Vitalik Buterin Supports ETH Treasury Firms but Warns Against Overleverage
Ethereum co-founder Vitalik Buterin has voiced support for the growing number of public companies holding Ether (ETH) as part of their corporate treasuries, but cautioned that excessive leverage could pose serious risks to the network’s stability.
Broader Access for Investors
Speaking on the Bankless podcast released Thursday, Buterin said that the rise of Ether treasury firms — companies that raise capital to buy and hold ETH on behalf of shareholders — offers significant value by giving a wider range of investors indirect exposure to the asset.
“There’s definitely valuable services that are being provided there,” Buterin noted, explaining that such companies provide more options for people with varying financial circumstances who might prefer to invest through a corporate vehicle rather than hold ETH directly.
Are ETH Treasuries good for Ethereum?@VitalikButerin thinks they can be:
“ETH just being an asset that companies can have as part of their treasury is good and valuable… giving people more options is good.”
But he also issues a warning:
“If you woke me up 3 years from now… pic.twitter.com/W55oUD7Lke
— Bankless (@BanklessHQ) August 7, 2025
The crypto treasury model has gained traction on Wall Street in recent years, with billions of dollars flowing into firms holding Bitcoin and Ether to give investors regulated exposure without requiring direct token custody.
The Leverage Risk
While supportive of the trend, Buterin warned against turning ETH into what he called an “overleveraged game.”
“If you woke me up three years from now and told me that treasuries led to the downfall of ETH, my guess would basically be that they turned it into an overleveraged game,” he said.
He outlined a worst-case scenario in which a sharp drop in ETH’s price triggers forced liquidations, creating a cascade effect that drives the price down further and damages the network’s credibility.
Despite the warning, Buterin expressed confidence that ETH-focused firms and investors are generally more disciplined.
“These are not Do Kwon followers that we’re talking about,” he added, referencing the co-founder of Terra, whose collapse in 2022 triggered a major market downturn.
Nearly $12 Billion in ETH Held by Treasury Firms
Public companies now collectively hold $11.77 billion in Ether, according to recent data.
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BitMine Immersion Technologies leads with 833,100 ETH (worth about $3.2 billion), making it the fourth-largest crypto holder among public companies globally.
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SharpLink Gaming and The Ether Machine hold approximately $2 billion and $1.34 billion in ETH, respectively.
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The Ethereum Foundation and PulseChain round out the top five ETH holders.
ETH Price Recovery in 2025
ETH has had a volatile year, starting at around $3,685 in January, dipping to $1,470 on April 9, and then surging over 163% to its current level near $3,870.
The ETH treasury movement has been cited as a contributing factor to this rebound, helping the asset narrow the performance gap with Bitcoin and Solana, which have led much of the current bull cycle.
