Blockchain and mining firm BTC Digital has made a decisive pivot to Ethereum, marking a major strategic overhaul alongside the closing of a $6 million funding round.
The Nasdaq-listed company (ticker: BTCT) announced on Thursday that it is fully committing to Ether as its “core asset and operational foundation,” calling the move a “transformative, strategic shift.”
As part of this transition, BTC Digital has acquired an initial $1 million position in Ether and plans to convert all current and future Bitcoin holdings into ETH. The company aims to build a “long-term, productive on-chain asset pool” and align its medium- and long-term growth with the Ethereum ecosystem.
“Ethereum has emerged as the premier platform for decentralized finance, real-world asset tokenization, and scalable smart contract innovation,” said CEO Siguang Peng.
Looking ahead, BTC Digital intends to accumulate “tens of millions of dollars” in ETH reserves by the end of the year, with plans to generate returns through ETH staking, DeFi activity, real-world asset initiatives, and stablecoin strategies.
Big plans for Ethereum stash
BTC Digital announced it is shifting away from its mining-centric business model to become a “production-asset-driven digital asset operator.”
As part of this transformation, the company is rolling out key strategic initiatives, including the creation of ETH-backed yield pools, the development of stablecoin infrastructure, and the expansion of partnerships across the Ethereum ecosystem—spanning DeFi, NFTs, and layer-2 scaling solutions.
“By centering our digital asset strategy on Ethereum, BTCT is building a strong foundation for long-term value creation, diversified yield streams, and innovative financial products,” said CEO Siguang Peng.
Despite the bold announcement, investor response was muted, with the company’s stock slipping slightly to close at $3.44 on Thursday, according to Google Finance.
Further upsides expected
Ether surged to a six-month high of $3,600 in early trading on Friday, marking its strongest performance since early January. The cryptocurrency has now climbed an impressive 40% over the past two weeks.
“Investors are increasingly embracing reserve strategies for both Bitcoin and Ethereum, as the U.S. moves closer to passing landmark legislation that will support the growth of stablecoins and decentralized finance,” said Nick Ruck, director at LVRG Research, in a statement to Cointelegraph.
“The turnaround in ETH’s performance compared to just a few months ago is remarkable,” noted Nic Puckrin, investor and founder of The Coin Bureau. “We’re likely to see more upside, especially with the potential passage of the CLARITY and GENIUS Acts,” he added in a note.
Ethereum treasury growth
The company joins a growing list of firms—including Joe Lubin’s gaming venture SharpLink, Tom Lee’s BitMine, digital asset platform Bit Digital, and Blockchain Technology Consensus Solutions—that have recently announced the establishment of Ethereum treasuries.
Together, these four companies hold approximately 714,000 ETH—valued at around $2.4 billion based on current market prices—according to data from StrategicEthReserves.XYZ.
