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Vitalik Buterin supports crypto treasury firms buying Ether, expanding access.
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Buterin warns excessive leverage could cause ETH price collapse and loss of credibility.
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Ethereum treasury firms now hold $12 billion in Ether, led by BitMine and SharpLink.
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ETH’s price has surged by 163% in 2025, aided by treasury firm activity.
Ethereum co-founder Vitalik Buterin has expressed his support for the growing trend of public companies investing in Ether (ETH) through crypto treasury firms. However, he cautioned that excessive leverage in these ventures could lead to negative consequences for the cryptocurrency’s future.
In an interview with the Bankless podcast, Buterin emphasized the value of these companies broadening ETH’s investor base. He noted that these firms, which hold large amounts of Ether, offer additional avenues for people to invest in the token. “There’s definitely valuable services that are being provided there,” Buterin said, highlighting that these investments bring Ether to a wider range of financial profiles.
Crypto Treasury Firms on the Rise
Crypto treasury firms have been gaining traction among institutional investors, particularly in the purchase and holding of cryptocurrencies like Ether and Bitcoin. These companies act as intermediaries, holding large amounts of crypto assets for public companies, helping them avoid direct ownership.
The sector has now amassed significant holdings, with nearly $12 billion worth of Ether held by these treasury firms.
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
Leading the way are BitMine Immersion Technologies and SharpLink Gaming, which together hold billions in Ether. BitMine, for example, controls around 833,100 ETH, valued at $3.2 billion, ranking it among the largest crypto holders in the public sector.
Vitalik Buterin’s Caution on Overleveraging
While Buterin sees the expansion of Ether treasury firms as beneficial for increasing Ethereum’s reach, he warned that overleveraging could have dangerous consequences. He explained that excessive borrowing against Ether holdings might cause a harmful chain reaction if prices were to fall. In such a scenario, forced liquidations could lead to further price declines, eroding confidence in ETH’s value.
“If you woke me up three years from now and told me that treasuries led to the downfall of ETH, then, of course, my guess for why would basically be that somehow they turned it into an overleveraged game,” Buterin said. He referred to the collapse of Terra’s blockchain in 2022 as a cautionary tale about what could happen if investors become too reliant on leveraged positions.
Despite his concerns, Buterin expressed confidence in the discipline of ETH investors. “These are not Do Kwon followers that we’re talking about,” he added, referring to the co-founder of the now-defunct Terra blockchain.
ETH’s Market Performance and Future Outlook
Ethereum has experienced a volatile year, seeing its price dip to $1,470 in April before rallying by more than 160% to its current value of around $3,870. The growth in ETH treasury firms has played a significant role in this surge, alongside broader market factors.
This resurgence has helped Ethereum narrow the gap with Bitcoin and Solana, which have led the bull market in 2025.
The rise of these crypto treasury companies appears to be a key factor driving interest in Ether. The trend of public companies holding large amounts of ETH demonstrates increasing institutional interest in the token, despite some of the inherent risks involved.
