BTC Digital Establishes $1M ETH Reserve

BTC Digital (ticker BTCT), a blockchain technology firm, saw its shares surge by 20% on Friday after announcing the creation of a strategic reserve valued at $1 million in Ethereum's cryptocurrency. This step is part of a broader strategy to enhance the company's involvement in Ethereum's on-chain financial ecosystem and establish a foundation for long-term growth. CEO Siguang Peng highlighted the critical role of Ethereum amid flourishing stablecoin markets, stating, "As the stablecoin market continues its explosive growth, Ethereum has emerged as the foundation of on-chain USD settlement and value transfer." He emphasized that securing this initial $1 million ETH reserve is a proactive move towards opportunities in decentralized finance, stablecoin issuance, and asset tokenization. Founded in 2006 and listed on Nasdaq in April 2020, BTC Digital’s stock has been trading below $10 per share since September 2022, holding a market capitalization of approximately $32 million. The company is shifting its focus from being merely a "hash-rate provider" to actively participating in on-chain financial infrastructure, aiming to increase its ETH holdings in tune with market trends and network enhancements. The enthusiasm for Ethereum is evident, as more organizations shift towards Ethereum treasuries, buoyed by rising prices. Recently, Bit Digital transitioned its Bitcoin reserves to Ethereum, SharpLink bolstered its ETH treasury to $558 million, and GameSquare’s board approved a significant $100 million ETH treasury project. With crypto markets performing well, the price of ETH reached the $3,000 mark for the first time since February. Additionally, BlackRock’s spot Ethereum ETF experienced unprecedented inflows of $300 million this past Thursday. At the time of writing, Ethereum's trading value was around $2,987, reflecting a 7.8% increase, according to data from The Block. Disclaimer: The Block is an independent media outlet delivering news, research, and data. As of November 2023, Foresight Ventures is the majority investor in The Block. This article is intended solely for informational purposes and should not be construed as legal, tax, investment, or financial advice.