BTCS cuts some ETH holdings at a loss to reduce liquidation risk on Aave loan

Nasdaq-listed BTCS, which holds Ethereum as a core asset, sold some ETH below its purchase price to reduce liquidation risk tied to its borrowing on decentralized lending platform Aave, CoinDesk reported. According to BTCS’s quarterly report, the company had borrowed about $64.1 million on Aave as of Nov. 9, including interest. It had posted 46,676 ETH, worth about $99.3 million, as collateral, putting its collateral ratio at roughly 155% against the outstanding loan balance. BTCS said it sold part of its ETH at a loss to manage collateral levels and other health metrics tied to the loan, but did not disclose the exact amount sold or the realized loss from the transaction.