BTCS Inc. ETH and Cash Market Value Now $242 Million

Core Viewpoint - BTCS Inc. has announced the issuance of approximately $10 million in convertible notes at a conversion price of $13 per share, representing a 198% premium over its recent stock price, as part of its DeFi/TradFi Accretion Flywheel strategy [1][2][7]. Funding and Financial Strategy - Year-to-date, BTCS has raised a total of $189 million through various funding methods, including $132 million from at-the-market sales, $17 million from above-market convertible debt, and $40 million from DeFi-based loans [4]. - The company aims to maintain financial flexibility for future leverage while keeping its loan-to-value ratio below 40%, which aligns with its strategy to maximize ETH exposure and minimize shareholder dilution [2][3]. Capital Formation Strategy - BTCS is executing its DeFi/TradFi Accretion Flywheel strategy, which combines decentralized and traditional finance to enhance its ETH holdings and shareholder value [3]. - The company has raised capital through a mix of equity sales, convertible debt, and DeFi borrowing, focusing on optimizing ETH exposure while managing dilution [3]. Asset and Holdings Overview - The combined market value of BTCS's assets, including 55,788 ETH holdings and cash, is approximately $242.2 million, based on an ETH price of $3,600 [1]. - The average cost per ETH for the company is $2,846, reflecting a 516% increase year-to-date [4]. Convertible Note Details - The $10 million convertible notes have a two-year maturity, a 5% original issue discount, and an annual interest rate of 6% [7]. - In conjunction with the note issuance, five-year warrants will be issued to purchase 879,375 shares at an exercise price of $8 per share, representing a 122% premium to the recent closing price [8]. Capital Structure and Shareholder Information - The company has provided an updated breakdown of its capital structure, indicating a total of 46,910,873 outstanding shares and 52,704,106 fully diluted shares [11]. - Approximately 16 million shares of Series V are excluded from the fully diluted share count due to restrictions on conversion for 18 months [11][12].