The company launched a share repurchase program to return value to shareholders.
The Nasdaq-listed company BTCS Inc. announced its record quarter on November 14, pushed by the incorporation of DeFi operations and ETH accumulation in the quarter. The Nasdaq-listed company revealed that the ETH treasury revenue of $4.94 million contributed to the record.
The Nasdaq-listed company posted a net income of $65.6 million in the quarter, driven by unrealized gains of $73.7 million. It also revealed a $4.94 million increase in revenue, representing a 568% increase from the same period last year. Notably, $4.94 million represented an 78% increase from the second quarter.
BTCS stated that its revenue for the nine months ended September 30 totaled $9.40 million. Additionally, the $9.40 million was 2.3 times more than 2024 revenues and rose 437% year over year. Per the report, the Builder’s plus earnings totalled $3.36 million, showing a 730% year-over-year increase and a 34% quarter-over-quarter surge.
The press release revealed that the Builder plus revenue increased due to order flow, transaction volume, and technical improvements throughout BTCS’s block-building infrastructure.
Additionally, early operating leverage resulting from increased activity and enhanced infrastructure led to a rise in gross margins from 2.9% in quarter 2 to 22% in quarter 3.
BTCS sets record revenue
Charles Allen, the Chief Executive Officer of BTCS, stated that the company’s third-quarter financial performance marks an important milestone. He claimed that practicing the ETH-first strategy led to good record revenue and strong profitability.
Allen also said that the increase in the ETH per share indicates the usefulness of integrated work. He added that the rise of ETH per share demonstrates a capital-efficient approach of the Nasdaq-traded company.
Additionally, Allen mentioned that the introduction of the third company unit of the company, Imperium, can be considered a landmark in the company’s building of its DeFi infrastructure and ETH-first strategy.
According to Michael Prevoznik, Chief Financial Officer of BTCS, the expansion of ETH generated huge unrealized benefits for BTCS, which were further enhanced by effective balance sheet management. Prevoznik emphasized that BTCS used both traditional and decentralized fundraising sources, such as the firm’s ATM program, ETH-backed loans, and convertible notes issued at conversion rates higher than the market rate.
BTCS increases ETH holdings through DeFi operations
The earrings coincide with BTCS’s recent acceleration of ETH acquisition. The Nasdaq-listed company began with a $1 million ETH reserve in June, marking the start of a strategy that has evolved into one of the largest reserves held by a publicly traded company.
On July 24, Cryptopolitan reported that the company deposited $100 million in Lido staked ETH (stETH) on Aave at an annual percentage yield (APY) of 3% and borrowed $30 million in USDT from the protocol at a rate of 5%. BTCS utilized the $30 million stablecoin loan to acquire more ETH, which it staked at 4% APY.
According to Charles Allen, using Lido to stake ETH and raising $30 million in USDT allows BTCS to provide a net yield of $2.7 million per year (2.7%). He described the strategy as an effective exposure to ETH and just the beginning of what the company is doing.
Notably, on July 14, BTCS borrowed $2.34 million in USDT using the Aave protocol to purchase ETH. The Nasdaq-listed company purchased 2,731 ETH, valued at $8.23 million at the time, adding the loan to its cash on hand. Additionally, the purchase of ETH increased the total holdings of ETH to 31,855 ETH.
According to the Nasdaq-listed company, the total assets under the balance sheet increased 632% to $298.86 million in quarter 3 2025, up 681%, as a result of immense ETH accumulation. The company noted that the number of common shares outstanding rose to 47.1 million, up 114% sequentially, in contrast to the company’s 392% increase in market valuation since the start of 2025.
Additionally, as of September 30, 2025, ETH holdings had increased to 70,322 ETH, a 380% increase from quarter 2 2025 and a 676% year-to-date increase, totalling $291.58 million.
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