Nasdaq-Listed Ether Treasury Firm BTCS Sells ETH at a Loss to Avoid Liquidation; $1,700 Marks Key Level

Summary

• BTCS said it sold Ether (ETH) below its purchase price to maintain the health of collateral on lending platform Aave.
• BTCS said its outstanding Aave loan balance was about $64.1 million, with 46,676 Ether worth about $99.3 million posted as collateral.
• CoinDesk said liquidation risk could emerge if Ether falls to about $1,717, assuming the size of the loan and collateral remains unchanged.

Forecast Trend Report by Period

BTCS, a Nasdaq-listed company that holds Ether as a treasury asset, sold some of its Ether at a loss to avoid forced liquidation, CoinDesk reported on November 13.

In a recent quarterly filing, BTCS said it sold Ether below its purchase price to maintain the health of collateral backing funds borrowed on lending platform Aave.

As of November 9, BTCS had about $64.1 million in outstanding Aave loans, including interest. It had posted 46,676 Ether worth about $99.3 million as collateral.

A further drop in Ether could trigger forced liquidation of that collateral. CoinDesk estimated that, assuming the loan and collateral amounts remain unchanged, liquidation risk could emerge if Ether falls to about $1,717.

BTCS sold part of its Ether at a loss to avoid liquidation, the report said. It did not disclose the size of the sale or the amount of the loss.

Uk Jin