- BTCT sets up a $1M Ethereum reserve as the first step into DeFi and tokenization.
- BTCT plans to grow ETH holdings and shift from mining to on-chain finance.
- Shares surge 20% as investors back BTCT’s bold Ethereum expansion strategy.
BTC Digital Ltd. (BTCT) has taken a big step toward expanding its role in the blockchain world. The company announced that it has set up a strategic reserve worth $1 million in Ethereum (ETH). This step is the initial step of a larger initiative. BTCT aims to strengthen its relationship with the expanding financial ecosystem of Ethereum and become ready for the future of digital assets.
BTCT CEO Sees Ethereum as Key to Stablecoin Boom
Mr. Siguang Peng, the BTCT CEO, also commented on this move. He claimed that the stablecoin market is expanding rapidly. He indicated that Ethereum is now the primary network through which USD transactions are settled and value transfer on-chain occurs. Locking in a preliminary 1 million ETH reserve at the moment, BTCT is preparing to take even more chances in decentralized finance (DeFi), stablecoin creation, and asset tokenization.
More than 50% of the large stable cryptocurrencies, such as USDT and USDC, run on Ethereum. It demonstrates the significance of Ethereum in USD settlement and digital payments. As a matter of fact, the volume of transactions in stablecoins has made Ethereum reach out to the volume of transactions in conventional financial systems. This is why it is significant in the global payments and liquidity world.
Moreover, with the ongoing growth of DeFi and tokenization of assets, it will lead to the increased use of ETH as staking crypto and collateral. This will decrease the supply of ETH. It will also bring the network more security and high value. This is a trend that is being taken up by many blockchain and mining companies. They are deploying ETH as reserves and smart contracts to produce yield, offer collateral, or assist cross-chain products.
Other firms have been making giant steps in Ethereum as well lately. Only a day before the announcement of BTCT, SharpLink Gaming purchased 10,000 ETH directly through the Ethereum Foundation. This big buy was estimated at a cost of about 25.7 million dollars. It was an over-the-counter transaction that was done on July 10. The average cost was 2,572 USD per ETH. The transaction adds to an approximate amount of 215,634 Ethereum owned by SharpLink.
Company to Keep Growing ETH Holdings Over Time
BTCT’s plan goes beyond just buying ETH once. The company is transforming its business model gradually. It was a big crypto mining firm that cast its eye on the hash rate. BTCT now aims to start playing a significant role in on-chain financial infrastructure. The company intends to stockpile ETH as time progresses. It will modify its approach according to any changes in the market and fresh developments in the Ethereum network.
Future upgrades such as Pectra and Layer-2 changes will also assist Ethereum. The developments will help Ethereum become snappier, more cost-effective to onboard, and able to meet regulatory standards in the U.S. This implies that ethereum is likely to remain at the core of stablecoin payments, decentralized transactions, and worldwide financial links.
The executive management of BTCT is confident that Ethereum will serve a role of being the digital form of gold in the upcoming digital economy. They want to establish a lead with stablecoin settlements, payments, and asset tokenization by making early investments.
This news led to BTCT shares increasing by 14% in the market. This step has been perceived by investors as a form of confidence and potential growth. The move is seen by many people as an indication that BTCT is willing to adopt and become an industry leader in the rapidly evolving crypto market.
