BTCS, a technology company focused on cryptocurrency network infrastructure, has completed the acquisition of 2,731 ether (ETH) worth $8 million.

That was combined with a $2.34 million USDT loan taken out on Aave, a decentralized lending platform, with its own funds, said Charles Allen, CEO of BTCS

This transaction strengthens the Nasdaq-listed company's position in the Ethereum ecosystem, bringing its total holdings to 31,855 ETH, making it the eleventh largest organization with this cryptocurrency in its treasury.

The company buys ETH and uses it for staking. Source: Strategic ETH reserve.

With this acquisition, BTCS plans to ramp up its staking activities, using the acquired ETH to operate its own nodes without relying on custodians or third-party service providers, the entrepreneur noted.

Allen commented that this strategy optimizes costs by avoiding fees associated with staking. “We've been accumulating ETH since 2021,” Allen stated, highlighting the company's long-term vision for the Ethereum ecosystem.

To execute the purchase, BTCS channeled the USDT earned on Aave through CoW DAO, a decentralized protocol that facilitates cryptocurrency exchanges by connecting buy/sell orders directly between users.

Allen explained the choice of borrowing in USDT: “If I borrow ETH, I have to pay it back in ETH, so there’s no advantage [due to ETH’s potential appreciation]. With USDT, we buy ETH and generate returns through staking.”

This strategy is reminiscent of that of MicroStrategy, led by Michael Saylor, although BTCS focuses on accumulating ETH instead of bitcoin. The company seeks to consolidate its role in Ethereum's infrastructure, leveraging the growth of staking and decentralized finance to maximize the value of its holdings.