Main Points:
- BTC Digital (NASDAQ: BTCT) invests $1 million in Ethereum, dubbing ETH the new “digital gold” as part of its reserve strategy
- Bit Digital (NASDAQ: BTBT) fully shifts treasury from Bitcoin to Ethereum, acquiring over 100,000 ETH and sparking a 46% weekly stock rally followed by an 18% gain
- Other industry players, including BitMine Immersion Tech. and Core Scientific, echo the pivot to ETH-focused strategies amid “Crypto Week” on Capitol Hill
- Driving factors: DeFi growth, stablecoin dominance on Ethereum, staking yields of 4–6.5% post-Shapella, and network upgrades enhancing scalability
- Risks: legacy miner investor exits, ETH/BTC ratio headwinds, regulatory scrutiny over on-chain treasury management
- Outlook: Ongoing expansion of ETH reserves by public miners, potential integration of staking products, and evolving regulatory clarity
1. Strategic Reserve Acquisition
BTC Digital Ltd. (“BTCT”), a prominent publicly traded Bitcoin mining firm, announced on July 11, 2025, the deployment of $1 million into Ethereum (ETH), positioning it as the company’s new “digital gold.” CEO Siguang Peng emphasized that Ethereum has emerged as a foundational infrastructure for on-chain USD settlement and value transfer. This initial tranche marks the beginning of a broader strategy to increase on-chain financial exposure through DeFi, stablecoin issuance, and asset tokenization.
2. Market Reaction
Following its announcement, BTCT’s stock price jumped by approximately 13% on July 11, reflecting investor enthusiasm for the pivot. Meanwhile, Bit Digital, which earlier sold 280 BTC to raise $172 million and acquired over 100,000 ETH, saw its share price surge 46% over the prior week and an additional 18% on the Monday after its pivot announcement. The chart below visualizes these moves:
. Core Scientific’s planned $9 billion acquisition by CoreWeave and the U.S. House-designated “Crypto Week” legislative agenda—covering bills like the GENIUS Act and stablecoin regulation—underscore a growing institutional embrace of Ethereum’s on-chain capabilities.
4. Driving Factors
- DeFi & Tokenization: Ethereum hosts the vast majority of DeFi protocols, enabling yield-bearing applications, decentralized lending, and asset tokenization frameworks.
- Stablecoin Infrastructure: Over 50% of fiat-backed stablecoins run on Ethereum, supporting a $262 billion market cap and driving demand for ETH as collateral.
- Staking Yields & Liquid Derivatives: Post-Shapella upgrades facilitate staking yields between 4–6.5% and the growth of liquid staking derivatives, attracting treasuries seeking yield.
- Network Upgrades: Roadmap milestones like Proto-Danksharding promise scalability improvements, reducing gas fees and enhancing throughput.
5. Potential Risks
- Investor Sentiment Shifts: Legacy Bitcoin mining investors may exit positions if returns lag expectations or if ETH/BTC valuation dynamics sour.
- Regulatory Scrutiny: On-chain treasury strategies could draw attention from regulators concerned about market manipulation, reserve transparency, and custodial compliance.
- Volatility & Cash Burn: Rapid cash deployment into ETH and ongoing capex for mining operations could strain balance sheets if ETH price falls or capex needs spike.
6. Future Outlook
With major miners now viewing Ethereum as a treasury asset rather than solely Bitcoin, we anticipate:
- Expanded ETH Reserves: Further acquisitions by mining firms in response to yield opportunities and stablecoin growth.
- Staking Service Offerings: Institutional staking products and infrastructure services to monetize ETH holdings.
- Regulatory Frameworks: Clarification around on-chain reserve disclosures and compliance for public companies pivoting their treasuries.
Conclusion
The transition from pure hashpower to on-chain finance marks a strategic inflection for publicly traded miners. BTC Digital’s $1 million ETH reserve and Bit Digital’s full treasury shift exemplify Ethereum’s growing stature as “digital gold” and an operational backbone for DeFi and stablecoin ecosystems. While risks around volatility and regulation persist, the momentum toward ETH-centric strategies suggests a broader redefinition of digital asset treasury management in 2025 and beyond.
