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Vitalik Buterin All for ETH Treasuries but ‘Overleveraged Game’ Is Risky

Vitalik Buterin All for ETH Treasuries but ‘Overleveraged Game’ Is Risky

CoinspeakerCoinspeaker2025/08/07 16:00
By:By Parth Dubey Editor Julia Sakovich

Buterin said that Ethereum’s long-term success should not be put at risk by reckless borrowing and speculative strategies.

Key Notes

  • Vitalik Buterin supports ETH treasury companies but warns against excessive leverage.
  • Public companies now hold $11.77 billion worth of Ether, led by BitMine and SharpLink.
  • Analysts say ETH treasuries offer advantages over US spot ETH ETFs, including staking rewards.

Ethereum co-founder Vitalik Buterin voiced his support for the increasing number of Ether ETH $3 918 24h volatility: 5.9% Market cap: $472.90 B Vol. 24h: $37.91 B treasury companies, recognizing their role in expanding the cryptocurrency’s exposure to new crypto investors.

These companies, which buy and hold large quantities of ETH as part of their corporate strategy, offer an alternative for those who may not want to hold the token 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

ETH corporate treasuries are mirroring the Bitcoin adoption trends initiated by Strategy (formerly MicroStrategy), which is now the largest corporate holder of BTC .

Buterin’s Caution on Leverage Risks

While supportive of ETH treasuries, Buterin has cautioned against turning them into what he calls an “overleveraged game.” He warned that a sharp drop in ETH’s price could trigger forced liquidations, potentially causing a chain reaction of selling and damaging market confidence.

Buterin said that Ethereum’s long-term success should not be put at risk by reckless borrowing and speculative strategies.

Despite these concerns, Buterin believes ETH treasury operators are more disciplined than past failed projects in the crypto space, suggesting they are less likely to engage in dangerous levels of leverage.

ETH Treasuries Gain Momentum

The total market value of public companies holding Ether has reached $11.77 billion. BitMine Immersion Technologies leads with 833,100 ETH worth $3.2 billion, followed by SharpLink Gaming with $2 billion and The Ether Machine with $1.34 billion.

Other notable holders include the Ethereum Foundation and PulseChain. According to market analyst Ali Martinez, whales have also joined the buying spree, acquiring more than 1.8 million ETH in the past month alone.

Whales bought more than 1.80 million Ethereum $ETH in the past month! pic.twitter.com/IxoXPwaxmk

— Ali (@ali_charts) August 8, 2025

Standard Chartered Sees Edge Over ETH ETFs

Geoffrey Kendrick, global head of digital assets research at Standard Chartered, said these companies are now “very investable” and, in some ways, more attractive than US spot Ethereum ETFs. Kendrick pointed out that ETH treasury companies have net asset value (NAV) multiples above 1, i.e., their market value exceeds the value of the ETH they hold.

He sees this as sustainable, given they can offer benefits like staking rewards and growth in ETH-per-share, advantages that ETFs currently cannot provide under US regulations.

📉 Standard Chartered: #ETH treasury firms > spot $ETH #ETFs

Why?

NAV premiums > 1

Operational ETH yield

Real utility vs. passive exposure #ETH #ETFs

— Satoshi Talks (@Satoshi_Talks) August 7, 2025

 

Since June, ETH treasury firms have purchased 1.6% of all ETH in circulation, matching the pace of ETF buying. BitMine aims to acquire 5% of all ETH, and Kendrick believes the sector could eventually hold 10% of the total supply as more companies enter the space.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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