Blockchain firm BTCS pursues $57.8 million raise to buy ETH at its 'critical inflection point'

Nasdaq-listed blockchain tech firm BTCS plans to issue up to $57.8 million in convertible notes through a facility in agreement with ATW Partners, with the funds to be used exclusively for acquiring ETH.

With Wednesday's announcement , BTCS has issued its first tranche of notes worth $7.8 million, and the additional $50 million may be further issued subject to mutual agreement between the two companies.

"Similar to how MicroStrategy leveraged its balance sheet to accumulate Bitcoin, we are executing a disciplined strategy to increase our Ethereum exposure," said BTCS Chairman and CEO Charles Allen, adding that the company considers Ethereum to be at a "critical inflection point" in its growth trajectory. 

While struggling with stagnant growth in early 2025, ETH has recently increased in value following Ethereum network's Pectra upgrade , which addressed several efficiency and scalability issues. In the past seven days, ETH rose by around 42%, changing hands at $2,587 as of publication time.

According to the statement, Allen personally invested $95,000 in the offering, with an additional $200,000 invested by a trust of which he is a beneficiary.

"By increasing ETH holdings, BTCS aims to deploy additional validators, expand staking rewards, and further optimize block production economics," said BTCS, which described ETH as a "foundational" crypto asset and a core part of its revenue generation strategy.

The Maryland-based blockchain firm focuses on operating validator nodes, building blocks on blockchain networks such as Ethereum and Binance Chain, staking crypto assets, and operating an onchain analytics platform.

Meanwhile, ATW Partners, a New York-based investment firm, recently entered an agreement with Canada's SOL Strategies to secure a $500 million convertible note facility for SOL Strategies to buy more Solana.

BTCS' latest move is part of a broader trend among multiple U.S. companies adopting a Strategy-like crypto accumulation strategy, amid shifting regulatory conditions under pro-crypto President Donald Trump. Earlier this week, Strategy (formerly MicroStrategy) purchased another 13,390 BTC, taking its total holdings to 568,840 BTC, worth $59 billion.

BTCS' stock on the Nasdaq closed up 5.53% on Wednesday at $2.1, according to Google Finance data .