finance (DeFi) ecosystem, mitigating traditional risks associated with margin liquidations or volatility decay.
The substantial raise underscores robust investor confidence in ETH Strategy's unique model, which draws inspiration from Michael Saylor’s MicroStrategy (MSTR) strategic asset accumulation while adapting it for a fully decentralized, protocol-driven environment. The funding was strategically secured through three distinct channels, catering to diverse investor profiles:
- A private presale generated 6,900 ETH.
- A public sale successfully raised 1,242 ETH.
- An additional 4,200 ETH was collected through the issuance of puttable warrants.
Investors across all categories acquired STRAT tokens at varying rates, with all allocations subject to a four-month lockup period, followed by a two-month linear release schedule commencing from the token generation event (TGE).
"We are incredibly proud to have achieved such a successful pre-launch funding round, which validates our vision for a more robust and risk-mitigated approach to leveraged ETH exposure," stated a spokesperson for the ETH Strategy team. "This capital enables us to execute our ambitious roadmap, ensuring the highest standards of security, performance, and community engagement as we prepare for the official launch of the STRAT token and the core protocol operations. We believe ETH Strategy will set a new benchmark for capital efficiency and sustainable growth in the DeFi space."
Strategic Allocation for Protocol Growth and Stability
- A significant portion, 11,817 ETH, is earmarked for core protocol operations. This includes critical functions such as ETH staking services and providing essential protocol liquidity provisions, which are vital for the smooth functioning of the decentralized exchange.
- The remaining 525 ETH will be dedicated to ongoing protocol development and growth activities. This encompasses crucial operational expenses, comprehensive security audits to safeguard user assets, competitive team compensation to attract and retain top talent, and robust community programs designed to foster a vibrant and engaged ecosystem.
Introducing STRAT: A New Paradigm for Leveraged ETH Exposure
ETH Strategy's core innovation lies in its treasury protocol design, which enables leveraged exposure to ETH "without the traditional risks associated with margin liquidations or volatility decay." The protocol achieves this through a sophisticated bonding mechanism that issues protocol-convertible debt, inspired by Strategy's original convertible trade, alongside an at-the-market (ATM) offering similar to those used by SharpLink and BitMine.
The protocol operates as an autonomous treasury with a continually expanding pool of ETH. Key mechanics include:
- ETH Accumulation: ETH grows through long-term convertible debt, with ETH treasury growth outstripping STRAT supply growth, leading to accretive dilution.
- Treasury Management: The ETH in the treasury is deployed between various staking services and into a STRAT/ETH borrow-lend mechanism, constantly earning yield.
- STRAT, a New Terminal Asset: STRAT is designed as a better way to own ETH, amplifying gains, meaning "When ETH pumps, STRAT pumps more."
- Future Proof Design: STRAT mechanics autonomously control the level of debt in the system by reducing the value of call options as debt increases, ensuring strong risk fundamentals.
Further enhancing its value proposition, STRAT features:
- Sustainable Yield: Revenue is generated through bonding and lending treasury ETH, reinvesting it into ETH for long-term capital growth for STRAT holders.
- Dynamic Debt: The protocol adjusts bond premiums and debt ratios in real time, ensuring market stability.
- Gamma Vault: Bonds can earn delta-neutral yield through an option selling vault that uses STRAT bonds as collateral to sell ETH call options, earning premiums.
Imminent Token Launch and Liquidity Provision
The highly anticipated STRAT token is set to go live at 9:00 a.m. ET on Tuesday, July 30, 2025. Liquidity for STRAT will be launched on Uniswap v4 as a single-sided pool with an ATM mechanism designed to drive Earnings Per Share (EPS).
ETH Strategy is poised to become a cornerstone in the evolving landscape of decentralized finance, offering a capital-efficient, risk-aware, and innovative solution for participants seeking amplified exposure to the growth of the Ethereum ecosystem.
About ETH Strategy:
ETH Strategy is an innovative Ethereum treasury protocol designed to reimagine the MicroStrategy (MSTR) model within a decentralized finance (DeFi) context. It offers a unique mechanism for users to gain leveraged exposure to ETH through its native STRAT token, managed by an autonomous treasury that strategically accumulates and deploys ETH to generate sustainable yield and amplify gains for its holders.Compiled by CMO Intern team
