Nasdaq-Traded Miner BTC Digital Replaces Bitcoin with Ethereum in Treasury Revamp

Jimmy Aki
Last Updated:

Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.

On July 17, BTC Digital (BTCT), a U.S.-based Bitcoin mining firm listed on Nasdaq, announced a complete overhaul of its treasury strategy by converting all current and future Bitcoin holdings into Ethereum. The company now sees Ethereum as a key digital asset and as the foundation for its long-term operations, marking a shift away from its traditional Bitcoin mining model.

Staking and Yield Generation to Rely on Ethereum Reserves

BTC Digital disclosed in the announcement that it has secured $6 million in its latest financing and added a $1 million Ethereum position to its balance sheet.

The goal is clear. BTC Digital plans to aggressively build Ethereum reserves to reach tens of millions of dollars in holdings by year-end. These reserves won’t sit idle.

The mining company intends to launch a large-scale Ethereum staking program. The purpose is twofold: earn predictable on-chain rewards and reinvest those earnings to accelerate ETH growth.

This approach is expected to support a compounding reserve model over time, one designed to expand ETH holdings and generate a consistent yield.

These staking rewards will support future investments in productive digital assets, further strengthening BTC Digital’s long-term strategy.

The new approach marks a sharp departure from speculative asset holding. Instead, BTC Digital is building a utility-based framework, focused on unlocking value from Ethereum and aligning operations with its broader ecosystem.

The company will go beyond staking. BTC Digital plans to actively engage with decentralized finance (DeFi), stablecoins, and real-world asset (RWA) projects built on Ethereum.

In essence, BTC Digital is not just holding Ethereum. It plans to use it through a new growth model that relies on ETH for yield, innovation, and long-term ecosystem integration.

Reduced Output in Bitcoin Mining May Have Triggered Switch to Ethereum

BTC Digital has not given a specific reason for the sudden shift from Bitcoin to Ethereum.

However, observers point to falling Bitcoin mining output and worsening environmental challenges as possible factors driving the decision.

Bitcoin miners across the U.S. have faced major disruptions in recent months. June production data shows that miners cut output by as much as 25% to deal with rising power costs and unpredictable weather.

For example, Riot Platforms mined 450 BTC in June, a 12% drop from May’s 514 BTC.

Similarly, MARA Holdings mined 211 BTC in June, down 25% from the 282 BTC mined in May. MARA CEO Fred Thiel linked the decline to weather-related curtailments and reduced operational uptime.

For many miners, balancing energy costs with operational efficiency has become a daily challenge.

Texas, a major hub for Bitcoin mining, reflects this tension. Heat waves and grid strain have forced companies to pause mining to avoid blackouts, undermining output and profitability.

These disruptions may have made Ethereum’s staking model more attractive to firms like BTC Digital.

Ethereum staking doesn’t rely on power-hungry equipment. It offers predictable yield and less exposure to environmental shocks.

At the same time, regulatory changes are adding new pressure.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.