Vitalik Buterin, co-founder of Ethereum, has expressed support for companies holding Ether in their treasuries while highlighting the risks associated with excessive borrowing.
Support for Companies Holding Ether
In an interview on the Bankless podcast, Buterin stated that companies holding Ethereum treasuries provide 'valuable services' by allowing more investors indirect access to the asset. He noted that companies choosing to hold shares in treasury firms instead of direct ownership of ETH create 'more options' for those with different financial needs. In his view, this trend positively impacts Ethereum adoption.
Cautions About Excessive Borrowing
However, Buterin also warned about unchecked leverage, which could destabilize the market. He cautioned that a sharp drop in ETH’s price could trigger forced liquidations across treasury firms, worsening confidence in the token. 'If you woke me up 3 years from now and told me that treasuries led to the downfall of ETH… my guess would be that they turned into an overleveraged game,' Buterin noted.
Current Data on Ether Treasuries
As of now, ETH treasuries, which raise capital to purchase and hold large quantities of Ether, collectively control 3.04 million ETH. This translates to about 2.5% of the total supply, worth around $12 billion. Bitmine Immersion Technology leads with 833,000 ETH, followed by SharpLink Gaming with 521,000 and The Ether Machine with 345,000.
Thus, Vitalik Buterin supports the concept of companies holding Ether in treasuries but emphasizes the dangers associated with excessive borrowing and the need for control over such practices.
