The arrival of corporate crypto treasuries is profoundly reshaping the internal dynamics of the cryptocurrency sector. According to Ethereum blockchain co-founder Vitalik Buterin, their application to Ether (ETH) is a good thing, but…
For Vitalik Buterin, Ethereum treasuries are a good thing
Originally, corporate treasuries aimed to accumulate Bitcoin in order to protect their balance sheets from economic uncertainty while taking advantage of its bullish performance. Then, with success and returns on their side, this new economic model opened up to the altcoin market.
Ethereum quickly established itself as an option that entrepreneurs could not afford to ignore. And with good reason, as holding Ether (ETH) opens up many opportunities, the main one being the rewards received from joint staking activities. BTC cannot claim the same.
Nevertheless, developments related to the Ethereum blockchain often require the opinion—if not the approval—of its iconic co-founder, Vitalik Buterin. This exercise was carried out this weekend as part of a podcast organized by the X Bankless account, with a seemingly simple question: are ETH cash reserves good for Ethereum?
The fact that ETH is an asset that companies can simply hold in their treasuries seems positive and valuable to me… It’s good to offer people as many options as possible.
Vitalik Buterin
But beware of the risk of excessive leverage
In practice, the adoption of Ether (ETH) by corporate treasuries broadens access to ETH to a wider range of investors, including those with specific financial or regulatory constraints. This is a good thing for the often disappointing price performance of ETH.
However, Vitalik Buterin clearly wishes to temper his apparent enthusiasm. This caution is considered necessary given the obvious risk of a cascade of liquidations in the event of a prolonged bear market, which would transform this fad into a further loss of credibility for the ecosystem.
If you come back to me in 3 years and tell me that treasuries caused the fall of ETH, I would conclude that we ended up making it an overly leveraged game.
Vitalik Buterin
In any case, the price of ETH is taking full advantage of this trend, with a 170% increase since its last local low in April. Today, it achieved its best performance of 2025, peaking at $3,970.
Vitalik Buterin is reassuring, however, saying that these enthusiastic entrepreneurs “have nothing to do with Do Kwon’s followers,” in direct reference to the cataclysmic collapse of the Terra ecosystem in 2022. Indeed, he believes that Ethereum investors are showing enough discipline not to trigger such a scenario.
