Ethereum’s Vitalik Buterin says the surge in companies amassing large ETH reserves is a net positive — but warns it could backfire if excessive borrowing creeps in.
Speaking on the Bankless podcast, Buterin highlighted how public firms that hold ETH offer an indirect path for investors to gain exposure without owning the asset outright.
He sees this as expanding Ethereum’s reach to a wider audience, particularly those with stricter financial constraints.
However, his optimism comes with a caveat. Buterin warned that aggressive leverage could spark a dangerous chain reaction: a sharp price drop leading to forced liquidations, accelerating losses, and damaging ETH’s credibility. While he’s confident the community is more disciplined than in the days of high-risk experiments like Terra, he stressed that restraint is key.
The ETH treasury market has already swelled to $11.77 billion. BitMine Immersion Technologies tops the list with over 833,000 ETH worth $3.2 billion, followed by SharpLink Gaming at $2 billion and The Ether Machine at $1.34 billion. The Ethereum Foundation and PulseChain also rank among the largest holders.
ETH’s recent rally — climbing more than 160% from April lows to nearly $3,870 — has been partly fueled by this accumulation trend. Analysts note that treasuries are helping Ethereum close the performance gap with Bitcoin and Solana, two leaders of the current bull cycle.
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Source: https://coindoo.com/vitalik-buterin-backs-ethereum-treasury-firms-but-flags-potential-dangers/