BTCS raises $10 million through convertible notes, expands ETH holdings

SILVER SPRING, MD - Blockchain technology company BTCS Inc. (NASDAQ:BTCS), which has seen its stock surge over 219% in the past year according to InvestingPro data, has closed an approximately $10 million convertible notes issuance and increased its Ethereum holdings by 14,240 ETH to reach a total of 70,028 ETH, according to a press release statement issued Monday.

The convertible notes were structured with a $13 per share conversion price, representing a 198% premium to the company’s July 18 closing price. BTCS reported that its current Ethereum holdings have a market value of approximately $270 million, based on an ETH price of $3,850.

The company also disclosed that during the week ending July 25, it sold 271,580 shares under its ATM program in a single block trade at $6.04 per share, generating $1.64 million. Following this transaction, BTCS has 47,852,778 common shares outstanding.

"Surpassing $270 million in ETH reserves that are generating revenue and yield for our shareholders through NodeOps and Builder+ is a tremendous achievement," said Charles Allen, CEO of BTCS, in the press release.

BTCS stated it has raised approximately $207 million year-to-date through various financing methods including at-the-market equity sales, convertible debt, and DeFi-based borrowing as part of what it calls its "DeFi/TradFi Accretion Flywheel" strategy.

The company describes itself as an Ethereum-focused blockchain technology firm that combines blockchain infrastructure operations with capital formation strategies to accumulate ETH while generating revenue through staking and block building activities.

In other recent news, BTCS Inc. has been active with several financial maneuvers and strategic developments. The company reported raising $62.4 million in capital this year, which includes ATM sales, convertible debt, and DeFi-based borrowing. Additionally, BTCS expanded its Ethereum holdings significantly, now holding 29,122 ETH, marking a 221% increase from the previous year. In a notable financing move, BTCS secured a $10 million convertible note with ATW Partners LLC, bolstering its liquid assets to a total of approximately $242.2 million.

The company also increased its borrowing from the AAVE lending protocol to $17.8 million USDT, collateralized by 16,232 ETH. BTCS’s inclusion in the Russell Microcap Index was another highlight, providing third-party validation of its market position. Analyst firms have taken note of these developments, with some firms likely to adjust their outlooks on BTCS. Furthermore, BTCS’s stock saw a rise following the broader cryptocurrency market’s positive performance, particularly with Ethereum reaching a six-month high. These developments underline BTCS’s strategic focus on expanding its Ethereum portfolio and securing financial stability.

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