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Investing.com -- BTCS Inc (NASDAQ:BTCS) stock surged 11% following the blockchain technology company’s announcement of a $10 million convertible note agreement with ATW Partners LLC, adding to its significant Ethereum holdings.
The company reported that its combined market value of Ethereum holdings, cash, and other liquid assets now totals approximately $242.2 million, based on an ETH price of $3,600. BTCS currently holds 55,788 ETH with an average cost of $2,846 per token, representing a 516% increase in holdings year-to-date.
The newly secured convertible notes come with a fixed conversion price of $13 per share, representing a 198% premium over the company’s closing stock price of $6.57 on July 18, 2025. The notes have a two-year maturity, expiring on July 21, 2027, include a 5% original issue discount, and carry a 6% annual interest rate.
As part of the financing, BTCS will also issue five-year warrants to purchase 879,375 shares of common stock at an exercise price of $8 per share, a 122% premium to the recent closing price. The funding is expected to close by July 22, 2025.
"We believe that BTCS is the most financially and operationally leveraged Ethereum play in public markets today," said Charles Allen, CEO of BTCS. "Our vertically integrated block-building and node operations are generating record revenue, and when combined with solid execution of our hallmark DeFi/TradFi Accretion Flywheel, BTCS offers investors scalable, high-growth exposure to Ethereum."
The company has raised $189 million year-to-date through a combination of at-the-market equity sales ($132 million), above-market convertible debt ($17 million), and DeFi-based borrowing ($40 million) as part of its strategy to optimize ETH exposure while managing dilution.
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