Bitcoin News Today: BTC Digital Initiates $10 Million Crypto Reserve Strategy

BTC Digital Ltd. has initiated a $10 million reserve strategy focused on Bitcoin (BTC) and Ethereum (ETH), aiming to bolster its crypto treasury and support the growth of stablecoins and tokenized real-world assets (RWA). The Singapore-based blockchain firm has already completed a $1 million BTC purchase, following last week’s ETH reserve. CEO Siguang Peng highlighted the significance of BTC and ETH as "central-bank-grade assets," essential for the maturing on-chain economy.

By the end of the year, BTC Digital aims to increase its cryptocurrency holdings to over $10 million. The firm maintains a robust balance sheet with a current ratio of 27.5 and more cash than debt. This reserve strategy is designed to promote long-term stability and enhance the transparency of the capital market. According to the company, Bitcoin and Ethereum are crucial for decentralized finance participation and future asset management.

BTC Digital plans to utilize its BTC and ETH reserves to support stablecoin integrations and provide DeFi liquidity. The firm is also building payment rails and decentralized infrastructure for cross-chain use. Additionally, BTC Digital aims to support RWA issuance by backing custody, staking, and credit enhancement. The company's long-term strategy includes expanding its presence in North American blockchain operations, encompassing mining, data centers, accessories, and mining pool development. BTC Digital expects on-chain U.S. dollar tokens, tokenized credit, and real-world assets to evolve rapidly through 2025.

Furthermore, BTC Digital intends to stake ETH and explore Bitcoin-backed stable assets. These new products align with the firm's RWA goals and on-chain finance vision. The company hopes its strategic moves will attract other firms to adopt BTC and ETH reserves, positioning itself as a leader in the evolving landscape of digital assets and on-chain financial infrastructure.