BTCS Reports Record Gross Profit of $3.5 Million and 86% Gross Margin for Third Quarter 2026

Rhea-AI Summary

BTCS (Nasdaq: BTCS) reported record third-quarter 2026 gross profit of $3.5 million, driven by its Imperium decentralized finance business. Gross margin reached 86%, versus 61% in Q2, and nine-month gross profit surpassed the $6 million full-year target. Revenue rose 67% sequentially to $4.1 million but fell from $4.9 million a year earlier.

Net income was $54.5 million, versus a $34.9 million Q2 loss and $65.6 million income a year earlier. Earnings primarily reflected $58.3 million in non-cash unrealized digital-asset gains, partly offset by a $5.7 million impairment. Imperium liquidity-pool holdings reached $40.9 million, versus $7.6 million at June 30. DeFi protocol loans rose to $63.0 million from $36.0 million; falling collateral values can trigger liquidation. Imperium expanded onto Base in September, and BTCS expects it to remain the primary revenue and gross-profit driver for the rest of 2026.

14 points · 1 major

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3 major · 21 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointNew Q3 DeFi protocol borrowings provided $27.0 million to support Imperium liquidity-pool expansion. 54% of market cap
• Moderate pointQ3 gross profit rose 134% sequentially and 222% year over year to $3.5 million.
• Moderate pointNine-month gross profit reached $6,008,921, versus $1,130,858, surpassing the $6 million full-year target.
• Moderate pointQ3 Imperium revenue increased 133% sequentially to $3.5 million, representing approximately 86% of revenue.
• Moderate pointLiquidity-pool digital assets grew to $40.9 million at September 30 from $7.6 million at June 30.
• Moderate pointQ3 ATM share sales raised approximately $1.5 million in net proceeds. 3% of market cap

8 minor points

• Minor pointQ3 gross margin expanded to 86% from 61% in Q2 2026.
• Minor pointImperium expanded onto Base in September, its first network beyond Ethereum mainnet.
• Minor point. Forward-looking: it has not happened yet and may not happen.BTCS expects Imperium to remain the primary revenue and gross-profit driver through the remainder of 2026.
• Minor pointImperium completed preparatory compliance steps for tokenized-equity liquidity provisioning under the SEC’s Covered Firm exemption.
• Minor pointQ3 professional fees declined to $140,176 from $887,200 a year earlier.
• Minor pointQ3 general and administrative expenses declined to $226,522 from $610,568 a year earlier.
• Minor pointQ3 research and development expenses declined to $86,156 from $145,592 a year earlier.
• Minor pointQ3 marketing expenses declined to $190,193 from $256,165 a year earlier.

Negative

• Major pointQ3 earnings depended primarily on $58.3 million in unrealized digital-asset gains; results excluding specified asset items were materially lower.
• Major pointNine-month net loss reached $49,534,778, versus net income of $52,201,644 a year earlier.
• Major pointDeFi protocol loans increased to $63.0 million from $36.0 million at June 30; collateral declines can trigger liquidation. 1.3× market cap
• Moderate pointQ3 revenue of $4,092,681 rose 67% sequentially but fell from $4,938,503 a year earlier.
• Moderate pointQ3 net income of $54,532,771 reversed Q2’s $34.9 million loss but trailed $65,588,809 a year earlier.
• Moderate pointQ3 digital-asset impairment was $5,710,662, versus none a year earlier. 11% of market cap
• Moderate pointNine-month revenue declined to $8,686,497 from $9,403,200 a year earlier.
• Moderate pointTotal liabilities rose to $80.0 million at September 30 from $50.4 million at June 30.
• Moderate pointQ3 ATM common-share sales added shares and diluted existing holders.
• Moderate pointStockholders’ equity declined to $96,139,839 at September 30 from $139,416,779 at December 31, 2025.
• Moderate pointCash declined to $463,250 at September 30 from $1,526,395 at December 31, 2025.
• Moderate pointQ3 compensation expenses increased to $2,820,513 from $763,804 a year earlier.

9 minor points

• Minor pointQ3 diluted earnings per share declined to $1.10 from $1.30 a year earlier.
• Minor pointQ3 infrastructure revenue fell to $587,025, versus $0.9 million sequentially and $4,215,224 a year earlier.
• Minor pointNine-month diluted loss per share was $1.06, versus earnings of $1.48 a year earlier.
• Minor pointNine-month realized digital-asset losses increased to $30,608,647 from $8,567,681 a year earlier.
• Minor pointNine-month unrealized digital-asset gains declined to $1,240,388 from $67,987,220 a year earlier.
• Minor pointCommon shares outstanding increased to 53,110,329 at September 30 from 46,852,737 at December 31, 2025.
• Minor pointTotal assets of $176.1 million exceeded June’s $89.3 million but trailed December 2025’s $214.6 million.
• Minor pointQ3 interest expense increased to $1,715,043 from $1,496,529 a year earlier.
• Minor pointTokenized-equity liquidity provisioning has not commenced, and BTCS has not committed capital to it.

Key Figures

Total revenue: $4.1 million, up 67% Gross profit: $3.5 million, up 134% Gross margin: 86% +5 more

Total revenue

$4.1 million, up 67%

Q3 2026 versus Q2 2026

Gross profit

$3.5 million, up 134%

Q3 2026 versus Q2 2026

Gross margin

86%

Q3 2026

Year-to-date gross profit

$6.0 million

Nine months ended September 30, 2026; full-year target reached

DeFi revenue

$3.5 million, up 133%

Q3 2026 versus Q2 2026

Net income

$54.5 million

Q3 2026; primarily driven by non-cash unrealized digital-asset gains

Liquidity pool positions

$40.9 million

As of September 30, 2026, versus $7.6 million as of June 30, 2026

Loans payable to DeFi protocols

$63.0 million

As of September 30, 2026; collateralized by digital assets

Previous Earnings Reports

2 past events · Latest: Aug 20

Same Type 2 events

1. Aug 20

   Quarterly earnings

   24h Move

   +4.0%

   Reported higher gross profit and margin, alongside a net loss driven by digital-asset items.

2. May 15

   Quarterly earnings

   24h Move

   -13.7%

   Reported stronger gross profit and margin year over year, but substantial ETH-related losses drove net loss.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

defi, automated market maker, at-the-market, unrealized gains

4 terms

defi financial

"Imperium, the Company’s decentralized finance (“DeFi”) business"

DeFi, short for decentralized finance, is a system of financial services built on blockchain technology that operates without traditional banks or intermediaries. It allows people to borrow, lend, trade, and earn interest directly with each other through digital platforms, much like using a peer-to-peer marketplace. For investors, DeFi offers the potential for greater access, transparency, and control over their financial activities.

View in glossary

automated market maker technical

"including automated market maker pools on Ethereum and Layer-2 networks"

An automated market maker is a computer program that allows people to buy and sell assets quickly and smoothly without needing a traditional middleman like a broker. It works by using algorithms to set prices automatically based on supply and demand, much like a vending machine that provides snacks at prices adjusted to how many people want them. This makes trading more accessible and efficient for investors.

at-the-market financial

"net proceeds of approximately $1.5 million from sales under its At-The-Market (“ATM”) Agreement"

"At-the-market" is a method for companies to sell new shares of stock directly into the open market over time, rather than all at once. It allows companies to raise money gradually, similar to selling slices of a pie instead of the entire pie at once, which can help manage the sale's impact on the stock price. This approach gives investors a steady supply of shares while providing companies with flexible funding options.

unrealized gains financial

"$58.3 million of non-cash unrealized gains on digital assets"

An unrealized gain is the increase in value of an asset you still own that hasn’t been sold, so the profit exists on paper but hasn’t been converted into cash. It matters to investors because it changes the apparent wealth of a portfolio and can influence decisions about selling, risk-taking and taxes—like a house that’s worth more now but won’t pay you until you sell it.

View in glossary

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Surpasses $6 million full-year gross profit target in nine months as Imperium liquidity pool positions grow to approximately $41 million

WAYNE, Pa., Nov. 12, 2026 (GLOBE NEWSWIRE) -- BTCS Inc. (Nasdaq: BTCS) (“BTCS” or the “Company”), short for Blockchain Technology Consensus Solutions, a company focused on decentralized finance operations and blockchain infrastructure, today announced its financial results for the quarter ended September 30, 2026 (“Q3 2026”). The Company also launched its updated corporate website at www.btcs.com and released an updated investor presentation and a new company primer available at www.btcs.com/investors/.

“The third quarter was a breakout quarter for BTCS and Imperium,” said Charles Allen, Chief Executive Officer. “BTCS delivered a record $3.5 million in gross profit at an 86% gross margin, surpassing our full-year gross profit target of $6 million with a full quarter remaining in 2026. That performance was driven by Imperium, where we grew our paired liquidity pool positions from approximately $8 million to approximately $41 million and expanded into a multi-chain strategy with the integration of Base. Looking to the fourth quarter, we intend to keep scaling Imperium, and we expect it to remain the leading driver of our business.”

Financial Highlights

Third Quarter 2026 Financial Summary

• Total revenues increased 67% to $4.1 million for Q3 2026, compared to $2.4 million in Q2 2026, driven by growth in Imperium’s DeFi revenues.
  
  
• Gross profit grew to $3.5 million (86% margin) for Q3 2026, a record for the Company and a 134% increase from Q2 2026 gross profit of $1.5 million (61% margin). Gross profit also increased 222% compared to $1.1 million in Q3 2025. The improvement reflects the expansion of Imperium’s paired liquidity pool positions and the growing contribution of its higher-margin DeFi revenues.
  
  
• Year-to-date gross profit reached $6.0 million for the nine months ended September 30, 2026, compared to $1.1 million for the same period in 2025, achieving the Company’s full-year 2026 gross profit target of $6 million in the first nine months of the year.
  
  
• DeFi revenues (Imperium) increased 133% quarter-over-quarter to $3.5 million for Q3 2026 from $1.5 million in Q2 2026, representing approximately 86% of total revenues for Q3 2026, compared to approximately 61% of total revenues in Q2 2026.
  
  
• Blockchain infrastructure revenues, comprising NodeOps and Builder+, decreased to $0.6 million for Q3 2026, compared to $0.9 million in Q2 2026, reflecting variability in block-building and the Company’s continued prioritization of capital and resource deployment toward Imperium.
  
  
• Net income for Q3 2026 was $54.5 million, compared to a net loss of $34.9 million in Q2 2026. Net income was primarily driven by $58.3 million of non-cash unrealized gains on digital assets resulting from ETH price appreciation during the quarter and $3.6 million of realized gains on digital asset transactions, partially offset by a $5.7 million impairment loss on intangible digital assets. Results excluding these items would have been materially lower, and future results may vary significantly with digital asset prices.
  

Balance Sheet Overview

• Total assets were $176.1 million as of September 30, 2026, compared to $89.3 million as of June 30, 2026, primarily reflecting increases in the fair value of digital asset holdings due to ETH price appreciation and the deployment of $27.0 million of new DeFi protocol borrowings.
  
  
• Digital assets held in liquidity pool positions grew to $40.9 million as of September 30, 2026, from $7.6 million as of June 30, 2026, as Imperium scaled its paired liquidity pool strategy across Ethereum mainnet and Base.
  
  
• Total liabilities increased to $80.0 million as of September 30, 2026, compared to $50.4 million as of June 30, 2026, presented net of unamortized debt discounts of $3.4 million and $4.3 million, respectively. Loans payable to DeFi protocols were $63.0 million as of September 30, 2026, compared to $36.0 million as of June 30, 2026, reflecting $27.0 million of new DeFi protocol borrowings during the quarter to support the expansion of Imperium’s paired liquidity pool positions. These borrowings are collateralized by digital assets and may be subject to liquidation if collateral values decline. The Company continues to actively monitor collateral levels across its DeFi positions.
  
  
• Common shares outstanding (including unvested restricted common stock) were 53.1 million as of September 30, 2026. During Q3 2026, the Company received net proceeds of approximately $1.5 million from sales under its At-The-Market (“ATM”) Agreement.
  

Michael Prevoznik, Chief Financial Officer, stated, “This quarter showed what Imperium can do at scale. Gross profit more than doubled quarter-over-quarter and our gross margin expanded to 86%, as DeFi revenues grew to represent the large majority of our total revenue. Reaching our $6 million gross profit target in nine months is a meaningful milestone, and we remain focused on scaling revenue and gross profit while managing our balance sheet with discipline.”

Company Commentary and Outlook

Imperium remains BTCS’s core strategic focus for 2026. During the third quarter, the Company significantly scaled Imperium’s paired liquidity pool positions and, in September, expanded Imperium onto Base, an Ethereum Layer-2 network created by Coinbase, marking the business line’s first expansion beyond Ethereum mainnet. Operating across multiple networks allows Imperium to dynamically allocate liquidity where volume and demand shift, and management views Base as one step in a broader multi-chain roadmap.

“Integrating Base was a major milestone for our engineering team this quarter,” said Ben Hunter, Chief Technology Officer. “Expanding Imperium beyond Ethereum mainnet gave us access to another deep pool of on-chain activity, and our team built and deployed the strategies needed to operate there. We are continuing to refine our existing strategies while evaluating additional networks and opportunities that we believe could further scale Imperium.”

Having surpassed its full-year gross profit target of $6 million through the first nine months of 2026, the Company expects Imperium to remain the primary driver of revenue and gross profit through the remainder of the year. The Company continues to evaluate additional strategies and networks for Imperium that it believes may further scale the business.

As previously announced, in September Imperium completed the preparatory compliance steps for tokenized-equity liquidity provisioning under the SEC’s Covered Firm exemption. Management views tokenized equities as a natural extension of Imperium, which already operates in automated market maker pools. BTCS has not yet commenced or committed capital to tokenized-equity liquidity provisioning, and there can be no assurance that it will do so.

Management believes that institutional adoption of digital assets and the tokenization of real-world assets could increase demand for on-chain liquidity and create additional revenue opportunities for the Company.

“Hitting our gross profit target a quarter early reflects the strategy we have been building toward and the hard work from our team,” said Mr. Allen. “We believe Imperium gives BTCS a differentiated way to generate revenue from Ethereum’s on-chain economy, and with a multi-chain approach, we believe we have substantial room to grow. Looking ahead, I remain optimistic about continued institutional adoption of digital assets and see two major drivers shaping the future of on-chain finance: the tokenization of real-world assets and the rise of agentic AI. Tokenization has the potential to bring a broader range of financial assets on-chain, while AI agents could increasingly use these same rails to transact and make payments autonomously. We believe both trends could expand the scale and scope of activity on-chain, creating greater demand for accessible liquidity. Through Imperium, we are building the capabilities to help meet that demand and position BTCS for these emerging opportunities.”

About BTCS:

BTCS Inc. (“BTCS” or the “Company”), short for Blockchain Technology Consensus Solutions, is a Nasdaq-listed operating company that offers public-market access to the blockchain economy. Imperium, the Company’s decentralized finance (“DeFi”) business, deploys capital into on-chain liquidity markets, including automated market maker pools on Ethereum and Layer-2 networks, to generate recurring, high-margin revenue. Imperium draws on the protocol-level expertise of BTCS’s Ethereum infrastructure operations, Builder+ (block building) and NodeOps (staking). BTCS funds its growth through the DeFi/TradFi Accretion Flywheel, an integrated approach to raising capital, accumulating digital assets and deploying them on chain. Learn more at www.btcs.com.

Forward-Looking Statements:

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding the Company’s growth prospects, revenue expectations (including from Imperium), profitability and margin targets (including the Company’s gross profit target for 2026), the expansion of Imperium onto Base and additional networks, the potential expansion of Imperium into tokenized-equity liquidity provisioning and the Company’s ability to rely on the SEC’s Covered Firm exemption, the Company’s ability to scale its liquidity pool positions, the tokenization of real-world assets and the adoption of agentic AI, market positioning, business strategy, regulatory developments (including the CLARITY Act), and expectations for digital asset markets. Words such as “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “estimate,” “predict,” “intend,” “target,” “seek,” “positioned” or similar expressions identify forward-looking statements. These statements are based on current expectations and assumptions and are subject to risks and uncertainties, including volatility in digital asset markets, including the market price of ETH and other digital assets, and concentration risk from the Company’s Ethereum-first strategy; the significant contribution of unrealized gains on digital assets to the Company’s net income, which may reverse in future periods; regulatory developments affecting digital assets and blockchain technology, including the uncertain outcome of pending legislation such as the CLARITY Act and the regulation of DeFi protocols and Layer-2 networks; competition in block-building, staking, and DeFi markets; operational risks associated with Builder+, Imperium, and NodeOps, including smart contract vulnerabilities, DeFi protocol failures, counterparty risks, impermanent loss and liquidity risks associated with DeFi lending, borrowing, and liquidity provision activities, and the Company’s reliance on third-party DeFi protocols; risks related to the Company’s use of leverage and collateralization requirements, including increased DeFi protocol borrowings and the risk of liquidation of collateral; the risk that results achieved in prior periods, including the Company’s third quarter 2026 gross profit, may not be indicative of future results; risks that a qualifying Tokenized Securities Venue may not become operational, that the SEC’s exemptive relief may be modified, withdrawn or expire, or that tokenized-equity markets may not develop as anticipated; risks that the Company’s multi-chain expansion strategy may not produce the anticipated benefits; technological implementation challenges, cybersecurity risks, and potential loss or theft of digital assets; risks related to the Ethereum network and Layer-2 networks such as Base, including fluctuations in transaction volumes and blockspace demand, and changes in network protocols, consensus mechanisms, or gas fee structures; general economic and market conditions; and other risks set forth in the Company’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2025. Undue reliance should not be placed on forward-looking statements, which speak only as of the date of this release. The Company expressly disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable securities laws.

For more information, follow us on:
X: https://x.com/NasdaqBTCS
LinkedIn: https://www.linkedin.com/company/nasdaq-btcs
Facebook: https://www.facebook.com/NasdaqBTCS

Investor Relations:
Charles Allen - CEO
X: @Charles_BTCS
Email: ir@btcs.com

Financials

The tables below are derived from the Company’s unaudited condensed financial statements included in its Quarterly Report on Form 10-Q filed on November 12, 2026, with the Securities and Exchange Commission. Please refer to the Form 10-Q for complete financial statements, accompanying notes, and further information regarding the Company’s results of operations and financial condition for the fiscal quarters ended September 30, 2026 and 2025. Please also refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 for a discussion of risk factors applicable to the Company and its business.

BTCS Inc. Condensed Balance Sheets (Unaudited)
		September 30,				December 31,
		2026				2025
Assets:
Current assets:
Cash and cash equivalents		$	463,250			$	1,526,395
Stablecoins			859,577				1,539,064
Digital assets - treasury			225,384				2,388,607
Digital assets - DeFi			125,097,651				177,718,244
Digital assets - staked			7,730,236				30,657,401
Digital assets – liquidity pool positions			40,947,203				-
Digital assets – non-fungible tokens			20,867				41,690
Prepaid expenses			147,031				146,031
Total current assets			175,491,199				214,017,432
Investments (Cost $600,000)			600,000				600,000
Property and equipment, net			11,834				14,390
Total Assets		$	176,103,033			$	214,631,822
Liabilities and Stockholders’ Equity:
Current liabilities:
Accounts payable and accrued expenses		$	60,763			$	38,525
Accrued compensation			1,623,092				1,609,208
Accrued interest			766,468				225,115
Loans payable - DeFi protocol			63,007,700				61,500,000
Convertible notes payable, net - current portion			14,505,171				-
Warrant liabilities			-				-
Total current liabilities			79,963,194				63,372,848
Convertible notes payable, net - non-current portion			-				11,842,195
Total liabilities			79,963,194				75,215,043
Commitments and contingencies (Note 11)
Stockholders’ equity:
Preferred Stock, $0.001 par value per share; 20,000,000 shares authorized, of which:
Series V Preferred Stock; 15,671,405 and 15,671,405 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively			1,975,701				1,975,701
Common Stock, $0.001 par value per share; 975,000,000 shares authorized; 53,110,329 and 46,852,737 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively			53,110				46,853
Additional paid-in capital			316,947,516				310,695,935
Accumulated deficit			(222,836,488	)			(173,301,710	)
Total stockholders’ equity			96,139,839				139,416,779
Total Liabilities and Stockholders’ Equity		$	176,103,033			$	214,631,822

BTCS Inc. Condensed Statements of Operations (Unaudited)
		For the Three Months Ended								For the Nine Months Ended
		September 30,								September 30,
		2026				2025				2026				2025
Revenues
Blockchain infrastructure revenues		$	587,025			$	4,215,224			$	2,667,025			$	8,676,357
DeFi revenues			3,505,656				723,279				6,019,472				726,843
Total revenues			4,092,681				4,938,503				8,686,497				9,403,200
Cost of revenues
Blockchain infrastructure costs			571,388				3,843,634				2,638,576				8,265,426
DeFi costs			20,850				6,916				39,000				6,916
Total cost of revenues			592,238				3,850,550				2,677,576				8,272,342
Gross profit			3,500,443				1,087,953				6,008,921				1,130,858
Operating expenses:
Professional fees			140,176				887,200				818,115				1,461,026
General and administrative			226,522				610,568				799,399				1,254,770
Research and development			86,156				145,592				248,655				548,386
Compensation and related expenses			2,820,513				763,804				8,007,276				2,245,406
Marketing			190,193				256,165				275,804				524,198
Impairment loss on intangible digital assets			5,710,662				-				11,162,156				-
Realized (gains) losses on digital asset transactions			(3,576,215	)			4,407,773				30,608,647				8,567,681
Unrealized gain on digital assets			(58,345,378	)			(73,724,881	)			(1,240,388	)			(67,987,220	)
Loss on extinguishment of debt			-				8,731				-				8,731
Total operating expenses			(52,747,371	)			(66,645,048	)			50,679,664				(53,377,022	)
Other income (expenses):
Interest expense			(1,715,043	)			(1,496,529	)			(4,864,035	)			(1,718,423	)
Change in fair value of warrant liabilities			-				(647,663	)			-				(587,813	)
Total other income (expenses)			(1,715,043	)			(2,144,192	)			(4,864,035	)			(2,306,236	)
Net income (loss)		$	54,532,771			$	65,588,809			$	(49,534,778	)		$	52,201,644
Basic net income (loss) per share attributable to common stockholders		$	1.15			$	1.48			$	(1.06	)		$	1.83
Diluted net income (loss) per share attributable to common stockholders		$	1.10			$	1.30			$	(1.06	)		$	1.48
Basic weighted average number of common shares outstanding			47,420,927				44,233,030				46,940,068				28,575,472
Diluted weighted average number of common shares outstanding			50,675,409				50,298,201				46,940,068				35,223,608

BTCS Inc. Condensed Statements of Cash Flows (Unaudited)
		For the Nine Months Ended
		September 30,
		2026				2025
Cash flows from operating activities:
Net income (loss)		$	(49,534,778	)		$	52,201,644
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation expense			4,676				2,693
Stock-based compensation			4,631,620				3,850,662
Blockchain infrastructure revenue settled in digital assets			(2,667,025	)			(8,676,357	)
DeFi revenue settled in digital assets			(6,019,472	)			(726,843	)
Blockchain-based payments settled in digital assets			2,564,815				8,115,551
DeFi interest expense settled in digital assets			855,983				1,453
Blockchain network fees settled in digital assets			2,290				10,050
Change in fair value of warrant liabilities			-				587,813
Amortization on debt discount and issuance costs			2,662,976				754,394
Realized losses on digital asset transactions			30,608,647				8,567,681
Unrealized gains on digital assets			(1,240,388	)			(67,987,220	)
Impairment loss on intangible digital assets			11,162,156				-
Changes in operating assets and liabilities:
Stablecoins			2,981,564				(292,088	)
Prepaid expenses and other current assets			(1,000	)			(90,768	)
Accounts payable and accrued expenses			22,238				16,391
Accrued compensation			865,978				(2,855,467	)
Accrued interest			541,353				681,173
Net cash used in operating activities			(2,558,367	)			(5,839,238	)
Cash flows from investing activities:
Purchase of productive digital assets			-				(143,359,741	)
Proceeds from the sale of productive digital assets			-				3,240,171
Purchase of investments			-				(400,000	)
Purchase of property and equipment			(2,120	)			(8,022	)
Sale of property and equipment			-				1,750
Net cash used in investing activities			(2,120	)			(140,525,842	)
Cash flows from financing activities:
Net proceeds from issuance common stock/ At-the-market offering			1,497,342				135,160,842
Payments for shares repurchased			-				(3,000,000	)
Proceeds from issuance of convertible notes, net			-				16,843,500
Payments of debt issuance costs			-				(130,989	)
Net cash provided by financing activities			1,497,342				148,873,353
Net increase (decrease) in cash			(1,063,145	)			2,508,273
Cash, beginning of period			1,526,395				1,977,778
Cash, end of period		$	463,250			$	4,486,051
Supplemental disclosure of cash flow information:
Cash paid for interest		$	803,724			$	298,567
Supplemental disclosure of non-cash investing, financing and other activities:
Series V Preferred Stock Distribution		$	-			$	180,688
Non-cash discount on convertible notes			-				1,017,026
Dividends distributions paid in ETH			(723,218	)			-
Issuance of common stock upon non-cash exercise of warrants and stock options			-				8,134,516
DeFi borrowing activity:
Stablecoins received against ETH collateral from new DeFi borrowing			28,000,000				57,947,000
ETH swapped to stablecoins to fund settlement of DeFi borrowing principal			26,492,300				1,447,000
ETH swapped to stablecoins to fund settlement of DeFi interest			855,983				1,453
Extinguishment of USDT-denominated debt via on-chain protocol debt swap			-				1,500,000
Issuance of GHO-denominated debt via on-chain protocol debt swap			-				(1,500,000	)
Liquidity pool activity:
ETH swapped into stablecoins for liquidity pool deployment			23,814,365				-
Stablecoins swapped into ETH for liquidity pool deployment			(62,830,517	)			-
LP fee rewards (ETH) swapped into stablecoins, pending redeployment			1,427,606				-
Deployments of digital assets into liquidity pool positions			(287,305,499	)			-
Withdrawals of digital assets from liquidity pool positions			242,362,060				-
Other digital asset activity:
Digital assets swapped for stablecoins			117,247				-
Digital assets swapped to acquire NFTs			-				191,256

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were BTCS’s third-quarter 2026 gross profit and gross margin?

BTCS reported record gross profit of $3.5 million and an 86% gross margin for Q3 2026. Gross profit increased 134% from Q2 2026 and 222% from Q3 2025. Nine-month gross profit exceeded the $6 million full-year target.

What drove BTCS’s third-quarter 2026 net income?

BTCS’s $54.5 million net income was primarily driven by $58.3 million in non-cash unrealized gains from ETH price appreciation. Results also included $3.6 million in realized digital-asset gains and a $5.7 million impairment loss. Excluding these items, results would have been materially lower.

Has BTCS started providing liquidity for tokenized equities?

BTCS has not commenced or committed capital to tokenized-equity liquidity provisioning. Imperium completed preparatory compliance steps under the SEC’s Covered Firm exemption in September, but there is no assurance that the activity will begin.