Ethereum treasury firm BTCS posts record Q3 revenue as DAT and DeFi strategy drives profitability

Nasdaq-listed BTCS Inc. (BTCS) has delivered its strongest quarter on record, reporting a sharp revenue surge and a major swing to profitability as the company continues to scale its Ethereum-first treasury and infrastructure strategy.

Revenue for the third quarter reached $4.94 million, up 568% from a year earlier and 78% from the previous quarter, the company reported on Friday. Net income came in at $65.59 million, primarily driven by $73.7 million in unrealized gains on its growing Ethereum position.

Scaling an Ethereum-first model

BTCS — short for Blockchain Technology Consensus Solutions — operates an Ethereum-native infrastructure business built around three verticals: Builder+ for block-building, NodeOps for staking, and Imperium for DeFi-based onchain revenue generation. The company positions this architecture as a “DeFi/TradFi Flywheel” that blends decentralized financing tools with traditional capital markets to accumulate ETH at scale.

Builder+ remained the largest contributor to Q3 revenue at roughly 68%, supported by rising transaction activity and infrastructure optimizations. Also, margins improved to 22% from negative territory in Q2 as scaling effects from block-building and DeFi operations kicked in. Imperium, launched earlier this year, reported its first full quarter of revenue, accounting for around 15% of total revenue.

BTCS also became the first public company to integrate Aave directly into its balance-sheet operations, using the DeFi protocol for ETH-backed liquidity and yield generation without divesting assets.

The company ended Q3 with $56.5 million in Aave borrowings, part of a broader effort to expand ETH exposure through a mix of at-the-market sales, convertible notes, and DeFi leverage.

ETH treasury play

The earnings come as BTCS has dramatically accelerated its accumulation of ether over the past few months. In June, The Block reported that the company established an initial $1 million ETH reserve, setting the foundation for a strategy that has since evolved into one of the largest public-company ETH treasuries.

By July, BTCS had acquired another $55 million worth of ETH, pushing holdings above 70,000 ETH. As of Sept. 30, the company reportedly held 70,322 ETH, making it one of the largest ETH treasuries, according to The Block’s data dashboard tracking ETH stockpiles.

BTCS has paired this accumulation with a shareholder-oriented capital strategy. The company announced an Ethereum dividend and a long-term loyalty reward in August — the first public company to do so — a move intended to drive a steep drop in short interest.

It also launched a $50 million share repurchase program, buying back roughly $4 million in stock at prices below those of shares issued through its ATM program.

Positioning for the broader ETH economy

The company says its multi-pillar model is designed to position BTCS as a foundational operator in Ethereum’s validator, block-building, and DeFi stack. And with ETH reaching all-time highs near $4,946 in late August, the firm’s leveraged exposure and integrated operations produced its most profitable quarter to date.

BTCS also expanded partnerships with firms such as Figment, WonderFi, Angstrom, and MetaMask, and added integrations with ETHGas and NuConstruct to open new revenue streams.

“Our results underscore the scalability of our Ethereum-first strategy,” CEO Charles Allen said, adding that the firm plans to continue its participation in the ETH-native DeFi ecosystem.

BTCS shares have grown over 32% in the past six months, and they gained more than 3% following Friday’s revenue report, Yahoo Finance data shows.