Bit Digital holds over 150,000 ETH and has been continuously purchasing lately.

Written by: Sam Tabar, Bit Digital CEO

Translated by: Luffy, Foresight News

I have recently purchased a significant amount of ETH again.

I do this not because I am following the market cycle or being misled by various market stories. I have carefully researched the data and analyzed the intrinsic value of the asset, leading me to conclude that the current price of ETH is clearly undervalued. Once I discover that asset pricing is unreasonable, I will decisively take action.

This is not something that can be clearly explained in a single tweet, and the underlying thoughts are worth a candid discussion.

Judging Ethereum with a "currency" logic is already a misconception

Many people believe that Ethereum's ultimate goal is to become a "currency," a notion that was once highly praised. I can understand this perspective, as currency fundamentally is a game of universal consensus that requires massive long-term recognition from the crowd to ultimately form a self-reinforcing value loop. Bitcoin has taken this path, stripping away all unnecessary functions and focusing solely on sprinting towards "digital gold/currency."

However, Ethereum chose a different path from the very beginning: practical value.

This also doomed it to not succeed solely by relying on "currency consensus" like Bitcoin. At the same time, Ethereum has created fields that Bitcoin has never ventured into: a programmable underlying settlement network, on which many global projects are now building their ecosystems.

The two have completely different positioning, and their value logic is miles apart. To have Ethereum judged by whether it can become a good currency is like measuring its suitability as a circulating currency with train tracks, which is simply not on the same evaluative dimension.

Viewing Ethereum's ecological synergy issue from a different perspective

The most common criticism from the outside is that Ethereum's underlying mainnet, layer two networks, developer communities, and market participants are difficult to unify, resulting in a fragmented ecosystem that misses development opportunities.

This argument holds some truth. However, for institutional funds, they do not care who wins or loses in industry opinions; what they truly need is a stable and reliable settlement layer that has been tested in practice and supports programmable capabilities.

Currently, stable coins are issued on Ethereum, various national treasury assets are tokenized on-chain, and even AI agents' transactions are beginning to choose to settle here. These businesses do not need to wait for the market to reach a consensus; they are already happening.

Our team has chosen to deeply engage with Ethereum for a simple reason: WhiteFiber is responsible for providing computational power support, while Ethereum handles transaction settlement. Computational power + settlement are the two fundamental capabilities that traditional financial institutions need to enter the on-chain world. Currently, only Ethereum can simultaneously scale to support these two functions.

The grand narrative of Ethereum may still be in the works, but it has already been widely employed as a settlement channel.

The investment logic is correct; it’s just that everyone miscalculated the timeline

Over the past two years, many people have looked at the price trend of ETH and concluded that this round of the market has ended. In my view, it is that everyone has misidentified the trigger factors for price increases.

Relying on ordinary retail investors to hype up the sentiment and drive up the coin price is fundamentally unstable. After all, behind Ethereum is a massive infrastructure that cannot rely on retail sentiment for support. The core force that truly drives the market is institutional funds.

However, the timing of institutional entry is completely different from the hype rhythm on social media in the crypto circle. Only when the compliance system, asset custody channels are all comprehensive, the regulatory environment stabilizes, and corporate finance leaders are willing to sign off will institutions enter the market on a large scale.

And this point is much closer than what the current coin price reflects.

Why I increased my position

To put it plainly, as an asset management party, I have the responsibility to make rational capital allocation decisions. From the current price perspective, purchasing ETH fully meets investment standards.

Setting aside all flashy concepts, Ethereum itself has concrete revenue capabilities. In the first quarter of this year, our Ethereum staking business achieved a gross margin of 94.7%, which is a tangible business rather than an ethereal vision.

Ethereum guards the leading smart contract public chain globally, processing transaction volumes of several trillion dollars last year, with institution-related transaction volumes still growing quarterly. In my view, the current coin price has a significant discount compared to the overall ecological value it supports.

I am optimistic about and hold ETH, not because I expect it to become a globally accepted reserve currency. I only need it to continue performing its current functions and maintain its existing operational status.

This is enough for me to choose to increase my position and to hold long-term.