ETH Strategy has raised $46.5 million through private and public sales, including puttable warrants, to fund its leveraged Ethereum exposure protocol. The capital infusion, equivalent to 12,342 ETH, enables the launch of the STRAT token designed to enhance capital efficiency within the Ethereum ecosystem.
The newly launched STRAT token functions as both a governance and utility asset, granting holders voting rights over protocol development. The mechanism leverages ETH staking and liquidity provision strategies to amplify yield potential while contributing to Ethereum network security.
Regulatory scrutiny and market volatility risks associated with leveraged exposure present ongoing challenges. Success hinges on navigating compliance frameworks and maintaining operational resilience amid fluctuating market conditions.