BTCS Inc. has announced a new financing agreement aimed at purchasing Ethereum as part of its strategic expansion.
First Tranche and Agreement Terms
Under the agreement, BTCS has already issued an initial tranche worth $7.8 million, with the remaining $50 million available upon mutual consent. The convertible notes carry a fixed conversion price of $5.85 per share—a 194% premium over the company’s May 13, 2025, closing price.
BTCS Strategy Regarding Ethereum
CEO Charles Allen emphasized that this capital infusion will allow them to scale their validator node operations and increase their ETH holdings. He noted that BTCS considers Ethereum as a source of income, which is confirmed by the company's recent actions to lend ETH through the Aave decentralized financial protocol.
Future Outlook and Institutional Support
H.C. Wainwright & Co. served as the exclusive placement agent for the offering. This financing package reflects a growing trend of Ethereum-centric treasury strategies, similar to those employed by MicroStrategy regarding Bitcoin.
BTCS’s funding is aimed at expanding its Ethereum operations and reaffirms its strategic approach to strengthening its position in the digital asset market.
