BTCS sells ETH below cost to keep its Aave loans healthy, with a theoretical liquidation price of approximately $1,717.

BTCS, the sixth-largest Ethereum treasury firm, disclosed in its latest quarterly report that it sold ETH at a price below its original cost to proactively manage the collateral level and health factor of its Aave borrowings. The company did not specify the amount of ETH sold, nor break down the size of the realized losses. As of November 9, BTCS had approximately $64.1 million in outstanding borrowings (including accrued interest) on the Aave lending protocol, backed by roughly 46,676 ETH. Based on that day's closing price of $2,127 per ETH, the fair value of the collateral was around $99.3 million, equivalent to about 155% of the outstanding debt. Aave's liquidation threshold for ETH collateral is typically 80%. Calculated from the above loan and collateral scale, the health factor at that time was approximately 1.24; if the position remained unchanged, a liquidation would be triggered when ETH's price fell to around $1,717. The loan balance and collateral value fluctuate with lending activities, accrued interest, and token prices, and the position may have changed after November 9. As of September 30, BTCS held about $463,000 in cash, and the vast majority of its fair-value-measured digital assets had been deposited as collateral on Aave, which cannot be freely used for general corporate purposes during the loan term. BTCS stated that as of November 11, no full or partial liquidation had occurred. Between January 1, 2025 and November 11, 2026, BTCS borrowed a total of approximately $152.4 million in stablecoins (primarily USDT and Aave's dollar stablecoin GHO) on Aave using ETH as collateral, and repaid about $89.4 million during the same period.