BTCS, the Nasdaq-listed Ethereum infrastructure company, converted approximately $8.65 million of Ethereum into USDT during the second quarter to service debt on the Aave protocol, according to financial results released in August.
The company ended June 30 with $317,113 in combined cash and stablecoins, representing roughly 0.36% of total assets. The Aave repayment comprised $8.27 million in principal and $381,103 in accrued interest.
Collateral Reduction and Loan Decline
BTCS reduced its Aave collateral position from 49,970 aEthWETH worth $105.1 million on March 31 to 47,775 aEthWETH worth $75.0 million by quarter-end. Over the same period, DeFi-protocol loans fell from $43.8 million to $36 million.
The company’s total assets reached $89.3 million at quarter-end, with $88.1 million held in digital assets across crypto, staking, and DeFi categories. Total liabilities stood at $50.4 million, with $36 million attributable to DeFi-protocol loans. The loan balance represented 48% of reported collateral value at that date.
Q2 Operating Performance
BTCS posted a net loss of $34.9 million for the quarter. The loss included $21.4 million in unrealized digital-asset losses and $4.9 million in realized transaction losses. Gross profit reached $1.5 million at a 61% margin, with DeFi revenue contributing $1.5 million. The company used $1.3 million in net cash from operating activities during the first half of the year.
Borrowing Position Through Mid-August
By August 17, BTCS’s DeFi borrowings had risen to $43.0 million, while collateral units had declined to 46,525 ETH. Collateral value recovered to $88.7 million at that point, reflecting Ethereum price appreciation. The company reported no liquidation events through August 17.
Cash holdings at quarter-end totaled $262,436, with stablecoins comprising $54,677. Other current assets included treasury holdings, DeFi deployments, staked assets, liquidity-pool positions, and NFTs.
