Bit Digital Scraps Bitcoin Treasury Strategy for Ethereum


Bit Digital Scraps Bitcoin Treasury Strategy for Ethereum originally appeared on TheStreet.

Crypto is nearing a critical period in American politics, with House Speaker Mike Johnson declaring next week “Crypto Week” as two key crypto bills approach make-or-break moments.

Meanwhile, as Fundstrat’s Tom Lee lays out his thesis for Ethereum to hit $10,000, Elon Musk is launching his own bitcoin-friendly America Party and Michael Saylor pauses Bitcoin buys (gasp) in what could be a changing of the guard between BTC and ETH as Bit Digital sells its Bitcoin treasury to go all-in on Ethereum.

Here are the biggest stories in crypto this week…

Fundstrat’s Tom Lee may be the most recognizable guest on CNBC these days. He’s most known for getting a lot of his price calls right. Now, he’s making another big call: That Ethereum is on its way to $10,000.

In one of our post popular interviews of the year, Tom walks through why he joined Bitmine as Chairman to launch an Ethereum treasury company — and why he thinks Ethereum is undervalued today at $2,500. Mainly, it has to do with tokenization, stablecoin adoption, and increasing activity coming back to Ethereum.

“As more things in the financial world and real world become tokenized, then financial institutions, like Goldman and JP Morgan and Amazon, Walmart, as they do stablecoins, are also going to want to stake Ethereum itself,” he said about his bet on Bitmine. “So, we’re essentially getting in front of what other businesses will do.”

And given Ethereum remains well off its prior highs, Lee sees a larger opportunity to get ahead of the market. That may very well trigger an ETH catch up trade as other treasury companies throw their hat into the ring to scoop up Ethereum.

Case in point: publicly traded company Bit Digital, which had already made a name for itself as a Bitcoin treasury company, actually announced they sold all their Bitcoin and converted those holdings into ETH to acquire 100,603 ether as they look to become “the preeminent ETH holding company in the world.” Shares ended the day up nearly 20%.

All in all, it was a very interesting day for Michael Saylor to go without buying Bitcoin for the first week since April. As he reloads on capital, with another $4.2 billion at the money offering, it’s expected he’ll be back to buying in no time.

Core to anyone’s bullish theses on crypto has always been: eventually stocks, bonds, and any asset will be tradeable onchain.

That moment seems to have arrived. Last week, Robinhood announced they tapped Arbitrum to tokenize stock trading in the EU, and even planned to issue tokenized private shares in OpenAI and SpaceX.

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