BTC Digital Ltd. (NASDAQ: BTCT), a public blockchain company, has decided to fully switch to Ethereum (ETH) as its core asset and operations base, according to its recent announcement. Before this, the company was focused mostly on Bitcoin (BTC). Now, it plans to sell all of its Bitcoin and replace it with Ethereum.
To start this change, the company has already raised $6 million in new funds and used $1 million from it to buy Ethereum. BTC Digital says it wants to collect more Ethereum over time and hopes to hold tens of millions of dollars worth of ETH in its reserve by the end of the year.
According to CEO Siguang Peng, “Ethereum has emerged as the premier platform for decentralized finance, real-world asset tokenization, and scalable smart-contract innovation.”
He added, “By reallocating our digital-reserve strategy toward ETH, we are positioning BTCT at the forefront of next-generation on-chain finance.” In addition to this, BTCT also shared that it is planning to start an Ethereum staking program to earn rewards over time.
The company will then use those rewards to grow its Ethereum reserve even more. BTCT said it wants to become more than just a crypto holder and will actively take part in Ethereum-based projects, including DeFi, real-world asset platforms, and stablecoins.
“We believe this pivot will deliver superior risk-adjusted returns for shareholders and position BTCT as a pioneer in the emerging on-chain economy,” Mr. Peng further explained in the press release.
The company also wants to build Ethereum-backed pools that could create more income and set up tools that help move assets between blockchains. Furthermore, it will support NFT platforms and faster Ethereum networks, known as Layer-2s.
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