BTCS Inc. Secures $57.8 Million Convertible Note Facility to Expand Ethereum Holdings

BTCS Inc. (Nasdaq: BTCS), a blockchain technology firm, announced a $57.8M convertible note facility led by ATW Partners LLC to purchase Ethereum (ETH). The deal includes a $7.8M initial tranche, with up to $50M more available.

The convertible notes carry a fixed conversion price of $5.85 per share, which represents a 194% premium over the company's stock price of $1.99 on May 13, 2025. The notes are set to mature on May 13, 2027, and feature a 5% original issue discount along with a 6% annual interest rate.

In conjunction with the notes, BTCS has issued five-year warrants allowing the purchase of 1,901,916 shares of common stock at $2.75 per share, a 38% premium to the closing price on May 13, 2025.

Charles Allen, CEO of BTCS, has personally invested $95,000 in the offering, with an additional $200,000 coming from a trust for which he is a beneficiary. This move underscores the leadership's confidence in the company's strategic direction.

The primary purpose of this financing is to acquire more Ethereum tokens, which will enable BTCS to scale its validator node operations. By increasing its ETH holdings, the company aims to enhance its staking rewards and optimize block production through its proprietary Builder+ platform.

BTCS's approach mirrors that of other companies that have adopted cryptocurrencies as part of their treasury strategies, with a particular focus on Ethereum. This move comes at a time when institutional interest in digital assets continues to grow, and companies are looking for ways to integrate blockchain technology into their operations.