BTCS Inc. Files $2 Billion Shelf Registration to Buy More Ethereum
BTCS plans to raise $2B through stock offerings to expand its Ethereum holdings strategy.
BTCS currently holds 70,028 ETH worth $265.3M, aiming to scale with staking and block building.
BTCS expects $12M from warrant exercises as part of its Ethereum-focused financial strategy.
On July 30, Whale Insider on X said that BTCS Inc., a blockchain technology company based in the U.S., has asked the Securities and Exchange Commission (SEC) for permission to raise up to $2 billion. There will be several rounds of common stock offerings to raise the money. The company plans to use the money to buy more Ethereum (ETH), cover working capital needs, and pay for general business expenses.
BTCS now has 70,028 ETH, which is worth about $265.3 million. The company said in its filing that it is still committed to getting more Ethereum and increasing returns through capital markets, staking, and building blocks.
S-3 Filing and Capital Plan
BTCS made a filing of form S-3 shelf registration, they can issue a variety of securities, including common stock, preferred stock, and warrants. Such a filing is not rigid that the company fails to tap into the capital market without much difficulty when the time is ripe.
The company also filed to sell more than 5 million common shares that are linked to existing convertible notes and warrants, in addition to the $2 billion offering plan. BTCS expects to raise about $12 million from these warrants, which will be used for working capital.
Ethereum-Focused Operations and Risks
BTCS is an Ethereum-first company because it has stopped doing other blockchain staking activities and sold off its altcoin holdings. The company is now focusing its efforts on Ethereum’s expanding ecosystem, which includes validator operations and block building through its Builder+ program.
The company uses both on-chain borrowing methods, like Aave protocols, and more traditional ways to raise money, like At-The-Market offerings. This mixed approach makes capital use more efficient, but it also adds risks. If ETH prices drop a lot, collateral could be sold off, which would affect the value of assets and how investors feel about them.Investors should keep an eye on ETH price trends, the stability of DeFi protocols, and the possibility that the shelf offering will dilute their shares.
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