Clarity Act: No One Knows Yet

The CLARITY Act — the bill that would set federal rules for how crypto is regulated — is up for a possible Senate vote this week. That's the headline. What isn't clear is almost everything else.

Senate Banking Chair Tim Scott is pushing hard to get a vote before the Senate leaves for its next break, and he's framed the path forward simply: get Republicans lined up first, then bring Democrats aboard. The bill already cleared the Senate Banking Committee back in May on a 15-9 vote, with two Democrats crossing over to support it.

But a committee vote isn't a floor vote. To actually pass, the bill needs 60 votes — meaning at least eight Democrats have to come aboard, on top of the two who already crossed over. And it's not just a Democrat problem: Senator Josh Hawley has said he'll oppose the bill over concerns from community banks about deposit flight tied to stablecoin yields, and Senator Thom Tillis has said he'll vote no unless a bipartisan ethics provision gets resolved first.

So here's where things actually stand: nobody knows if there's a vote this week at all, let alone whether it passes, gets delayed to September, or stalls entirely. Anyone telling you with confidence which way this goes is guessing. We're not going to pretend otherwise.

Why We're Introducing Intrinsic Value Now

We think the timing matters, and here's the honest reason.

When something like the Clarity Act is genuinely uncertain — when nobody, including us, knows whether it passes this week, next month, or not at all — that's exactly the kind of moment where it's easy to get pulled into reacting to headlines instead of thinking clearly about what you actually own.

Intrinsic value is our way of stepping back from that noise. Instead of asking "what will the news do to the stock price today," it asks a simpler, steadier question: what does this company actually own, and what is that worth? A treasury of ETH doesn't change because a Senate vote gets pushed a week. The math behind these numbers doesn't move because of a headline.

We're not introducing this framework because we think we know what happens with the Clarity Act, or where ETH goes next. We're introducing it because we don't — and neither does anyone else right now. In a moment like this, having a clear, honest way to look at what you own, separate from what the market is doing with it today, is worth more than another prediction.

Intrinsic Value

What a company is actually worth based on what it owns — not what its stock happens to be trading for today.

Net Asset Value, or NAV

The total value of everything a company owns, divided by the number of shares. It's the per-share worth of the company's actual assets.

The Formula

Number of ETH held × ETH price = Asset-Backed Value

This asset-backed value is the intrinsic value.

Market Premium

The difference between what a stock is trading for and what it's actually worth based on its assets. If the market pays more than the asset-backed value, that's a premium. If it pays less, that's a discount.

Market NAV, or mNAV

A way of measuring that premium or discount as a multiple. If a stock trades at 2× mNAV, the market is paying twice the company's asset-backed value for each share.

Why It's Used

Because these companies rarely trade at exactly their asset-backed value. The market pays more or less depending on how investors feel about the company's strategy, its growth, and its future — not just what it owns today. Using a range of multiples lets us show what the stock could be worth under different levels of investor enthusiasm, instead of pretending there's only one right answer.

How It Should Be Understood

As a range of possibilities, not a prediction. A wider range between the low and high multiple means more uncertainty about how the market will price the stock — not that one outcome is more likely than another.

Staking

The process of putting your ETH to work securing the Ethereum network, instead of just holding it in a wallet doing nothing.

Think of it like a savings account. When you deposit cash in a bank, the bank puts that money to work and pays you interest in return. Staking works similarly: you lock up your ETH to help the Ethereum network verify transactions, and in exchange, the network pays you a reward — in ETH.

The key difference from a bank: there's no bank in the middle. The reward comes directly from the Ethereum protocol itself, and the "work" your ETH is doing is helping run the network's core security system.

Staking Yield

The reward you earn for staking your ETH, paid out in more ETH.

If staking is like a savings account, staking yield is the interest rate. Instead of your bank depositing $5 into your account every month, the Ethereum network deposits a small amount of additional ETH into your staked position on an ongoing basis.

For a company holding ETH as a treasury asset, this matters because it means the ETH pile can grow on its own — without buying more ETH, without raising capital, and regardless of what ETH's price is doing that day. It's a second way the treasury grows, separate from "the price of ETH went up."

Why BMNR and SBET Stake Their ETH

Both companies could simply buy ETH and hold it in a wallet, waiting for the price to rise. Instead, they stake nearly all of it. Here's why that choice matters.

They're not just betting on price — they're building a compounding machine. A company that only holds ETH is making one bet: that ETH goes up in value. A company that stakes its ETH is making that same bet, plus collecting a steady stream of additional ETH along the way. Every year the treasury grows a little on its own, on top of whatever the price does.

It's the difference between a piggy bank and a savings account. Buying and holding ETH is a piggy bank — the value only changes if the price of what's inside changes. Staking turns that same pile of ETH into a savings account that pays you more ETH just for keeping it there. Same ETH, same risk from price swings, but one version is working for you and the other isn't.

It signals long-term intent, not short-term trading. To stake ETH, a company generally has to commit to holding it for a meaningful period — it isn't a strategy built for something you plan to sell next week. When a company stakes the overwhelming majority of its treasury, it's a visible, disclosed statement that management sees itself as an owner and operator of ETH exposure over the long run, not a trader looking to flip it at the next price spike.

The reward doesn't come from the market — it comes from the network. Staking rewards aren't paid by another investor buying the stock, and they don't depend on Wall Street's mood that day. They're paid directly by the Ethereum protocol for helping keep the network secure. That makes it a source of growth that isn't tied to the same forces that move the stock price day to day.

Per-Position Assumptions — Scenario: Ethereum at $4,000

1000 Shares Value Scenario

To estimate your own position, divide your actual share count by 1,000 and multiply the figures above accordingly.

Floor Scenario applies the conservative 2.5× multiple to both SBET and BMNR.

Mid Scenario applies BMNR at 3.5× and SBET at 4×.

High Scenario applies both at 5×, the top end of the range the market has historically paid. ETHA stays the same across all three because it isn't valued using a premium multiple — its value moves directly with the price of ETH, share for share.

Compliance Disclosure

This document is intended solely to illustrate a mathematical formula applied to hypothetical inputs. The figures presented are the output of a calculation — ETH-per-share ratios and assumed valuation multiples applied to an assumed Ethereum price — and do not represent an opinion, forecast, prediction, or projection of future performance for any security discussed. Actual results will differ, potentially materially, from the figures shown. Past performance, historical trading multiples, and proximity to any stated threshold are not indicative of future results and should not be relied upon as a basis for any investment decision. This material does not constitute investment advice or a recommendation to buy, sell, or hold any security, and it has not been prepared with any particular investor's financial situation, objectives, or risk tolerance in mind. Commentary regarding pending legislation reflects publicly available information as of the date of this document and is subject to change without notice; it should not be construed as an indication of how or whether such legislation will ultimately be enacted.

Quantum Capital / Patriot Advisory Group LLC — RIA Registered State of NH