In the early 2020s, most publicly traded crypto companies centered their strategies on Bitcoin, either through mining or holding it as a treasury asset.
Meanwhile, Ethereum was still establishing its transition to proof-of-stake and the development of staking infrastructure. During that period, companies focused on Ethereum infrastructure were in the minority.
BTCS Inc., led by CEO and Chairman of the Board Charles Allen, was one of the firms that chose to move in that direction. Notably, BTCS Inc., one of the oldest publicly traded blockchain companies in the U.S.
In 2020, the company shifted its business strategy toward Ethereum and validator operations, emphasizing direct control of staked assets and in-house infrastructure rather than outsourcing to third parties.
When Allen decided to pivot BTCS Inc. into an Ethereum-first company back, most of the crypto world wasn’t thinking about validator nodes, relays, or block builders.
Bitcoin was still the star of the show, and the Ethereum ecosystem was only beginning to hint at what was coming next.
Five years later, Allen’s bet looks prescient. “At the beginning of 2021, we moved 100% into Ethereum and started running validator nodes,” he mentioned during a conversation with CCN’s Dr. Guneet Kaur at the Blockchain Futuristic Conference 2025 in Miami, Florida.
“Since then, our business model has been about deepening that infrastructure, adding more nodes, expanding our exposure, and now moving into DeFi to generate high-margin, scalable revenue,” Allen explained.
According to Allen, the focus on Ethereum infrastructure sets BTCS apart from most publicly traded crypto firms.
While competitors outsource staking operations to third-party providers, BTCS takes a vertically integrated approach, running its own validator nodes, operating a block builder and relay, and even participating in Rocket Pool’s liquid staking ecosystem.
“We self-custody our crypto,” Allen emphasizes. “If you don’t self-custody, you can’t really be in these operating businesses.”
How BTCS Leads in Ethereum Staking and Block Building Operations
BTCS’s model revolves around two core revenue engines, node operations and block building, with a third business line under development.
Validator operations provide stable, high-margin income, while block building allows BTCS to capture additional transaction fees directly from the Ethereum network.
“Block building is basically buying block space from validators and filling those blocks with transactions,” Allen explains. “We get to keep all the gas fees, and no other public company is doing this.”
It’s a model that’s both capital-intensive and high-upside. Unlike Bitcoin miners, whose capital is tied to depreciating hardware, BTCS’s staked ETH represents a potentially appreciating asset.
“If you zoom out, Ethereum has outperformed Bitcoin, Nvidia, just about everything over the long run,” says Allen.
“We’re very bullish on Ethereum’s utility and its price performance.”
DeFi Borrowing Meets Traditional Finance: Inside BTCS’s Hybrid Capital Strategy
To support its growth, BTCS blends traditional finance tools, like equity and convertible debt, with decentralized finance (DeFi) borrowing. Allen says the company’s capital strategy is designed to be flexible and efficient, with a strict focus on risk management.
“When we borrow on Aave, we’re over-collateralized and maintain a 40% loan-to-value limit,” Allen highlighted.
“It gives us downside protection but also access to the lowest cost of capital anywhere.”
By combining at-the-market equity programs, convertible debt, and on-chain liquidity sources, BTCS manages to keep costs low while maintaining control.
“DeFi eliminates the brick and mortar and the middlemen,” Allen adds.
“It’s super cheap capital, if you manage the risks correctly.”
Why BTCS Backs Ethereum Over Bitcoin for the Smart-Contract Economy
Allen draws a clear distinction between BTCS’s strategy from that of companies like Strategy, which has built its identity around Bitcoin accumulation.
“Bitcoin is a store of value, and that’s it,” he says. “Michael Saylor can buy it and finance it creatively, but there’s no business you can build around it,” Allen emphasized.
Ethereum, in contrast, offers an entire digital economy. “Once you’re in the infrastructure, there are endless ways to build scalable businesses within the ecosystem,” Allen explains.
“Tokenization of real-world assets, DeFi, stablecoins: it’s a whole world of opportunity that just doesn’t exist with Bitcoin.”
How BTCS Survived a Decade of Crypto Volatility and Regulation
For BTCS, surviving more than a decade in crypto has meant weathering regulatory uncertainty and industry collapses.
“The first ten years were just battling with the SEC,” Allen says.
“Now we finally have regulatory clarity. Most digital assets are not considered securities, and that’s a huge catalyst for innovation.”
And that clarity opens the door to mainstream adoption, he believes. “We haven’t even seen the biggest use cases yet. Once stablecoin frameworks are in place, we could see companies like Amazon or major banks issue their own coins, and hopefully they’ll be built on Ethereum.”
Allen attributes BTCS’s longevity to patience and rigorous risk management. “We’ve been around 11 years, and it’s not by accident,” he says.
“We pulled our funds out of Mt. Gox before it crashed. We avoided FTX, Celsius, and others because we are self-custodied. And when it came to DeFi, we waited years before deploying capital.”
That cautious approach extends to accounting and compliance. “Before we got into block building, we spent nine months mapping out the accounting, even going to the SEC’s Office of Chief Accountants for guidance,” he says.
“Most companies just jump in, then realize their auditors can’t sign off on their reports. We do the homework first.”
How BTCS Aims To Lead Ethereum Infrastructure Expansion in the Future
Allen sees BTCS as more than a crypto company; it’s an infrastructure play for the next phase of digital finance. “We control block space through our validators and builders,” he says.
“As tokenization expands and new applications emerge, that’s an incredibly valuable position.”
Looking ahead, Allen outlines a growth-oriented but measured outlook for the company.
“I’d love for BTCS to be a multi-billion-dollar, highly profitable business,” he says.
“There are no guarantees, but our performance is tied to Ethereum’s long-term trajectory, and our aim is to generate returns through our operational model rather than price movement alone,” Allen concluded.
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Giuseppe Ciccomascolo began his career as an investigative journalist in Italy, where he contributed to both local and national newspapers, focusing on various financial sectors.
Upon relocating to London, he worked as an analyst for Fitch's CapitalStructure and later as a Senior Reporter for Alliance News. In 2017, Giuseppe transitioned to covering cryptocurrency-related news, producing documentaries and articles on Bitcoin and other emerging digital currencies. He also played a pivotal role in establishing the academy for a cryptocurrency exchange website. Crypto remained his primary area of interest throughout his tenure as a writer for ThirdFloor.
Dr. Guneet Kaur is a senior editor at CCN.com and a Science Fellow at Exponential Science. She is a fintech and blockchain expert with extensive experience in digital finance education, blockchain ecosystems, and cryptocurrency markets. She has worked with global media such as Cointelegraph, as well as education and blockchain platforms, to design and lead strategic content and learning initiatives. As an educator and assessor for top-tier executive programs, she bridges real-world fintech trends with academic insight.
Dr. Kaur is also a published researcher and peer reviewer across fintech and data science journals, including Financial Innovation Journal and International Journal of Big Data Intelligence and Applications. Her work spans data-driven analysis, Web3 innovation, and technical content development. With a strong foundation in both industry and academia, she translates complex financial technologies into practical applications, empowering learners, professionals, and institutions across the rapidly evolving digital finance landscape.
Easy 
