WAYNE, PA — BTCS Inc. (Nasdaq: BTCS) reported higher first-quarter revenue and sharply improved gross margins driven by growth in its Imperium decentralized finance platform, even as declining Ethereum prices contributed to a $69.1 million quarterly net loss.
The blockchain infrastructure and decentralized finance company generated $2.1 million in revenue during the quarter ended March 31, up 27% from a year earlier, primarily because of contributions from Imperium, its DeFi-focused business launched in 2025.
Gross profit increased to $1.0 million, representing a 47% gross margin, compared with $0.1 million and a 7% margin in the prior-year quarter.
“Imperium generated nearly half of our total revenue in the quarter and was the driving factor behind our strong gross profit margin,” Chief Financial Officer Michael Prevoznik stated.
DeFi operations through Imperium contributed approximately $1.0 million in revenue during the quarter, accounting for roughly 47% of total company revenue.
Revenue from blockchain infrastructure operations, including NodeOps and Builder+, totaled $1.1 million, down from $1.7 million a year earlier and $6.3 million in the fourth quarter of 2025 as BTCS shifted away from lower-margin block-building activity.
Although total quarterly revenue declined from $7.0 million in the prior quarter, gross profit rose 25% as the company emphasized higher-margin DeFi strategies over volume-driven infrastructure operations.
BTCS reported a net loss of $69.1 million for the quarter, compared with a loss of $17.3 million a year earlier.
The company attributed most of the loss to non-cash digital asset revaluations tied to declines in Ethereum prices, including $35.7 million in unrealized losses and $29.3 million in realized losses associated with ETH transactions used to manage collateral and liquidity positions.
Total assets fell to $129.0 million as of March 31 from $214.6 million at the end of 2025, reflecting lower cryptocurrency valuations, digital asset sales and redeployment of assets across staking and liquidity strategies.
BTCS also reduced gross debt obligations by approximately $18.2 million during the quarter through repayments of decentralized finance borrowings.
“The hard work from our engineering team shows what Imperium is capable of,” Chief Technology Officer Ben Hunter stated, pointing to new quantitative on-chain trading strategies that improved revenue generation and margins.
Management identified Imperium as the company’s primary strategic focus for 2026 and indicated it expects the platform to remain the main contributor to gross profit through the remainder of the year.
BTCS is targeting approximately $6 million in gross profit during 2026 through expansion of its DeFi operations and infrastructure optimization efforts.
Chief Executive Officer Charles Allen also pointed to pending federal cryptocurrency legislation as a potential catalyst for broader blockchain adoption.
“I believe the pending Clarity Act legislation, if passed, will provide the regulatory clarity that institutional participants need to further embrace the blockchain industry,” Allen stated.
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