Dialogue with BTCS CEO: Behind the 100 million dollar acquisition plan, why did I choose to go all in on Ethereum?

Organized & Compiled: Deep Tide TechFlow

Guest: Carles Allen, BTCS CEO and Chairman of the Board

Host: Paul Barron

Podcast Source: Paul Barron Network

Original title: $100mil Ethereum Mega-Strategy!🔥$BTCS CEO Charles Allen INTERVIEW

Release Date: July 8, 2025

Summary of Key Points

Companies with Ethereum strategic reserves have currently become darlings in the U.S. stock market, with related stock prices showing varying degrees of increase.

The key drivers and leaders behind the company play a significant role in this wave of cryptocurrency asset reserves.

(Related reading: ETH Reserve Companies Become New Favorites in US Stocks, a Review of the Businesses and Backers of 4 Star Enterprises)

Recently, BTCS Inc. announced its strategic plan to raise $100 million by 2025 to acquire Ethereum and support the expansion of its ETH-centric infrastructure model.

In this episode of the podcast, we invited BTCS CEO Charles Allen to explain how the company’s strategy aims to increase the per-share ETH holdings, drive scalable revenue growth, and minimize dilution of shareholder equity, thereby creating long-term value for the company.

Exciting Insights Summary

Ethereum has the largest potential for upward growth, as it has not yet experienced explosive growth like Bitcoin, but many applications and projects have already been built on its foundation.

Ethereum is expected to become the core financial infrastructure supporting the operation of the digital economy.

Ethereum is a light asset model, where your assets are productive rather than non-productive. They are not depreciating, but rather appreciating.

There may be around 2 billion to 10 billion dollars flowing into financial strategies and public offices related to digital assets. As more and more institutions and investors join, they often become “follower” players.

The blocks we have built on the Ethereum network account for 2.7% of the total blocks. In other words, 2.7% of all transactions on the Ethereum network are processed by our block builder.

Executives at Sharplink and Bitmine typically serve as the chairman of the company, but they are not directly responsible for daily operations. In contrast, our team is deeply involved at the technical level, directly running our own nodes and responsible for block construction.

We are currently among the top five blockchain builders in the world, which sets us apart in the industry.

Recently announced plans to raise $100 million to purchase additional Ethereum and run validation nodes through the Rocket Pool platform, we choose to personally complete the entire staking process. As we raise more funds, we have the ability to truly increase revenue and the number of Ethereum per share.

If a company wants to acquire us, such as Tom Lee’s company, and its valuation reaches 8 to 10 times the NAV, then we will seriously consider such an opportunity.

Unless you personally operate a validator node and participate in the consensus mechanism, you are merely handing over control to others, while those who control the staking truly hold the power.

If someone says: “I hope to transform a NASDAQ company with a market value of less than $10 million into a project valued at $250 million, and I hope to complete it within a month.” This sounds simple, just find an excellent management team, a reliable wallet service provider, and a stable infrastructure provider to start operations.

Extreme supporters of Bitcoin may never choose to join the Ethereum ecosystem.

Ethereum Reserve Strategy

Paul:

In this issue, we are joined by Charles Allen, the CEO of BTCS Inc. It has been some time since our last in-depth discussion. During this time, many changes have taken place in your company. Could you provide us with an overview of the overall development of BTCS Inc.? In particular, how does it compare to other digital asset companies, such as those related to Ethereum? Currently, Bitcoin’s market capitalization is around $46 billion; what are your strategies and current status?

Charles:

Our Ethereum reserve strategy is actually part of the company’s operations. Recently, we have adjusted the way we promote this strategy in the market, as it is indeed a market hotspot. I believe we are currently the only publicly listed company focused on Ethereum and truly committed to the development and operation of Ethereum infrastructure. We achieve this goal by running independent validation nodes, providing node support for Rocket Pool, and participating in block building, among other methods, and vertically integrating these functions. These measures are the core driving force behind our revenue growth.

Bitcoin vs ETH Business Model

Paul:

If we compare the current situation with the past phase that focused more on Bitcoin, I notice the differences in your business models between Ethereum and Bitcoin. A significant factor is the difference in asset structures, especially the distinction between how Bitcoin is held and how assets operate within the Ethereum ecosystem. Does your shift in business model mean that the market value of Bitcoin has been underestimated?

Charles:

I indeed think so. In 2021, we shifted our business model from Bitcoin to Ethereum, becoming the first publicly listed company focused on Ethereum. At that time, I believed not many people truly understood what we were doing. Now, with the addition of Tom Lee and Joe Lubin, Wall Street has gained more recognition of Ethereum’s value in the public market. We have adopted a business model centered around productive assets, which is completely different from the traditional model of merely holding Bitcoin on the balance sheet or operating as a Bitcoin miner.

We were the first publicly listed Bitcoin miner in the world, but ultimately chose to abandon that capital-intensive model. Ethereum, on the other hand, is a light asset model where your assets are productive rather than non-productive. They do not depreciate; instead, they appreciate.

Tom Lee talks about Circle IPO

Paul:

This is the core difference between the Bitcoin treasury and the Ethereum treasury. To better understand this, I would like to play a short video by Tom Lee, in which he shares his views on future strategies. Please take a look.

Tom Lee (Video Segment Original Sound Translation):

Did you participate in Circle’s IPO or hold its stock? Circle went public 10 days ago at a price of $31 per share, and the stock price has now risen to $242. Its stock code is CRCL. Circle’s success is closely related to the Ethereum ecosystem, as its operations rely on the Ethereum network, and the issuance of its stablecoin mainly runs on Ethereum. Therefore, I believe the value of Ethereum will see a significant rebound.

In the next 5 years, Circle may become one of the most promising investment targets. Its price-to-earnings ratio is as high as 100 times that of many traditional funds, which has led investors to achieve substantial returns this year, even allowing many to join the global top 1% wealthy class. Circle’s stock is regarded as a god-tier investment target, while the market for stablecoins is also growing rapidly. Currently, the total market capitalization of stablecoins is about $250 billion, accounting for approximately 30% of the gas fees on the Ethereum network. If the creation scale of stablecoins grows by 10 times, it will lead to an exponential increase in Ethereum’s gas fees. This further solidifies Ethereum’s status as the direct beneficiary of Wall Street’s attempts to capitalize on cryptocurrency.

Charles:

They are using Ethereum’s L2 solution to achieve the tokenization of equity.

BTCS Renaming and Record Revenue

Paul:

While analyzing your business model and operations, I noticed that you have multiple revenue centers. I also saw a tweet of yours that detailed how these centers are built. On your website, this content is also clearly categorized, such as builders, node operations, and chains, etc. Since your business has fully transitioned to the Ethereum ecosystem, why not directly change the company name to make it clearer to the public that this is an Ethereum-related business, rather than Bitcoin?

Charles:

This question is very interesting. In fact, the full name of BTCS is Blockchain Technology Consensus Solutions (Blockchain Technology Consensus Solutions), and this name is indeed very appropriate. We focus on the consensus mechanism of blockchain technology, providing consensus services, operating infrastructure, and being responsible for block construction, so this name is very reasonable.

We have indeed considered changing the company name, but this requires a lot of effort and resources. Although many people have suggested that we include “Ethereum” in the name, we have currently chosen to maintain the status quo. Additionally, we are also building blocks on the Financial Chain (Financial Chain), which is a fork of Ethereum. Block building has become the main source of our income, accounting for 80% of the first quarter’s revenue. We expect the revenue for the second quarter to set a new record, exceeding the 2.3 million dollars from the fourth quarter of last year.

To help everyone understand better, the blocks we built on the Ethereum network account for 2.7% of the total blocks. In other words, 2.7% of all transactions on the Ethereum network are processed by our block builder. If our validator nodes can continuously provide consensus and the block builder can operate stably, our business scale will further expand.

We view the block builder as a standardized technology module, similar to devices that can operate at 120 volts. If we add adapters to it, we can connect to other chains with higher scalability. In fact, we have successfully implemented this technology application for Binance. One can imagine this as upgrading the device to a version that can operate at 240 volts. This is also why we insist on using the name “blockchain technology consensus solution” rather than directly naming it after Ethereum-related brands.

Nevertheless, Ethereum remains our core financial asset. Our goal is to continuously increase the number of Ethereum per share while driving sustained revenue growth. We aim to achieve this through stock price appreciation, strategic capital raising, and the integration of DeFi with traditional financial metrics.

Sharplink vs BTCS and Aave Lending

Paul:

Companies like Sharplink and Bitmine seem to have adopted strategies that are completely different from yours. Could you elaborate on the main differences between you?

Charles:

We are indeed very different from these companies. First of all, the executives at Sharplink and Bitmine typically serve as the company’s chairperson, but they are not directly responsible for daily operations. For example, I serve as a board member at another company and only attend four meetings a year, so their actual involvement in the company’s operations is limited. In contrast, our team is deeply involved in the technical aspects, directly operating our own nodes and responsible for block construction. We are currently among the top five block builders in the world, which makes us stand out in the industry.

In addition, our capital market strategy is also completely different from these companies. Before entering the crypto space, I had ten years of investment banking experience and successfully took a company public in 2014. Today, we are the only publicly listed company that utilizes DeFi ( decentralized finance ) as a source of funding. We conduct lending through the Aave platform, and the lending ratio is currently close to 40%. This year we plan to raise $100 million, and the lending ratio is expected to remain around 40%, with funding sourced through the issuance of convertible bonds. Convertible bonds are a type of debt instrument that can be converted into company shares in the future.

Recently, we also reached an agreement with ATW Partners LLC to successfully borrow approximately 7.8 million dollars and actively participated in this financing activity. By combining these funds with lending on the Aave platform and the ATM ( vending machine ) sales, we are able to optimize operational efficiency while keeping equity dilution to a minimum, thereby enhancing the company’s balance sheet. This strategy is particularly advantageous when compared to competitors.

Buy an additional 100 million dollars worth of ETH!

Paul:

I noticed your performance in strategic ETH reserves. On this list, the Ethereum Foundation and Sharplink are at the top, while BTCS is gradually moving up, and it looks like you are about to surpass Arbitrum DAO. Based on previous discussions, do you have plans to further purchase Ethereum to improve your ranking on this list?

Charles:

As I mentioned earlier, we recently announced plans to raise $100 million to purchase additional Ethereum, which will support our staking operations. We plan to run validation nodes through the Rocket Pool platform while vertically integrating with our block building business. Unlike other companies that hand over Ethereum to third-party custodians for staking and pay fees, we choose to personally complete the entire staking process. I believe that as we raise more funds, we have the ability to genuinely enhance revenue and the number of Ethereum per share.

Tom Lee: Is the ETH company merger coming soon?

Tom Lee:

The third strategy you are currently adopting is to leverage the relationship between market prices and net asset value (NAV), as well as the advantages of company equity. In addition, there are some financial companies whose trading prices are significantly higher than their net asset value (SLA). For example, if a company’s stock price is three times its net asset value, you might consider acquiring these financial companies. Through such integration, we can create a business that specifically supports the DeFi ecosystem, such as providing Ethereum staking services. Ethereum staking is a huge advantage because it allows users to earn rewards by validating transactions, a mechanism that cannot be achieved in the Bitcoin network. This approach not only expands the scale of the business but also further consolidates Ethereum’s core position in the DeFi ecosystem.

BTCS and Tom Lee merger?

Paul:

Tom Lee mentioned the potential merger with other stakeholders. I am curious about your perspective, as I see that the technology and tools you possess can help companies like Sharplink address current challenges. So, have you considered the possibility of a merger?

Charles:

I think a merger is a possibility, but it depends on the valuation. If there are companies that want to acquire us and our valuation is close to the Net Asset Value (NAV), we would seek a higher premium. If Tom Lee’s company has a valuation that reaches 8 to 10 times the NAV, then we would seriously consider such an opportunity.

Over time, the NAV may decline and gradually shift towards a valuation method similar to that of ETFs, as ETFs are typically traded at NAV. However, if financial assets are held on the company’s balance sheet, we can trade at a premium.

There are several reasons behind this. First, we can leverage mechanisms that some ETFs cannot achieve. For example, we have been lending on the Aave platform and plan to further expand this. Additionally, we can raise funds by issuing convertible bonds while enhancing the company’s financial flexibility. These methods can all increase the company’s value, thus justifying the rationale for premium trading.

For us, financing strategies and operational efficiency are key. This is also where we differentiate ourselves from other Ethereum financial companies. Many companies simply place assets on their balance sheets, while we focus on operating verification nodes. Since 2021, we have been deeply engaged in the Ethereum space, and we have been involved in the cryptocurrency industry since 2014. Therefore, our goal is to build the financial infrastructure and framework needed for the future Ethereum ecosystem, providing solid support for industry development.

Transfer from Bitcoin to Ethereum

Paul:

The key question is, how many bitcoins will be transferred from the Bitcoin network to Ethereum? If we look at the companies that are investing in digital assets, especially those adopting new financial models, how many bitcoins might flow into Ethereum? How big do you think this market will be?

Charles:

According to my judgment, there might be an influx of around 2 billion to 10 billion dollars into digital asset-related financial strategies and public offices. As more and more institutions and investors join, they often become “follow-the-trend” players. For Bitcoin, you can see that Michael Saylor’s strategy performs very prominently, along with the active participation of MetaPlanet and David Bailey. However, in the public market, such transactions usually follow a fixed pattern of success. Typically, a high-profile individual serves as the chairman of the board for a new company, which often has a market value of less than 10 million dollars and may have a troubled business model. Subsequently, through a series of operations, the company’s market value may grow rapidly, and when these companies file resale registration statements, many investors choose to exit the market, which basically opens the channel for share resales.

Currently, these companies typically trade close to their net asset value (NAV) and have started to rebound. However, I believe that trading at a premium significantly above NAV is often just a short-term speculative behavior rather than a sustainable long-term business model. Overall, if luck is on their side, these companies may reach twice the valuation of MicroStrategy, but if luck is not on their side, it might only be three times. Trading at 10 times NAV, I think this is a very difficult proposition because smart hedge funds will intervene, and they may short your stock or engage in arbitrage by purchasing other stocks with different NAV premiums.

Therefore, overall, if the market is rational, although the market is not always rational, financial companies related to digital assets should trade at some form of premium, which is usually based on the company’s operating capacity and actual performance. However, if the valuation differences between different companies are too large, the market will eventually notice this and push the valuations of these companies back to a more reasonable level.

Schwab is excited about tokenized stocks.

Paul:

This is a segment of a video from Schwab Network discussing the potential impact of tokenization on Ethereum, and it may even have a greater impact on Bitcoin. Let’s take a look together.

Video content:

“They plan to tokenize private securities, especially companies like SpaceX. They are also looking for more targets, including some AI companies that currently only qualified investors can invest in, while ordinary investors temporarily have no access to these opportunities.”

“I can imagine that in the future we will see more and more announcements like this. Will this have an impact on the demand for Bitcoin? This is the question I want to raise. Will we see some of the demand originally directed towards Bitcoin shift towards these tokenized products?”

“We have now witnessed the rise of many different investment methods. In the past, Bitcoin and its related assets were almost the only digital investment option, but that has changed. I believe that the latest trend of tokenization is a very promising area that sees exciting discussions every week.”

The Ethereum craze is coming soon.

Paul:

Bitcoin may be impacted to some extent. And Schwab is paying attention to the upcoming Ethereum boom. Do you think this boom will really happen? What kind of impact will it have on you?

Carles:

I believe this will be a very exciting thing. Our current Ethereum balance sheet situation is very good. If you look at the current Ethereum price, it is almost flat compared to 2021, right? And in another four years, its price may reach the historical highest point of Bitcoin.

I believe that Ethereum has the greatest potential for upside because it has not yet experienced explosive growth like Bitcoin, but there are already many applications and projects built on its foundation. As you mentioned, almost all stablecoins are built on Ethereum. Many institutions are flocking to the Ethereum ecosystem, and tokenized assets are mainly conducted on the Ethereum network. Therefore, with the development of these trends and the market gradually leaning towards Ethereum, I think Ethereum’s potential is like a tightly compressed spring, ready to release tremendous energy at any moment.

This is not just hype, but a tokenization practice based on many real assets, and it is not a short-term market craze. In my opinion, Ethereum is expected to become the core financial infrastructure supporting the operation of the digital economy. If you agree with this view, then Ethereum is still in its early stages at the price levels of 2021, with tremendous growth potential in the future. This is also why we just announced plans to raise 100 million dollars to purchase more Ethereum.

Tom Lee: Ethereum’s “Wall Street Protection”

Paul:

What role does Wall Street play in the Ethereum ecosystem? Tom Lee also has some insights on this.

Tom Lee :

Wall Street is actually forming a mechanism that I call “structural protection.” For example, the U.S. government might choose a strategy such as using the existing 600,000 assets and be willing to pay a 200% premium. This is far more cost-effective than paying a million dollars directly for Bitcoin. This mechanism is known as “sovereign protection,” right? In the Ethereum ecosystem, since it is a token that supports staking, if asset reserve companies hold 5% of ETH, their importance to the entire ecosystem will be very prominent. This impact could even multiply. If these companies operate on Ethereum like Goldman Sachs issues dollars, they would not only secure the Ethereum network but also promote widespread adoption of Ethereum. Therefore, ultimately these companies might purchase a large amount of Ethereum. However, some state-owned entities already hold Ethereum; perhaps they only need to purchase from these state-owned entities. So it can be said that these state-owned entities actually have Wall Street’s protection.

Paul:

What do you think, Charles?

Carles:

To some extent, I agree with this viewpoint. However, I believe a key issue has been overlooked, which is that details determine success or failure. Most institutions that purchase and stake Ethereum do not participate in staking directly; instead, they rely on third parties for management. In fact, the staking market is currently almost monopolized by a few small players, even though users can switch between different services. Therefore, simply holding cryptocurrency does not truly equate to participating in staking. If you are merely passively holding and letting other institutions manage and stake for you, it is akin to the centralization issue of Bitcoin miners and is not truly decentralized. I believe that unless you personally operate a validator node and participate in the consensus mechanism, you are merely transferring control to others, and those who control the staking truly hold power.

Furthermore, who decides which transactions will ultimately be recorded on the blockchain? This is the field we are in. For example, block builders like Titan and Beaver account for over 90% of blocks built, including Beaver Build, according to statistics. This is the core issue we are focused on. Currently, our market share is about 3%.

Demand for technical expertise

Paul:

Aren’t they going to enter node operations? This seems to be the natural direction for these reserve companies to develop.

Carles:

Due to the high technical expertise required for node operations, these companies typically outsource the tasks to professional teams rather than handling them personally. We started venturing into this field in 2021 and only truly entered after a period of preparation. As for block construction, we have been deeply engaged in this area for nearly two years.

It’s not that complicated. If someone says, “I want to transform a NASDAQ company worth less than $10 million into a project worth $250 million and hope to complete it within a month.” It sounds simple; you just need to find a great management team, a reliable wallet service provider, and a stable infrastructure provider to get started. Of course, these services come at a cost. But we choose to operate ourselves, avoiding outsourcing fees.

Polymarket dominates the political domain.

Paul:

Currently, many important changes are happening within the Ethereum ecosystem, but I believe many people are still unaware of the profound impact of these changes. I would like to play a video that involves Polymarket and how it affects political structures.

Video content:

“We are all trying to figure out the direction of things. You know, we have all seen his involvement, but it has only really garnered widespread attention in the past 72 hours.”

"It is worth noting that, (in the prediction for the New York City mayoral election on Polymarket) at that time Andrew was ahead in the polls. I told my team that Zohran would win this race. We strategically chose not to participate in the crowded Democratic primary and instead decided to run as an independent candidate. Initially, everyone thought it was ridiculous, and they asked me, ‘What exactly are you doing?’ Now who would still mock me? I said to Andrew, ‘Are you really that arrogant? I am the mayor of New York City. Do you think I would sit idly by when you just lost to Zohran by 12 points? That is truly extreme arrogance.’

The gaming industry will surpass the national economy & Michael Saylor is buying ETH?

Paul:

Now we have Polymarket, which can be referred to as Ethereum’s guiding force in the political arena. You can take a look at a tweet Ferguson posted on the Immutable platform. He mentioned that if Grand Theft Auto (GTA) were to launch a game token, what would that scenario look like? We’re starting to see some major Bitcoin supporters, like Michael Saylor and Microstrategy, seemingly leaning in this direction as well. How long do you think it will take for them to enter the Ethereum ecosystem? Will they choose to join?

Carles:

Extreme supporters of Bitcoin may never choose to join the Ethereum ecosystem, primarily because the total supply of Bitcoin is fixed at 21 million coins, which is its limit. Ethereum, on the other hand, has a more flexible issuance mechanism and can even implement a deflationary model. So, if Michael Saylor were to turn to Ethereum, I would be very surprised, as his attitude towards Ethereum does not seem positive. I typically categorize him as an extreme supporter of Bitcoin, and many of these individuals may never change their stance. However, for those who are more pragmatic, they will notice the practicality of Ethereum and realize its potential, saying things like, “Wow, this technology is really amazing! It can completely transform the way global assets flow.” This transformation may include tokenized securities, concert tickets, and even the issuance of stablecoins, all of which are great examples. I believe these technologies will become the new standard for global asset flow, but extreme supporters of Bitcoin may still not join.

Paul:

This is indeed very interesting. I believe that with the development of cryptocurrency, especially the leading positions of Bitcoin and Ethereum in the market becoming increasingly apparent, they are starting to enter Wall Street. I feel that all current trends point in this direction. And Ethereum still maintains a very strong competitive edge in the entire ecosystem.