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Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

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<div><ul><li>Allen highlighted a landmark year for BTCS, headlined by preliminary 2025 revenue of $16 million, which was a 290% increase over the previous year. </li><li>This growth was punctuated by record fourth-quarter revenue of ~$6.6 million, even though, as Allen noted, the first quarter is typically a slower period for the company.</li><li>Beyond top-line revenue, BTCS’ total assets surged by 600%, driven by an aggressive Ethereum accumulation strategy that resulted in holdings of more than 70,500 ETH (valued at ~$225 million).</li></ul></div><div><p style="list-style-type: square;"></p></div>

Allen highlighted a landmark year for BTCS, headlined by preliminary 2025 revenue of $16 million, which was a 290% increase over the previous year. This growth was punctuated by record fourth-quarter revenue of ~$6.6 million, even though, as Allen noted, the first quarter is typically a slower period for the company.Beyond top-line revenue, BTCS’ total assets surged by 600%, driven by an aggressive Ethereum accumulation strategy that resulted in holdings of more than 70,500 ETH (valued at ~$225 million).

BTCS: CEO Discusses Record 2025 Revenue, BTCS Differentiation, and the US CLARITY Act

<ul><li>Blockchain technology pioneer BTCS, Inc. (NASDAQ: BTCS) commented on MSCI’s consultation on how digital asset treasury (DAT) companies are being classified within its equity indices. </li><li>The company supports MSCI’s objective of ensuring indices reflect operating businesses and believes its submission does a strong job of proposing a framework to differentiate companies like BTCS as operating businesses, rather than being classified primarily by asset holdings. </li><li>The company welcomes very active discussion across crypto and public markets.</li></ul>

Blockchain technology pioneer BTCS, Inc. (NASDAQ: BTCS) commented on MSCI’s consultation on how digital asset treasury (DAT) companies are being classified within its equity indices. The company supports MSCI’s objective of ensuring indices reflect operating businesses and believes its submission does a strong job of proposing a framework to differentiate companies like BTCS as operating businesses, rather than being classified primarily by asset holdings. The company welcomes very active discussion across crypto and public markets.

BTCS: Company Comments on MSCI's Classification of DAT Companies

<ul><li>Blockchain technology pioneer BTCS, Inc. (NASDAQ: BTCS) announced its 3Q25 earnings, with revenue of $4.9 million versus $739,000 in 3Q24, up 568% Y/Y.</li><li>The company also saw an unrealized appreciation of crypto assets of $73.7 million, mainly driven by the increase in Ethereum (ETH). </li><li>Gross margin improved to 22%, reflecting enhanced block-building efficiency and early contributions from decentralized finance (DeFi) revenue through Imperium.</li></ul>

Blockchain technology pioneer BTCS, Inc. (NASDAQ: BTCS) announced its 3Q25 earnings, with revenue of $4.9 million versus $739,000 in 3Q24, up 568% Y/Y.The company also saw an unrealized appreciation of crypto assets of $73.7 million, mainly driven by the increase in Ethereum (ETH). Gross margin improved to 22%, reflecting enhanced block-building efficiency and early contributions from decentralized finance (DeFi) revenue through Imperium.

BTCS: Strong 3Q25; Revenue Up 568% Y/Y; Significant Margin Improvement; New Offerings

Thematic (Sector/Industry)

<ul><li>The CLARITY Act represents a critical regulatory milestone for the US crypto industry, aiming to grant the CFTC primary jurisdiction over digital commodities while restricting the SEC to traditional investment tokens. </li><li>Although the bill has passed the House and advanced through key Senate committees to reach the legislative calendar, it is currently stalled by backroom negotiations over an ethics amendment and committee reconciliation.</li><li>Policy experts warn that Senate leadership must bring the legislation to a floor vote before the August recess or the window to pass this major institutional market catalyst will effectively close for 2026.</li></ul>

The CLARITY Act represents a critical regulatory milestone for the US crypto industry, aiming to grant the CFTC primary jurisdiction over digital commodities while restricting the SEC to traditional investment tokens. Although the bill has passed the House and advanced through key Senate committees to reach the legislative calendar, it is currently stalled by backroom negotiations over an ethics amendment and committee reconciliation.Policy experts warn that Senate leadership must bring the legislation to a floor vote before the August recess or the window to pass this major institutional market catalyst will effectively close for 2026.

Tech Talk: Crypto Happenings : Regulatory Deadlocks, Market Corrections...

<ul><li>Asset tokenization is projected to evolve into the backbone of global finance, with institutional adoption potentially driving the market to between $11 trillion and $16 trillion by 2030. </li><li>Within 10 years, this “great migration” could reach more than $60 trillion as the technology expands from real estate into stocks, bonds, and previously untradable assets like carbon credits.</li><li>The ultimate scale of this growth depends on regulatory clarity and the finalization of interoperability laws that allow assets to move seamlessly across global digital networks.</li></ul>

Asset tokenization is projected to evolve into the backbone of global finance, with institutional adoption potentially driving the market to between $11 trillion and $16 trillion by 2030. Within 10 years, this “great migration” could reach more than $60 trillion as the technology expands from real estate into stocks, bonds, and previously untradable assets like carbon credits.The ultimate scale of this growth depends on regulatory clarity and the finalization of interoperability laws that allow assets to move seamlessly across global digital networks.

Tech Talk: Tokenomics : How Blockchains and Cryptocurrencies Are Going to Reshape Transactions

United States

BTCS Inc. (BTCS) operates as an online retailer that sells various types of merchandise for virtual currencies. The Company offers transaction verification, secured information, digital currency ecosystem, display up-to-date inventory, and management of digital currency wallets services.

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BTCS (BTCS US)

BTCS: CEO Discusses Record 2025 Revenue, BTCS Differentiation, and the US CLARITY Act

Allen highlighted a landmark year for BTCS, headlined by preliminary 2025 revenue of $16 million, which was a 290% increase over the previous year.

Water Tower Research

BTCS: Company Comments on MSCI's Classification of DAT Companies

Blockchain technology pioneer BTCS, Inc. (NASDAQ: BTCS) commented on MSCI’s consultation on how digital asset treasury (DAT) companies are being...

Water Tower Research

BTCS: Strong 3Q25; Revenue Up 568% Y/Y; Significant Margin Improvement; New Offerings

Blockchain technology pioneer BTCS, Inc. (NASDAQ: BTCS) announced its 3Q25 earnings, with revenue of $4.9 million versus $739,000 in 3Q24, up 568%...

Water Tower Research

Tech Talk: Crypto Happenings : Regulatory Deadlocks, Market Corrections...

The CLARITY Act represents a critical regulatory milestone for the US crypto industry, aiming to grant the CFTC primary jurisdiction over digital...

Water Tower Research

Tech Talk: Tokenomics : How Blockchains and Cryptocurrencies Are Going to Reshape Transactions

Asset tokenization is projected to evolve into the backbone of global finance, with institutional adoption potentially driving the market to...

Water Tower Research

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