BTCS Inc., a US company listed on the Nasdaq stock exchange, has decided to follow in the footsteps of entrepreneur Michael Saylor, but with a fundamental difference: its bet is not on bitcoin (BTC), but on ether (ETH), a cryptocurrency of the Ethereum network .
In a strategic move reminiscent of Strategy’s (formerly MicroStrategy) accumulation push, BTCS announced today, May 14, 2025, that it will raise up to $57.8 million via convertible notes, with the goal of purchasing more ETH and expanding its staking operations.
The company has already issued the first tranche for $7.8 million and, as reported, will use those funds to acquire Ether and strengthen its validator node infrastructure. The move comes at a time that its CEO, Charles Allen, considers a “turning point” in the evolution of Ethereum as a network and ETH as a digital asset.
“Similar to how MicroStrategy leveraged its balance sheet to accumulate Bitcoin, we are executing a disciplined strategy to increase our exposure to Ethereum,” Allen stated in the official statement. The CEO didn't mince words: he also personally participated in the funding, with a direct investment of $95,000, plus another $200,000 contributed by a trust of which he is a beneficiary.
The notes issued are convertible into common stock at a fixed price of $5.85 per share, representing a 194% premium to BTCS's market price at the time of the announcement ($1.99). Investors also received warrants to purchase nearly two million additional shares, with a five-year maturity and an exercise price 38% above the current value.
The funding, led by ATW Partners LLC, not only allows for increased ETH holdings but also for scaling the company's operational capacity on the Ethereum network. The goal: more validators, more staking rewards, and further optimization of block production through its Builder+ platform.
BTCS already accumulates more than 9,000 ETH
According to data from the StrategicETHReserve.xyz site , BTCS already has 9,060 ETH in its treasury , which places it in tenth place among the entities with the most ether in reserve. There it appears alongside heavyweights such as the Ethereum Foundation (265,344 ETH), Coinbase (137,334 ETH), Gnosis DAO (66,587 ETH), and the United States government itself (59,965 ETH).
This represents not only a significant accumulation for a mid-sized company, but also a statement of purpose: BTCS is aligning its balance sheet, business model, and long-term vision with Ethereum . In its own words, it's about positioning itself "for significant appreciation if ETH continues to rise."
10 organizations with the most ETH in their treasury. Source: https://www.strategicethreserve.xyz/
BTCS isn't a fledgling company in the cryptocurrency ecosystem. It developed Builder+, a tool that improves block construction on Ethereum to maximize gas fee revenue. It also manages nodes that allow other users to delegate their ETH for staking, generating recurring revenue. And, as a complement, it has ChainQ, an AI-based analytics platform.
In March of this year, BTCS also took out a loan on AAVE, the decentralized finance (DeFi) protocol, to acquire more ETH. In other words, the accumulation strategy is neither new nor isolated. It's part of a broader vision: to make Ethereum the central engine of its revenue model. Does this bet make sense?
BTCS's move is bold. At first glance, it follows a familiar logic: just as Strategy does with Bitcoin, using the company's balance sheet to accumulate a valuable digital asset, banking on its future appreciation. But here's the key difference: ETH is not BTC.
Bitcoin has a defined maximum supply of 21 million coins. Ethereum, on the other hand, has no hard cap; its issuance is dynamic and depends on factors such as transaction volume, network fees, and the burning of ETH through EIP-1559. Ethereum's monetary policy is subject to change through decisions by its development team, led by Vitalik Buterin.
The following graph, provided by the Trading Different platform, shows how the rate of issuance and, consequently, the supply of ETH has changed over time:
Despite the hype of its proponents, it's clear that ETH is not a deflationary cryptocurrency. Source: Trading Different.
Bitcoin, on the other hand, has no visible leader. Its code is extremely conservative, its changes are slow and consensual, and its network remains steadfast in its commitment to not changing the monetary rules that made it “digital gold.” Bitcoin's decentralization isn't a slogan: it's a design feature.
So, can ETH fulfill the same role as Bitcoin as a reserve asset? For BTCS, the answer is yes. They've structured their business to extract value from the Ethereum ecosystem, not only through the asset's appreciation, but also through the network's inner workings.
This is a substantial difference from Strategy. Saylor's core business isn't building infrastructure on top of Bitcoin, developing nodes, or mining. It simply accumulates BTC as a store of value greater than the dollar and issues debt to buy more BTC. It was a financial, almost philosophical decision. BTCS, on the other hand, sees Ethereum not just as an investment, but as a platform for operating, innovating, and monetizing.
Now, if ETH depreciates significantly, BTCS's business could end very badly. Does it make sense to leverage debt to accumulate ETH? Doesn't it entail higher risk, considering the network is still evolving, and its future depends in part on the success of its scaling solutions and governance?
From the Bitcoin perspective that I advocate, ETH doesn't offer the same guarantees as BTC. It's true that BTCS believes ETH is undervalued and that the current moment is ideal for accumulating. Perhaps they're right. But the comparison with Strategy invites reflection: not every digital asset is the same. And not every debt-based accumulation strategy leads to the same destination.
Are we witnessing the “Ethereum MicroStrategy"? Perhaps. But let no one forget that Ethereum is not digital gold. And that, over time, could end up costing us dearly.
