BTCS Unveils $57.8M Capital Raise to Accelerate Ethereum Validator Expansion
With 6%-yield convertible notes, BTCS looks to pour up to $57.8 million into ETH and strengthen its validator presence across the network.
U.S.-based BTCS is gearing up to raise $57.8 million. The goal: buy more Ethereum (ETH) and expand its network validator operations.
To do this, the company is issuing convertible notes. These two-year instruments mature in May 2027, offer a 6% annual yield, and include a 5% discount at the time of issue. Investors can opt to convert them into company shares, blending stability with upside potential.
The first wave of funding — $7.8 million — has already landed in BTCS’s investment account. The company plans to use it to grow its Ethereum reserve, deploy more validators, and establish a stable stream of staking rewards.
CEO Charles Allen backed the round with $95,000 from his own pocket. A further $200,000 was contributed by a trust in which Allen is the designated beneficiary.
Similar to how MicroStrategy leveraged its balance sheet to accumulate Bitcoin, we are executing a disciplined strategy to increase our Ethereum exposure and drive recurring revenue through staking and our block building operations—while positioning BTCS for meaningful appreciation should ETH continue to rise in value,
said Charles Allen.
To strengthen its ETH reserve, the company has drawn from AAVE’s credit pool, aligning decentralized finance tools with its core strategy.
Meanwhile, ChainQ—its proprietary analytics engine—feeds BTCS real-time blockchain intelligence, helping the company optimize its capital flow and fine-tune strategic decisions.
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The funding round provides BTCS with a strong platform for large-scale expansion across Ethereum and other blockchain ecosystems. By growing its ETH holdings and validator presence, the company aims to lead among PoS operators and generate reliable staking-based revenue. BTCS positions its Ethereum-focused approach as a parallel to Strategy’s (formerly MicroStrategy) aggressive Bitcoin investment—most recently 13,390 BTC worth $1.36 billion.
Looking ahead, BTCS plans to take this model multichain—extending it to other PoS networks. This would not only diversify its crypto assets but also deepen its technical capabilities. With favorable ETH movement and disciplined execution, the company aims to deliver meaningful shareholder returns and strengthen its presence in the capital markets.
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