BTC Digital Establishes $1 Million Ethereum Reserve Shares Surge 13.33%

BTC Digital Ltd. has announced the establishment of a $1 million Ethereum reserve, marking a significant strategic move in the blockchain industry. This reserve is the first phase of the company's plan to increase its holdings in Ethereum, as it transitions from a traditional bitcoin mining company to a participant in on-chain financial infrastructure. The company's chief executive officer, Siguang Peng, highlighted that Ethereum has become a crucial foundation for on-chain USD settlement and value transfer. By securing this initial reserve, BTC Digital aims to position itself for decentralized finance, stablecoin issuance, and asset tokenization. The company plans to grow its Ethereum holdings as the network's capacity increases through upgrades and as U.S. regulatory frameworks become more solidified.

Following the establishment of the reserve, BTCT shares soared 20% intraday, before closing with a gain of 13.33%. The company plans to use Ethereum's potential for yield generation and anticipate network upgrades to enhance valuation. This move aligns with a trend where public firms integrate crypto assets into treasuries, often bolstering market confidence and momentarily elevating token prices and market caps. BTC Digital has also announced matching its Ethereum holdings with Bitcoin in July 2025. This move could potentially reduce Ethereum's circulating supply and reinforce its position as the primary blockchain for DeFi operations.

As Ethereum undergoes upgrades like "Pectra," and regulatory landscapes improve, firms are more likely to leverage Ethereum for cross-chain applications. Industry observers anticipate these trends will further validate Ethereum's expanding role in institutional finance. The establishment of the reserve aligns with a trend where public firms like MicroStrategy and Tesla integrate crypto assets into treasuries. These strategies often bolster market confidence and momentarily elevate token prices and market caps. BTC Digital's strategic evolution is part of a broader trend among publicly traded bitcoin miners, with Bit Digital (BTBT) being another example that shifted its entire treasury from BTC to ETH earlier this month. This move by BTC Digital reflects a growing interest in Ethereum's potential and the broader shift towards decentralized finance and tokenization in the blockchain industry.