Ethereum (ETH) co-founder Vitalik Buterin commented on the rising Ethereum treasury companies in an interview with Bankless.
Buterin stated that these companies purchase ETH not with their own capital but with funds provided by investors, adding that this offers people new channels to access ETH and that the model has a certain value.
Buterin added that treasury companies could pose a threat to ETH, but only through excessive leverage. Buterin noted that participants in the Ethereum ecosystem are largely comprised of responsible groups, and that these companies, as long as they are properly managed, can survive in the long term.
During the interview, Buterin was asked about his “favorite treasury company,” and he gave a humorous response: “I think my favorite is the US government; after all, they confiscate ETH from hackers all the time, which is kind of cool.”
Bitmine, previously a Bitcoin mining company, briefly transformed into an Ethereum treasury company and became the largest institutional holder of ETH.
*This is not investment advice.
