BTCS Cuts Aave Debt with Ethereum Sell-Off

Nasdaq-listed BTCS used Ethereum to pay down its Aave loans in the second quarter, swapping ETH for USDT. The company ended June 30 with $317,113 in cash and stablecoins, a tiny fraction of its total assets.

According to the company's filings, BTCS reduced its DeFi loans and Aave collateral during Q2, from $43.8 million to $36 million, and $105.1 million to $75 million respectively. The June loan balance was about 48% of reported collateral value.

By August 17, BTCS reported $43.0 million of DeFi borrowings, backed by approximately 46,525 ETH worth $88.7 million at an exchange rate of $1,905 per ETH. Despite a subsequent rebound in Ethereum's price to above $2,336, the company has not provided information on its current debt or collateral situation.

BTCS reported a net loss of $34.9 million for the second quarter, with $21.4 million of unrealized digital-asset losses and $4.9 million of realized transaction losses.