Reliance Global Group (RELI) Completes Initial Ethereum Purchase Under Digital Asset Treasury Initiative

Rhea-AI Summary

Reliance Global Group (NASDAQ: RELI) has announced its first Ethereum (ETH) purchase as part of its newly launched Digital Asset Treasury (DAT) initiative. The company plans to build a diversified digital asset portfolio including Bitcoin, Ethereum, and Solana, funded through cash reserves and corporate financing tools.

To support this strategic expansion, RELI has established a dedicated Crypto Advisory Board (CAB) to provide expertise in treasury management, blockchain integration, and governance practices. The company aims to leverage its experience in AI and technology-enabled insurance solutions to pioneer the convergence of InsurTech and decentralized finance.

Positive

• Strategic expansion into digital assets through Ethereum purchase demonstrates forward-looking approach
• Formation of dedicated Crypto Advisory Board for expert oversight and governance
• Potential for long-term capital appreciation through blockchain-based participation
• Leveraging existing AI and technology expertise to combine InsurTech with decentralized finance

Negative

• Exposure to volatile cryptocurrency market risks
• Regulatory and accounting uncertainties in digital asset markets
• Potential cybersecurity and custody risks associated with digital assets

Insights

Financial Technology Strategist

RELI enters crypto market with initial Ethereum purchase as part of new treasury diversification strategy, signaling significant strategic shift.

RELI's initial Ethereum purchase marks a substantial strategic pivot for an insurance-focused company. This treasury diversification into digital assets represents more than just a financial move—it signals the company's belief in blockchain's transformative potential for both finance and insurance industries.

The establishment of a dedicated Crypto Advisory Board demonstrates a structured governance approach to this initiative, suggesting this isn't merely an exploratory investment but rather a calculated long-term strategy. By planning incremental purchases across multiple cryptocurrencies (Ethereum, Bitcoin, Solana), RELI is taking a measured approach to building exposure while managing volatility risks inherent to digital assets.

What's particularly noteworthy is how RELI is positioning this move as an extension of their existing technology focus. The company already leverages AI and data mining in their insurance platforms (RELI Exchange and 5MinuteInsure.com), and now sees blockchain as a natural progression of their tech-forward approach. This suggests a potential future integration between their InsurTech operations and decentralized finance capabilities, which could create competitive differentiation if executed effectively.

However, investors should recognize the significant risk profile shift this represents. The company is allocating capital reserves to highly volatile assets, introducing new regulatory uncertainties, custody challenges, and potential accounting complexities. While the press release emphasizes "disciplined" and "measured" approaches, the effectiveness of risk management protocols will be crucial to evaluate as this initiative progresses.

LAKEWOOD, NJ, Sept. 17, 2025 (GLOBE NEWSWIRE) -- Reliance Global Group, Inc. (Nasdaq: RELI) (“Reliance”, “we” or the “Company”) today announced that it has completed its first digital asset purchase under its recently launched Digital Asset Treasury (“DAT”) initiative, acquiring Ethereum (ETH). The purchase represents the initial step in Reliance’s broader plan to build a diversified digital asset portfolio, with future investments expected to include leading cryptocurrencies such as Bitcoin, Ethereum and Solana.

The Company plans to fund these activities through a combination of cash reserves and other approved corporate financing tools. Reliance’s DAT initiative is structured to pursue long-term capital appreciation through blockchain-based participation.

As part of this strategy, Reliance has also formed a dedicated Crypto Advisory Board (“CAB”) to guide management and the Board of Directors in the oversight, risk management, and execution of digital asset initiatives. The CAB will provide expertise on treasury management, blockchain integration, and governance practices critical to the Company’s expansion into digital assets.

Ezra Beyman, Chairman and Chief Executive Officer of Reliance Global Group, stated, “This first Ethereum transaction is an important milestone for Reliance as we expand into digital assets. It demonstrates our commitment to ensuring that our operational systems – covering custody, governance, accounting, and compliance – are equipped to support this strategy on a larger scale. Reliance expects to continue purchasing Ethereum and other digital assets in measured increments, applying a disciplined approach to capital allocation as the treasury position develops over time.”

“Our entry into Ethereum underscores our conviction that blockchain technology is rapidly shaping the future of both finance and insurance. With the added oversight of our Crypto Advisory Board, we are confident this strategy provides shareholders with a forward-looking opportunity while maintaining our focus on responsible execution and risk management.”

Reliance has a longstanding history of leveraging artificial intelligence, data mining, and innovative distribution models to deliver competitive, technology-enabled insurance solutions through RELI Exchange and 5MinuteInsure.com. By applying similar innovation to the blockchain ecosystem, the Company seeks to pioneer the convergence of InsurTech and decentralized finance.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by terminology such as “may,” “should,” “could,” “would,” “will,” “expect,” “anticipate,” “intend,” “plan,” “believe,” “estimate,” “continue,” “potential,” and similar expressions. Forward-looking statements in this press release include, without limitation, statements regarding:

• Our expectation that building a diversified digital asset portfolio, beginning with Ethereum, may enhance our long-term treasury strategy and shareholder value;
• Our belief that disciplined participation in blockchain-based markets can provide both capital appreciation and potential yield opportunities over time;
• Our expectation that the formation of the Crypto Advisory Board will provide the expertise, oversight, and governance needed to execute our digital asset strategy responsibly;
• Our belief that integrating blockchain capabilities with our existing AI-driven InsurTech platforms positions Reliance at the forefront of innovation in both insurance and decentralized finance; and
• Other statements relating to our future financial performance, business strategy, technology developments, capital allocation, and operational execution.

These forward-looking statements are based on a number of assumptions, including that: (i) the Company is able to successfully implement its digital asset treasury strategy as approved by the Board; (ii) cryptocurrency and blockchain markets remain sufficiently stable to allow for execution of our strategy; (iii) regulatory and accounting frameworks evolve in a manner consistent with our ability to participate in digital asset markets; and (iv) no material adverse changes occur in market, economic, or regulatory conditions.

Actual results could differ materially from those anticipated due to a variety of risks and uncertainties, including: volatility or declines in cryptocurrency markets; challenges in executing and managing digital asset investments; regulatory or accounting changes that adversely impact digital asset holdings or blockchain-based initiatives; technological risks related to custody, cybersecurity, or blockchain integration; competitive pressures from InsurTech, blockchain, or digital asset market participants; and other factors described under “Risk Factors” in our Registration Statement on Form S-1, Annual Report on Form 10-K, and other filings with the Securities and Exchange Commission.

You are encouraged to carefully review our Annual Report on Form 10-K for the year ended December 31, 2024, as amended, as well as other SEC filings, for a more complete discussion of these and other risks and uncertainties. Except as required by law, Reliance Global Group Inc. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Contact:
Crescendo Communications, LLC
Tel: +1 (212) 671-1020
Email: RELI@crescendo-ir.com 

FAQ

What is Reliance Global Group's (RELI) new Digital Asset Treasury initiative?

RELI's Digital Asset Treasury (DAT) initiative is a strategic program to build a diversified digital asset portfolio, starting with Ethereum purchases, and plans to include other cryptocurrencies like Bitcoin and Solana.

How will RELI fund its cryptocurrency purchases?

The company plans to fund its digital asset purchases through a combination of cash reserves and approved corporate financing tools.

What is the role of RELI's new Crypto Advisory Board?

The Crypto Advisory Board (CAB) will provide expertise on treasury management, blockchain integration, and governance practices to guide management in digital asset initiatives.

How does the digital asset strategy align with RELI's existing business?

RELI aims to combine its experience in AI and technology-enabled insurance solutions through RELI Exchange and 5MinuteInsure.com with blockchain technology to pioneer the convergence of InsurTech and decentralized finance.

What are the main risks of RELI's digital asset strategy?

Key risks include cryptocurrency market volatility, regulatory uncertainties, potential cybersecurity threats, and challenges in digital asset custody and management.