BTCS sells ETH below cost as Aave debt reaches $64.1 million

BTCS said the sales were part of its collateral management, not the result of forced liquidation. The company reported that it had experienced no full or partial liquidations on its decentralized finance borrowings through November 11. Its November 12 filing did not specify how much ETH it sold to manage the Aave loan or what portion of its reported losses came from those sales.

For the first nine months of 2026, BTCS recorded about $30.6 million in realized losses on digital asset transactions, including ETH sales and accounting losses tied to transfers into liquidity pools. The company reported a net loss of about $49.5 million for the period, compared with a $52.2 million profit a year earlier.

Aave’s health factor measures collateral against outstanding debt, accounting for the applicable liquidation threshold. A position becomes eligible for liquidation when its health factor falls below 1. BTCS said the threshold for ETH collateral is generally 80%; applying it to the November 9 figures gives an estimated health factor of 1.24 and a liquidation price near $1,717. The estimate assumes the debt, collateral and protocol parameters do not change.

ETH traded near $1,932 on November 13, down about 5.6% over 24 hours, according to crypto.news price data. BTCS’s borrowing balance was about $63 million on September 30 and $64.1 million, including accrued interest, on November 9. From January 1, 2025, through November 11, 2026, it borrowed about $152.4 million in stablecoins through Aave and repaid around $89.4 million. The loans mainly involved USDT and Aave’s GHO; their stated annual rates on November 9 were about 6.54% and 4.5%, respectively.

BTCS reported roughly $463,000 in cash and cash equivalents on September 30, down from $1.53 million at the start of 2026. It said most digital assets measured at fair value were deposited as Aave collateral and restricted while the loans remained outstanding. By November 9, the company reported $142.6 million in cash, stablecoins and liquid digital assets, against about $82 million in total debt: the Aave borrowing and $17.9 million in convertible notes. Management said the Aave loans have no fixed maturity and that available resources and financing arrangements are expected to support operations for at least 12 months, subject to market conditions.