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 described as its new “digital gold.”
BTCT CEO Xiguang Peng said in a press release that the company had transferred $1 million to the Ethereum reserve, adding that Ethereum “has become the basis for US dollar settlements and value transfer on the blockchain network.”
“By creating an initial reserve of ETH of $1 million today and planning to expand it, we are actively preparing for decentralized finance, the issuance of stablecoins and the tokenization of assets,” 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 and recently announced that “its 20MW large-scale cryptocurrency mining project in Georgia has reached a major milestone.”
The company does not specify whether it will continue to mine Bitcoin, but the press release does mention that “BTCT, building on its roots in large-scale cryptocurrency mining, is undergoing a strategic transformation from a ‘hashrate provider’ to a ‘blockchain financial infrastructure participant.’”
BTC Digital is the second publicly traded Bitcoin mining company to switch to Ethereum. Earlier this month, Bit Digital (BTBT) moved its entire holdings from BTC to ETH, changing its strategy to staking. 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 public tracker data, there is currently over 1.34 million ETH stored in known public Ether repositories, including those of decentralized autonomous organizations (DAOs), second-layer networks, and public companies.
Source: cryptonews.net
