BTCS Inc. aims to raise $57.8 million to acquire more ETH and expand its validator operations.
As of the end of 2024, the company owns over 9K ETH and operates more than 500 validators.
The strategic momentum of Ethereum [ETH] is heating up, and BTCS Inc., a company focused on blockchain, is the latest name to join this trend.
The company has announced a capital raising of $57.8 million to enhance its vision for ETH.
Betting strategy on ETH
The capital raising through debt, specifically a convertible note, is similar to what Michael Saylor did with MicroStrategy.
In a statement, BTCS CEO Charles Allen mentioned that the goal of the capital raising is,
"This funding is expected to allow us to expand the operations of validator nodes by increasing the amount of ETH at what we believe is a crucial turning point in the development of Ethereum."
The company stated that the increased amount of ETH will allow them to deploy additional validators (node operators) on the Ethereum network and expand staking rewards.
There are two main ways organizations can earn from the amount of ETH held. The first is through staking (locking ETH), as BTCS mentioned, and receiving the corresponding rewards.
Currently, stakers receive an annual yield of 3%-3.5% on locked ETH.
Source: Staking Rewards
This provides additional benefits compared to merely holding ETH long-term.
The strategy of seeking ETH basis is another popular tactic among organizations. It involves buying ETH on the spot, possibly through spot ETFs, and shorting CME ETH futures contracts to capture price differences (basis).
In the late 2024 price surge, the annual ETH basis increased by 21%. For those adopting both strategies, this could yield a 24% return on the amount of ETH held.
Source: Velo
After a 5% decline in Q1 2025, the ETH base rebounded in Q2 to nearly 9%. Combined with staking rewards, this provides about 12% potential returns.
BTCS Inc. focuses on the first strategy. As of December 31, 2024, the company had held 9,060 ETH and operated 522 validators. Further deployment of ETH for validator operations could enhance the ability to earn staking rewards.
It should be noted that BTCS shareholders benefited from the strong surge of ETH in May. This cryptocurrency increased by over 50% in the past two weeks, and BTCS shares rose from $1.8 to $3.1 (about 100% growth).
BTCS shares have slightly decreased and increased by 40% on a monthly basis, while returns from ETH reached 56%.
Source: Google Finance
Source: https://tintucbitcoin.com/btcs-inc-huy-dong-578-trieu-usd-de-mua-eth-tac-dong/
Thank you for reading this article!
Please Like, Comment, and Follow TinTucBitcoin to stay updated with the latest news on the cryptocurrency market and not miss any important information!