On January 8, Blockworks Research tweeted that the BitDAO coin BIT has grown by 47% over the previous 14 days. The cost is set at $2 million USDT for 50 days (a total of 100 million USDT).
The BitDAO treasury will continue to contain $300 million in USDT/USDC and 270,000 ETH (approximately USD 345 million) after the purchase of BIT, which should be sufficient to cover BIT's product development needs for more than five years.
The DAO actually possesses the second-largest cryptocurrency reserve in the world, consisting of $2 billion worth of various assets, including sizeable amounts of ETH, USDC, USDT, and FTT. Additionally, BitDAO is developing Mantle, a modular ETH L2 that makes use of EigenLayer.
Evidently, this type of commercial transaction was fairly low on the evolutionary scale. The deal should not have been approved for a number of additional reasons, one of which being the lack of information regarding potential bidders and whether or not the proposal had already been included in the price. In spite of this, the BIT token's value skyrocketed.
The BitDAO community previously debated a plan to buy back $100 million in bit tokens on December 23. This theory states that starting on January 1 of the following year, BitDAO fixed its daily purchasing limit at $2 million in USDT for a period of 50 days. This year, DAO reserves have lost a significant amount of money, with native tokens making up the great majority of their holdings. This is as a result of the decline in price of both these tokens and the overall cryptocurrency market in 2022. DAOs are looking on methods to diversify their treasuries in response. By growing their exposure to stablecoins and making investments in low-risk physical assets like US Treasuries, they are doing this.