BTCS has expanded its blockchain operations to on-chain decentralized finance (“DeFi”) through its Imperium business line. Through Imperium, the Company participates directly in DeFi ecosystems by deploying crypto assets, including ETH and stablecoins, into smart contract-based protocols that facilitate decentralized lending, liquidity provision, and other on-chain services.

The Company earns  revenue based on its participation and the utilization of its deployed assets within these protocols. For example, BTCS generates rewards from depositing assets into Aave, a decentralized lending and borrowing platform. Across Aave and similar on-chain platforms, BTCS earns rewards based on market demand, protocol parameters, and risk-management decisions, creating a potentially high-margin revenue stream for the company.

Covered Firm Disclosure

BTCS Inc. is not registered as a broker-dealer with the Securities and Exchange Commission. BTCS Inc. may enter into liquidity provision, including market making, agreements or arrangements with a Tokenized Securities Venue (“TSV”) to provide liquidity to an AMM Liquidity Pool. BTCS Inc. may receive fees, tokens, or other incentives for providing liquidity or achieving certain volume thresholds from a TSV-provided AMM Liquidity Pool. Reliance on the Covered Firm Exemption does not constitute registration with, or approval or endorsement by, the Securities and Exchange Commission.

Imperium is BTCS Inc.’s decentralized finance business line. The Covered Firm Exemption provides conditional relief from the definition of “dealer” under Section 3(a)(5) of the Securities Exchange Act of 1934 for qualifying activities.