Buterin Backs Corporate Ethereum Reserves, Warns on Leverage

• A line of text in a paragraph.Buterin supports companies holding ETH to widen investor access.
• Public firms manage 3M ETH valued at $11.9B, led by BitMine Immersion.
• Buterin warns overleveraging ETH reserves risks cascading liquidations.

are valuable because they expand the pool of investors and create alternative investment options. However, excessive leverage by companies could turn this into a “dangerous game,” Ethereum co-founder Vitalik Buterin said on the Bankless podcast.

Buterin endorses the growing trend of public companies holding ether reserves, noting that this practice gives access to cryptocurrency for a wider range of investors, including those who cannot or prefer not to hold digital assets directly.

However, he expressed concern over aggressive lending against Ethereum holdings, warning that such behavior could precipitate a market crash.

“If you woke me up 3 years from now and told me that treasuries led to the downfall of ETH… my guess would be that they turned into an overleveraged game,” Buterin explained.

Despite this, he is confident that Ethereum investors are disciplined enough to avoid such a scenario. “These are not Do Kwons followers,” Buterin remarked, referencing the 2022 collapse of the Terra blockchain.

Ethereum Treasury Landscape

As of August 8, public companies collectively manage around 3 million ETH worth approximately $11.9 billion. leads with 833,100 ETH valued at $3.2 billion. Close followers include and The Ether Machine holding 345,000 ETH ($1.35 billion).

The largest holders of Ethereum among public companies. Source: Strategic ETH Reserve

On August 7, Nasdaq-listed Fundamental Global filed to sell $5 billion in shares to buy ether. The company had announced a $200 million private placement in late July, earmarked for Ethereum purchases and staking activities.