Bitcoin Miner Dives into Ethereum, Calls ETH 'Digital Gold'

Bitcoin Miner Dives into Ethereum, Calls ETH 'Digital Gold'

BTC Digital (BTCT), formerly a Bitcoin mining company, has made a significant move by allocating $1 million of its capital to Ethereum (ETH). The company now refers to ETH as its "digital gold," reflecting a strategic shift towards on-chain finance.

Strategic Shift

According to CEO Siguang Peng, the move is designed to position BTCT for opportunities in decentralized finance (DeFi), stablecoin issuance, and asset tokenization. The company plans to increase its ETH holdings as regulations become clearer and network capacity grows.

• Initial investment of $1 million in ETH.
• Plans to scale the ETH reserve in the future.
• Strategic evolution from "hash-rate provider" to "on-chain financial infrastructure participant."

Following Suit

BTCT is not the first Bitcoin mining company to diversify into Ethereum. Bit Digital (BTBT) previously shifted its entire treasury from BTC to ETH, resulting in an initial stock price surge that has since partially corrected.

BTCT's stock price experienced a 13% increase following the announcement.

Ethereum Treasuries on the Rise

Publicly known Ethereum treasuries, including those held by DAOs, Layer-2 networks, and publicly traded firms, hold over 1.34 million ETH, indicating growing institutional interest.

Key Takeaways

• Bitcoin mining firms are diversifying into Ethereum.
• ETH is being viewed as a valuable asset for DeFi and tokenization.
• Institutional interest in Ethereum is growing.