Ethereum co-founder Vitalik Buterin has thrown assist behind so-called Ether treasury corporations, however warned the pattern might spiral into an “overleveraged game” if not dealt with responsibly.

In an interview with the Bankless podcast launched on Thursday, Buterin stated the rising variety of public corporations shopping for and holding Ether (ETH) was helpful as they expose the token to a broader vary of buyers.

“There’s definitely valuable services that are being provided there,” Buterin stated. He added that corporations shopping for into ETH treasury corporations as an alternative of holding the token immediately offers individuals “more options,” particularly these with “different financial circumstances.”

So-called crypto treasury corporations have change into the most popular pattern on Wall Road, garnering billions of {dollars} to purchase up and maintain swaths of cryptocurrencies to present merchants publicity to the tokens, with the most well-liked performs being Bitcoin (BTC) and Ether.

Leverage should not result in ETH’s “downfall”

Buterin tempered his assist with warning, stressing that ETH’s future should not come at the price of extreme leverage.

“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 outlined a worst-case chain response the place a drop in ETH’s value changed into pressured liquidations that cascaded and compelled the token’s value down, additionally inflicting a lack of credibility.

Are ETH Treasuries good for Ethereum?@VitalikButerin thinks they are often:

“ETH just being an asset that companies can have as part of their treasury is good and valuable… giving people more options is good.”

However he additionally points a warning:

“In case you woke me up 3 years from now… pic.twitter.com/W55oUD7Lke

— Bankless (@BanklessHQ) August 7, 2025

Nevertheless, Buterin is assured that ETH buyers have sufficient self-discipline to avoid such a collapse.

“These are not Do Kwon followers that we’re talking about,” he stated, mentioning the co-founder of the Terra blockchain that collapsed in 2022.

ETH treasury corporations now maintain practically $12 billion

The marketplace for public corporations that maintain Ether has ballooned to $11.77 billion, led by BitMine Immersion Applied sciences and SharpLink Gaming.

BitMine holds 833,100 ETH price $3.2 billion — the fourth-largest holdings amongst public corporations that maintain any cryptocurrency.

Associated: Ethereum beats Solana in capital inflows: $4K goal in sight

SharpLink and The Ether Machine maintain $2 billion and $1.34 billion price of ETH, respectively, whereas the Ethereum Basis and PulseChain spherical out the highest 5.

ETH making a comeback

ETH has seen a blended yr up to now, falling from round $3,685 in January to a low of $1,470 on April 9, earlier than rallying greater than 163% to its present value of $3,870. 

The pattern of ETH treasury corporations has been a notable catalyst behind the token’s comeback resurgence. Its value rally has helped ETH shut the hole on Bitcoin and Solana (SOL), which have led the present bull cycle.

Journal: How Ethereum treasury corporations might spark ‘DeFi Summer 2.0’