In a bold move to deepen its foothold in blockchain infrastructure, publicly traded firm BTCS has inked a $57.8 million financing deal led by investment firm ATW Partners. The Maryland-based company revealed the agreement on May 14, outlining plans to significantly ramp up its Ethereum validator node operations and generate sustainable revenue through ETH staking.
BTCS Inc. has arranged financing to buy up to $57.8M Ether ($ETH)
The company has entered into an agreement for the issuance of convertible notes led by ATW Partners LLC.
This capital infusion enables us to expand our Ethereum validator node operations and increase ETH… pic.twitter.com/WhxTHaEY2F
— BTCS Inc. (Nasdaq: BTCS) (@NasdaqBTCS) May 14, 2025
According to BTCS CEO Charles Allen, the initiative aligns with a broader industry trend set by companies like Strategy (formerly MicroStrategy), which famously bet big on Bitcoin.
“We are executing a disciplined strategy to increase our Ethereum exposure and drive recurring revenue through staking and our block building operations,”
Allen stated.
Under the financing terms, BTCS will receive an initial $7.8 million in convertible notes, with an option to access an additional $50 million subject to mutual agreement. The convertible notes are priced at $5.85 per share—nearly triple the company’s $1.99 share price as of May 13, signalling investor confidence in the stock’s growth potential.
The two-year notes carry an annual interest rate of 6%, and investors can convert the notes into BTCS common stock. As an added incentive, the agreement grants investors the right to purchase 1.9 million BTCS shares at $2.75 each over the next five years—a figure below the note conversion price but still above current trading levels.
The fresh capital injection is expected to accelerate BTCS’s Ethereum staking ambitions, further supported by its earlier ETH purchases through the decentralized lending protocol Aave. While the company declined to specify how much ETH it had acquired through Aave, the latest developments coincide with a significant rally in the crypto asset’s market performance.
Following the Pectra upgrade, Ether surged 42% in market capitalization as of May 12, overtaking giants like Coca-Cola and Alibaba and securing its position as the world’s 39th-largest asset by market cap. This momentum appears to fuel BTCS’s confidence in Ethereum as a long-term growth engine.
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