At BTCS, we operate cloud-based validator nodes on the Ethereum blockchain to secure the network, earn staking rewards, and grow shareholder value. By combining our own ETH holdings with advanced blockchain infrastructure, we generate consistent Ethereum rewards while maintaining full control of our assets.
Our NodeOps vertically integrates with Builder+ our block building business, enabling BTCS to capture value across multiple stages of Ethereum’s transaction cycle. Our operations support Ethereum’s decentralization, strengthen its security, and position BTCS for long-term growth of both staked ETH assets and validator revenue.

Breakdown of BTCS ETH

Staking

We operate validators through both Rocket Pool and our own solo nodes. Through Rocket Pool, we stake ETH alongside capital contributed by liquid-staking participants. This structure enables us to scale efficiently while earning native staking rewards, plus a supplemental share of pooled rewards that further increases our rewards. In parallel, we run solo validators funded exclusively with our ETH holdings, retaining 100% of both consensus and execution rewards with no external operator fees or revenue sharing.

DeFi

BTCS’s DeFi assets represent ETH deployed in decentralized finance protocols for lending and liquidity provision. Currently, BTCS deposits ETH into Aave, a decentralized lending and borrowing platform, which allows the company to earn rewards on the deployed assets.

Treasury

Our ETH treasury consists of ETH held on balance sheet to support liquidity and future growth initiatives. These holdings are readily available to pursue strategic opportunities that align with our long-term goals.

Percentage Breakdown of ETH Holdings as of 9/30/2025

Understanding Validators

Validators are integral to maintaining the integrity, accuracy, and security of the decentralized Ethereum ledger, ensuring every transaction is properly verified and recorded, all while making the network more energy-efficient. A validator is a key participant in Ethereum's proof-of-stake network responsible for:

Validating Transactions

Ensuring all transactions added to a blockchain are accurate and legitimate.

Proposing Blocks

Creating new blocks to add to a blockchain ledger.

Securing the Network

Contributing to stability, uptime, and preventing malicious activity.

How does Staking work?

Ethereum validators must commit ETH as an economic bond to participate in the network. This ETH remains locked while the validator is active, aligning incentives toward honest participation and high performance.

Benefits and Rewards of Staking ETH

Earn ongoing ETH rewards through both consensus layer activities (block proposals, attestations) and execution layer activities (transaction fees, tips, and MEV).

Strengthen Ethereum’s decentralization and security while supporting the network’s scalability.

Maintain exposure to ETH price appreciation, compounding returns through a combination of staking yield and potential market gains.