BTCS reduces Aave DeFi debt by swapping Ethereum for USDT

Nasdaq-listed Ethereum infrastructure company BTCS reduced its decentralized finance (DeFi) debt during the second quarter of 2026. To repay Aave principal and interest, the company swapped approximately $8.65 million worth of Ethereum (ETH) into the stablecoin USDT.

By the end of June, BTCS reported that its Aave collateral had decreased from roughly $105.1 million in March to approximately $75 million. Total DeFi protocol loans were reduced from $43.8 million to $36 million. Despite these efforts to mitigate risk and strengthen the balance sheet, the company reported a net loss of $34.9 million for the quarter, driven largely by unrealized asset losses.

As of June 30, BTCS held $317,113 in combined cash and stablecoin reserves, representing only 0.36% of its total assets. While the company reported no liquidations through August 17, a significant portion of its $89.3 million in assets remains exposed to crypto market volatility, staking, and DeFi protocol risks.