Vitalik Buterin expressed support for Ethereum treasury firms during an August 7, 2025 podcast, highlighting their financial advantages and warning of potential overleveraged risks.
Institutional ETH holdings reached $11.77 billion, sparking a 160% price increase, but Buterin cautions unchecked leverage could destabilize the market.
Vitalik Buterin has expressed his support for Ethereum treasury firms. These firms hold nearly 2.5% of the total ETH supply and have seen growth in 2025.
“There’s definitely valuable services that are being provided there,” and “…companies holding Ether through these firms rather than directly gives investors more options.”
They provide valuable services like new investor access and financial flexibility. The leading entities include BitMine Immersion Technology with 833,000 ETH, SharpLink Gaming, and The Ether Machine. Buterin highlighted how these institutions differ from riskier segments, emphasizing their disciplined investment approach to avoid reckless practices.
Vitalik Buterin Endorses Firms Holding 2.5% of ETH Supply
ETH treasury firms collectively hold ETH worth $11.77 billion, representing significant institutional interest. This institutional activity has driven a price surge over 160% during 2025, as reflected in the current market prices of $3,870–$3,930.
While treasury firms’ actions mirror Bitcoin strategies, Buterin warns of the risks unchecked leverage might pose. A sharp price drop in ETH could lead to forced liquidations, intensifying any market decline and undermining investor confidence.
Learning from 2022 Terra Collapse: Ethereum’s Cautious Path
Vitalik Buterin contrasted Ethereum’s disciplined treasury management with the 2022 Terra collapse. He underscored Ethereum’s stronger position to manage risks, as opposed to the aggressive leveraging seen in previous DeFi cycles. Financial analysts from the Kanalcoin channel emphasize parallels between today’s Ethereum treasuries and the accumulation strategies seen in Bitcoin. They stress the importance of avoiding systemic risks while capitalizing on institutional engagement to promote ETH stability.
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