An increase in Ether's market value produced a $58.3 million noncash gain for BTCS Inc. in the third quarter, helping the digital-asset company report $54.5 million in net income despite lower revenue.
The company said in an SEC-filed earnings release that the gain largely reflected Ether price appreciation. Net income was down from $65.59 million in the year-earlier quarter, while revenue declined 17% to $4.09 million from $4.94 million. Reported income included the valuation gain even as sales contracted.
The revenue mix also shifted. DeFi revenue rose to $3.51 million from $723,279, but blockchain infrastructure revenue fell to $587,025 from $4.22 million, BTCS reported in its Form 10-Q. The release attributed gross-profit growth to expanded Imperium liquidity-pool positions and a greater contribution from DeFi revenue.
At Sept. 30, BTCS held 49,571 Ether (ETH), valued at $133.1 million, compared with 70,787 ETH at the end of 2025. About 46,607 Aave aEthWETH tokens, representing wrapped Ether, were deployed as collateral for outstanding DeFi borrowings. DeFi protocol loans totaled $63 million.
The filing warned that falling collateral values could lead protocols to liquidate some or all of the collateral. BTCS reported no full or partial liquidation events as of Nov. 11, 2026. That warning concerns a potential decline in collateral value, while the quarter's gain reflected Ether price appreciation.
For the first nine months of 2026, BTCS recorded a net loss of $49.5 million, compared with $52.2 million in net income in the same period of 2025. The company expects Imperium to anchor revenue and gross-profit performance through year-end.
