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BTCS Inc. (NASDAQ:BTCS) reported Monday that it borrowed an additional $2.34 million in USDT from AAVE, a decentralized finance lending protocol. This move brings the company’s total borrowings on AAVE to about $17.8 million USDT, according to a press release statement and the company’s SEC filing.
The loan is collateralized by approximately 16,232 Ethereum (ETH), valued at roughly $49.1 million based on an ETH price of $3,025. The borrowing has no fixed maturity date but may be subject to liquidation if the health factor, which measures the collateralization ratio, falls below one. The health factor is calculated by multiplying the total value of the ETH collateral by its liquidation threshold (approximately 80% for ETH) and dividing by the total value of the borrowed USDT. According to InvestingPro data, BTCS maintains a robust current ratio of 43.43, indicating strong ability to meet short-term obligations.
At the time of the additional borrowing, the variable interest rate set by AAVE’s smart contract was about 5.4% per annum. The ETH collateral earns interest at a variable rate, which was approximately 2% at the same time. The effective net cost of capital, calculated as interest paid minus interest earned, is approximately 3.4%.
BTCS stated that the proceeds from the loan were used to acquire additional ETH, which the company has staked or plans to stake through its NodeOps business. The company’s Board of Directors has authorized management to borrow up to 40% of the company’s total assets, including convertible notes, at the time of borrowing.
As of July 14, 2025, BTCS’s total ETH holdings were approximately 31,855 ETH, with an aggregate fair market value of $96.2 million, based on an ETH-USD price of $3,025. The company’s total cryptocurrency holdings and cash were valued at approximately $100.6 million.
All information is based on a statement in the company’s SEC filing and press release.
In other recent news, BTCS Inc. has significantly increased its Ethereum holdings, now totaling 29,122 ETH, representing a 221% rise from the end of 2024. The company raised $62.4 million through a combination of at-the-market sales, convertible debt, and DeFi-based borrowing. BTCS has also set a new funding target of $225 million to further its Ethereum strategy, aiming to enhance long-term value through ETH-denominated returns. The company plans to raise $100 million in 2025 to acquire more Ethereum, using a hybrid financing approach that includes both decentralized finance and traditional finance mechanisms. BTCS’s block-building service, Builder+, has achieved a 2.7% market share of Ethereum network transactions, leading to direct order flow from MetaMask, a major Ethereum wallet. This development marks a significant milestone for BTCS, which also secured partnerships with Blink, Kolibrio, Cowswap, and Copium. The company anticipates record-high revenue for the second quarter, although it notes that efforts to control block space may impact margins in the short term. BTCS continues to operate validator nodes across multiple networks and has developed ChainQ, an AI-powered blockchain data analytics platform.
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