Bitcoin mining company, BTC Digital (BTCT), has diversified its holdings by allocating $1 million in company funds to Ethereum (ETH). The firm has publicly announced its intention to treat ETH as its new form of “digital gold.”
According to a press statement from Chief Executive Officer Siguang Peng, BTCT has established a $1 million Ethereum reserve. Peng stated that Ethereum has “become a cornerstone for on-chain USD settlements and the movement of digital assets.”
“By initially securing a $1 million ETH position and planning for future expansion, we are strategically positioning ourselves for opportunities in decentralized finance, stablecoin creation, and tokenized assets,” Peng explained.
BTCT intends to increase its ETH holdings as the Ethereum network undergoes upgrades to improve its capacity and as regulatory clarity emerges in the United States. The company recently shared progress on its Georgia-based 20 MW cryptocurrency mining operation, stating it had “reached a major milestone.”
While the company’s future bitcoin mining plans remain unclear, the press release indicates that “BTCT is strategically evolving from a ‘hash-rate provider’ to an ‘on-chain financial infrastructure participant,’ building on its foundation in large-scale crypto mining.”
BTC Digital is the second publicly listed bitcoin miner to incorporate Ethereum into its treasury. Earlier this month, Bit Digital (BTBT) converted its entire treasury from BTC to ETH to pursue a staking strategy. This decision initially resulted in a 30% increase in its stock price, which has since seen a correction with a nearly 20% decline.
In response to the news, BTCT’s stock price closed 13% higher at the end of Friday’s trading day.
According to a public tracker, known Ethereum treasuries, including those held by decentralized autonomous organizations (DAOs), Layer-2 networks, and publicly traded companies, currently hold over 1.34 million ETH.