Ethereum co-founder Vitalik Buterin has thrown assist behind so-called Ether treasury firms, however warned the pattern may spiral into an “overleveraged recreation” if not dealt with responsibly.
In an interview with the Bankless podcast launched on Thursday, Buterin mentioned the rising variety of public firms shopping for and holding Ether (ETH) was invaluable as they expose the token to a broader vary of buyers.
“There’s undoubtedly invaluable providers which can be being supplied there,” Buterin mentioned. He added that firms shopping for into ETH treasury corporations as a substitute of holding the token immediately offers individuals “extra choices,” particularly these with “completely different monetary circumstances.”
So-called crypto treasury firms have change into the most well liked pattern on Wall Street, garnering billions of {dollars} to purchase up and maintain swaths of cryptocurrencies to present merchants publicity to the tokens, with the most well-liked performs being Bitcoin (BTC) and Ether.
Leverage should not result in ETH’s “downfall”
Buterin tempered his assist with warning, stressing that ETH’s future should not come at the price of extreme leverage.
“If you woke me up three years from now and advised me that treasuries led to the downfall of ETH, then, in fact, my guess for why would principally be that by some means they turned it into an overleveraged recreation.”
He outlined a worst-case chain response the place a drop in ETH’s value became pressured liquidations that cascaded and compelled the token’s value down, additionally inflicting a lack of credibility.
Are ETH Treasuries good for Ethereum?@VitalikButerin thinks they are often:
“ETH simply being an asset that firms can have as a part of their treasury is sweet and invaluable… giving individuals extra choices is sweet.”
But he additionally points a warning:
“If you woke me up 3 years from now… pic.twitter.com/W55oUD7Lke
— Bankless (@BanklessHQ) August 7, 2025
However, Buterin is assured that ETH buyers have sufficient self-discipline to keep away from such a collapse.
“These will not be Do Kwon followers that we’re speaking about,” he mentioned, mentioning the co-founder of the Terra blockchain that collapsed in 2022.
ETH treasury corporations now maintain almost $12 billion
The marketplace for public firms that maintain Ether has ballooned to $11.77 billion, led by BitMine Immersion Technologies and SharpLink Gaming.
BitMine holds 833,100 ETH price $3.2 billion — the fourth-largest holdings amongst public firms that maintain any cryptocurrency.
Related: Ethereum beats Solana in capital inflows: $4K goal in sight
SharpLink and The Ether Machine maintain $2 billion and $1.34 billion price of ETH, respectively, whereas the Ethereum Foundation and PulseChain spherical out the highest 5.
ETH making a comeback
ETH has seen a blended 12 months up to now, falling from round $3,685 in January to a low of $1,470 on April 9, earlier than rallying greater than 163% to its present value of $3,870.
The pattern of ETH treasury corporations has been a notable catalyst behind the token’s comeback resurgence. Its value rally has helped ETH shut the hole on Bitcoin and Solana (SOL), which have led the present bull cycle.
Magazine: How Ethereum treasury firms may spark ‘DeFi Summer 2.0’
