BTCS Inc (NASDAQ:BTCS) stock jumped 10% premarket after the blockchain technology company announced plans to raise $100 million in 2025 to acquire Ethereum as part of its long-term strategy.
The company aims to become the leading publicly traded firm focused on Ethereum infrastructure while maintaining its position as one of the largest ETH holders among public companies. BTCS plans to implement a hybrid financing approach combining both decentralized finance (DeFi) and traditional finance (TradFi) mechanisms.
"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.
The capital raising strategy includes several components designed to minimize shareholder dilution while maximizing ETH acquisition. These include at-the-market equity sales through the company’s existing program, convertible debt arrangements with ATW Partners LLC, and DeFi borrowing via Aave using ETH as collateral.
BTCS intends to maintain a conservative approach by adhering to a strict net asset value leverage cap of up to 40% at the time of each financing to ensure a sustainable balance sheet. The company highlighted that its Aave borrowing structure currently offers a favorable net annual cost of capital of approximately 3% with no shareholder dilution.
The initiative represents an expansion of the company’s Ethereum-first strategy, which also includes revenue generation from NodeOps (staking Ethereum) and vertical integration with Builder+ block building services.
Allen noted that with "a new crypto-friendly administration and increased institutional interest in Ethereum," the timing is right for BTCS to scale its operations rapidly.