Nasdaq-listed blockchain technology company BTCS Inc. is set to expand its Ethereum holdings significantly, announcing plans to acquire up to $57.8 million worth of ETH. This latest initiative echoes the Bitcoin accumulation strategy of MicroStrategy and will be financed through a convertible notes issuance which totals $57.8 million.
ATW Partners is serving as the principal investor in the capital raise. BTCS confirmed that an initial tranche of $7.8 million in notes has already been issued, with a further issuance of $50 million anticipated shortly. This offering features notes convertible into common shares at a fixed price of $5.85 per share, reflecting nearly a 194% premium over BTCS’ recent trading price of $1.99 per share (price as of May 13, 2025). Notably, CEO Charles Allen personally contributed $95,000, while a trust in which he holds beneficial interest invested an additional $200,000.
BTCS intends to channel these funds into scaling its validator node infrastructure, reinforcing and diversifying its presence in blockchain technology platforms. “This capital infusion is expected to enable us to scale our validator node operations by increasing our ETH holdings at what we believe is a critical inflection point in Ethereum’s growth trajectory,” said Allen. He further compared BTCS’ strategy to MicroStrategy’s Bitcoin-focused approach, noting the potential advantages inherent in significantly widening their Ethereum exposure.
Previously, BTCS had also acquired Ethereum capital through decentralized finance lending protocols, specifically leveraging loans from Aave. With Ethereum’s recent price rally—up over 42% within the last week and reaching highs around $2,700—the acquisition aligns with BTCS’ expectations of future growth in Ethereum’s price and increased revenue generation from staking operations.
Market analysts remain optimistic that Ethereum may revisit its all-time high near $4,800 in 2025, fueling further excitement around BTCS’s substantial new position in the cryptocurrency.
