New $1 Billion Ethereum Treasury Company Poised to Boost ETH Demand

Huobi founder Li Lin is teaming up with prominent Asian crypto investors Shen Bo (Fenbushi Capital co-founder) and Xiao Feng (HashKey Group CEO) to establish a $1 billion Ethereum treasury company. This new venture is a strategic move intended to accumulate and hold a large reserve of Ether (ETH) as a long-term asset, positioning it for institutional treasuries.

Key Details of the Initiative

• Goal: To create a new crypto trust that will become one of the largest corporate holders of Ethereum, reinforcing its status as a strategic institutional asset.
• Corporate Vehicle: The group is reportedly finalizing the purchase of a Nasdaq-listed shell company to serve as the corporate entity, with an official announcement expected soon.
• Funding Secured:The full $1 billion in capital has reportedly been secured:
  • Avenir Capital (Li Lin's firm): $200 million
  • Asian institutional investors: $500 million
  • Private investors: The remaining $300 million

Market Influence and Context

This initiative comes despite a recent downturn in the crypto market, where Ethereum has dropped below $4,000. Large investors appear to be treating this market weakness as a buying opportunity, as evidenced by Tom Lee’s BitMine recently increasing its ETH holdings by $400 million and BlackRock adding more ETH to its balance sheet.

If completed, a $1 billion ETH allocation would instantly place Li Lin's new firm among the top four institutional ETH holders globally. Analysts believe the creation of this massive treasury will act as both a stabilizing force and a symbolic endorsement of Ethereum's long-term value, potentially bringing renewed optimism to the ecosystem.

October 2025, Cryptoniteuae