Ethereum Corporate Treasuries Grow to $11.9B as Buterin Cautions on Market Risks

• 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.

Corporate treasuries on Ethereum 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.

Despite this, he is confident that Ethereum investors are disciplined enough to avoid such a scenario. “These are not Do Kwon’s 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. BitMine Immersion Technologies leads with 833,100 ETH valued at $3.2 billion. Close followers include SharpLink Gaming with 521,000 ETH ($2.04 billion) and The Ether Machine holding 345,000 ETH ($1.35 billion).

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.