The BTCS public company has announced a financial agreement in the amount of USD 57.8 million run by the investment company ATW Partners for the purchase of ether, because it expands its blockchain infrastructure strategy.
Rockville, Maryland announced The contract on May 14, saying that the movement will allow the expansion of the operations of the validator nodes and building repetitive revenues from Ether (ETH).
Charles Allen, general director of BTCS, said that this movement is in line with the renowned Bitcoin (BTC) strategy (previously MicroStrategy) accumulation plan and uses Ethereum for long -term growth.
“We implement a disciplined strategy for increasing the Ethereum exhibition and increasing repetitive income through the rate and our construction activities,” said Allen.
BTCS Initial editions 7.8 million USD Spare notes
Under the agreement, BTCS has spent an initial tranche worth $ 7.8 million in replacement banknotes, with the option to draw an additional $ 50 million financing subject to a mutual contract.
Comments are interchangeable for ordinary BTCS shares at a fixed price of USD 5.85 per share, almost 200% more than the price of PLN 1.99 USD on May 13.
The notes contain two years of maturity and a 6% annual interest rate. This means that BTCS is two years elderly to pay off the loan, if it is not transformed into shares, and that although the banknotes are dynamic, the company will pay 6% of interest per year.
Simply put, investors bet that BTCS shares will escalate. In return, the company gains access to capital to scale Ethereum operations.
Investors also received the option of purchasing 1.9 million shares for USD 2.75 for each five years. This is much higher than the current price of the shares, but lower than the conversion rate given in the contract.
The financial agreement is in line with the company’s recent operate of the AAVE loan report to borrow funds to acquire ETH. However, the company did not reveal in the announcement how much ETH purchased via the report.
Related: Ethereum Foundation presents a security initiative to displace older systems
BTCS doubles the ether because the resources gain 42%
The BTCS announcement about the purchase of ETH took place after the cryptographic resource achieved huge profits after Pctra update. On May 12, the Ether market capital increased by 42%, exceeding Coca-Cola and Alibaba supplies. The escalate in value was the ether as 39 as to the size of assets according to market capitalization.
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