Blockchain company BTCS plans to raise 57.80 million USD to increase its Ethereum holdings, stating that it is at a critical turning point.

BTCS, a Nasdaq-listed blockchain technology company, plans to raise up to $57.8 million through convertible notes in partnership with ATW Partners to exclusively purchase Ethereum (ETH).

The company has already issued the first tranche worth $7.8 million, with the possibility of issuing an additional $50 million. BTCS CEO Charles Allen likened their strategy to MicroStrategy's Bitcoin accumulation, viewing Ethereum as at a "critical inflection point" following the recent Pectra upgrade that improved network efficiency and scalability. ETH's value has increased by about 42% in the past week, trading at $2,587.

Allen personally invested $95,000 in the offering, with an additional $200,000 from a trust he benefits from. BTCS aims to increase ETH holdings to deploy more validators, expand staking rewards, and optimize block production economics.

The company operates validator nodes on networks like Ethereum and Binance Chain and runs an onchain analytics platform. This move aligns with a broader trend of U.S. companies accumulating crypto assets amid favorable regulatory conditions. BTCS's stock rose 5.53% to $2.1 on Nasdaq following the announcement.

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