BTC Digital has taken a strategic step by establishing a $1 million reserve in Ethereum, highlighting the cryptocurrency's importance for stablecoin and DeFi operations.
Strategic Move by BTC Digital
According to CEO Siguang Peng, the creation of this reserve aims to bolster the company's position in decentralized finance. BTC Digital plans to increase its crypto reserves to over $10 million by 2025.
Market Reaction to the News
Following the announcement of the reserve, BTCT shares surged 20% intraday before closing with a 13.33% gain. This reaction indicates positive investor sentiment towards the company's actions and its move towards asset stabilization and growth.
Company's Future Plans
BTC Digital has also announced its intention to match its Ethereum holdings with Bitcoin in July 2025. This could help reduce Ethereum's circulating supply and reinforce its role in DeFi. Upcoming network upgrades, such as 'Pectra', are expected to enhance interest in Ethereum within institutional finance.
The establishment of an Ethereum reserve positions BTC Digital alongside companies like MicroStrategy and Tesla, which are adding crypto assets to their treasuries, showcasing the growing interest from institutional investors in this sector.
