BTCS Inc. — Capital/Financing Update 2026

Feb 4, 2026

Report Content Conclusion of a significant strategic agreement regarding liquidityprovision for a Bitcoin Layer-2 (L2) ecosystem

The Management Board of BTCS S.A., with its registered office in Warsaw(the "Issuer", the "Company"), hereby informs that on February 3, 2026,the Issuer entered into a strategic agreement (Mainnet TVL CommitmentAgreement) with an entity based in the British Virgin Islands (the"Partner"), which operates an innovative Layer-2 (L2) blockchainprotocol integrating the Bitcoin and Ethereum networks.

1. Subject of the agreement and commitment value. The Issuer hascommitted to participating in a Liquidity Program for a new blockchainnetwork by providing digital assets to increase the Total Value Locked(TVL).

* Commitment Value: The Issuer has declared the provision of between 50and 100 units of Bitcoin (BTC).

* Duration: The agreement has been concluded for a period of 6 months,with a minimum liquidity maintenance period of 2 months.

2. Financial terms and incentives. In exchange for providing liquidityto designated decentralized finance (DeFi) protocols, the Partner hasguaranteed the Issuer a minimum annual percentage yield (BackstoppedAPY) as follows :

* 10% APY for the first two months of the agreement;

* 6% APY for the subsequent four months.

According to the terms of the agreement, rewards (incentives) and anynecessary yield-shortfall top-ups will be paid directly to the Issuer'sdigital wallet in Bitcoin (BTC) and USDC.

3. Purpose and significance of the agreement The agreement is a keyelement in the implementation of the "Active Treasury" strategy, whichaims to generate operational income from held digital resources.Utilizing BTC reserves to support Layer-2 infrastructure allows theCompany to:

* Generate stable and predictable income in BTC and USDC without theneed to liquidate underlying assets.

* Establish a strategic position as a liquidity provider in the emergingBitcoin DeFi (BTCFi) ecosystem.

The Management Board has classified this information as insideinformation due to the significant value of the committed capital(corresponding to the current market valuation of 50-100 BTC) and thepotential impact of the guaranteed cash flows on the Company's financialresults in the upcoming quarters. The counterparty's name has not beendisclosed at this stage due to confidentiality provisions and theprotection of the Issuer's competitive advantage.

Legal basis: Article 17(1) MAR - inside information.