BTCS Reduces ETH Holdings to Limit Aave Liquidation Exposure

Ethereum treasury firm BTCS sold ether below its acquisition cost as it worked to protect a roughly $64 million loan on Aave, according to Crypto Daily and Crypto.news. The transaction was framed as a risk-management move tied to the company’s borrowing position rather than a routine change in its treasury strategy. Crypto.news reported that BTCS’s Aave debt stood at $64.1 million and was backed by 46,676 ETH, with liquidation risk emerging near $1,717 per ETH. Crypto Daily highlighted nearby technical support around $1,850 and said Ethereum’s relative strength index was in oversold territory at the time of its coverage. The two accounts agree on the sale, the loss or sale below cost, and the approximate size of the Aave obligation. Crypto Daily directs attention toward price support and momentum, while Crypto.news provides greater detail on the collateral quantity and liquidation threshold. The independently cross-checked figure rounds the borrowing to $64 million, consistent with both publishers’ reporting. The development is significant because BTCS’s position links an ether treasury operation directly to leveraged DeFi borrowing. A decline in ETH reduces the value of the collateral supporting the loan, increasing the importance of the reported $1,717 risk area. BTCS’s sale of part of that collateral can reduce exposure, although the supplied coverage does not specify the number of ETH sold. Ethereum was priced at $1,923.72, down 4.07% over 24 hours and 13.50% over seven days, placing it above both the cited $1,850 support and $1,717 liquidation level. AAVE traded at $110.55, down 2.62% over 24 hours and 15.97% over seven days, while DeFiLlama reported Aave TVL of $15.52 billion, down 4.3% over seven days. The wider crypto market was broadly lower, with total capitalization at $2.38 trillion, Bitcoin down 4.28% over 24 hours, and the Fear & Greed index at 20, labeled Extreme Fear. The immediate levels to monitor are whether ETH can remain above $1,850 and the reported $1,717 liquidation threshold.