ETH Treasury Giant BTCS Turbocharges Returns by Farming Yield on Aave – DeFi Strategy Goes Institutional

Wall Street meets DeFi as BTCS turns hodling into high finance.

The publicly traded crypto asset firm is now leveraging Aave's lending protocols to squeeze yield from its ETH treasury—because apparently, just owning Ethereum wasn't profitable enough for the suits.

Yield Farming 2.0: Institutional Edition

While retail degens ape into memecoins, BTCS is quietly deploying institutional capital into DeFi's safest yield generator. Aave's battle-tested smart contracts now serve as the foundation for corporate treasury strategies—who said crypto wasn't growing up?

The ultimate irony? Traditional finance spent years dismissing DeFi as 'unregulated gambling'—now they're copying its playbook. Maybe those APYs looked too juicy to ignore after all.

BTCS enters the top ten ETH holders

Interestingly, BTCS is one of the leading ETH strategic reserve companies that has been busy accumulating the token in the lead-up to its recent price surge. According to the Strategic ETH Reserves tracker, the company has almost 56,000 ETH after completing the purchase of 23,000 ETH on July 21.

With the move, it is now in the top ten ETH holders, even though it remains far behind Sharplink Gaming, the biggest public company holding ETH with over 360,000 Ether accumulated in less than two months. Interestingly, Bitmine also holds more than 300,000 ETH.

However, BTCS does not rely only on staking and yield generation from DeFi protocols. Allen noted that the company is also selling equity, integrating with Rocket Pool, and building blocks in the ethereum ecosystem. In an earlier post, he claimed the company is a pioneer in the crypto industry and will continue to lead.

The claim is premised on BTCS being the first crypto mining firm to go public in 2014. It has also been accumulating BTC and ETH for its balance sheet since 2018 with the introduction of Digital Assets Treasury, and became the first public company to distribute a dividend payable in Bitcoin in 2022.

Unsurprisingly, its ETH accumulation and treasury management practices had a positive effect on its stock value. Yahoo Finance data shows that BTCS is up 150% year-to-date and has gained 172% in the past month alone. The stock is currently trading around $6.

Aave sees growing institutional adoption

Meanwhile, the move by BTCS highlights how crypto-native organizations are increasingly turning to Aave to generate yield. Speaking on the BTCS move, founder Stani Kulechov noted that any treasury company should use Aave to generate yield.

Interestingly, only a few months ago, the Ethereum Foundation borrowed $2 million worth of GHO stablecoin from Aave, signaling a shift from selling ETH. The Foundation had also deployed 45,000 ETH to several DeFi protocols, including Aave, Compound, and Spark, with Aave getting most of the capital.

With the growing institutional adoption, Aave deposits have reached $56.72 billion, enough for it to rank 42nd on the list of biggest US banks.

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