- The corporation will introduce ETH staking and increase DeFi and real-world asset engagement.
- BTC Digital shifts towards production-asset-based operations of digital assets.
BTC Digital Ltd. (NASDAQ: BTCT) has announced an ambitious strategic shift, dumping Bitcoin as its main digital asset and switching to Ethereum instead. The blockchain technology company made the announcement after a successful round of financing, amounting to $6 million, to represent a significant transition to the use of Ethereum and its growing ecosystem.
The company has revealed that it has started to transform all its current and future reserves of Bitcoin into Ether (ETH) with the aim of holding tens of millions of ETH before the year ends. This shift is part of BTCT becoming a production-asset-based digital asset firm with an Ethereum-based DeFi and smart contract ecosystem as its foundation.
Investing Entirely in Ethereum’s Robust Ecosystem
During the first stage of conversion, BTC Digital acquired 1 million ETH, which was an addition to its portfolio. Ethereum was brought out to be the leader in decentralized finance, tokenization of real-world assets, and scalable smart contract technology by its leadership. By completely reimagining its reserve policy to focus on ETH, BTCT will generate multiple degrees of long-term value, including staking returns, various DeFi integrations, and stablecoin development.
Source – BTCT
The new approach of the company is the launch of the wide Ether staking program that will allow the company to secure the operations of the network and produce predictable returns. Such staking returns will be reinvested to compound ETH reserves and grow faster. BTCT is also planning to further its interaction with Ethereum-based DeFi protocols, real-world asset tokenization projects, and layer-2 scaling mechanisms.
The company said: By making Ethereum the core of our digital-asset strategy, we will be establishing an end-to-end structure to generate sustained value, to diversify sources of yield, and to innovate by creating financial products on-chain.
Expanding Presence Beyond Bitcoin: Yield, Staking, and Real-World Assets
The Ethereum pivot by BTCT is indicative of a wider industry trend in which publicly traded companies are bulking up their ETH treasuries in the face of a massive increase in the market relevance of Ethereum. The step brings BTCT closer to the reserve model of Bitcoin, which assumes a more proactive involvement in the Ethereum ecosystem in terms of operation and finances.
The main future activities are building ETH-backed yield pools, building stablecoin infrastructure to improve liquidity, and forming partnerships within the Ethereum DeFi, NFT, and scaling communities. BTCT predicts that the created strategy will bring the shareholders better risk-adjusted returns and an unprecedented level of operation in the on-chain economy.
The stock response of the firm was not impressive; the company got a tepid response on the stock market, with shares closing a little below the previous day.
Ether’s market performance supports BTCT’s timing. ETH has been in an uptrend in the last two weeks, rising more than 40 percent, and its price is approaching its highest in the first months of 2025, which indicates that investors are more interested in the currency and show more confidence in its future.
BTC Digital is not the only industry player to proclaim Ethereum as a support pillar of future growth and innovation, as BitMine and SharpLink, among others, have announced their holdings valued in billions.
