Nasdaq-listed Ethereum treasury company BTCS sold ETH below its cost basis to prevent liquidation of a $64.1 million loan on Aave, according to a quarterly filing disclosed by CoinDesk. As of November 9, the loan was collateralized by 46,676 ETH valued at approximately $99.3 million based on a disclosed price of $2,127 per token, yielding a collateral ratio of roughly 155%.
Aave typically counts about 80% of BTCS's ETH as collateral, resulting in a health factor of approximately 1.24 and a liquidation threshold near $1,717 per ETH. With ETH trading around $1,950 on Friday, the position remained roughly 12% above the liquidation line. BTCS characterized the sales as part of active management of DeFi lending collateral levels. The company held only about $463,000 in cash as of late September, with the vast majority of its digital assets deployed as collateral on Aave.
Ethereum Treasury Firm BTCS Sells ETH at Loss to Avoid $64.1M Aave Loan Liquidation
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