Ethereum News Today: Ethereum Treasury Market Surpasses $11.77 Billion as Buterin Issues Leverage Warnings

Ethereum co-founder Vitalik Buterin has voiced support for the rising trend of companies holding Ethereum (ETH) in their corporate treasuries, acknowledging its potential to broaden access to the network and facilitate participation from both institutional and retail investors. In a recent Bankless podcast interview, Buterin emphasized the benefits of ETH treasury services, particularly for entities lacking the technical infrastructure or comfort to manage digital wallets independently [1]. He highlighted that such services can offer varying levels of financial accessibility and are a valuable tool for diversifying institutional investment portfolios [2].

The Ethereum treasury market has grown significantly, with public and institutional entities holding over $11.77 billion in ETH as of mid-2025. Leading firms in this space include BitMine Immersion Technologies, which holds more than 833,000 ETH—valued at approximately $3.2 billion—as well as SharpLink Gaming and The Ether Machine, which hold $2 billion and $1.34 billion in ETH, respectively [1]. This trend mirrors the earlier adoption of Bitcoin treasuries by publicly traded companies like MicroStrategy, reflecting a broader shift in corporate asset allocation strategies [3].

However, Buterin has also issued a clear warning about the potential dangers of excessive leverage in these treasury arrangements. He stressed that while leveraging ETH holdings can generate higher returns in bullish markets, it also increases the risk of significant losses during downturns. Historical data from Bitcoin and Ethereum markets show substantial price corrections—over 60% and 80% respectively at times—which could trigger forced liquidations and further volatility if leveraged positions are involved [1]. He expressed concern that overleveraged treasury structures could lead to a “downfall of ETH,” comparing the risk to a high-stakes, speculative game [2].

The cautionary tone from Buterin aligns with broader industry discussions on risk management as traditional financial institutions increasingly enter the crypto space. While this development may enhance the legitimacy of cryptocurrencies, it also exposes them to systemic risks similar to those in traditional markets [3]. Buterin’s remarks underscore the importance of maintaining financial discipline, particularly as the Ethereum ecosystem continues to grow and more companies allocate ETH to their balance sheets [4].

Standard Chartered analysts have also noted that Ethereum treasury firms are becoming increasingly attractive to institutional investors, offering advantages such as staking rewards and trading at net asset value (NAV) multiples above 1. Since June 2025, these firms have collectively acquired 1.6% of the circulating ETH supply, reflecting strong demand and mirroring the buying patterns of ETFs [4]. Despite these positive signals, Buterin has called for a balanced approach, urging participants to prioritize stability over aggressive growth and to ensure transparency in treasury operations.

As Ethereum’s institutional footprint continues to expand, the emphasis remains on sustainable practices that safeguard the long-term health of the network. Buterin’s insights highlight the dual-edged nature of ETH treasuries—offering opportunity and risk in equal measure—as more firms explore the integration of digital assets into their financial strategies.

Sources:

[1] Buterin Warns on Ether Treasury Leverage; Firms Hold $12B, SignalPlus, https://t.signalplus.com/crypto-news/detail/buterin-ether-treasury-leverage-warning

[2] Vitalik Buterin Warns Ethereum Treasuries Could Become ... Coinpedia, https://coinpedia.org/news/vitalik-buterin-warns-ethereum-treasuries-could-become-an-overleveraged-game/

[3] Ethereum News Today: Vitalik Buterin Urges Caution on ... AInvest, https://www.ainvest.com/news/ethereum-news-today-vitalik-buterin-urges-caution-leverage-ethereum-treasury-surpasses-11-77-billion-2508/

[4] Vitalik Buterin Supports ETH Treasuries Amid Caution on ... Holder.io, https://holder.io/news/vitalik-supports-eth-treasuries-leverage-risks/