BTCS Inc. is a Nasdaq listed blockchain technology company that plans to purchase up to $57,8 million in Ethereum to mimic MicroStrategy’s Bitcoin acquisition.
BTCS in the U.S. is planning on executing this initiative with proceeds from a convertible debt issuance that could reach up to $57,8 million. ATW Partners, a capital-raising firm will be leading this initiative. BTCS Inc. plans to use these funds to buy Ethereum.ETH).
It said it would buy more ETH to help expand the digital asset footprint. This includes using validator-node operations. announcement On May 14, The 14th of May is a day that everyone wants. Strategy ETH.
“This capital infusion is expected to enable us to scale our validator node operations by increasing our ETH holdings at what we believe is a critical inflection point in Ethereum’s growth trajectory,” Charles Allen, Chief Executive Officer of BTCS. “Similar to how MicroStrategy leveraged its balance sheet to accumulate Bitcoin, we are executing a disciplined strategy to increase our Ethereum exposure.”
BTCS views the move as crucial to support the company’s recurring revenues via staking. The move also allows the company to gain potential profits if the price for ETH rises.
Ethereum’s price has increased by more than 42 percent in the last week. It reached a high of $2700. Analysts believe that despite the fact it has underperformed Bitcoin in the last year, the altcoin will still reach its peak value of $4,800 by 2025.
BTCS is providing financing by issuing an initial tranche in the amount of $7.8 millions. A second tranche in the amount of $50 million will be issued soon. Details of the note issuance indicate that the notes are convertible to common stock for a set price of 5.85 dollars per share. This deal is a 194% increase over BTCS stock’s $1.99 price per share on Monday, May 13th 2025.
The CEO Charles Allen invested $95k, and a trust that the executive is part of put up $200k.
BTCS previously purchased ETH through funds borrowed via decentralized finance protocol (Aave).AAVE). This adds another option to your financing choices.
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Source: crypto.news
