Nasdaq-traded firm BTCS will boost its ETH holdings through a $57.8 million financing deal, led by ATW Partners Ltd. All capital secured from this deal will be earmarked exclusively for the purchase of ETH as part of a broader digital asset and validator node operations strategy, according to a company press release.
The company has issued the first tranche of notes valued at $7.8 million plus an additional capacity of $50 million, if ATW and BTCS are in mutual agreement. The notes issued as part of the financing deal have a 5% original issue discount and an interest of 6% per annum. The notes can be converted into common shares at a conversion price of $5.85 per share.
“This capital infusion is expected to enable us to scale our validator node operations by increasing our ETH holdings at what we believe is a critical inflection point in Ethereum’s growth trajectory,” said BTCS CEO Charles Allen.
“Similar to how MicroStrategy leveraged its balance sheet to accumulate Bitcoin, we are executing a disciplined strategy to increase our Ethereum exposure and drive recurring revenue through staking and our block building operations—while positioning BTCS for meaningful appreciation should ETH continue to rise in value.”
Source: CoinMarketCap.com
The price of Ethereum was trading at $2,536 with a market capitalization of $306.6 billion at the time of reporting. Over the past month, the price of Ethereum has rallied by 54.55% in value.