Interview with BTCS CEO: Behind the $100 Million Purchase Plan, Why I Chose to Go All-In on Ethereum
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Interview with BTCS CEO: Behind the $100 Million Purchase Plan, Why I Chose to Go All-In on Ethereum
Ethereum hasn't yet experienced a surge similar to Bitcoin's explosive growth, yet numerous applications and projects have already been built on its foundation.
Navigating Web3 tides with focused insightsCompiled & Translated: TechFlow
Guest: Carles Allen, CEO and Chairman of BTCS
Host: Paul Barron
Podcast Source: Paul Barron Network
Original Title: $100mil Ethereum Mega-Strategy!🔥$BTCS CEO Charles Allen INTERVIEW
Air Date: July 8, 2025
Key Takeaways
Companies strategically accumulating Ethereum have become darlings in the U.S. stock market, with their share prices rising to varying degrees.
The key drivers and leaders behind these firms are playing a pivotal role in this wave of crypto asset reserve adoption.
(Related reading : ETH Reserve Companies Become Wall Street Favorites – A Look at 4 Star Firms’ Businesses and Their Backers)
Recently, BTCS Inc. announced its strategic plan to raise $100 million in 2025 to purchase Ethereum and support the expansion of its ETH-centric infrastructure model.
This podcast episode features BTCS CEO Charles Allen, who explains how the company’s strategy creates long-term value by increasing ETH per share, scaling revenue growth, and minimizing shareholder dilution.
Highlights & Key Insights
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Ethereum has the greatest potential upside because it hasn’t yet experienced a Bitcoin-like breakout, despite already hosting numerous applications and projects.
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Ethereum is poised to become the core financial infrastructure powering the digital economy.
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Ethereum represents a light-asset model where your assets are productive rather than non-productive—they appreciate instead of depreciate.
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An estimated $2–10 billion could flow into digital asset-focused treasury strategies and public companies. As more institutions and investors join, they often become “bandwagon” players.
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We build 2.7% of all blocks on the Ethereum network—in other words, 2.7% of all Ethereum transactions are processed through our block builder.
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Executives from Sharplink and Bitmine typically serve as chairmen but don’t manage day-to-day operations. In contrast, our team deeply engages at the technical level—we run our own nodes and handle block building directly.
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We are now among the top five global block builders, setting us apart in the industry.
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We recently announced plans to raise $100 million to buy additional Ethereum and operate validator nodes via Rocket Pool. We choose to handle staking end-to-end ourselves. As we raise more capital, we can meaningfully grow both revenue and ETH per share.
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If a company like Tom Lee’s wants to acquire us at 8 to 10 times NAV, we would seriously consider such an opportunity.
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Unless you personally operate validator nodes and participate in consensus, you’re handing control to someone else—those who control staking truly hold the power.
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If someone says: “I want to transform a NASDAQ company worth under $10 million into a $250 million project—and do it within one month,” that may sound simple—just find a strong management team, a reliable wallet provider, and a solid infrastructure partner, and you can launch operations.
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Hardcore Bitcoin maximalists may never adopt the Ethereum ecosystem.
Ethereum Reserve Strategy
Paul:
We’re joined today by Charles Allen, CEO of BTCS Inc. It’s been a while since our last deep dive. A lot has changed for your company during this time. Could you update us on the overall trajectory of BTCS Inc.? How does it compare to other digital asset companies, particularly Ethereum-focused ones? With Bitcoin’s market cap around $460 billion, what’s your current strategy and positioning?
Charles:
Our Ethereum reserve strategy is actually part of our core operations. Recently, we’ve repositioned how we communicate this to the market because it's clearly a hot topic. I believe we're currently the only publicly traded company focused exclusively on Ethereum and genuinely committed to developing and operating Ethereum infrastructure. We achieve this by running independent validator nodes, supporting nodes for Rocket Pool, participating in block building—all vertically integrated. These activities are central to driving our revenue growth.
Bitcoin vs. ETH Business Models
Paul:
Comparing the current landscape to earlier periods when Bitcoin received more attention, I’ve noticed key differences between your Bitcoin and Ethereum business models—particularly regarding asset structure and how holdings differ between simply holding Bitcoin versus actively operating within the Ethereum ecosystem. Does this shift in your business model suggest Bitcoin’s market value is being underestimated?
Charles:
I think so. We shifted from Bitcoin to Ethereum back in 2021, becoming the first public company focused solely on Ethereum. At the time, few people understood what we were doing. Now, with figures like Tom Lee and Joe Lubin joining in, Wall Street is giving Ethereum much greater recognition in public markets. We’ve adopted a business model centered on productive assets, which is fundamentally different from merely holding Bitcoin on a balance sheet or operating as a Bitcoin miner.
We were the world’s first public Bitcoin miner, but eventually moved away from that capital-intensive model. Ethereum, by contrast, is a light-asset model. Your assets are productive, not non-productive. They don’t depreciate—they appreciate.
Tom Lee on Circle’s IPO
Paul:
This highlights the core difference between Bitcoin treasuries and Ethereum treasuries. To help illustrate this, let’s watch a short video clip of Tom Lee sharing his views on future strategy. Here it is.
Tom Lee (Video Transcript):
Have you participated in Circle’s IPO or bought its stock? Circle went public 10 days ago at $31 per share and is now trading at $242. Its ticker is CRCL. Circle’s success is deeply tied to the Ethereum ecosystem, as its operations rely on Ethereum and stablecoin issuance runs primarily on Ethereum. Therefore, I believe Ethereum’s value is set for a major rebound.
In the next five years, Circle could become one of the most promising investment opportunities. It trades at price-to-earnings multiples up to 100 times higher than traditional funds, delivering massive returns this year and pushing many investors into the top 1% globally. Circle’s stock is seen as a legendary investment, and the stablecoin market is growing rapidly. Stablecoins now total about $250 billion in market cap and account for roughly 30% of Ethereum’s gas fees. If stablecoin issuance grows tenfold, it will exponentially increase demand for Ethereum gas. This further cements Ethereum’s position as the direct beneficiary of Wall Street’s efforts to tokenize equity.
Charles:
They’re using Ethereum’s L2 solutions to tokenize equity.
BTCS Rebranding and Record Revenue
Paul:
When analyzing your business model and operations, I notice you have multiple revenue centers. I also saw a tweet from you detailing how these are structured. On your website, these are clearly categorized—builder, node operations, chains, etc. Given that your business has fully transitioned into the Ethereum ecosystem, why not change the company name to make it clear this is Ethereum-focused, not Bitcoin-related?
Charles:
That’s a great question. Actually, BTCS stands for Blockchain Technology Consensus Solutions—which is quite fitting. We focus on blockchain consensus mechanisms, providing consensus services, running infrastructure, and building blocks. So the name makes sense.
We’ve considered rebranding, but it requires significant effort and resources. While many suggest adding “Ethereum” to our name, we’ve chosen to stay as-is for now. Also, we build blocks on Financial Chain, which is a fork of Ethereum. Block building is now our primary revenue source, contributing 80% of Q1 revenue. We expect Q2 revenue to set a new record, surpassing last year’s Q4 revenue of $2.3 million.
To put it in perspective, we build 2.7% of all blocks on the Ethereum network—meaning 2.7% of all Ethereum transactions are processed through our block builder. If our validators continue securing consensus and our builder operates reliably, our scale will keep expanding.
We view our block builder as a standardized tech module—like a device running on 120 volts. Add an adapter, and it can plug into higher-scalability chains. We’ve already successfully deployed this for Binance—it’s like upgrading to 240 volts. That’s why we stick with “Blockchain Technology Consensus Solutions” rather than branding narrowly around Ethereum.
Still, Ethereum remains our core treasury asset. Our goal is to continuously increase ETH per share while growing revenue. We aim to achieve this through stock appreciation, strategic fundraising, and blending DeFi with traditional financial metrics.
Sharplink vs. BTCS and Aave Lending
Paul:
Companies like Sharplink and Bitmine seem to follow a very different strategy. Can you elaborate on the key differences?
Charles:
We’re quite different. Sharplink and Bitmine executives usually serve as chairmen but aren’t involved in daily operations. For example, I sit on another company’s board and attend only four meetings a year—so their operational involvement is limited. In contrast, our team is deeply technical—we run our own nodes and handle block building directly. We’re now among the top five global block builders, which sets us apart.
Our capital markets strategy also differs. Before entering crypto, I spent ten years in investment banking and took a company public in 2014. Today, we’re the only public company using DeFi as a funding source. We borrow via Aave, with loan-to-value ratios near 40%. This year, we plan to raise $100 million, keeping leverage around 40%, funded through convertible bonds—debt instruments that can later convert into equity.
Recently, we secured a ~$7.8 million loan from ATW Partners LLC and actively participated in that financing. By combining this with Aave borrowing and ATM (at-the-market) offerings, we optimize efficiency while minimizing equity dilution—strengthening our balance sheet. This gives us a distinct edge over competitors.
Buying Another $100 Million in ETH!
Paul:
I’ve noticed your performance in strategic ETH reserves. On this list, Ethereum Foundation and Sharplink lead, but BTCS is climbing fast—looks like you’ll soon pass Arbitrum DAO. Building on previous discussion, do you plan to buy more ETH to climb even higher?
Charles:
As I mentioned earlier, we recently announced plans to raise $100 million to buy additional Ethereum to support our staking operations. We’ll run validator nodes via Rocket Pool, vertically integrating with our block-building business. Unlike others who hand their ETH to third-party custodians for staking and pay fees, we handle the entire process ourselves. As we raise more capital, we’ll meaningfully boost both revenue and ETH per share.
Tom Lee: Mergers Among ETH Companies Are Coming?
Tom Lee:
The third strategy you’re using leverages the relationship between market price and net asset value (NAV), along with equity advantages. There are also financial firms trading far above NAV (like SLA). For instance, if a company trades at three times its NAV, you could consider acquiring it. Through such integration, we could create a business dedicated to supporting the DeFi ecosystem—such as offering Ethereum staking services. Staking is a massive advantage because it allows users to earn rewards by validating transactions, a mechanism unavailable on Bitcoin. This not only scales operations but also strengthens Ethereum’s central role in DeFi.
Will BTCS and Tom Lee Merge?
Paul:
Tom Lee mentioned potential mergers with other stakeholders. I’m curious about your view—you possess the technology and tools to help companies like Sharplink overcome current challenges. Have you considered merger possibilities?
Charles:
I think mergers are possible, but it depends on valuation. If a company wants to acquire us and offers a price close to NAV, we’d seek a higher premium. But if Tom Lee’s company trades at 8 to 10 times NAV, we’d seriously consider that opportunity.
Over time, NAV might decline and converge toward ETF-style pricing, as ETFs typically trade at NAV. However, if a company holds financial assets on its balance sheet, it can trade at a premium.
There are several reasons. First, we can use leverage mechanisms unavailable to ETFs. We’ve borrowed on Aave and plan to expand that. We can also issue convertible bonds, enhancing financial flexibility. These approaches add value and justify premium valuations.
For us, financing strategy and operational efficiency are key. This is what distinguishes us from other Ethereum financial firms. Many just park assets on their balance sheets—we focus on running validator nodes. We’ve been深耕 in Ethereum since 2021 and in crypto since 2014. Our goal is to build the financial infrastructure and framework needed for the future of the Ethereum ecosystem, providing solid support for industry development.
Bitcoin Moving to Ethereum
Paul:
The key question: How much Bitcoin will move from the Bitcoin network to Ethereum? Looking at companies investing in digital assets—especially those adopting new treasury models—how much BTC might flow into Ethereum? What’s the potential size of this market?
Charles:
In my view, around $2–10 billion could flow into digital asset treasury strategies and public companies. As more institutions and investors enter, they often become “bandwagon” players. With Bitcoin, you see standout strategies like Michael Saylor’s, plus active participation from MetaPlanet and David Bailey. In public markets, these plays often follow a predictable success pattern: a high-profile individual becomes chairman of a company with a market cap under $10 million, possibly struggling. After a series of moves, the market cap surges. When resale registration statements are filed, many investors exit—effectively opening the door for share resale.
These companies typically trade near NAV initially, then start recovering. But trading at a large premium to NAV is usually short-term speculation, not a sustainable long-term business model. Overall, if lucky, such companies might reach double MicroStrategy’s valuation—but if not, maybe triple. Yet trading at 10x NAV is extremely difficult, as smart hedge funds will step in—shorting your stock or arbitraging against other stocks with different NAV premiums.
So overall, if the market is rational—though it isn’t always—digital asset treasury companies should trade at some form of premium, based on operational capability and actual performance. But if valuations across companies diverge too widely, the market will eventually notice and push them back toward more reasonable levels.
Schwab Excited About Tokenized Stocks
Paul:
Here’s a clip from Schwab discussing how tokenization could impact Ethereum—and potentially disrupt Bitcoin even more. Let’s take a look.
Video content:
"They plan to tokenize private securities, especially companies like SpaceX. They’re also targeting other opportunities, including AI firms currently accessible only to accredited investors, leaving retail investors out."
"I can imagine seeing more announcements like this. Will this affect Bitcoin demand? That’s my question. Will we see some demand shifting from Bitcoin to these tokenized products?"
"We’ve seen the rise of many new investment vehicles. Bitcoin and related assets were once the only digital investment options, but that’s changed. I think tokenization is a major trend to watch—there are exciting discussions every week."
The Ethereum Boom Is Coming
Paul:
Bitcoin might take a hit. And Schwab is watching the coming Ethereum boom. Do you think it’s real? What impact will it have on you?
Carles:
I think it will be incredibly exciting. Our Ethereum balance sheet is in great shape. If you look at Ethereum’s current price, it’s nearly flat compared to 2021, right? But in four more years, it could reach Bitcoin’s all-time highs.
I believe Ethereum has the greatest potential upside because it hasn’t had a Bitcoin-style breakout yet, despite already having countless apps and projects built on it. As you noted, nearly all stablecoins are on Ethereum. Institutions are flooding into the ecosystem, and tokenized assets mostly run on Ethereum. So as these trends accelerate and the market shifts toward Ethereum, I see Ethereum’s potential like a tightly coiled spring, ready to unleash massive energy.
This isn’t just hype—it’s grounded in real-world asset tokenization, not a short-lived market fad. In my view, Ethereum is poised to become the core financial infrastructure powering the digital economy. If you accept that premise, then Ethereum’s 2021 price level is still early stage—with enormous room to grow. That’s exactly why we just announced our plan to raise $100 million to buy more Ethereum.
Tom Lee: Ethereum’s “Wall Street Protection”
Paul:
What role does Wall Street play in the Ethereum ecosystem? Tom Lee has some thoughts.
Tom Lee:
Wall Street is essentially creating what I call a 'structural protection' mechanism. For example, the U.S. government might choose a strategy involving existing 600,000 assets and be willing to pay a 200% premium. That’s far cheaper than paying $1 million per Bitcoin outright. This mechanism is called 'sovereign protection,' right? In Ethereum’s case, because it’s a staking-enabled token, if treasury companies hold 5% of ETH, their importance to the ecosystem becomes highly significant. This effect could even multiply. If these companies operate on Ethereum the way Goldman Sachs issues dollars, they won’t just secure the network—they’ll drive Ethereum’s widespread adoption. Eventually, these firms may buy large amounts of Ethereum. Some sovereign entities already hold ETH—perhaps others can just buy from them. So in a way, these sovereign holders are effectively protected by Wall Street.
Paul:
What do you think, Charles?
Carles:
To some extent, I agree. But I think there’s a critical detail missing—execution matters. Most institutions buying and staking Ethereum don’t do it themselves—they rely on third parties. In fact, the staking market is nearly monopolized by a few small players, even though users can switch providers. So, simply holding crypto doesn’t mean true participation in staking. If you’re passively holding and letting others manage and stake for you, it’s like Bitcoin mining centralization—not real decentralization. I believe unless you personally operate validator nodes and participate in consensus, you’re handing control to others—and those who control staking truly hold the power.
Going deeper: Who decides which transactions ultimately get written to the blockchain? That’s our space. For instance, Titan and Beaver—block builders—account for over 90% of blocks when including Beaver Build. That’s our core focus. Currently, we hold about a 3% share in this market.
Demand for Technical Expertise
Paul:
Won’t they eventually move into node operations? That seems like the natural progression for these reserve companies.
Carles:
Node operation requires specialized technical expertise, so these companies usually outsource to professional teams rather than doing it themselves. We entered this space in 2021 after careful preparation. For block building, we’ve been deeply involved for nearly two years.
It’s not complicated. If someone says, “I want to turn a NASDAQ company worth under $10 million into a $250 million project—and do it in one month,” it sounds simple—just find a strong management team, a reliable wallet provider, and a stable infrastructure partner, and you can launch. Of course, these services come at a cost. But we chose to operate in-house, avoiding outsourcing fees.
Polymarket Dominates in Politics
Paul:
There are many important developments happening in the Ethereum ecosystem today, but I think many people still underestimate their profound implications. Let me play a video clip about Polymarket and how it’s reshaping political dynamics.
Video content:
"We’re all trying to figure out where things are headed. You know, we’ve seen him involved, but it really only gained broad attention in the past 72 hours."
"Notably, (in Polymarket’s NYC mayoral race prediction) Andrew was ahead at the time. I told my team then: Zohran will win. Strategically, we chose not to compete in the crowded Democratic primary but ran as an independent. At first, everyone thought it was ridiculous—‘What are you doing?’ Now who’s laughing? I said to Andrew: ‘Are you really that arrogant? I’m the mayor of New York City. Did you really think I’d sit idly by after you just lost to Zohran by 12 points? That’s extreme arrogance.’"
Gaming Industry to Surpass National Economies & Is Michael Saylor Buying ETH?
Paul:
Now we have Polymarket—a force guiding Ethereum in politics. Check out a tweet by Ferguson on Immutable. He asked: What would it look like if GTA launched a gaming token? We’re starting to see major Bitcoin advocates like Michael Saylor and MicroStrategy appear to move in this direction. How long before they enter the Ethereum ecosystem? Will they join?
Carles:
Hardcore Bitcoin maximalists may never join the Ethereum ecosystem. The main reason is Bitcoin’s fixed supply cap of 21 million—that’s its limit. Ethereum, however, has a more flexible issuance model and can even become deflationary. So I’d be very surprised if Michael Saylor switched to Ethereum—he seems quite negative toward it. I’d categorize him as a Bitcoin maximalist, and many in that camp may never change. But pragmatic individuals will recognize Ethereum’s utility and potential—thinking, “Wow, this technology is incredible! It can revolutionize how global assets move.” That includes tokenized securities, concert tickets, stablecoin issuance—great examples. I believe these technologies will become the new standard for global asset movement, but hardcore Bitcoin supporters may still stay out.
Paul:
That’s truly fascinating. I think as crypto evolves—and with Bitcoin and Ethereum emerging as market leaders—they’re increasingly entering Wall Street. I believe all current trends point in that direction. And Ethereum continues to maintain strong competitiveness across the entire ecosystem.
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