Chiara Bianchi
BTCS Inc. (Nasdaq: BTCS) has announced a bold strategic move to expand its Ethereum portfolio by securing a $57.8 million convertible note facility through an agreement with ATW Partners. The blockchain infrastructure company plans to use the full proceeds exclusively for purchasing ETH, strengthening its commitment to the Ethereum ecosystem.
In a statement released Wednesday, BTCS revealed that it had already issued the first tranche of $7.8 million, with the remaining $50 million available upon mutual agreement with ATW Partners.
BTCS CEO and Chairman Charles Allen highlighted the companyโs plan to mirror a strategy similar to MicroStrategyโs Bitcoin accumulation efforts:
โWeโre using our balance sheet in a disciplined way to grow our Ethereum position,โ Allen stated. โEthereum is at a pivotal moment in its evolution.โ
The move comes as Ethereum recently surged over 40% in just a week, trading at $2,587 at the time of publication. The rally followed the successful implementation of the Pectra network upgrade, which improved scalability and efficiency on the Ethereum blockchain.
Allen has personally backed the strategy with a $95,000 investment, while an additional $200,000 was contributed by a trust in which he holds a beneficial interest.
ETH Staking and Validator Expansion in Focus
BTCS emphasized that the capital injection will be used to increase the number of Ethereum validators, boost staking rewards, and optimize block production economics. The company describes Ethereum as a โfoundationalโ digital asset and a critical part of its long-term revenue model.
Based in Maryland, BTCS operates across several blockchain sectors, including validator node management, crypto staking, and on-chain analytics. Its validator infrastructure spans major networks such as Ethereum and Binance Chain.
Institutional Interest Grows Across Crypto Assets
BTCS isnโt alone in its strategy. ATW Partners, the investment firm behind the funding deal, recently struck a $500 million convertible note agreement with Canada-based SOL Strategies, aiming to scale up its Solana acquisitions.
Meanwhile, Strategy (formerly MicroStrategy) continues its aggressive accumulation of Bitcoin. Earlier this week, the company purchased 13,390 BTC, raising its total holdings to 568,840 BTCโvalued at over $59 billion.
BTCS Stock Rallies After Announcement
Following the funding news, BTCS shares rose 5.53%, closing at $2.10 on Wednesday, according to Google Finance.
