JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
NEW YORK - Blockchain technology company BTCS Inc. (NASDAQ:BTCS), currently valued at $59 million and showing remarkable momentum with a 20% gain last week, announced Tuesday its intention to raise $100 million in 2025 to acquire Ethereum as part of its long-term strategy to build a leading publicly traded company focused on Ethereum infrastructure. According to InvestingPro analysis, the stock has demonstrated significant volatility, with more than 10 key insights available to subscribers.
The Maryland-based firm plans to implement a financing model combining both decentralized finance (DeFi) and traditional finance (TradFi) mechanisms. The capital raising strategy includes At-The-Market equity sales, convertible debt issuance, on-chain borrowing via Aave, and yield generated from staking Ethereum. The company maintains strong liquidity with a current ratio of 43.4, though InvestingPro data indicates challenges with profitability and margins.
"We believe that Ethereum has significant growth potential and is central to the future digital financial infrastructure. Now, with Ethereum at 2021 price levels, is the time to deepen our exposure," said Charles Allen, CEO of BTCS, in the press release.
According to the announcement, BTCS intends to maintain a net asset value leverage cap of up to 40% at the time of each financing to ensure a sustainable balance sheet. The company will utilize its existing ATM program and may leverage its previously announced convertible debt arrangement with ATW Partners LLC.
The firm also plans to continue borrowing stablecoins from Aave using ETH as collateral, a structure it describes as a perpetual loan with a current net annual cost of capital of approximately 3%.
BTCS, which operates validator nodes across multiple proof-of-stake networks, has also developed a block-building operation called Builder+ and an AI-powered blockchain data analytics platform named ChainQ.
The company stated it would provide additional updates regarding specific timelines and instruments as part of its regular investor communications, subject to disclosure obligations under securities laws. With revenue projected to grow 72% and the stock currently trading above its Fair Value, investors can access comprehensive analysis and real-time updates through InvestingPro’s advanced financial metrics and exclusive insights.
In other recent news, BTCS Inc. has reported expected record-high revenue for the second quarter of 2025, driven by its block builder achieving a 2.7% market share in Ethereum network transactions. This growth enabled BTCS to secure direct order flow from MetaMask, as well as partnerships with Blink, Kolibrio, Cowswap, and Copium. Additionally, BTCS expanded its Ethereum holdings by acquiring 1,000 ETH through AAVE borrowing and 3,450 ETH using funds from recent financings, bringing its total holdings to approximately 14,600 ETH. The fair market value of BTCS’s total cryptocurrency holdings and cash now stands at around $38.42 million, an 88% increase since the beginning of the second quarter. BTCS conducted its Annual Meeting of Shareholders, where all director nominees were elected, and the company’s independent auditor was ratified for the fiscal year 2025. The company emphasizes Ethereum’s role in its strategy to scale validator operations and increase staking revenue. BTCS aims to address margin pressures by scaling operations and enhancing its technology stack. These developments reflect BTCS’s ongoing efforts to strengthen its position in the blockchain infrastructure sector.
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