Ethereum co-founder Vitalik Buterin has thrown assist behind so-called Ether treasury firms, however warned the pattern might spiral into an “overleveraged recreation” if not dealt with responsibly.
In an interview with the Bankless podcast released on Thursday, Buterin mentioned the rising variety of public firms shopping for and holding Ether (ETH) was useful as they expose the token to a broader vary of traders.
“There’s undoubtedly useful companies which might be being offered there,” Buterin mentioned. He added that firms shopping for into ETH treasury companies as an alternative of holding the token instantly offers folks “extra choices,” particularly these with “completely different monetary circumstances.”
So-called crypto treasury firms have grow to be the most well liked pattern on Wall Road, 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.
“In case you woke me up three years from now and instructed me that treasuries led to the downfall of ETH, then, in fact, my guess for why would mainly 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 worth become compelled liquidations that cascaded and compelled the token’s worth 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 useful… giving folks extra choices is sweet.”
However he additionally points a warning:
“In case you woke me up 3 years from now… pic.twitter.com/W55oUD7Lke
— Bankless (@BanklessHQ) August 7, 2025
Nevertheless, Buterin is assured that ETH traders have sufficient self-discipline to avoid such a collapse.
“These are usually not Do Kwon followers that we’re speaking about,” he mentioned, mentioning the co-founder of the Terra blockchain that collapsed in 2022.
ETH treasury companies now maintain almost $12 billion
The marketplace for public firms that maintain Ether has ballooned to $11.77 billion, led by BitMine Immersion Applied sciences and SharpLink Gaming.
BitMine holds 833,100 ETH value $3.2 billion — the fourth-largest holdings amongst public firms that maintain any cryptocurrency.
Associated: Ethereum beats Solana in capital inflows: $4K target in sight
SharpLink and The Ether Machine maintain $2 billion and $1.34 billion value 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 thus far, falling from round $3,685 in January to a low of $1,470 on April 9, earlier than rallying greater than 163% to its current price of $3,870.
The pattern of ETH treasury companies has been a notable catalyst behind the token’s comeback resurgence. Its worth rally has helped ETH close the gap on Bitcoin and Solana (SOL), which have led the present bull cycle.
Journal: How Ethereum treasury companies could spark ‘DeFi Summer 2.0’
