- BTCS Inc. aims to raise $57.8M for more ETH buys and validator operations.
- As of the end of 2024, the firm had over 9K ETH and operated over 500 validators.
Ethereum’s [ETH] strategic momentum is heating up, and BTCS Inc., a blockchain-focused firm, is the latest to join the trend.
The firm announced a $57.8 million capital raise to advance its ETH vision.
Strategy-like bet on ETH
The firm’s capital raise will be through debt, a convertible note, similar to Michael Saylor’s Strategy (formerly MicroStrategy) play.
In a statement, BTCS CEO Charles Allen stated the goal of the fundraising as,
“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 Ethereum’s growth trajectory.”
The firm added that the increased ETH holdings would allow it to deploy extra validators (node operators) on the Ethereum network and expand its staking rewards.
For reference, there are two major ways institutions can earn from their ETH holdings. The first is through staking (locking ETH), as mentioned by BTCS, and getting rewards in return.
Currently, the stakers earn a 3%-3.5% yield on their locked ETH on an annual basis.

Source: Staking Rewards
This offers an extra gain as opposed to just holding ETH for a long period of time.
Hunting for ETH basis trade is another common strategy by institutions. It involves buying the spot ETH, probably through a spot ETF, and shorting the CME ETH Futures to collect the price difference (basis).
During the late 2024 rally, ETH’s annualized basis increased 21%. For the players who deployed both strategies, that implied a 24% potential yield on their ETH holdings.

Source: Velo
After a 5% decline in Q1 2025, ETH basis trade rebounded again in Q2 to nearly 9%. Combined with the staking rewards, that would imply about 12% potential gains.
BTCS Inc. is focused on the first strategy. As of 31, 2024, the firm held 9,060 ETH and operated 522 validators. Deploying more ETH for validator operations could increase its staking rewards capacity.
That said, shareholders of BTCS benefited from ETH’s massive pump in May. The altcoin rallied over 50% in the past two weeks, and BTCS shares doubled from $1.8 to $3.1 (about a 100% rally).
BTCS stock gave back some gains and was up 40% on a monthly basis, while ETH returns stood at 56%.

Source: Google Finance
- BTCS Inc. aims to raise $57.8M for more ETH buys and validator operations.
- As of the end of 2024, the firm had over 9K ETH and operated over 500 validators.
Ethereum’s [ETH] strategic momentum is heating up, and BTCS Inc., a blockchain-focused firm, is the latest to join the trend.
The firm announced a $57.8 million capital raise to advance its ETH vision.
Strategy-like bet on ETH
The firm’s capital raise will be through debt, a convertible note, similar to Michael Saylor’s Strategy (formerly MicroStrategy) play.
In a statement, BTCS CEO Charles Allen stated the goal of the fundraising as,
“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 Ethereum’s growth trajectory.”
The firm added that the increased ETH holdings would allow it to deploy extra validators (node operators) on the Ethereum network and expand its staking rewards.
For reference, there are two major ways institutions can earn from their ETH holdings. The first is through staking (locking ETH), as mentioned by BTCS, and getting rewards in return.
Currently, the stakers earn a 3%-3.5% yield on their locked ETH on an annual basis.

Source: Staking Rewards
This offers an extra gain as opposed to just holding ETH for a long period of time.
Hunting for ETH basis trade is another common strategy by institutions. It involves buying the spot ETH, probably through a spot ETF, and shorting the CME ETH Futures to collect the price difference (basis).
During the late 2024 rally, ETH’s annualized basis increased 21%. For the players who deployed both strategies, that implied a 24% potential yield on their ETH holdings.

Source: Velo
After a 5% decline in Q1 2025, ETH basis trade rebounded again in Q2 to nearly 9%. Combined with the staking rewards, that would imply about 12% potential gains.
BTCS Inc. is focused on the first strategy. As of 31, 2024, the firm held 9,060 ETH and operated 522 validators. Deploying more ETH for validator operations could increase its staking rewards capacity.
That said, shareholders of BTCS benefited from ETH’s massive pump in May. The altcoin rallied over 50% in the past two weeks, and BTCS shares doubled from $1.8 to $3.1 (about a 100% rally).
BTCS stock gave back some gains and was up 40% on a monthly basis, while ETH returns stood at 56%.

Source: Google Finance
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