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SINGAPORE - BTC Digital Ltd. (NASDAQ:BTCT), a volatile small-cap blockchain company with a market capitalization of $26.08 million, announced Thursday a strategic shift to adopt Ethereum (ETH) as its core asset and operational foundation, moving away from its previous Bitcoin-focused approach.
The blockchain technology company has secured $6 million in financing and added a new $1 million ETH position. With a healthy current ratio of 27.49 and more cash than debt on its balance sheet, BTCT plans to convert all existing and future Bitcoin holdings into ETH to build what it describes as a long-term, productive on-chain asset pool centered around the Ethereum ecosystem. InvestingPro data reveals the company’s strong revenue growth of 28.68% over the last twelve months.
"By reallocating our digital-reserve strategy toward ETH, we are positioning BTCT at the forefront of next-generation on-chain finance," said Siguang Peng, CEO of BTCT, in a press release statement.
The company outlined plans to expand its ETH reserves to "tens of millions of dollars" by year-end and launch a staking program to generate yields. BTCT also intends to participate in decentralized finance (DeFi) and real-world asset (RWA) projects built on Ethereum.
With this pivot, BTCT joins other publicly traded companies that have declared Ethereum as a strategic asset, including BMNR, SBET, and BTBT, according to the company.
The firm stated it will transition from a mining-driven business model to what it terms a "production-asset-driven digital-asset operator" centered on Ethereum. This includes developing staking and liquidity pools, stablecoin reserves, and cross-chain settlement infrastructure.
BTC Digital Ltd. describes itself as a blockchain technology company with operations in North America, including cryptocurrency mining and related services.
In other recent news, BTC Digital Ltd. has completed a $6 million registered direct offering, selling 2 million ordinary shares at $3.00 per share to institutional investors. The company plans to use the proceeds, along with existing cash, to purchase Ethereum. Additionally, BTC Digital has established a strategic reserve of $1 million in both Bitcoin and Ethereum, aiming to increase its total crypto reserves to over $10 million by the end of 2025. These reserves are intended to support on-chain business deployment, infrastructure for real-world assets, and balance sheet stability. BTC Digital is also exploring future initiatives such as Ethereum staking and Bitcoin-backed stable-asset programs. The company has noted that Ethereum’s role in stablecoin infrastructure and increased transaction volumes are key factors in its reserve strategy. Aegis Capital Corp. served as the exclusive placement agent for the $6 million offering. BTC Digital’s recent moves reflect its strategic shift from cryptocurrency mining to participating in on-chain financial infrastructure.
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