BTCS Expands Its Ethereum Holdings, Ditching Bitcoin in a Strategic Acquisition Spree

In a strategic crypto acquisition spree, BTCS, a Nasdaq-listed blockchain infrastructure company, expands its Ethereum holdings, instead of its namesake crypto

Nasdaq-listed blockchain infrastructure company BTCS is expanding its Ethereum (ETH) holdings, instead of its namesake crypto, Bitcoin (BTC).

The company has purchased 3,450 ETH for approximately $8.42 million, bringing its total ETH holdings to nearly 12,500 tokens, valued at approximately $31.8 million. At the end of Q1 2025, BTCS held 9,063 ETH.

The company sees Ethereum as a foundational asset for its operations and growth. The strategic addition of over $8 million in ETH to the company’s treasury aims to strengthen validator operations, increase staking revenue, and drive long-term shareholder value, according to CEO Charles Allen.

"We remain focused on allocating capital to assets and activities that generate value for BTCS and its shareholders," Allen said. "We are also committed to expanding our validator operations and increasing our role in securing the Ethereum network."

The company’s purchase of 3,450 ETH at an average price of $2,441 per token comes as the cryptocurrency has seen increasing demand from institutional investors.

On Saturday, crypto hedge fund Hashflow pulled out $1 billion in liquidity from Aave and performed a large ETH purchase. The move signaled a broader trend of institutional investors becoming more interested in the second-largest cryptocurrency.

The net inflow for ETH on May 20 was $64,889 million, one of the biggest single-day inflows. Among the biggest was AUM in BlackRock’s ETHA, which saw a single-day inflow of $45 million.

Following the purchase, the BTCS Stock price surged significantly, currently hitting $2.68, up 13.56%. Over the last five days, the share has seen a growth of 21.27%. At the same time, over a one-month time frame, the stock price has increased by a staggering 68%.

The purchase has also boosted the company’s total crypto holdings and cash to approximately $38.42 million, an 88% jump since the start of Q2.

With a current ratio of 43.43, the blockchain firm boasts a robust liquidity position, with liquid assets far exceeding its short-term obligations.

As the company expands its validator operations and integrates more DeFi protocols, it aims to generate even greater revenue streams from staking and validator activities. This strategy aligns with the company’s goal of maximizing returns for shareholders.

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