BTCS 8-K
BTCS Inc. (BTCS)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
As previously disclosed, on May 15, 2026, the Board of Directors of BTCS Inc. (the “Company”) approved a maximum permitted loan-to-value ratio (“LTV”) of 50% (the “LTV Cap”) applicable to the Company’s borrowings under the AAVE protocol, a decentralized finance lending protocol (the “AAVE Protocol”), and removed all other restrictions on the amount that may be borrowed under the AAVE Protocol, subject to the LTV Cap. The Company actively manages its AAVE Protocol borrowing position, including its LTV, collateral composition, and liquidation risk, on an ongoing basis in light of prevailing market conditions.
On August 21, 2026, in connection with this ongoing management of its AAVE Protocol position, the Company borrowed an additional $10.0 million USDT from AAVE, bringing total borrowings on AAVE to approximately $53.0 million. The total AAVE borrowing: (i) is collateralized by approximately 46,531 Ethereum (ETH) with an approximate value of $112.6 million based on an ETH price of $2,420, and (ii) has no fixed maturity date but is subject to liquidations or partial liquidations if the health factor (“HF”) falls below one. The HF is calculated by taking the total value of the ETH collateral, multiplying it by its liquidation threshold (approximately 80% for ETH), and then dividing that result by the total value of the borrowed assets.
The loan carries a variable interest rate set by AAVE’s smart contract, which adjusts based on market conditions and is published at aave.com. At the time of the additional borrowing, the interest rate was approximately 3.98% per annum.
The proceeds from the loan were used to acquire additional ETH and USDC, which was deployed into liquidity pools through the Company’s Imperium business.
The Company believes its activities under the AAVE Protocol are part of the Company’s ordinary course of business. As a result, the Company does not believe it is required to file a Current Report on Form 8-K each time it borrows funds under the AAVE Protocol. The Company will update its disclosure from time to time as it deems appropriate.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits.
| Exhibit No. | Exhibit | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| BTCS INC. | ||
| Date: August 25, 2026 | By: | /s/ Charles W. Allen |
| Name: | Charles W. Allen | |
| Title: | Chief Executive Officer | |