Vitalik Supports Ethereum Treasury Companies but Warns Against Excessive Leverage Risk

According to a report by Jinse Finance, as disclosed by Cointelegraph, Ethereum co-founder Vitalik Buterin stated that public companies purchasing and holding Ethereum can enable a wider range of investors to access the token, but he also cautioned against excessive reliance on leverage. In a Bankless podcast interview released on Thursday, Vitalik expressed his support for so-called Ethereum treasury companies, but warned that if not managed properly, this trend could turn into an “over-leveraged game.” He believes that it is valuable for more publicly listed companies to buy and hold Ethereum, as this allows the token to reach a broader investor base. “There’s no doubt these companies are providing a valuable service,” Vitalik added, noting that companies investing in Ethereum treasury firms, rather than holding the tokens directly, can offer “more options” for people, especially for investors with “different financial situations.” So-called crypto treasury companies have become one of the hottest trends on Wall Street. They raise billions of dollars to purchase and hold cryptocurrencies on a large scale, providing traders with token exposure, with Bitcoin and Ethereum being the most popular assets.