BTCS Is In Expansion Mode, Utilizing Rocket Pool To Potentially Boost Revenue By Up To 10%
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January 17, 2025 08:35 AM Eastern Standard Time
by Meg Flippin Benzinga
BTCS Inc. (NASDAQ: BTCS), a blockchain infrastructure and technology company currently focused on driving scalable revenue growth through its Ethereum blockchain infrastructure operations, deployed its Scaled Validator Implementation Plan this week, which the company says should boost vertically integrated validator revenue by 10%, improve margins and enhance its position in the sector.
“This initiative represents a pivotal step toward our goal of scaling blockchain
infrastructure to drive revenue growth,” said Charles Allen, CEO of BTCS. “Our comprehensive approach ensures we prioritize security, compliance and performance at every stage. This initiative underscores our dedication to enhancing our operations while delivering value to our shareholders.”
Rocket Pool For The Win
The Scaled Validator Implementation Plan details BTCS’s strategy to leverage Rocket Pool, a decentralized Ethereum-based liquid staking protocol, to expand its validator operations. Over the past five months, BTCS conducted an extensive due diligence process to assess Rocket Pool’s auditability, compliance, risk factors and overall infrastructure integrity.
This strategic approach enables BTCS to access more blockspace and unlock additional revenue opportunities through Rocket Pool’s liquid staking protocol. By integrating this scalable solution, BTCS aligns with its mission to drive sustainable growth and enhance its position in Ethereum innovation.
Ethereum is a decentralized, open-source platform powered by blockchain technology, designed to enable the creation and execution of smart contracts and decentralized applications (dApps). As a global, programmable infrastructure, Ethereum serves as the foundation for a wide range of use cases, transforming industries such as finance, gaming and more. Users rely on companies like BTCS, which operate builders and validators, to ensure their transactions are securely confirmed and added to the blockchain.
No Stranger To Blockchain
BTCS, which came on the scene in 2014, reports that it is a pioneer in the blockchain technology space and claims to be the first U.S. publicly traded company focused on next-generation blockchain infrastructure. BTCS says its sharp focus on blockchain infrastructure sets it apart from other blockchain, crypto and Bitcoin-focused companies, giving investors access to a pure play. “Our primary objective is to fuel scalable growth by expanding into various business lines that capitalize on and integrate with our foundational and robust blockchain infrastructure operations,” the company states on its website. In 2021 BTCS shifted its focus to Ethereum, the second-largest blockchain, and began operating validator nodes. Early last year, BTCS expanded its business into Ethereum block building with the introduction of Builder+.
In a blockchain network, a validator node is a software that verifies and confirms the legitimacy of transactions before they can be added to the blockchain. Validator nodes are responsible for ensuring the security and integrity of the network by making sure the transaction adheres to the protocol rules and isn’t fraudulent. Validators are rewarded if they confirm legitimate transactions but can be penalized and lose staked tokens if they violate network protocols or are offline.
Scaled Validator Node Operations Expanding
BTCS’ Scaled Validator Implementation Plan included a thorough assessment of auditability, compliance, cybersecurity, infrastructure integrity and potential business risks and rewards. The aim was to ensure a secure and scalable validator implementation. As part of its review, BTCS said it completed a pilot program, which now expanded to 320 validators participating in Rocket Pool’s liquid staking pool, bringing its total validator count up to 522 from the previously disclosed 240. This marks a significant step in expanding the company’s validator node operations, reports BTCS.
Based on an internal analysis, BTCS projects vertically integrated validator revenue increases of up to 10%, which it says will boost its position in the sector. The aim of the Validator Implementation Plan is to optimize the number of active validators and increase total revenue, reinforcing BTCS’s commitment to scaling operations efficiently and maximizing profitability, the company said.
Besides Ethereum, BTCS operates validator nodes on other proof-of-stake and delegated proof-of-stake networks, and the company plans to broaden its validator partnerships and also diversify its technology providers to support long-term growth. By securing various other blockchain networks, BTCS earns revenue through validator fees, offering what the company describes as substantial growth potential.
“I firmly believe that Ethereum infrastructure—focused on block-building and validation— presents the most compelling growth opportunity I’ve ever witnessed in the crypto space, surpassing even the early days of Bitcoin mining in 2017,” wrote Allen in a recent letter to shareholders. “Ethereum block-building and validation offers exceptional revenue growth potential without high capital constraints. Going forward we aim to be the leading Ethereum blockchain infrastructure company and are currently the only pure-play, publicly traded company focused on this strategy.”
Featured photo by Traxer on Unsplash.
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Benzinga is a leading financial media and data provider, known for delivering accurate, timely, and actionable financial information to empower investors and traders.
This post contains sponsored content. This content is for informational purposes only and is not intended to be investing advice.
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