BTCT Invests $1 Million in ETH, Eyes DeFi and Tokenization

BTC Digital (BTCT), a prominent Bitcoin mining firm, has made a significant strategic move by investing $1 million in ether (ETH), referring to it as the company’s new “digital gold.” This investment is part of BTCT’s broader strategy to position itself within the decentralized finance (DeFi) ecosystem, stablecoin issuance, and asset tokenization. The company’s chief executive officer, Siguang Peng, highlighted that Ethereum has become a crucial foundation for on-chain USD settlement and value transfer.

Peng emphasized that by securing an initial $1 million ETH reserve, with plans to scale this position, BTCT is proactively preparing for future developments in DeFi, stablecoin issuance, and asset tokenization. The firm intends to grow its ETH reserve as Ethereum’s capacity increases through upgrades and as U.S. regulatory frameworks become more solidified. BTCT, originally a Bitcoin mining company, has recently achieved a significant milestone with its 20 MW large-scale cryptocurrency mining project in Georgia.

BTCT is transitioning from being a “hash-rate provider” to an “on-chain financial infrastructure participant.” While the company did not specify whether it will continue Bitcoin mining, it is clear that BTCT is evolving its business model to align with the growing importance of Ethereum in the cryptocurrency landscape. This move follows Bit Digital (BTBT), another publicly traded Bitcoin miner, which recently shifted its entire treasury from BTC to ETH and adopted a staking strategy.

This investment by BTCT adds to the growing public ether treasuries, which currently hold over 1.34 million ETH. The move underscores the increasing recognition of Ethereum’s role in the digital asset ecosystem, particularly in areas such as DeFi, stablecoin issuance, and asset tokenization. As more companies and organizations invest in ETH, it is likely that Ethereum will continue to gain prominence as a foundational layer for various financial applications.