TL;DR
- BTC Digital (BTCT) invested $1 million in ether, declaring Ethereum its new “digital gold”.
- The move marks a strategic shift from mining to DeFi, stablecoins, and tokenization.
- BTCT joins a growing list of firms building public ETH treasuries, now totaling 1.34M ETH across DAOs, L2s, and corporations.
- The firm follows Bit Digital (BTBT), which shifted its entire BTC treasury to ETH earlier this month.
- BTCT shares rose 13% after the announcement.
BTC Digital Enters Ethereum Reserve With $1M Commitment
BTC Digital (NASDAQ: BTCT) has invested $1 million in Ethereum (ETH), calling it the company’s new “digital gold” and citing the network’s increasing dominance in decentralized finance (DeFi) and on-chain settlements.
The strategic pivot was announced Friday by CEO Siguang Peng, who emphasized Ethereum’s role as “the basis for on-chain USD settlement and value transfer.” The firm plans to scale this position over time, positioning itself as a participant in on-chain infrastructure, moving beyond its legacy as a bitcoin mining operation.
From Mining Hashrate to Financial Infrastructure
Once solely focused on providing hash rate via large-scale bitcoin mining, BTCT now aims to leverage its foundation in infrastructure to transition into a broader role within blockchain-based financial services.
According to the press release:
“By securing an initial $1 million in ETH today—and with plans to scale that position—we are proactively positioning ourselves for decentralized finance, stablecoin issuance, and asset tokenization.”
The firm recently celebrated a milestone at its 20 MW mining facility in Georgia, but did not clarify whether bitcoin mining remains a priority going forward. Instead, BTCT underscored its shift to “on-chain financial infrastructure” as its next growth chapter.
Public Ethereum Treasuries Continue to Grow
BTC Digital becomes the second publicly traded bitcoin miner to make a significant commitment to Ethereum this month. Earlier in July, Bit Digital (BTBT) announced it had converted its entire BTC treasury into ETH as part of a long-term staking strategy.
That move briefly sent BTBT stock up 30%, before a correction brought it back down 20%. In contrast, BTCT shares closed up 13% on Friday following the Ethereum announcement.
This adds further momentum to the growing public ETH treasury ecosystem, which includes holdings by DAOs, Layer-2 networks, and publicly listed companies.
Public ETH Holdings as of July 2025
| Category | Entity Examples | ETH Holdings Estimate |
| DAOs | Uniswap DAO, Aave DAO | 750,000+ ETH |
| L2 Networks | Arbitrum, Optimism | 340,000+ ETH |
| Public Companies | BTCT, BTBT, Meitu | 250,000+ ETH |
| Total Known Public Treasury | 1.34 million ETH |
Source: public treasury tracker via Etherscan
Ethereum’s Role in On-Chain USD & Tokenization
CEO Siguang Peng made it clear that Ethereum’s functionality was central to the firm’s long-term strategy. With stablecoin settlement volume surpassing that of traditional remittance platforms, and tokenized asset pilots gaining regulatory support, Ethereum is increasingly viewed as financial plumbing for Web3.
“Ethereum is where financial applications are being built. We’re not just storing value — we’re plugging into the future of programmable money,” said Peng.
The company anticipates its ETH treasury will support multiple operational goals:
- Liquidity staking and passive income
- On-chain USD settlement rails
- Security for tokenized assets
- DeFi participation and DAO governance
Strategic De-Risking Amid U.S. Regulatory Progress
BTCT’s Ethereum bet also reflects optimism about U.S. regulatory clarity, which has begun to emerge under President Trump’s pro-crypto administration.
In March, the White House issued an executive order outlining a framework for digital asset reserves and public-private cooperation in blockchain infrastructure.
As frameworks for tokenization, stablecoin licensing, and staking become more transparent, mining firms are diversifying their revenue streams — a necessity in a world of compressed bitcoin margins and rising operational costs.
Ethereum: The New Digital Gold?
While Bitcoin has long held the “digital gold” title, BTCT’s announcement suggests a paradigm shift in how infrastructure companies are approaching value storage.
“Ethereum is no longer just a smart contract platform — it’s a monetary layer for Web3,” said analyst Rebecca Liao of Skolem Labs.
Key catalysts reinforcing Ethereum’s monetary narrative:
- Ethereum’s deflationary supply mechanics via EIP-1559
- Liquid staking markets through Lido and Rocket Pool
- Institutional-grade custody offerings now supporting ETH alongside BTC
- Rollup-based scalability making high-value settlement more efficient
Next Steps for BTC Digital
While BTCT has yet to provide a roadmap for scaling its Ethereum holdings, the company hinted that further treasury allocation increases could align with:
- Completion of ETH staking infrastructure
- U.S. regulatory clarity on tokenized securities
- Market conditions for Ethereum-based DeFi growth
In the meantime, investors and analysts will be watching how BTCT balances its mining heritage with its on-chain aspirations.
