Ethereum News Today: Vitalik Buterin Backs ETH Treasury Firms as Sector Hits $11.77 Billion

Vitalik Buterin, co-founder of Ethereum, has publicly endorsed the growing trend of Ethereum treasury firms, which hold Ether in corporate treasuries to provide broader exposure to the cryptocurrency. In an interview with the Bankless podcast on August 7, 2025, Buterin acknowledged the value of these firms in diversifying Ethereum's investor base and offering more financial flexibility, particularly for companies with varying capital structures. “There’s definitely valuable services that are being provided there,” he said, emphasizing that companies holding Ether through these firms rather than directly gives investors “more options” [1].

Ethereum treasury firms have become a major trend in the cryptocurrency market, attracting significant capital to hold and manage large reserves of Ether. These companies, which serve as intermediaries for institutional and public entities, have created a new avenue for investors to gain exposure to digital assets without directly holding them. Notable firms such as BitMine Immersion Technologies and SharpLink Gaming now hold billions of dollars in Ether, with BitMine alone managing 833,100 ETH worth $3.2 billion. The top five ETH treasury firms collectively hold nearly $11.77 billion in the token, highlighting the substantial growth of this sector [1].

Despite his support, Buterin issued a clear warning about the risks of excessive leverage in this space. He outlined a potential worst-case scenario in which a decline in ETH’s price could trigger cascading forced liquidations, exacerbating the downward trend and damaging the token’s credibility. “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 noted [1].

Buterin expressed confidence, however, that Ethereum investors are more disciplined than those involved in high-risk blockchain projects. He specifically referenced the collapse of the Terra blockchain in 2022, led by co-founder Do Kwon, as a cautionary example of reckless behavior. “These are not Do Kwon followers that we’re talking about,” he said, implying that the Ethereum community is less prone to speculative excess [1].

The rise of ETH treasury firms has coincided with a notable price rebound for the token. After hitting a low of $1,470 in April 2025, Ethereum has surged more than 163% to $3,870, narrowing the gap with leading cryptocurrencies like Bitcoin and Solana. This resurgence has been partly attributed to the increasing influence of treasury firms, which have brought institutional-grade exposure and capital flow into the Ethereum ecosystem [1].

The growing prominence of Ethereum treasury firms, combined with the token’s recent price performance, has sparked speculation about a potential reinvigoration of decentralized finance (DeFi) activity. Some analysts have drawn comparisons to the 2020 “DeFi Summer,” when a wave of innovation and capital influx drove significant growth in the sector [1].

Source: [1] Vitalik Buterin Backs ETH Treasury Firms Despite Leverage Concerns (https://cointelegraph.com/news/vitalik-buterin-backs-eth-treasury-firms-despite-leverage-concerns)