Shares of BTCS Inc. (NASDAQ:BTCS) jumped 10% in premarket trading after the company unveiled an ambitious strategy to raise $100 million in 2025 aimed at expanding its Ethereum holdings. The move is part of BTCS’s broader objective to solidify its position as a key player in Ethereum infrastructure and one of the top public holders of ETH.
To fund this initiative, BTCS plans to employ a blended financing model that leverages both decentralized finance (DeFi) and traditional financial (TradFi) instruments. The company emphasized that this hybrid approach is designed to maximize Ethereum accumulation while limiting dilution for existing shareholders.
“We believe that Ethereum has significant growth potential and is central to the future digital financial infrastructure. Now, with Ethereum at 2021 price levels, is the time to deepen our exposure,” said Charles Allen, CEO of BTCS.
BTCS outlined a multifaceted capital-raising framework that includes at-the-market (ATM) equity offerings via its current program, convertible debt financing through ATW Partners LLC, and collateralized DeFi lending using Aave. These efforts aim to balance aggressive growth with financial prudence.
The company stated it will cap its net asset value leverage at 40% for each financing event to protect its balance sheet. Management also noted that DeFi borrowing through Aave currently offers a competitive net annual capital cost of around 3%, without diluting shareholders.
This funding initiative builds upon BTCS’s existing Ethereum-focused strategy, which already features revenue from NodeOps (staking operations) and integration with Builder+, its proprietary block-building technology.
Allen added, “With a new crypto-friendly administration and increased institutional interest in Ethereum, the timing is right for BTCS to scale its operations rapidly.”