BTCS raises $57.8m to mirror Strategy’s crypto play

BTCS Inc., a Nasdaq-listed blockchain technology company, plans to buy up to $57.8 million worth of Ethereum as it looks to mirror MicroStrategys Bitcoin accumulation.

U.S.-based BTCS is looking to execute this initiative via the proceeds of a convertible notes issuance of up to $57.8 million. ATW Partners will lead the capital raise, with BTCS Inc. using the funds to purchase Ethereum (ETH).

Buying more ETH is part of the companys plan to expand its digital asset footprint, including through validator node operations, it said in an announcement on May 14. It wants to be the Strategy of ETH.

“This capital infusion is expected to enable us to scale our validator node operations by increasing our ETH holdings at what we believe is a critical inflection point in Ethereums growth trajectory,” said Charles Allen, chief executive officer of BTCS. “Similar to how MicroStrategy leveraged its balance sheet to accumulate Bitcoin, we are executing a disciplined strategy to increase our Ethereum exposure.”

BTCS sees the move as key to supporting the companys recurring revenue via staking. It also positions the firm for potential gains if the price of ETH continues to rise.

Ethereums value has jumped more than 42% in the past week, reaching highs of $2,700. While it has largely underperformed Bitcoin over the past year, analysts remain bullish that the altcoin could still rally to its all-time peak of $4,800 in 2025.

As part of the financing, BTCS has issued an initial tranche of notes worth $7.8 million, with the remaining $50 million issuance expected soon. According to details of the issuance, the notes will be convertible into common stock at a fixed conversion price of $5.85 per share. The deal represents a 194% premium over BTCSs stock price of $1.99 per share as of Monday, May 13, 2025.

CEO Charles Allen has invested $95k in the offering, while a trust the exec is a beneficiary of has put in $200k.

BTCS has previously acquired ETH via funds it borrowed through decentralized finance protocol Aave (AAVE). The convertible notes offering adds to the available financing options.