BTCS sells ETH below cost to maintain Aave loan health, theoretical liquidation price approximately $1,717.

BlockBeats news, November 13 — BTCS, the sixth-largest Ethereum treasury company, disclosed in its latest quarterly report that it has sold ETH below its original cost in order to actively manage the collateral level and health factor of its Aave borrowing. The company did not specify how much ETH was sold for this purpose, nor did it break out the size of the related realized losses. As of November 9, BTCS had approximately $64.1 million in outstanding borrowings on the lending protocol Aave, including accrued interest, collateralized by about 46,676 ETH. Based on that day's closing price of $2,127 per ETH, the fair value of the collateral was approximately $99.3 million, or about 155% of liabilities.

Aave's liquidation threshold for ETH collateral is generally 80%. Based on the above loan and collateral sizes, the health factor at that time was approximately 1.24; if the position remained unchanged, a decline in ETH price to around $1,717 could trigger liquidation. Borrowing balances and collateral values fluctuate with borrowing, accrued interest, and coin prices, and the position may have changed since November 9.

As of September 30, BTCS had approximately $463,000 in cash, and the vast majority of its digital assets measured at fair value had been deposited as collateral on Aave and could not be freely used for general corporate purposes while the borrowings remain outstanding. BTCS said that as of November 11, no full or partial liquidation had occurred. From January 1, 2025 to November 11, 2026, BTCS cumulatively borrowed approximately $152.4 million in stablecoins through Aave using ETH as collateral, mainly USDT and Aave's dollar stablecoin GHO, and repaid approximately $89.4 million over the same period.