Nasdaq-listed Ethereum infrastructure company BTCS swapped roughly $8.65 million of Ethereum into USDT during the second quarter to pay down principal and accrued interest on loans with the Aave protocol. The company concluded the quarter on June 30 with $317,113 in combined cash and stablecoins.
According to filings comparing the first and second quarters, BTCS used about $8.27 million of the ETH-to-USDT swaps for principal repayment and $381,103 for accrued interest. At the end of the second quarter, the company reported $89.3 million in total assets and $50.4 million in total liabilities, which included $36.0 million in DeFi-protocol loans. Cash stood at $262,436, and stablecoins totaled $54,677, representing approximately 0.36% of total assets.
The firm's remaining current assets included treasury holdings, staked assets, liquidity-pool positions, DeFi deployments, and NFTs valued at approximately $88.1 million. Unlike idle cash, these digital assets remained exposed to ongoing market movements, collateral requirements, and protocol risks.
Collateral and Loan Adjustments
BTCS's reported Aave collateral decreased from approximately 49,970 aEthWETH, valued at $105.1 million on March 31, to 47,775 units worth $75.0 million on June 30. Over the same period, DeFi loans declined from $43.8 million down to $36 million, leaving the June loan balance at roughly 48% of the reported collateral value.
By Aug. 17, BTCS reported that its DeFi borrowings had risen to $43.0 million, including accrued interest. These borrowings were backed by approximately 46,525 ETH valued at $88.7 million, based on a price of $1,905 per ETH. Although collateral units had decreased while borrowings rose from quarter-end levels, the company reported no liquidations, either partial or full, through Aug. 17, and did not provide a position-specific liquidation price or health-factor snapshot.
Financial Results and Operating Performance
BTCS reported a net loss of $34.9 million for the second quarter, though the figure did not reflect direct cash burn. The loss included $21.4 million in unrealized digital-asset losses and $4.9 million in realized transaction losses. Net cash used in operating activities totaled $1.3 million for the first half of the year, with many DeFi settlements classified as non-cash transactions.
On the operational side, second-quarter gross profit reached $1.5 million with a 61% margin, matching a figure of $1.5 million in DeFi revenue. While stronger operational margins bolstered the company's financial picture, the second-quarter ETH swaps highlighted that managing collateral obligations can require selling crypto assets when market values decline.
