NASDAQ-listed company BTCS Inc. has increased its holdings of Ethereum (ETH) through a $57.8 million financing.

Source: Cointelegraph Original text: "NASDAQ-listed company BTCS Inc. increases its Ethereum (ETH) holdings through $57.8 million financing"

Public company BTCS Inc. announced a $57.8 million financing agreement with investment firm ATW Partners to purchase Ether to further expand its blockchain infrastructure strategic layout.

The company headquartered in Rockville, Maryland announced on May 14 that this move will allow it to expand the scale of its validator node operations and create sustainable income through Ethereum (ETH) staking.

BTCS CEO Charles Allen stated that this strategic move echoes the Bitcoin ( accumulation model previously highlighted by MicroStrategy), aiming to achieve long-term growth through Ethereum.

"We are executing a precise strategy to increase our exposure to Ethereum and drive sustainable revenue growth through staking and block construction operations," Allen said.

As part of the agreement, BTCS issued the first batch of $780 million in convertible bonds and retained the option to raise an additional $50 million in funding if both parties reach an agreement.

These bonds can be converted into BTCS common stock at a fixed price of $5.85 per share, which is nearly a 200% premium over the company's stock price of $1.99 on May 13.

These bonds have a two-year term and an annual interest rate of 6%. This means that if the bonds are not converted into shares, BTCS must repay the loan within two years, while the company is required to pay 6% interest annually during the validity period of the bonds.

In short, investors are betting that the BTCS stock price will rise. In exchange, the company received funding support to expand its Ethereum business.

Investors also received options to purchase 1.9 million shares of stock at a price of $2.75 per share within the next five years. This price, while significantly higher than the current stock price, is lower than the conversion rate stipulated in the agreement.

This financing agreement follows the company's recent action of borrowing funds to purchase ETH through the lending protocol Aave. However, the company did not disclose how many ETH were obtained through this agreement.

When BTCS announced the purchase of ETH, the cryptocurrency had just recorded a significant increase following the Pectra upgrade. On May 12, the market capitalization of Ether surged by 42%, surpassing the stock valuations of Coca-Cola and Alibaba. This surge in value placed Ether among the world's 39th largest assets by market capitalization.

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