Nasdaq Listed Blockchain Infrastructure Company Prepares to Sell Stocks to Acquire Ethereum!!
The blockchain infrastructure company BTCS, listed on Nasdaq, has launched a plan to raise up to $57.8 million through convertible bonds, aiming to significantly expand its Ethereum (ETH) assets at what it describes as a "critical turning point" for the network.
In its announcement, the Maryland-based company revealed that it has signed a facility agreement to issue bonds with New York-based investment firm ATW Partners. BTCS has already secured the first $7.8 million tranche, and the remaining $50 million will be subject to mutual agreement.
Charles Allen, Chairman and CEO of BTCS, stated, "We are implementing a disciplined strategy to increase our Ethereum holdings, similar to how MicroStrategy has leveraged its balance sheet to accumulate Bitcoin." Allen personally invested $95,000 in the offering.
BTCS plans to use the proceeds to purchase Ethereum, which saw a nearly 42% increase last week due to renewed investor confidence following a successful Pectra network upgrade. The upgrade enhanced scalability and efficiency on Ethereum, raising the value of ETH to approximately $2,587 at the time of publication.
The company mentioned it aims to utilize its ETH accumulation to place additional validators, increase staking rewards, and enhance block production efficiency, which are key components of a broader revenue generation strategy. BTCS described Ethereum as a "core" asset for its business model, which encompasses validator node operations, staking services, and on-chain analytics.
According to Google Finance, BTCS shares closed up 5.53% at $2.10 on Wednesday.