Ethereum co-founder Vitalik Buterin has weighed in on the growing trend of public companies holding Ether (ETH) in their treasuries. He acknowledged the potential benefits while also outlining significant risks inherent to the practice.
Currently, companies control approximately 3.04 million ETH, valued at roughly $12 billion. Notable holders include Bitmine Immersion Technology (833,000 ETH), SharpLink Gaming (521,000 ETH), and The Ether Machine (345,000 ETH).
Buterin expressed general support for corporations integrating ETH into their treasury strategies but strongly cautioned against the dangers associated with exposure to crypto market volatility. A primary risk he highlighted is the potential for significant price drops triggering forced liquidations.
To mitigate these risks, Buterin advised companies to actively manage volatility exposure and, crucially, avoid excessive leverage. He underscored the inherent value of ETH as a treasury asset but emphasized that its adoption necessitates careful risk management.
His central thesis reinforces that while holding ETH as a treasury asset holds promise, companies must strive for a balance between pursuit of innovation and robust financial risk management practices.