The blockchain firm aims to ramp up ETH accumulation and staking rewards with fresh capital from ATW Partners.
BTCS Inc. (Nasdaq: BTCS), a blockchain technology-focused company, has announced a new financing agreement for up to $57.8 million in convertible notes. The funding—led by ATW Partners LLC—is earmarked entirely for purchasing Ethereum (ETH) as part of the company’s strategic validator node and staking expansion.
$7.8M First Tranche Issued, Up to $50M Remaining
Under the agreement, BTCS has already issued an initial tranche worth $7.8 million, with the remaining $50 million available upon mutual consent. The convertible notes carry a fixed conversion price of $5.85 per share—a 194% premium over the company’s May 13, 2025, closing price of $1.99.
The notes mature in two years (May 13, 2027), bear a 6% annual interest, and include a 5% original issue discount. Investors also received five-year warrants to purchase 1.9 million shares of BTCS common stock at $2.75 per share, reflecting a 38% premium to market price.
Notably, CEO Charles Allen invested $95,000 personally, with an additional $200,000 contributed by a family trust. An independent board committee approved his participation in the deal.
“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,” said Allen.
“Similar to how MicroStrategy used its balance sheet to accumulate Bitcoin, we are strategically increasing Ethereum exposure to generate recurring revenue and long-term value.”
Ethereum at the Core of BTCS’s Revenue Strategy
This deal follows BTCS’s recent move to borrow ETH via Aave, a decentralized finance protocol, underlining its deep conviction in Ethereum’s long-term value. The company plans to:
BTCS views Ethereum not just as a digital asset but as a revenue-generating engine, positioning itself for significant upside if ETH continues its upward trajectory.
Institutional Backing and Future Outlook
H.C. Wainwright & Co. served as the exclusive placement agent for the offering. The strategic financing package echoes a growing trend of Ethereum-centric treasury strategies, with BTCS following a playbook similar to MicroStrategy’s Bitcoin bet.
Further details of the agreement are available in BTCS’s Form 8-K filing with the SEC, dated May 14, 2025, at www.sec.gov.
Kosta Gushterov
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Source: https://coindoo.com/btcs-secures-57-8m-ethereum-backed-funding-deal-to-expand-validator-operations/