Vitalik on Ethereum Reserve Companies: It’s Beneficial for More People to Own ETH, but Avoid Engaging in Leverage Games

As More Public Companies Buy and Hold Ethereum (ETH), Vitalik Buterin Publicly Supports This Trend

With an increasing number of publicly listed companies buying and holding Ethereum (ETH), Ethereum co-founder Vitalik Buterin has publicly expressed his support for this trend, believing it helps push ETH towards a broader mainstream capital market. However, he also cautioned that improper operations and excessive leverage could potentially lead to a “domino crisis” for Ethereum.

Are ETH Treasuries good for Ethereum?

@VitalikButerin thinks they can be:
“ETH just being an asset that companies can have as part of their treasury is good and valuable… giving people more options is good.” But he also issues a warning:
“If you woke me up 3 years from now…pic.twitter.com/W55oUD7Lke — Bankless (@BanklessHQ) August 7, 2025

The Rise of ETH Reserve Companies: What Does Vitalik Think?

In recent months, a trend of crypto reserve companies has emerged in the U.S. stock market, with more and more publicly listed companies emulating MicroStrategy’s model by allocating assets into Bitcoin, Ethereum, and even other altcoins. These companies frequently announce large purchases of cryptocurrencies, providing a channel for indirect investment in crypto assets, though the volatility and risks are correspondingly high.

(Market Capitalization of Companies Holding Coins Exceeds $160 Billion: Do Reserve Companies Bring a New Narrative or Liquidation Risks?)

In this week’s Bankless Podcast interview, Vitalik Buterin stated that such operations have strategic significance, especially as they allow investors with different financial situations to access ETH through traditional equity or fund methods:
“These companies indeed provide valuable services, giving people more options to participate in the Ethereum ecosystem.”

Vitalik Warns: Don’t Let ETH Become a Victim of Leverage Games

While acknowledging the positive implications of the crypto reserve company trend, Buterin also expressed reservations, warning that “excessive leverage” could become a fatal risk for Ethereum in the future. He simulated the worst-case scenario:
“If ETH’s price falls sharply, triggering these reserve companies to liquidate in succession, it could ultimately drag down the coin’s price.”
“If three years from now you wake me up and tell me ETH collapsed because of these companies, the first thing that comes to my mind is that the game has turned into a bubble of excessive leverage.” However, he also believes that, unlike the Terra incident, the ETH investor community is more disciplined:
“These people are not followers of Do Kwon.”

(E Guardians Misguided? Crypto Treasury Companies Are Merely a Mechanism for Whales to Cash Out, Fabricating ‘Buy Coins’ to Earn Stock Market Premiums)

Wall Street has entered the game! The scale of ETH reserve companies nears $12 billion.
According to statistics, there are currently 64 publicly listed reserve companies holding ETH, with a combined scale of $11.77 billion. The purchased ETH accounts for 2.5% of the total supply, with leading companies including BitMine, SharpLink Gaming, and The Ether Machine.

ETH Price Expected to Return to $4,000: Buying Pressure from Reserve Companies and ETF Inflows as Driving Forces

This year, ETH’s price trend can be described as tumultuous, starting at around $3,600 in early January, plummeting to $1,400 in mid-April, but rebounding over 118% since May and now challenging the $4,000 mark once again.

(BlackRock’s Ethereum ETF Becomes the Third Fastest to Reach $10 Billion, Doubling Market Value in Ten Days)

One of the significant driving forces behind this recovery can be attributed to the buying pressure from ETH reserve companies and ETF inflows. Compared to Bitcoin, which has dominated this bull market, ETH is gradually catching up.
Now, Vitalik’s comments are neither absolute optimism nor alarmism. Even though the rise of ETH reserve companies is inherently positive, whether it can last in the future still depends on these companies’ ability to maintain moderate leverage and effective risk management.

Risk Warning

Investing in cryptocurrencies involves a high degree of risk, and their prices can be extremely volatile. You may lose your entire principal. Please assess the risks carefully.