BTC Digital Shifts Strategy with Ether Treasury Allocation
In a strategic shift signaling growing confidence in Ethereum, Bitcoin mining firm BTC Digital (BTCT) has invested $1 million into Ethereum (ETH), referring to the asset as the company’s new “digital gold.” This move aligns with the broader industry trend where crypto mining companies are diversifying their reserves beyond Bitcoin.
The firm announced its ETH allocation as part of a long-term plan to expand into decentralized finance (DeFi), stablecoin issuance, and tokenized assets.
CEO Siguang Peng emphasized Ethereum’s evolving role, stating that ETH is “emerging as the foundation of on-chain USD settlement and value transfer.” The company intends to grow this reserve as Ethereum network upgrades and U.S. crypto regulations evolve.
Ethereum Treasuries Continue to Expand
BTC Digital joins a growing list of public entities and DAOs allocating significant capital to Ethereum. Publicly-known ETH treasuries now hold over 1.34 million ETH, a figure that includes holdings by decentralized autonomous organizations (DAOs), Layer-2 networks, and listed firms.
This allocation follows a similar move by Bit Digital (BTBT), another public Bitcoin miner that recently shifted its treasury to ETH in preparation for staking rewards. That decision initially boosted its stock by nearly 30%, though it has since experienced a 20% pullback.
BTCT’s stock price rose 13% following the Ethereum investment news, indicating investor support for the company’s diversification strategy.
From Mining to Financial Infrastructure
BTCT is signaling a broader transformation from its original business model. The firm recently announced that its 20-megawatt mining facility in Georgia has reached a major milestone. However, the focus is now shifting from hash rate production to building out an on-chain financial infrastructure.
In a press release, the company stated that it is “evolving from a hash-rate provider to a participant in decentralized financial systems.” The investment in Ethereum is part of that roadmap, laying the groundwork for future engagement in blockchain-based settlement and asset management.
Why Ethereum Is Attracting Institutional Interest
Ethereum’s dominance in the DeFi ecosystem, along with its growing role in stablecoin transactions and tokenized real-world assets (RWA), has made it a preferred asset among institutions seeking exposure beyond Bitcoin.
With Ethereum now hosting the majority of on-chain dollar transfers and staking infrastructure, it is increasingly seen as a long-term value asset with real-world utility.
As the landscape continues to evolve, more mining and fintech firms are expected to follow suit, viewing Ethereum not just as a token but as a core component of the future financial system.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.