Blockchain-focused BTCS Inc. to raise $57.8M for Ethereum buys – Impact on ETH?

By: ambcrypto|2025/05/16 13:15:04

BTCS Inc. aims to raise $57.8M for more ETH buys and validator operations. As of the end of 2024, the firm had over 9K ETH and operated over 500 validators. Ethereum’s [ETH] strategic momentum is heating up, and BTCS Inc., a blockchain-focused firm, is the latest to join the trend. The firm announced a $57.8 million capital raise to advance its ETH vision. Strategy-like bet on ETH The firm’s capital raise will be through debt, a convertible note, similar to Michael Saylor’s Strategy (formerly MicroStrategy) play. In a statement , BTCS CEO Charles Allen stated the goal of the fundraising as, “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.” The firm added that the increased ETH holdings would allow it to deploy extra validators (node operators) on the Ethereum network and expand its staking rewards. For reference, there are two major ways institutions can earn from their ETH holdings. The first is through staking (locking ETH), as mentioned by BTCS, and getting rewards in return. Currently, the stakers earn a 3%-3.5% yield on their locked ETH on an annual basis. Source: Staking Rewards This offers an extra gain as opposed to just holding ETH for a long period of time. Hunting for ETH basis trade is another common strategy by institutions. It involves buying the spot ETH, probably through a spot ETF, and shorting the CME ETH Futures to collect the price difference (basis). During the late 2024 rally, ETH’s annualized basis increased 21%. For the players who deployed both strategies, that implied a 24% potential yield on their ETH holdings. Source: Velo After a 5% decline in Q1 2025, ETH basis trade rebounded again in Q2 to nearly 9%. Combined with the staking rewards, that would imply about 12% potential gains. BTCS Inc. is focused on the first strategy. As of 31, 2024, the firm held 9,060 ETH and operated 522 validators. Deploying more ETH for validator operations could increase its staking rewards capacity. That said, shareholders of BTCS benefited from ETH’s massive pump in May. The altcoin rallied over 50% in the past two weeks, and BTCS shares doubled from $1.8 to $3.1 (about a 100% rally). BTCS stock gave back some gains and was up 40% on a monthly basis, while ETH returns stood at 56%. Source: Google Finance Share Share Tweet

On March 4, 2026, DDC Enterprise Limited (NYSE American: DDC) today announced preliminary, unaudited full-year financial performance for the year ended December 31, 2025. The company expects to achieve record revenue and record positive adjusted EBITDA, primarily driven by continued growth in its core consumer food business and overall margin improvement. The final audited financial report is expected to be released in mid-April 2026.

2025 Full-Year Financial Highlights

Revenue: Expected to be between $39 million and $41 million, reaching a new company high.

Organic Growth: Excluding the impact of the company's strategic contraction of its U.S. operations, core revenue is expected to grow 11% to 17% year over year.

Gross Profit Margin: Expected to be between 28% and 30%, reflecting continued operational efficiency improvements.

Adjusted EBITDA: The company expects to achieve a positive full-year result in 2025, a significant improvement from a $3.5 million loss in 2024, mainly due to rigorous cost controls and a higher-margin sales mix.

Core Consumer Food Business Performance

In 2025, DDC's core consumer food business maintained strong operational performance.

The company also disclosed Core Consumer Food Business Adjusted EBITDA, a metric that further excludes costs related to its Bitcoin reserve strategy and non-cash fair value adjustments related to its Bitcoin holdings from adjusted EBITDA to more accurately reflect the core business performance.

In 2025, Core Consumer Food Business Adjusted EBITDA is expected to be between $5.5 million and $6 million.

Bitcoin Reserve Update

In the first half of 2025, DDC initiated a long-term Bitcoin accumulation strategy, holding Bitcoin as its primary reserve asset.

As of December 31, 2025: The company holds 1,183 BTC.

As of February 28, 2026: Holdings increased to 2,118 BTC

Today's additional purchase of 65 BTC brings the company's total holdings to 2,183 BTC

DDC Founder, Chairman, and CEO Norma Chu stated, "We are proud to have closed 2025 with record revenue and positive adjusted EBITDA, demonstrating the steady growth of the company's consumer food business and the ongoing improvement in profitability. We are building a disciplined, growth-oriented food platform and strategically allocating capital to Bitcoin assets with a long-term view, aligning with our core beliefs. We believe that this dual-track model of 'Steady Consumer Business + Strategic Bitcoin Reserve' will help DDC create lasting long-term value for shareholders."

Adjusted EBITDA Definition
For the full year 2025, the company defines "Adjusted EBITDA" (a non-GAAP financial measure) as: Net income / (loss) excluding the following items:· Interest expense· Taxes· Foreign exchange gains/losses· Long-lived asset impairment· Depreciation and amortization· Non-cash fair value changes related to financial instruments (including Bitcoin holdings)· Stock-based compensation

About DDC Enterprise Limited

DDC Enterprise Limited (NYSE: DDC) is actively implementing its corporate Bitcoin Treasury strategy while continuing to strengthen its position as a leading global Asian food platform.

The company has established Bitcoin as a core reserve asset and is executing a prudent, long-oriented accumulation strategy. While expanding its portfolio of food brands, DDC is gradually becoming one of the public company pioneers in integrating Bitcoin into its corporate financial architecture.

Uncovering YZi Labs 229 Investment: Over 18% of the portfolio is already inactive, with an average project transparency score of 78

In terms of strategic direction, YZi Labs has begun to extend into areas such as AI and stablecoins, but overall it is still in the layout and validation stage.

Trump Backs Crypto Bill, SEC Halts Leveraged ETF, What Is the English-Speaking Crypto Community Talking About?

What Was Hot in the Last 24 Hours Among Expats?

OpenClaw Floods Into Polymarket, Some Making Tens of Thousands Per Month

Are you ready to venture into Polymarket and dive into the shrimp farming craze?

Understanding Trump's "Warfare Playbook": Ten Signals Investors Must Know

Debriefing Trump's series of conflicts over the past year, this article outlines ten stages of Trump's conflict strategy, revealing the underlying logic between war, market fluctuations, and eventual negotiation.

Iranian Missile Heading Toward UAE, Claude Also Within Range

On March 1st, an Iranian missile struck an Amazon data center in the UAE. On the same day, Claude experienced a worldwide outage.

Successive Core Team "Heroes" Depart, Has Aave's DAO Dream Crumbled?

「This is not a matter of right or wrong, but rather a situation where existing governance mechanisms have not provided an effective resolution when interests and positions are misaligned.」

Is This the Year of the Robot? A Deep Dive into Robotics Projects

What are some noteworthy projects in the Robotic Race track?

When AI Takes Over Money: Bitcoin Becomes the "First Choice," Fiat Is Left Out

AI's view on "what makes a good currency" is already quite consistent.

AI Trading in Live Markets: 4 Lessons From a WEEX Hackathon Top 10 Finalist

AI trading meets real markets. Explore 4 lessons from a WEEX Hackathon Top 10 finalist on surviving volatility, trusting AI models, and building smarter crypto trading systems.

MegaETH Co-founder: 48 Hours After Leaving Dubai, I Reassessed the Entire Crypto Space

In an era of technological upheaval, rather than pursuing the "legitimacy" co-opted by power, it is better to sharpen the blade and build parallel systems that truly expand individual sovereignty.

Web3 Winter Mass Exodus: Resignations, Closures, Transformations, and Acquisitions

The intense collision between technology and capital, products and markets, vision and reality, each story reflects the confusion and unwillingness of the market participants.

March 4th Market Key Intelligence, How Much Did You Miss?

Taking Stock of Crypto's Washington Power Players: Who is Advocating for US Crypto Regulation?

These institutions have jointly defined the industry's underlying values, marking the U.S. crypto industry's shift to a "professionalized, ecological, and refined" era of policy gamesmanship.

DDC Enterprise Limited Announces 2025 Unaudited Preliminary Financial Performance: Record Revenue Achieved, Bitcoin Treasury Grows to 2183 Coins