Huobi’s Li Lin Unleashes a $1B Ethereum Shockwave — The Boldest Institutional Bet in Crypto History

 

Ethereum’s Billion-Dollar Moment: Huobi Founder Li Lin to Launch Massive ETH Treasury Firm Amid Market Uncertainty

Huobi founder Li Lin is reportedly setting the stage for one of the largest corporate bets on Ethereum to date — a $1 billion Ethereum treasury company that could redefine how institutions view digital assets in their reserve portfolios.

According to an exclusive report from Bloomberg, Li Lin has teamed up with Shen Bo, co-founder of Fenbushi Capital, and Xiao Feng, CEO of HashKey Group, to establish a crypto trust designed to accumulate and hold significant quantities of Ethereum (ETH) as a long-term strategic reserve. The collaboration brings together three of Asia’s earliest and most influential Ethereum supporters, signaling a renewed wave of institutional confidence in the world’s second-largest cryptocurrency.

A New Corporate Push Toward Ethereum

The upcoming company — which insiders describe as a “digital asset treasury powerhouse” — aims to treat Ethereum not just as a speculative investment but as a core balance sheet asset, much like how corporations in the past adopted gold or U.S. Treasury bonds. This shift reflects a broader institutional trend: companies are increasingly integrating crypto assets into their treasury management strategies, viewing them as hedges against inflation, fiat currency depreciation, and systemic risk in traditional financial markets.

Li Lin’s Ethereum treasury initiative is being structured with full corporate compliance in mind. Bloomberg’s report suggests that the investor group is finalizing the purchase of a Nasdaq-listed shell company, which will act as the legal framework for the entity. An official launch announcement is expected within the next few weeks, marking one of the most ambitious corporate crypto plays since MicroStrategy’s landmark Bitcoin accumulation strategy.

Funding Secured for a Billion-Dollar Bet

Unlike many speculative projects, funding for this venture is already fully secured, according to individuals familiar with the matter. Li Lin’s Avenir Capital has reportedly contributed around $200 million, while Asian institutional investors have provided another $500 million. The remaining $300 million will come from a consortium of private investors spanning Singapore, Hong Kong, and South Korea.

This brings the total commitment to a staggering $1 billion, placing the firm among the most capitalized Ethereum-holding entities in the world.

If completed, the new treasury would join the ranks of major Ethereum institutional holders such as BitMine, SharpLink, and Ether Machine. According to data from Strategic ETH Reserve, approximately 70 public and private companies collectively hold 5.9 million ETH, valued at roughly $22 billion — or nearly 5% of Ethereum’s total circulating supply. Li Lin’s entity, with a $1 billion allocation, would immediately rank among the top four institutional ETH holders globally.

Timing the Market: Strategic or Risky?

The announcement comes at a pivotal time for the crypto market. Ethereum, which traded above $4,000 earlier this year, has recently dipped below $4,000 following a 2% daily decline, according to TradingView. Broader crypto sentiment remains cautious amid tightening global liquidity and lower ETF inflows.

Yet, for experienced investors like Li Lin, such volatility often signals opportunity, not retreat. Large-scale institutions appear to be buying the dip. Notably, Tom Lee’s BitMine increased its Ethereum holdings by $400 million, and BlackRock quietly added more ETH to its balance sheet, even as ETF volumes stagnated.

Industry analysts view Li Lin’s move as a calculated long-term play rather than a short-term bet. “Ethereum has proven itself as more than a blockchain,” said crypto strategist Elena Zhang of Apex Digital. “It’s now a programmable financial layer for the entire decentralized economy. By creating a treasury of this magnitude, Li Lin is effectively positioning ETH as the corporate reserve asset of the next digital age.”

Institutional Momentum Builds Around Ethereum

Ethereum’s transformation from a decentralized experiment into a core institutional asset has accelerated over the past two years. The network’s transition to proof-of-stake, combined with deflationary tokenomics and scaling upgrades such as EIP-4844, have solidified its status as a sustainable, yield-generating blockchain ecosystem.

Major corporations and funds are increasingly exploring ETH-based reserves as alternatives to Bitcoin’s digital gold narrative. While Bitcoin remains the dominant store-of-value asset, Ethereum’s utility-driven ecosystem — powering decentralized finance (DeFi), tokenized real-world assets, and NFTs — offers a fundamentally different kind of value proposition.

According to Messari’s 2025 Q3 report, Ethereum accounts for nearly 65% of all DeFi total value locked (TVL), and institutional staking on platforms such as Lido and EigenLayer continues to expand rapidly. A corporate Ethereum treasury could therefore act not only as a reserve asset but also as a yield-generating portfolio through staking and restaking strategies.

A Billion-Dollar Signal of Confidence

Market observers suggest that Li Lin’s $1 billion Ethereum treasury will serve as a psychological catalyst for both institutional and retail investors. “This is about signaling,” said Joseph Tan, managing partner at GlobalChain Advisors. “When one of Asia’s most influential crypto figures commits a billion dollars to Ethereum, it sends a message: Ethereum is no longer speculative—it’s strategic.”

In a market often swayed by fear and uncertainty, such confidence could help stabilize ETH prices and restore bullish momentum going into 2026.

The move may also inspire copycat strategies from other regional power players. Sources familiar with the matter say several Singaporean family offices and Middle Eastern investment groups are already exploring similar ETH accumulation models tied to corporate treasury frameworks.

Li Lin’s Return to the Spotlight

Li Lin, who founded Huobi (now HTX) in 2013, has largely stayed out of the public eye since selling his stake in the exchange. His reemergence with a project of this scale marks a notable return to the global crypto stage. Insiders describe him as determined to reshape institutional adoption in Asia, using Ethereum as the foundation.

“Li has always been a long-term thinker,” said a former Huobi executive who requested anonymity. “This isn’t about chasing short-term profits. It’s about creating a financial legacy where blockchain assets like ETH become part of the global economic fabric.”

Looking Ahead

If the Ethereum treasury company launches as planned, it could serve as a model for corporate blockchain adoption — bridging traditional finance and decentralized networks. Analysts predict that such initiatives could drive demand for on-chain accounting, institutional staking platforms, and ETH-denominated debt instruments, further deepening Ethereum’s role in global capital markets.

As crypto markets evolve through cycles of speculation and correction, projects like Li Lin’s may define the next phase — one characterized not by hype, but by measured, institutional confidence in blockchain assets.

Ethereum’s price might fluctuate day-to-day, but its institutional narrative is only strengthening. And with a $1 billion corporate treasury in the making, that narrative could soon become impossible to ignore.

Source

Writer @Ellena

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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