Vitalik Buterin Backs ETH Treasury Firms, Warns of Overleverage

Ethereum co-founder Vitalik Buterin is throwing his support behind companies holding ETH in their treasuries while also warning of potential risks. In a recent interview to Bankless, Buterin said these firms provide real value by helping investors gain exposure to ETH without directly owning the token.

He believes ETH treasury firms broaden access and support long-term ecosystem growth. But he cautioned that the rapid rise in such holdings could invite trouble if not managed carefully. Overleveraging, he warned, could turn this trend into a high-risk gamble, similar to what led to the collapse of the Terra blockchain in 2022.

Still, Buterin expressed confidence in the discipline of ETH investors and emphasized that responsible management can help the ETH treasury model avoid the pitfalls seen in earlier crypto cycles.

ETH Treasuries Are Booming

Interest in ETH treasuries has skyrocketed in 2025. Public companies now hold billions of dollars’ worth of Ether, and the trend is accelerating fast. From tech firms to gaming platforms and crypto-native ventures, a growing number of businesses are converting cash reserves into ETH.

Some companies hold hundreds of thousands of ETH, while others are building treasury positions through staking and DeFi strategies. For these firms, ETH isn’t just an asset, it’s part of their long-term business models.

Several of these companies are blending ETH holdings with yield-generating tools, hoping to outperform traditional treasury strategies. Others are simply holding for long-term appreciation as ETH’s role in the global financial stack continues to grow.

Bitcoin Treasuries: A Proven Model?

The ETH treasury movement draws clear inspiration from Bitcoin. Over the past few years, dozens of public companies have added BTC to their balance sheets, using strategies like direct purchases, equity raises, or convertible debt.

Some early movers in Bitcoin treasuries saw major success, with stock prices rallying alongside BTC. But the strategy hasn’t worked for everyone, particularly those who overextended or failed to manage downside risks.

The takeaway: when managed well, crypto treasury strategies can deliver big returns. But aggressive leverage or poor timing can backfire, especially in volatile markets.

What Else Is Vitalik Saying?

Vitalik Buterin has been vocal about Ethereum’s direction beyond treasuries. He recently pushed for faster withdrawal times on Layer-2 networks, even if that means short-term trade-offs on decentralization. He believes users should be able to withdraw ETH from L2s in under an hour.

He’s also proposed new ideas for Ethereum’s consensus mechanism. A two-tier structure could boost performance while keeping security intact, laying the groundwork for faster blocks and smoother network upgrades.

Looking ahead, Buterin continues to focus on Ethereum’s long-term evolution. His vision includes stronger privacy tools, more scalable rollups, and a more decentralized yet flexible governance model.

ETH Treasuries: Opportunity and Risk

ETH treasury firms are clearly gaining momentum. For companies, ETH offers a blend of utility and upside—especially when paired with DeFi-native tools like staking and yield protocols. But as Buterin notes, the opportunity comes with responsibility.

If these firms stay disciplined and avoid excess leverage, they could help reshape how corporations manage capital in the crypto age. If not, they risk repeating history.