Bitcoin mining is hopeless! Mining company BTC Digital turns to Ethereum: clearing BTC to buy ETH and betting on DeFi profits
Listed mining company BTC Digital (BTCT) issued an announcement on July 17, officially announcing that the company will make a strategic transition to Ethereum. As part of the plan, BTC Digital said it has received $6 million in financing and purchased $1 million in Ethereum. At the same time, the company will also convert all existing and future Bitcoin (BTC) positions into ETH.
(Preliminary summary: Wintermute said that the Ethereum OTC market is "hard to find a coin": a signal that investors should understand)
(Background supplement: Ethereum broke through 3,424 US dollars, a new high since February this year! The ETH-BTC exchange rate has rebounded by 50% in the past three months)
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Listed mining company BTC Digital (BTCT) July 17 An announcement was made today, officially announcing that the company will make a strategic transition to Ethereum (ETH). As part of the plan, BTC Digital said it has received $6 million in financing and purchased $1 million in Ethereum. At the same time, the company will also convert all existing and future Bitcoin (BTC) positions into ETH.
Transformation motivation: Bet on on-chain applications rather than single stored value
In this regard, BTC Digital CEO Siguang Peng pointed out in the announcement that Ethereum has become the main platform for decentralized finance (DeFi), real world asset (RWA) tokenization and smart contract innovation. He emphasized that allocating ETH allows companies to directly participate in pledges, DeFi protocols and various on-chain revenue activities. Compared with Bitcoin's single narrative of "digital gold", it is closer to the diverse needs of the future blockchain economy:
Ethereum has become the premier platform for decentralized finance, tokenization of real-world assets and scalable smart contract innovation. By recalibrating our digital reserve strategy, we position BTCT at the forefront of the next generation of on-chain finance. This shift will not only give us access to one of the fastest growing crypto assets, it will also allow us to be directly involved in staking and the forefront of finance.
Action plan: simultaneous advancement of three lines
- First, "rapid reserve expansion": BTCT will inject $6 million in new funds to accelerate the purchase of ETH, with the goal of expanding its reserves to tens of millions of dollars before the end of the year.
- Second, "Pledge and Revenue Generation": The company will invest all the ETH it holds into equity pledge, and create predictable cash flow through pledge returns and compound interest reinvestment.
- Third, "Active Ecological Participation": BTCT plans to establish a revenue pool supported by ETH and establish strategic alliances with DeFi, NFT, and Layer2 teams. It will also lay out stable currency reserves, cross-chain settlement, and on-chain asset issuance platforms to amplify the utility of ETH.
Market comparison: Bitcoin mining companies are changing channels one after another
In fact, BTCT is not an isolated case. For example, Bit Digital also announced earlier this year that it would convert all US$172.9 million in Bitcoin assets into ETH, and revealed in a press release that it already holds approximately 100,603 ETH.
External interpretations indicate that with the decline in PoW mining profits and the Ethereum PoS mechanism providing staking benefits, mining companies have become a trend to switch to Ethereum.
BTCT stock price performance?
According to GOOGLE financial data, BTCT’s stock price was temporarily reported at US$3.44 as of July 18, Taiwan time, after the market closed. It fell by 0.86% after the market closed. It has fallen by nearly 20% in the past five days, and its market value was temporarily reported at US$25.8584 million.
