BitDAO Is The Second-Largest Crypto Treasury, Valued At $2 Billion

Key Points:

• BIT has gained by 47% in the last 14 days.
• The price is set at 2 million USDT for 50 days (a total of 100 million USDT).
• The DAO contains significant amounts of ETH, USDC, USDT, and FTT.

Blockworks Research tweeted on January 8 that the BitDAO token BIT has increased by 47% in the previous 14 days. For 50 days, the price is set at 2 million USDT (a total of 100 million USDT).

Following the purchase of BIT, the BitDAO treasury will still contain $300 million in USDT/USDC and 270,000 ETH (roughly USD 345 million), which should be able to meet BIT product development needs for more than 5 years. 

The DAO actually has the world’s second largest cryptocurrency treasury, with $2 billion in diverse assets, including significant quantities of ETH, USDC, USDT, and FTT.  BitDAO is also working on Mantle, a modular ETH L2 that uses EigenLayer.

This kind of business dealing was evidently quite low on the evolutionary scale. There were several other reasons why the transaction should not have been accepted, one of which being the lack of knowledge regarding potential buyers and whether or not the proposition had already been factored into the price. Despite this, the value of the BIT token increased dramatically.

Previously, on December 23, the BitDAO community considered a proposal to purchase back $100 million in bit tokens. This idea is that BitDAO set its daily buy limit at $2 million in USDT for 50 days beginning January 1 of the following year. The value of DAO reserves has plummeted this year, with native tokens accounting for the vast majority of their holdings. This is because the price of these tokens, like the price of the entire crypto market, has plummeted during 2022. In response, DAOs are investigating techniques to diversify their treasuries. They are achieving this by increasing their exposure to stablecoins and investing in low-risk tangible assets such as US Treasuries.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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