Another BTC Mining Company Moves to Ethereum Reserve, Calling ETH 'Digital Gold'

Bitcoin mining company BTC Digital (BTCT) has converted $1 million of its cash into ether (ETH), which it has labeled as its new “digital gold.”

BTCT CEO Xiguang Peng said in a press release that the company had contributed $1 million to the Ethereum reserve, adding that Ethereum “has become the foundation for US dollar settlements and value transfer on the blockchain.”

“By creating an initial reserve of ETH of $1 million today and planning to expand it, we are actively preparing for decentralized finance, stablecoin issuance, and asset tokenization,” Peng said.

BTCT is set to increase the reserve as it upgrades its facilities and tightens regulations in the U.S. BTC Digital has previously mined Bitcoin. The company recently announced that “its 20 MW large-scale cryptocurrency mining project in Georgia has reached a major milestone.”

The company has not specified whether they will retain Bitcoin mining, but the press release states that “BTCT, building on its roots in large-scale cryptocurrency mining, is undergoing a strategic transformation from a ‘hashrate provider’ to a ‘participant in the financial infrastructure on the blockchain.’”

BTC Digital has become the second publicly traded Bitcoin mining company to switch to the Ethereum cryptocurrency. Earlier this month, Bit Digital (BTBT) moved its entire holdings from BTC to ETH, adopting a staking strategy. The company’s shares rose 30% as a result. They have since corrected, falling nearly 20%.

Meanwhile, BTCT shares ended Friday's trading session up 13%.

According to data from a public tracker, there is currently over 1.34 million ETH stored in public Ethereum vaults, including those of decentralized autonomous organizations (DAOs), second-layer networks, and public companies.

Source: cryptonews.net