Publicly traded BTCS acquires 26,666 in ETH, holds $242m in treasury

Ethereum treasury firm BTCS significantly expanded its holdings, which now surpass $200 million.

Ethereum (ETH) is slowly becoming a major crypto treasury asset. On Monday, July 21, BTCS, a publicly traded Ethereum treasury firm, announced a major expansion to its Ethereum holdings. Currently, the company holds 55,788 Ethereum, a 516% year-to-date increase. These holdings, combined with cash and other liquid assets, amount to $242.2 million.

Additionally, the company agreed to issue $10 million in convertible notes. The funding will come from the previously arranged $56 million investment with the investment firm ATW Partners. This funding is modest compared to the $189 million raised in one year, providing it with flexibility for future leverage.

“The Company limited this financing to $10 million as part of its strategy to maintain financial flexibility for opportunistic future leverage while maintaining its loan-to-value ratio below 40%. This approach aligns with BTCS’s commitment to maximizing ETH exposure and minimizing shareholder dilution,” BTCS press release stated.

BTCS acquired its Ethereum holdings at an average price of $2,846. Much of these purchases happened since July 14. At the time, the company disclosed holding 29,122 ETH, which combined with its cash holdings accounted for $96.3 million.

This means that the company bought approximately 26,666 ETH in one week, significantly expanding its treasury. The firm did not disclose when and how these purchases happened exactly.

BTCS leverages both tradFi and DeFi to acquire ETH

BTCS emphasized that it leveraged both traditional finance (tradFi) and decentralized finance (DeFi) to raise its capital. The firm uses a mix of equity sales, convertible debt, and DeFi-based borrowing. What is more, the company also runs Ethereum node operators, earning yield for its holdings.

“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.”