BTCS Inc. Announces Intent to Raise $100 Million for Strategic Ethereum Acquisition Using DeFi/TradFi Flywheel

Core Viewpoint - BTCS Inc. plans to raise $100 million in 2025 to acquire Ethereum, aiming to become a leading publicly traded company focused on Ethereum infrastructure and to maintain a significant ETH holding among public companies [1][2]. Group 1: Strategic Intent and Market Position - The company believes Ethereum has substantial growth potential and is crucial for future digital financial infrastructure, indicating that current price levels present an opportune moment to increase exposure [2]. - BTCS's strategy involves a transformative expansion of its Ethereum-first approach, utilizing a combination of decentralized finance (DeFi) and traditional finance (TradFi) mechanisms for capital formation [2][6]. Group 2: Financing Strategy - The planned capital raises will be structured through a DeFi/TradFi accretion flywheel, including At-The-Market (ATM) equity sales, convertible debt issuance, on-chain borrowing via Aave, yield generation from staking Ethereum, and vertical integration with Builder+ [2][4]. - The company intends to maintain a net asset value (NAV) leverage cap of up to 40% during financing to ensure a conservative balance sheet [4]. Group 3: Capital Efficiency and Growth - BTCS aims to utilize its existing $250 million shelf registration for opportunistic equity issuance, minimizing shareholder dilution while accessing equity markets efficiently [4]. - The company plans to borrow stablecoins from Aave using ETH as collateral, benefiting from a favorable net annual cost of capital around 3% with no associated dilution [5]. Group 4: Future Outlook and Innovation - By bridging DeFi and TradFi, BTCS seeks to set a precedent for public blockchain companies, enhancing shareholder value and trust in programmable financial systems [6]. - The company is positioned to lead in the evolving crypto landscape, with a focus on scaling operations amid increased institutional interest in Ethereum [7].