BTC Digital will create ETH Strategic Reserve
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At today’s prices, BTC Digital could buy 340.69 ETH.
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More and more companies bet on ETH to generate extra income from staking.
BTC Digital (BTCT), a Bitcoin mining company that lies in Nasdaq, announced that it will invest a million dollars to form an Ether Treasury (ETH), the native currency of the Ethereum Network.
The Singapur -based firm explained that the initiative is part of a strategy to position “for long -term growth in the emerging era of digital assets.” At current prices, BTCT could buy 340.69 ETH.
It should be noted that this It is not the first company in the sector that decides to bet on the creation of an ETH reserve. On June 25, Bit Digital (BTBT) announced that it will close its Bitcoin mining operations and will issue debt to acquire Ether.
As reported, the company made this decision to take advantage of Ethereum’s central role in Stablecoins infrastructure, its high volume of transactions, the growing institutional adoption and technical and regulatory improvements that reinforce its value as a reserve asset.
Currently, Ethereum houses about 49.6% of stablecoins in circulation, with an approximate value of 126,000 million dollarsaccording to Defillama data.
This means that the ecosystem is well positioned to channel a large part of the expansion of stable currencies, which could occur after the approval of the National Innovation Orientation and Establishment Law for Stablecoins, better known as Genius Law, in the United States.
In this regard, Siguang Peng, Executive Director of BTCT, said: “By assuring today an initial ETH reserve of 1 million dollars, and with plans to expand it, we position us proactively for decentralized finances, the issuance of Stablecoins and the tokenization of assets. This strategy reinforces our technological advantage, increases market confidence and optimizes capital investment.”
After knowing the announcement, BTCT’s action shot 10%as observed in the following trainingView graph:
The truth is that BTCT adds to the institutional fever in the market by ETH. As Cryptonoticia explained, more and more companies are betting on forming an Ether corporate reserve to generate extra performance through staking.
For example, Sharplink (SBET), an betting platform, has already generated more than $ 800,000 through this mechanism.
