BTCS allocates $8.4 million to Ethereum for its treasury reserves, marking a bold shift away from Bitcoin in its crypto investment strategy.
Blockchain company BTCS has changed its financial strategy by investing $8.4 million in Ethereum (ETH) instead of Bitcoin (BTC). The company bought 3,450 ETH at an average price of $2,441 each, increasing its total ETH holdings to about 12,500, which are now worth over $31 million.
BTCS CEO Charles Allen highlights that Ethereum is essential for its validator node infrastructure and for earning staking revenue. The company has also secured up to $57.8 million in a convertible note facility from ATW Partners, which is dedicated solely to buying more Ethereum. Allen compares this strategy to MicroStrategy’s focus on Bitcoin.
The company has heavily invested in Ethereum because more institutions are recognizing its usefulness in decentralized finance, staking, and smart contracts. This investment comes after Ethereum’s price recently jumped 53% in the last month, thanks to the successful Pectra upgrade that improved the network’s efficiency and scalability.
BTCS Stock Performance
BTCS’ stock has reacted positively to the news. On the day of the announcement, shares jumped over 13% to close at $2.68, and they rose another 8.5% in after-hours trading. In the past month, the stock has increased by 68%, partly due to growing confidence in its plans focused on Ethereum.
The company’s financial situation has improved, with total crypto and cash assets reaching $38.4 million, an 88% rise since the beginning of Q2. With a current ratio of over 43, BTCS shows strong short-term financial health.
