BTCS has announced a deal with ATW Partners, under which it has secured a credit line for the issuance of bonds amounting to $57.8 million. The funds are intended for the purchase of Ethereum and the deployment of validators in the network.
This is reported by Бізнес • Медіа
According to the terms of the agreement, BTCS will issue convertible bonds and has received the first tranche of $7.8 million. ATW Partners is committed to purchasing the remaining bonds, with the timeline unspecified. The bonds will be convertible into common stock at a rate of $5.85, reflecting a premium of 194% compared to the value of the securities on May 13, 2025. Additionally, the bonds will yield interest at a rate of 6% per annum.
BTCS Investment Strategy
BTCS Chairman and CEO Charles Allen stated:
“Just as MicroStrategy [now Strategy] used its balance sheet to accumulate Bitcoin, we are implementing a disciplined strategy to increase our presence in Ethereum.”
Allen also personally invested $95,000, and the trust he manages provided an additional $200,000.
Ethereum Outlook
Charles Allen expressed confidence that Ethereum is at a “turning point” and believes that the asset’s price will rise in the future. The company’s current position indicates that Ethereum is a key component of the firm’s revenue strategy. Over the past week, the asset’s price has increased by more than 40%. Although at one point the price exceeded $2700, it later retraced below $2600.
It is worth noting that BTCS is not the only company utilizing this business model. For example, ATW Partners has entered into a similar agreement with the Canadian company SOL Strategies, which plans to invest the funds raised from the bond issuance into Solana and launch validators for that network.