Ethereum co-founder Vitalik Buterin has voiced support for the growing role of Ether treasury companies while cautioning against the risks of excessive leverage in the sector. Speaking on the Bankless podcast released Thursday, Buterin praised the impact of these firms in expanding ETH’s reach to a broader investor base but warned that mismanagement could trigger damaging consequences. “There’s definitely valuable services that are being provided there,” Buterin said, noting that such firms give investors “more options,” particularly for those whose financial situations prevent them from holding ETH directly. Ether-focused treasury companies have emerged as a prominent trend on Wall Street, pooling billions to acquire and store large amounts of cryptocurrency. While Bitcoin remains a dominant asset for corporate treasuries, ETH is increasingly becoming a key focus. Overleverage Could Threaten ETH’s Stability Buterin tempered his optimism with a scenario that could undermine ETH’s future. “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,” he said. In a worst-case chain reaction, a sharp drop in ETH’s price could trigger forced liquidations, driving prices even lower and eroding market confidence. Buterin pointed to the lessons learned from past collapses, such as the downfall of Terra in 2022, stressing that the ETH community’s discipline could help avoid similar fates. “These are not Do Kwon followers that we’re talking about,” he remarked. Ether Treasury Holdings Near $12B The market for public companies holding Ether has grown rapidly, reaching $11.77 billion in value. BitMine Immersion Technologies leads with 833,100 ETH worth $3.2 billion, making it the fourth-largest cryptocurrency holder among publicly traded firms. Other major players include SharpLink Gaming with $2 billion in ETH and The Ether Machine with $1.34 billion. The Ethereum Foundation and PulseChain complete the top five institutional holders. ETH’s price performance in 2025 has been volatile. Starting the year at around $3,685, it fell to $1,470 in April before rebounding more than 163% to its current value of $3,870. Analysts note that the growing influence of treasury firms could further amplify price swings, both positively during rallies and negatively in downturns. The post Vitalik Buterin Supports Ether Treasury Firms but Issues a Warning appeared first on TheCoinrise.com .
