A Transformative Year Behind Us, A Bold Future Ahead
As we step into 2025, I’m energized to reflect on the pivotal progress BTCS has achieved and to outline our strategic vision for the year ahead. 2024 was not just a year of operational refinement—it was a turning point. We remained focused on strengthening our foundation: scaling our team with top-tier talent, advancing our technology, and successfully navigating a comprehensive inquiry from the SEC. That chapter is now closed, allowing us to move forward with clarity and momentum.
Our journey in the digital asset space began over a decade ago, rooted in foresight and persistence. In 2014, I recognized the transformative potential of Bitcoin mining, and by year-end, BTCS made history as the first publicly traded company to mine Bitcoin. While early leadership brought challenges—particularly during the 72% market correction in 2015—we learned invaluable lessons about resilience and timing.
By 2017, BTCS was once again ahead of the curve. We became the first public company to establish a digital asset treasury, three years before MicroStrategy popularized the strategy. Though we were too early and too small to gain widespread attention, that pioneering effort laid the groundwork for our current business model. At the same time, early BTCS investors helped fuel the rise of now-established leaders like Riot Platforms and Marathon Holdings. I personally contributed to Marathon’s early development, proposing a turnkey business model during a merger discussion that ultimately didn’t proceed—but the experience deepened my understanding of scalable, compliant crypto operations.
Pioneering Ethereum Infrastructure: The Next Chapter
After more than ten years of searching for the next regulatory-compliant breakthrough in blockchain technology, we found it: Ethereum block-building and validation. In early 2024, BTCS launched vertically integrated block-building operations—a move that redefines our growth trajectory.
Unlike traditional Bitcoin mining, which demands massive capital investment in hardware that rapidly depreciates, our Ethereum infrastructure strategy offers scalable revenue with minimal capital intensity. We combine direct exposure to Ethereum’s ecosystem with the high-growth potential once seen in early Bitcoin miners—without the burden of heavy CapEx.
👉 Discover how blockchain infrastructure is reshaping crypto profitability in 2025.
This makes BTCS unique: we are the first and only publicly traded company exclusively dedicated to Ethereum block-building and validation. Our model aligns perfectly with public market standards while tapping into one of the most dynamic sectors of decentralized technology.
Proven Growth: Revenue Milestones and Performance-Driven Leadership
Our progress isn’t speculative—it’s measurable. While full audited results for 2024 await final review, I’m proud to share that our unaudited revenue exceeded $3.7 million, marking a 177% increase over 2023. This achievement surpassed a key performance threshold tied directly to executive compensation, reinforcing our commitment to accountability.
For 2025, our leadership incentives remain fully performance-based. The compensation committee has set ambitious yet structured targets:
- Threshold: $4 million in revenue
- Target: $8 million
- Cutoff (stretch goal): $20 million
Our team is laser-focused on exceeding the $20 million benchmark—not just to unlock incentives, but to deliver sustainable value for shareholders. These goals reflect confidence in our technology, market position, and execution capability.
You can find further details in our Form 8-K filed on January 2, 2025.
Core Strategic Advantages
1. Regulatory Compliance Meets Innovation
We operate at the intersection of innovation and compliance. As a Nasdaq-listed company, every step we take adheres to U.S. securities standards—a rare advantage in the crypto space. This transparency builds trust with investors and regulators alike.
2. Vertical Integration for Maximum Efficiency
Our block-building operations are vertically integrated, meaning we control key components of the validation pipeline. This allows us to optimize performance, reduce latency, and capture more value from each block produced.
3. Scalability Without Heavy CapEx
Because we don’t rely on energy-intensive hardware like ASIC miners, our expansion is capital-efficient. This agility enables rapid scaling in response to network demand and market opportunities.
4. Pure-Play Focus on Ethereum Infrastructure
While many companies dabble in multiple blockchain ventures, BTCS is singularly focused. This specialization positions us as a go-to leader in Ethereum’s evolving ecosystem.
Frequently Asked Questions (FAQ)
Q: What is Ethereum block-building, and why does it matter?
A: Block-building is the process of selecting and ordering transactions into blocks before they are validated on the Ethereum network. Efficient block-building maximizes transaction fees (MEV), creating a high-margin revenue stream. As Ethereum continues to scale, this infrastructure becomes increasingly critical.
Q: How does BTCS differ from Bitcoin mining companies?
A: Unlike Bitcoin miners that require expensive, depreciating hardware and massive energy inputs, BTCS leverages software-driven infrastructure with lower capital intensity and faster scalability.
Q: Is BTCS profitable? What are the growth drivers?
A: Our unaudited 2024 revenue exceeded $3.7 million—a 177% year-over-year increase—driven by expanded block production and optimized operations. Growth will continue through scaling our validation capacity and improving fee capture algorithms.
Q: Why should shareholders care about share lending?
A: When shares are held in margin accounts, brokers can lend them to short sellers who profit if the stock price falls. By moving shares to cash accounts, shareholders help reduce downward pressure on the stock and show long-term confidence in BTCS.
Q: Are there risks to BTCS’s forward-looking plans?
A: Yes. Risks include regulatory scrutiny, technological challenges with our Builder+ and ChainQ systems, and shifts in Ethereum’s protocol or economic model. These are detailed in our SEC filings.
Expanding Our Voice and Shareholder Engagement
After being intentionally low-profile in 2023 and 2024 while building our operations, we’re now ready to engage more actively. We recognize that many investors follow updates through social platforms rather than SEC filings alone.
👉 Stay ahead with real-time insights from leading blockchain innovators.
We plan to increase our presence on X (formerly Twitter) via our official accounts: @Charles_BTCS and @Nasdaq_BTCS. Follow us for timely updates, technical insights, and strategic announcements.
A Call to Action: Protect Your Investment
I’d like to reiterate a message from our February 6, 2023 press release: consider moving your BTCS shares from margin accounts to cash accounts. In 2023 alone, Charles Schwab earned $419 million by loaning out retail-held shares to short sellers. Every share lent out fuels bets against our company.
Imagine the impact if our 30,000+ shareholders moved their holdings to cash accounts simultaneously. It would signal strong collective confidence and reduce artificial downward pressure on our stock price.
Your action matters. Let’s build value—together.
Looking Forward to 2025 and Beyond
We stand at the frontier of a new era in blockchain infrastructure. Just as we led the charge in 2014 by becoming the first public Bitcoin miner, we are now pioneering Ethereum block-building in the public markets.
Our mission is clear: become the leading publicly traded Ethereum infrastructure provider through innovation, execution, and unwavering commitment to shareholder value.
We’re just getting started.
Thank you for your continued trust and support.
Sincerely,
Charles Allen
CEO, BTCS Inc.
Forward-Looking Statements
This letter contains forward-looking statements within the meaning of federal securities laws. These include statements about the conclusion of SEC inquiries, growth opportunities in Ethereum infrastructure, revenue potential, and future performance targets. Words such as “believe,” “expect,” “anticipate,” “project,” and “intend” identify forward-looking statements. These statements are based on current expectations and assumptions but are subject to risks and uncertainties, including regulatory developments, technological issues with Builder+ or ChainQ, changes in crypto policy under new administrations, and market volatility. Actual results may differ materially. BTCS disclaims any obligation to update these statements except as required by law.
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