BTCS Inc. (BTCS) stock skyrocketed over 110% today after the blockchain technology firm disclosed plans to raise $100 million in 2025 to accumulate Ethereum (ETH-USD). This move aligns with the company’s plan to become one of the largest ETH holders among public companies.
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BTCS’s Financial Strategy
The company aims to adopt a hybrid financing model, integrating both decentralized finance (DeFi) and traditional finance (TradFi) tools to meet its funding goals.
It must be noted that BTCS seeks to build up its Ethereum holdings while limiting shareholder dilution. To achieve this, the company is using tools such as at-the-market (ATM) equity sales, convertible debt deals with ATW Partners LLC, and DeFi loans from Aave, backed by its current ETH.
“We believe that Ethereum has significant growth potential and is central to the future digital financial infrastructure. Now, with Ethereum at 2021 price levels, is the time to deepen our exposure,” said CEO Charles Allen.
Growing Trend Among Crypto Firms
Inspired by Michael Saylor’s Bitcoin-centered tactic at Strategy (MSTR), several public companies are now turning to Ethereum, seeing long-term value and income from holding and staking it.
Some of the crypto firms following this trend are Bit Digital (BTBT), SharpLink Gaming (SBET), BitMine Immersion (BMNR), and GameSquare. These companies aim to acquire and hold ETH as a treasury asset.
Is BTCS a Good Stock to Buy?
Turning to Wall Street, BTCS stock is a Moderate Buy based on one analyst rating. On May 20, Top analyst Kevin Dede from H.C. Wainwright reiterated a Buy rating on the stock with a price target of $5 (15.4% downside from the current level).
