Why Did BTCS Plunge 12.35% Amid Ethereum Expansion?

On July 9, 2025, BTCS experienced a significant drop of 12.35% in pre-market trading, reflecting a notable shift in investor sentiment towards the company.

BTCS Inc. has recently announced a strategic plan to raise $100 million in 2025 to acquire Ethereum, marking a significant expansion of its Ethereum-first strategy. The company is employing a hybrid DeFi/TradFi financing model that includes ATM equity sales, convertible debt, and DeFi borrowing through Aave. This approach aims to minimize dilution while maximizing ETH holdings, with Aave borrowing offering an attractive 3% annual cost of capital without diluting shareholders.

BTCS's initiative comes at a time when Ethereum has returned to 2021 price levels, positioning the company to become a leading publicly traded entity focused on Ethereum infrastructure. The company's strategy includes maintaining a 40% NAV leverage cap and utilizing a sophisticated accretion flywheel incorporating NodeOps staking and Builder+ block building integration. This move is seen as a strategic response to favorable market conditions and a potential regulatory environment that could support further expansion.

BTCS's announcement represents a significant strategic move in the cryptocurrency infrastructure space. The company's multi-pronged financing strategy includes existing ATM equity programs, convertible debt arrangements, DeFi borrowing via Aave, yield generation from staking, and integration with block building services. This approach is designed to achieve the least dilutive cost of capital while expanding the company's Ethereum holdings in a responsible and forward-looking manner.