Vitalik Buterin Supports ETH Treasuries Amid Caution on Leverage Risks
Vitalik Buterin Supports ETH Treasuries
Ethereum co-founder Vitalik Buterin endorsed the rise of Ether treasury companies, acknowledging their potential to attract new investors. These firms hold substantial amounts of ETH as part of their corporate strategy, providing an alternative for those hesitant to hold the token directly.
- Buterin stated that ETH as a treasury asset is beneficial, offering more options to companies.
- He warned against excessive leverage, which could lead to forced liquidations and market instability.
- Buterin believes current ETH treasury operators are more disciplined than past projects.
Market Value of ETH Treasuries
The combined market value of public companies holding Ether has reached $11.77 billion. Key holders include:
- BitMine Immersion Technologies: 833,100 ETH valued at $3.2 billion
- SharpLink Gaming: $2 billion in ETH
- The Ether Machine: $1.34 billion in ETH
Whales have also been active, acquiring over 1.8 million ETH in the past month.
Standard Chartered's View on ETH Treasuries
Geoffrey Kendrick from Standard Chartered noted that ETH treasury firms are now “very investable” and may offer advantages over US spot Ethereum ETFs:
- ETH treasury firms have net asset value (NAV) multiples exceeding 1.
- They can provide staking rewards and growth in ETH-per-share.
Since June, ETH treasury firms have bought 1.6% of all circulating ETH, paralleling ETF purchase rates. BitMine aims to acquire up to 5% of total ETH supply.