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▲ Solana (SOL), Ethereum (ETH)
As listed companies leveraging cryptocurrency financial strategies enter the Russell Index inclusion zone, stocks of companies holding Ethereum (Ethereum, ETH) and Solana (Solana, SOL) are moving deeper into the institutional investor's purview.
According to cryptocurrency-specialized media Decrypt on May 26 (local time), Ethereum treasury company Sharplink and Solana treasury company Forward Industries are set to be included in the Russell 2000 and Russell 3000 indices at the end of June. The two companies were added to the list of newly included cryptocurrency treasury companies during the index reconstitution process.
Sharplink announced that it will join the Russell 2000 and Russell 3000 indices on June 29, when the semi-annual index rebalancing takes effect. Previously, rival Ethereum treasury company BitMine Immersion Technologies is also awaiting inclusion in the Russell 1000 index, which tracks the top 1,000 U.S. companies by market capitalization. Sharplink CEO Joseph Chalom stated, “Inclusion in the Russell 2000 and Russell 3000 is a meaningful validation of Sharplink's institutional-grade Ethereum treasury strategy, and we expect it to broaden the SBET shareholder base and strengthen capital market access.”
Sharplink holds 874,351 ETH, valued at approximately $1.8 billion. However, according to Yahoo Finance data, its market capitalization at the close of trading on Tuesday was approximately $1.22 billion, trading at a level lower than its held Ethereum's value. Decrypt reported that Sharplink is being valued at a discount compared to its Ethereum holdings.
Forward Industries was also included in the Russell 2000 and Russell 3000 indices. Forward Industries, which transitioned from a medical design company to a Solana accumulation company, purchased $1.58 billion worth of SOL last year at an average of approximately $232 per SOL. Since then, the price of SOL has dropped to $83.78, a 64% decrease from the time of its large-scale purchase. Consequently, the value of Forward Industries' Solana holdings was estimated at approximately $588 million, which is higher than its current market capitalization of $350 million. Based on this valuation, the company is approximately 2.4 times larger than the lowest market capitalization company included in the Russell 2000.
The inclusion of both companies in the Russell indices signifies their entry into the U.S. index basket, which is linked to benchmarks and investment funds totaling over $12.2 trillion. Forward Industries CEO Ryan Navi stated, “We believe that index inclusion will broaden our shareholder base, improve trading liquidity, and increase visibility among long-term institutional investors.” Following the announcement, Sharplink's stock price fell by approximately 0.8% on Tuesday, closing at $6.18 per share, while Forward Industries' stock price rose by 2.62%, closing at $4.7 per share.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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