BTC Digital Ltd. (BTCT) announced it has established a strategic reserve of $1 million in Ethereum, marking the first phase of the blockchain technology company’s initiative to increase exposure to Ethereum’s financial infrastructure.

The Singapore-based company said the reserve represents part of a broader strategy to position itself for growth in digital assets. CEO Siguang Peng stated the move aims to prepare the company for decentralized finance, stablecoin issuance, and asset tokenization opportunities.

The company cited several factors driving its Ethereum reserve strategy, including the cryptocurrency’s role as infrastructure for major stablecoins like USDT and USDC. BTC Digital noted that stablecoin activity has increased Ethereum’s on-chain transaction volume to levels approaching traditional financial systems.

The announcement highlighted institutional adoption trends, with mining and blockchain companies integrating Ethereum into reserve portfolios for yield generation and collateral purposes. BTC Digital also referenced regulatory developments in the United States and upcoming technical upgrades to the Ethereum network.

BTC Digital described its strategic evolution from cryptocurrency mining operations to participation in on-chain financial infrastructure. The company indicated plans to continue expanding its Ethereum holdings based on market developments and network upgrades.

The company operates in blockchain technology with focus on cryptocurrency mining, mining farm construction, mining pool operations, and data center services primarily in North America.