BTC Digital establishes $1 million Ethereum strategic reserve

BTC Digital, a Nasdaq-listed blockchain technology company, has made a strategic shift in its business model by establishing a $1 million Ethereum (ETH) strategic reserve. This move is part of a broader initiative to evolve from a traditional “hash-rate provider” (crypto mining) to an “on-chain financial infrastructure participant.”

Here’s a breakdown of the key details:

The Strategic Ethereum Reserve

Initial Investment: The company announced an initial reserve of $1 million in ETH in early July 2025.

Expanding the Reserve: Following this initial move, BTC Digital has continued to expand its holdings, with a new $5 million purchase of ETH, bringing its total cumulative holdings to over 2,135 ETH. The company has also announced a $1 million strategic reserve of Bitcoin (BTC) and has plans to scale its total crypto reserves to over $10 million by the end of 2025.

Rationale for the Move: According to BTC Digital’s CEO, Siguang Peng, Ethereum has emerged as the “foundation of on-chain USD settlement and value transfer” in a stablecoin-dominated market. The company aims to position itself for decentralized finance (DeFi), stablecoin issuance, and asset tokenization.

This move signals a significant change in BTC Digital’s business strategy. While the company will continue its involvement in crypto mining, its focus is shifting towards becoming a more active participant in the decentralized economy. This includes exploring future initiatives like ETH staking, BTC-backed stable-asset programs, and an RWA issuance platform.

What the Reserve will be Used for: The strategic reserve is intended to support three primary functions:

On-Chain Business Deployment: Supporting stablecoin integrations, providing liquidity for DeFi, and building cross-chain payment rails.

Real-World Asset (RWA) Infrastructure: Backing custody, staking, and credit-enhancement structures within the company’s RWA segment.

Balance Sheet Stability: Bolstering market confidence and enhancing capital-markets transparency by maintaining a robust digital-asset reserve.

The Broader Strategic Shift

This move signals a significant change in BTC Digital’s business strategy. While the company will continue its involvement in crypto mining, its focus is shifting towards becoming a more active participant in the decentralized economy. This includes exploring future initiatives like ETH staking, BTC-backed stable-asset programs, and an RWA issuance platform.

This trend of publicly traded companies holding digital assets on their balance sheets is gaining momentum, with other firms like Bit Digital, SharpLink Gaming, and GameSquare also announcing strategic ETH treasury initiatives. The growing institutional confidence in Ethereum is likely driven by its role as a key infrastructure for decentralized applications and a hub for stablecoin settlement.

Expanding the Reserve: Following this initial move, BTC Digital has continued to expand its holdings, with a new $5 million purchase of ETH, bringing its total cumulative holdings to over 2,135 ETH. The company has also announced a $1 million strategic reserve of Bitcoin (BTC) and has plans to scale its total crypto reserves to over $10 million by the end of 2025.