BTC Digital Ltd. (BTCT), a blockchain technology company, has announced a strategic shift to prioritize Ethereum (ETH) as its core asset, moving away from its previous Bitcoin (BTC) holdings. This transition is supported by a $6 million financing round, which includes a $1 million investment in Ethereum, marking the first phase of BTCT's initiative to deepen its exposure to Ethereum's on-chain financial infrastructure.
CEO Siguang Peng stated, "By reallocating our digital-reserve strategy toward ETH, we are positioning BTCT at the forefront of next-generation on-chain finance." The company plans to convert all existing and future Bitcoin holdings into Ethereum to build a long-term, productive on-chain asset pool centered around the Ethereum ecosystem. BTCT aims to expand its Ethereum reserves to tens of millions of dollars by year-end and launch a staking program to generate yields. Additionally, the company intends to participate in decentralized finance (DeFi) and real-world asset (RWA) projects built on Ethereum.
This strategic pivot reflects a broader trend in the digital asset space, with other companies also embracing Ethereum. For instance, Bit Digital Inc. (BTBT) has initiated a strategic transition to become a pure-play Ethereum staking and treasury company, converting its Bitcoin holdings into Ethereum over time. This move underscores the growing recognition of Ethereum's potential in decentralized finance and asset tokenization.
BTCT's decision to focus on Ethereum aligns with its evolution from a mining-driven business model to a production-asset-driven digital-asset operator. The company plans to develop staking and liquidity pools, stablecoin reserves, and cross-chain settlement infrastructure leveraging Ethereum. This approach aims to position BTCT as a pioneer in the emerging on-chain economy, capitalizing on Ethereum's scalability and smart contract functionality to drive future growth.