In a recent podcast interview, Ethereum founder Vitalik Buterin expressed his enthusiasm for large companies adopting Ethereum Treasury. However, he warned that irresponsible management could turn the trend into an over-leveraged game.
It is worth noting that Buterin believes the growing number of public companies acquiring and holding Ether is beneficial, as it presents the token to a broader investor base. The founder of Ethereum stated that indirect exposure to ETH through treasury firms offers "more options" to investors, especially those with different financial needs. He added, "Certainly, valuable services are being offered there."
Buterin warned that Ethereum's future success should not depend on taking on too much financial risk. Cautioning against a potential "over-leveraged play," Buterin noted:
"If you woke me up in three years and told me that Treasury bonds caused ETH to drop, then, of course, my assumption of why would basically be that, somehow, they turned it into an over-leveraged game."
Interestingly, the number of public companies investing in Ethereum has seen a significant increase, which has substantially impacted the price of ETH. Corporate Ethereum reserves have grown notably to $11.77 billion, with BitMine Immersion Technologies and SharpLink Gaming leading the way. The 833,100 ETH of BitMine, valued at $3.2 billion, places it fourth among public companies with the largest cryptocurrency holdings.
SharpLink's ETH holdings have reached the remarkable figure of $2 billion, while The Ether Machine holds a considerable $1.34 billion. They join BitMine, the Ethereum Foundation, and PulseChain among the five largest public cryptocurrency holders.
SharpLink's ETH holdings have reached the remarkable figure of $2 billion, while The Ether Machine holds a considerable $1.34 billion. They join BitMine, the Ethereum Foundation, and PulseChain among the five largest public cryptocurrency holders.
Recently, Cosmos Health, a health company listed on Nasdaq, secured a $300 million line of funding to launch a treasury strategy on Ethereum. This strategy involves a securities purchase agreement with a U.S. institutional investor, which will be financed through guaranteed convertible preferred notes.
Geoffrey Kendrick of Standard Chartered believes that Ethereum treasury companies have become very attractive investments, surpassing the appeal of U.S. spot Ethereum ETFs. Kendrick describes these companies as very appealing for investment, which represents a compelling argument for investors. He added, "I see no reason for the net asset value (NAV) multiple to drop below 1, as I believe these companies offer regulatory arbitrage opportunities to investors."
