Ethereum Co-Founder Vitalik Buterin has thrown cautious support behind the rise of public companies adding Ether to their treasuries. While he believes this could open Ethereum to a broader set of investors, he warned that the trend could become dangerous if it leads to excessive leverage across the ecosystem.
Speaking on a Bankless podcast, Buterin said he sees value in crypto treasury firms that stockpile ETH, as they offer more avenues for investors, particularly those with limited access to crypto markets or different financial profiles, to gain exposure to the digital asset.
“There’s definitely valuable services being provided,” he said. “These structures give people more options.”
Treasury firms have emerged as a fast-growing force in the digital asset market. These publicly traded companies acquire and hold cryptocurrencies, effectively functioning like crypto ETFs for retail and institutional investors alike. While Bitcoin remains the dominant asset, Ether is quickly catching up.
Public companies now hold close to $12 billion worth of Ether, showing just how fast interest is growing. Leading the way is BitMine Immersion Technologies, which holds over 833,000 ETH, valued at more than $3.2 billion. SharpLink Gaming is also in the mix, further pushing the growing interest in ETH.
But Buterin urged caution, saying the excitement around these holdings needs to be balanced with financial discipline. If companies start relying too much on leverage, he warned, it could backfire, especially if the market takes a hit.
“If you woke me up three years from now and told me that treasuries led to the downfall of ETH, my guess would be that somehow they turned it into an overleveraged game,” he said.
The Ethereum Co-Founder described a potential domino effect: falling ETH prices triggering forced liquidations, which would amplify price drops and erode investor confidence. Still, he expressed faith in the maturity of ETH-focused investors.
“These are not Do Kwon followers we’re talking about,” he said, referencing the Terra founder whose highly leveraged ecosystem collapsed in 2022.
Buterin’s remarks underscore a broader tension in crypto’s evolution, between growing institutional adoption and the risks of traditional finance mechanisms creeping in too quickly.