Listed Companies Accelerate Ethereum Accumulation: Opportunities and Risks from Vitalik Buterin's Perspective

In the context of the cryptocurrency market continuing to expand, many public companies are actively implementing strategies to reserve Ethereum (ETH) as part of their strategic asset structure. Ethereum co-founder, Vitalik Buterin, has voiced support for this trend, while also seriously warning about the risks if organizations excessively abuse financial leverage. The ETH Accumulation Race of Financial Corporations Recently, Fundamental Global Inc. – a major financial company in the US – filed an S-3 form with the Securities and Exchange Commission (SEC) to raise 5 billion USD for the purpose of accumulating Ethereum. The company stated that they will issue various types of securities, including common stocks, preferred stocks, depositary receipts, bonds, warrants, and mixed securities. The raised funds will primarily be used to purchase ETH. Previously, Fundamental Global announced the successful raising of 200 million USD through a private placement. CEO Kyle Cerminara said: "Today marks the beginning of FG Nexus's mission to unlock the full potential of Ethereum as a supreme reserve asset. This capital allows us to execute a large-scale ETH treasury strategy, aiming for a 10% ownership of the Ethereum network." Not only Fundamental Global, but other companies are also actively participating in this trend. SharpLink Gaming – the publicly traded company that holds the second largest ETH – has raised 200 million USD from four global institutional investors through a direct offering. Subsequently, the company purchased 10,975 ETH for a total value of 42.79 million USD. According to data from OnChain Lens, the total amount of ETH that SharpLink currently holds is 532,914 ETH, equivalent to approximately 2.07 billion USD. Another name is Cosmos Health, which has also secured a deal to raise 300 million USD through convertible bonds with an institutional investor. The amount of ETH that the company purchases will be custody and staking through BitGo Trust. Vitalik Buterin: Real Benefits, But Not Without Risks In a recent conversation on the Bankless podcast, Vitalik Buterin expressed support for the increasing participation of companies in the Ethereum market. He believes that having more financial options, as well as ways for organizations to access and accumulate ETH, will help drive the long-term development of the ecosystem. "The social aspect of jointly recognizing ETH as a holdable asset in the treasury is positive and valuable... Expanding options for everyone is always a good thing." However, Buterin also issued a notable warning: if companies start using excessive leverage to accumulate ETH, the market could face serious consequences. He described a scenario in the future where a sudden drop in ETH prices could lead to forced liquidations of treasuries, creating a domino effect that causes prices to continue to plummet. This situation would not only cause financial damage but also severely impact the reputation of the entire Ethereum network. "If you wake me up three years later and say that treasuries led to the collapse of ETH, then I would guess that the main reason is that they turned it into a game of excessive leverage," Buterin said. Nevertheless, he still maintains an optimistic view of the Ethereum community: "I think that the majority of people working in finance on Ethereum are responsible individuals. They are not like those who blindly follow Do Kwon." Conclusion: ETH Can Be a Strong Reserve Asset, But Caution is Needed The fact that large companies are actively adding ETH to their treasury is a clear signal of the long-term potential of this currency as a reserve asset. It helps increase liquidity, stabilize the network, and instill confidence in the market. However, as warned by Vitalik Buterin, excessive financial leverage and unchecked greed can quickly turn opportunity into disaster. In the world of cryptocurrency, where volatility is the norm, responsibility and transparency are key factors. Ethereum is on a journey to assert its role as a cornerstone in the new financial system. And the participation of organizations is a double-edged sword – necessary, but must be accompanied by caution and a clear strategy.