The Ministry of Corporate Treasury has accumulated 3 million Ethereum cryptocurrency (ETH) in the hands of 67 entities, including public companies, DAOs, foundations and the government, showing a 2,500% increase from April when April added 112,960 ETH. This boom reflects the growing interest of crypto-active Wall Street as a value reserve.
Interest in ETH is primarily due to the annual yield provided by staking, as reported by Cryptootics. This motivates businesses Issuing debts through equities or convertible bonds to fund ETH purchaseswithout relying on operating income.
Ethereum co-founder Vitalik Buterin cherished the institutional adoption, expressing it on August 7th in an interview yesterday, emphasizing that “the social aspect of adjusting ETH as an asset that can be held as part of the Ministry of Finance is good and valuable.”
For him, It is positive to provide a variety of investment vehicles, “It’s good to give people more options. People are always in all sorts of financial situations with different requirements, incentives and conditions regarding the format of participation.”
Nevertheless, Butarine warns of the risk of excessive leverage. He explains that three years later the Treasury caused a decline in ETH, causing his assumption that “in essence, in some way, it became an over-leveraged game.”
What does this refer to? Companies may be too many to buy ETHbefore a notable fall, it causes forced settlements, rising to a decline of 50%, 70%, and even 90%, worsened by a decline in reliability. He adds that actors in the Ethereum ecosystem are responsible and emphasized: “We’re not talking about Kwon’s followers.” It mentions a Korean entrepreneur who was shown to be responsible for the collapse of Token Luna and the collapse of a stable anchored to Terraus Dollar (UST).
Buterin warns, “Unless the leverage is too high, these things start to enter that type of mechanism.” The system remains solid.