BTCS Sells $8.65M in ETH to Repay Aave Loans, Ends Q2 with $317K

Nasdaq-listed BTCS converted roughly $8.65 million of Ethereum into USDT during the second quarter to repay loans on the Aave lending protocol. The company reported $317,113 in combined cash and stablecoins at June 30.

BTCS allocated about $8.27 million of the ETH-to-USDT swaps to reduce outstanding principal and used approximately $381,103 to cover accrued interest. The company described the activity in its results as an $8.2 million repayment to Aave.

At quarter-end BTCS reported $89.3 million in total assets and $50.4 million in total liabilities, including $36.0 million in DeFi-protocol borrowings. The cash balance was $262,436 and stablecoins were $54,677, together totaling $317,113, or about 0.36% of reported assets.

Other current digital-asset categories on BTCS’s balance sheet totaled about $88.1 million at June 30. Those categories include treasury holdings, deployed DeFi positions, staked assets, liquidity-pool stakes and NFTs. The company’s filings note these items have balance-sheet value but are subject to market price swings and protocol risks.

A comparison of March 31 and June 30 balances shows Aave collateral declined from about 49,970 aEthWETH, valued at $105.1 million on March 31, to 47,775 aEthWETH valued at $75.0 million on June 30. DeFi borrowings fell from $43.8 million to $36.0 million over the same period. At quarter-end the outstanding loan balance represented roughly 48% of the reported collateral value.

In an update through Aug. 17 the company reported borrowings of $43.0 million, including accrued interest, secured by about 46,525 ETH valued at $88.7 million using a $1,905-per-ETH reference price. BTCS reported no full or partial liquidations through that date and did not provide a more recent health-factor snapshot or position-specific liquidation prices.

Financial results for Q2 showed a net loss of $34.9 million. The loss included $21.4 million of unrealized digital-asset losses and $4.9 million of realized transaction losses. Net cash used in operating activities was $1.3 million for the first half of the year. The company reported gross profit of $1.5 million for Q2 at a 61% margin, and DeFi-related revenue of $1.5 million.

BTCS’s ETH conversions reduced on-chain collateral and increased USDT holdings used to repay Aave principal and interest. The company did not disclose whether it plans further asset sales or additional loan-management actions if market prices change.