BTCS adds $10M DeFi debt, total AAVE loans $53M

Q: What new borrowing did BTCS (BTCS) undertake on August 21, 2026?

On August 21, 2026 BTCS borrowed an additional $10.0 million USDT via the AAVE protocol, raising its total AAVE borrowings to approximately $53.0 million, all subject to a Board-approved 50% loan-to-value cap specific to this decentralized finance facility.

Q: How is BTCS’s AAVE borrowing collateralized and what is the ETH value?

BTCS’s AAVE borrowing is collateralized by about 46,531 ETH, with an indicated value of $112.6 million based on an ETH price of $2,420. The borrowing can face liquidations if the AAVE health factor tied to this collateral falls below one.

BTCS Inc. (BTCS) reports that on August 21, 2026 it borrowed an additional $10.0 million USDT through the AAVE decentralized finance lending protocol, increasing its total AAVE borrowings to approximately $53.0 million.

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Form Type

8-K

Rhea-AI Filing Summary

BTCS Inc. (BTCS) reports that on August 21, 2026 it borrowed an additional $10.0 million USDT through the AAVE decentralized finance lending protocol, increasing its total AAVE borrowings to approximately $53.0 million. These borrowings remain subject to the Board-approved 50% loan-to-value (LTV) cap specific to AAVE usage.

The AAVE debt is collateralized by approximately 46,531 ETH with an indicated value of $112.6 million based on an ETH price of $2,420, and has no fixed maturity but is subject to liquidation if the AAVE health factor falls below one. The loan carries a variable interest rate determined by AAVE’s smart contract; at the time of the additional borrowing the rate was about 3.98% per annum. BTCS used the proceeds to acquire additional ETH and USDC and deployed these into liquidity pools through its Imperium business, and states that AAVE-related activities are in its ordinary course of business.

Positive

None.

Negative

BTCS has increased on-chain leverage, with total AAVE borrowings of approximately $53.0 million secured by volatile ETH collateral and subject to automated liquidations if the health factor falls below one, adding protocol and market risk to its capital structure.

8-K Event Classification

2 items: 2.03, 9.01

2 items

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement Financial

The company incurred a new significant debt or off-balance-sheet obligation.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, or exhibit attachments filed with this report.

Key Figures

Additional AAVE borrowing: $10.0 million USDT Total AAVE borrowings: $53.0 million ETH collateral: 46,531 ETH +5 more

8 metrics

Additional AAVE borrowing $10.0 million USDT Incremental borrowing on August 21, 2026

Total AAVE borrowings $53.0 million Total outstanding after August 21, 2026 borrowing

ETH collateral 46,531 ETH Collateral posted on AAVE

ETH collateral value $112.6 million Based on ETH price of $2,420

ETH price $2,420 Price used to calculate collateral value

AAVE interest rate 3.98% per annum Approximate rate at time of additional borrowing

LTV Cap 50% Maximum permitted loan-to-value ratio for AAVE borrowings

ETH liquidation threshold approximately 80% Factor used in AAVE health factor calculation for ETH

Key Terms

loan-to-value ratio, decentralized finance lending protocol, health factor, liquidation threshold, +1 more

5 terms

loan-to-value ratio financial

"approved a maximum permitted loan-to-value ratio (“LTV”) of 50%"

The loan-to-value ratio (LTV) measures how large a loan is compared with the worth of the asset used as collateral, expressed as a percentage — for example, a $80,000 loan on a $100,000 property equals an 80% LTV. It matters to investors because higher LTVs mean higher risk of loss if the asset falls in value, and they influence borrowing costs, loan approval, and the stability and pricing of securities backed by such loans; think of it like how deep your financial safety net is under a loan.

decentralized finance lending protocol financial

"under the AAVE protocol, a decentralized finance lending protocol"

health factor financial

"subject to liquidations or partial liquidations if the health factor (“HF”) falls below one"

liquidation threshold financial

"multiplying it by its liquidation threshold (approximately 80% for ETH)"

A liquidation threshold is the preset level that triggers a forced sale of pledged assets or positions when their value falls too far relative to borrowed money or required coverage. Think of it like an automatic safety switch that sells belongings if their value drops past a guardrail. It matters to investors because hitting that level can lock in losses, change how risky a loan or trade is, and affect how much cushion you need to avoid a sudden forced sale.

liquidity pools financial

"USDC, which was deployed into liquidity pools through the Company’s Imperium business"

Liquidity pools are collections of cash or tradable assets set aside to make buying and selling easier and faster; they act like a reservoir that traders draw from so transactions can happen without long delays or wild price swings. For investors, larger and deeper pools mean tighter prices and lower costs when entering or exiting a position, while thin pools can lead to bigger price moves and higher execution risk, similar to how a shallow pond is more easily disturbed than a deep one.

FAQ

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

What new borrowing did BTCS (BTCS) undertake on August 21, 2026?

On August 21, 2026 BTCS borrowed an additional $10.0 million USDT via the AAVE protocol, raising its total AAVE borrowings to approximately $53.0 million, all subject to a Board-approved 50% loan-to-value cap specific to this decentralized finance facility.

How is BTCS’s AAVE borrowing collateralized and what is the ETH value?

BTCS’s AAVE borrowing is collateralized by about 46,531 ETH, with an indicated value of $112.6 million based on an ETH price of $2,420. The borrowing can face liquidations if the AAVE health factor tied to this collateral falls below one.

What interest rate applies to BTCS’s AAVE loan as disclosed?

The AAVE loan carries a variable interest rate set by AAVE’s smart contract. At the time of the additional borrowing, BTCS reports the rate was approximately 3.98% per annum, with the rate level determined and published by the AAVE protocol based on market conditions.

What did BTCS (BTCS) do with the proceeds from the new AAVE borrowing?

BTCS used the additional AAVE loan proceeds to acquire more ETH and USDC, and then deployed these assets into liquidity pools through its Imperium business, integrating the borrowing directly into its digital asset and decentralized finance operations.

Does BTCS expect to report every borrowing under the AAVE protocol?

BTCS states it believes its AAVE protocol activities are in the ordinary course of business and therefore does not believe it must file a separate report each time it borrows, though it plans to update disclosures from time to time as it deems appropriate.

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

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Available on EDGAR 08/25/2026 - 08:31 AM EDT Accepted by SEC EDGAR 08/25/2026 - 08:30 AM EDT

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 21, 2026

BTCS INC.

(Exact name of registrant as specified in its charter)

Nevada

001-40792

90-1096644

(State or Other Jurisdiction

of Incorporation)

(Commission

File Number)

(I.R.S. Employer

Identification No.)

303 W. Lancaster Ave #336, Wayne, PA 19087

(Address of Principal Executive Offices, and Zip Code)

(202) 430-6576

Registrant’s Telephone Number, Including Area Code

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.001 par value

BTCS

The Nasdaq Stock Market

(The Nasdaq Capital Market)

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

As previously disclosed, on May 15, 2026, the Board of Directors of BTCS Inc. (the “Company”) approved a maximum permitted loan-to-value ratio (“LTV”) of 50% (the “LTV Cap”) applicable to the Company’s borrowings under the AAVE protocol, a decentralized finance lending protocol (the “AAVE Protocol”), and removed all other restrictions on the amount that may be borrowed under the AAVE Protocol, subject to the LTV Cap. The Company actively manages its AAVE Protocol borrowing position, including its LTV, collateral composition, and liquidation risk, on an ongoing basis in light of prevailing market conditions.

On August 21, 2026, in connection with this ongoing management of its AAVE Protocol position, the Company borrowed an additional $10.0 million USDT from AAVE, bringing total borrowings on AAVE to approximately $53.0 million. The total AAVE borrowing: (i) is collateralized by approximately 46,531 Ethereum (ETH) with an approximate value of $112.6 million based on an ETH price of $2,420, and (ii) has no fixed maturity date but is subject to liquidations or partial liquidations if the health factor (“HF”) falls below one. The HF is calculated by taking the total value of the ETH collateral, multiplying it by its liquidation threshold (approximately 80% for ETH), and then dividing that result by the total value of the borrowed assets.

The loan carries a variable interest rate set by AAVE’s smart contract, which adjusts based on market conditions and is published at aave.com. At the time of the additional borrowing, the interest rate was approximately 3.98% per annum.

The proceeds from the loan were used to acquire additional ETH and USDC, which was deployed into liquidity pools through the Company’s Imperium business.

The Company believes its activities under the AAVE Protocol are part of the Company’s ordinary course of business. As a result, the Company does not believe it is required to file a Current Report on Form 8-K each time it borrows funds under the AAVE Protocol. The Company will update its disclosure from time to time as it deems appropriate.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits.

Exhibit No.		Exhibit

104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	BTCS INC.

Date: August 25, 2026	By:	/s/ Charles W. Allen
	Name:	Charles W. Allen
	Title:	Chief Executive Officer

Source: View Original Filing on SEC EDGAR

Filing Exhibits & Attachments

3 documents