Buterin backs Ethereum treasuries but warns of overleverage
Ethereum treasury investments have emerged as a major trend in 2025, with companies holding over 3 million ETH (approximately $11.8 billion) – around 2.5% of total supply. BitMine Immersion Technologies (BMNR) leads with 833.1K ETH ($3.26 B), followed by SharpLinK Gaming (SBET) with 521.9K ETH ($2 B) and The Ether Machine (DYNX) holding $1.35 B. Market price to net asset value (mNAV) ratios for most firms fell to or below fair value, indicating a potential buying opportunity; BMNR’s mNAV stands at 1.47 and SBET at 1.15. However, profit-taking accelerated as ETH approached $4,000, increasing selling pressure on exchanges. In a Bankless interview, Ethereum co-founder Vitalik Buterin praised Ethereum treasury allocations as “good and valuable” for adding investment options but cautioned that excessive debt leverage could destabilize ETH, warning that “treasuries turned into an overleveraged game” may lead to ETH’s downfall. Traders should monitor treasury mNAV levels and exchange outflows to gauge market sentiment and short-term price momentum.
Neutral
The impact of this news is neutral because it balances bullish and bearish implications. On one hand, increased Ethereum treasury demand—highlighted by over 3 million ETH held by major firms—and discounted mNAV ratios suggest strong institutional interest and potential price support. On the other hand, Vitalik Buterin’s caution about excessive leverage introduces a credible downside risk that could trigger sell-offs if treasuries become overleveraged. Historically, similar narratives—such as DeFi yield farming booms followed by rapid deleveraging—have led to short-term volatility but did not undermine long-term fundamentals. Traders may see a temporary uptick in buying on dips when mNAV ratios appear attractive, offset by intermittent profit-taking as ETH approaches key resistance levels around $4,000. Overall, the balanced pros and cons point to a neutral market stance.