The frequent news of Strategy buying millions of Bitcoins (BTC) circulates whenever the company founder, Michael Saylor, announces the huge acquisition of the coin to its Bitcoin treasury. Besides Strategy, Marathon Digital, Hut 8 Mining, Coinbase, and Galaxy Digital hold Bitcoin treasuries. However, what is truly astonishing is, digital asset company Bit Digital’s transition from BTC holding to Ethereum (ETH) holding! A noteworthy shift in its corporate treasury strategy. So, why is Ethereum alluring to the CEO’s eyes?
“Ethereum is the next wave”: Bit Digital CEO
Commenting on the company’s new undertaking, Sam Tabar, CEO of Bit Digital, said in a television discussion that “Ethereum represents the next wave.” His firm belief in Ethereum becoming a new category of strategic corporate asset, like gold and treasuries, led him to scrap the BTC treasury strategy and jump to the new treasury with 100,000 ETH.
Tabar’s bullish vision on Ethereum goes on as he believes it is becoming a new category of strategic corporate asset, like “gold and treasuries.”
Productivity and high-yielding features outperform
In Tabar’s opinion, Ethereum holders can earn a good yield and capital appreciation as it imbibes real economic activity. A significant portion, or more than half, of stablecoins are built on Ethereum. And, as stablecoin value beefs up and tokenization gains traction, ETH stakers can earn rewards from every single transaction that happens on the network through the proof-of-stake (PoS) mechanism. The stakers receive rewards from the fees paid by ETH users.
How did Bit Digital earn revenue to drive the shift?
Earlier this week, the company executives officially stated that they hold 100,000 ETH to fund this treasury. The team holds this decent number of ETH after raising $172 million from a recent public offering, along with the money received from the sale of 280 Bitcoins. At the time of sale, BTC was trading at $108,775.
Bit Digital is now the second leading publicly traded ETH holder
After creating its Ethereum treasury with 100,000 Ethereum, Big Digital has now become the second-largest publicly traded holder of ETH after Coinbase. Coinbase is the largest custodial holder of ETH, including staked ETH and customer assets.
