BTCS Inc. (NASDAQ: BTCS) saw its shares stuck in place Monday. This, as the blockchain technology-focused company and the first NASDAQ-listed U.S. public company to run Ethereum validator nodes, announced how the success of Ethereum’s Merge enhances its value proposition.
The Merge offers the potential for operators such as BTCS, which currently runs 240 validator nodes and has staked over 8,350 ETH to see a material increase in its ETH rewards, potentially driving increased revenue.
“Our decision to secure Ethereum’s Proof-of-Stake (“PoS”) beacon chain in early 2021 has proved sound. With the success of the merge, our conviction that Ethereum would successfully transition to a greener and more ESG-friendly chain has now come to fruition” stated Charles Allen, Chief Executive Officer of BTCS. “Not only will the merge dramatically increase our rewards, but it should also improve scalability, increase energy efficiency by 99.95%, and enhance the security of Ethereum’s blockchain” continued Allen.
“Imagine a diesel-engine freight train moving at the speed of light carrying items of significant value like digital assets and banknotes. The diesel engine had served the train well in powering the transportation of goods. However, now imagine that there are a few problems with the diesel engine that would be eliminated if a newer, electric engine was swapped in while the train was still driving.”
Maximum Extractable Value (“MEV”) is a value that can be abstracted from modifying the order of transactions within a specific block(s). Miners largely captured MEV before the Merge; however, now, MEV (as well as other protocol rewards and transaction fees) will be distributed to validators.
BTCS stayed put from Friday’s close at $1.43.
