BTCS, a Nasdaq-listed Ethereum treasury company, has sold ETH below its purchase price to protect a $64.1 million loan on decentralised lending platform, AAVE, from potential liquidation.
The company had pledged 46,676 ETH, valued at $99.3 million, as collateral against the borrowing as of November 9 2026. However, a decline in ETH prices could trigger automatic liquidation, with the threshold estimated at around $1,717 per ETH, assuming the loan and collateral remain unchanged.
The case highlights a key risk of crypto-backed lending where borrowers must maintain sufficient collateral even when markets fall, forcing them to
- inject more assets,
- repay debt, or
- sell holdings at a loss.