BTCS Labs Inc. Issues $25,000 Promissory Note to CEO

What Happened

• BTCS Labs Inc. filed a Form 8-K (dated July 31, 2026) disclosing that on July 29, 2026 the company issued an unsecured promissory note for $25,000 to Charles Allen, the company’s Chief Executive Officer and a director, in consideration of a loan he made to the company. The issuance was approved by the board of directors and is reported as a related‑party transaction.

Key Details

• Principal: $25,000 loaned by CEO Charles Allen and evidenced by the promissory note.
• Interest: 6% per annum, compounded annually on December 31; accrued unpaid interest is added to principal for future interest calculations.
• Maturity: Due on the earlier of December 31, 2030, or the date the directors serving on the board as of July 29, 2026 cease to constitute a majority.
• Other terms: Note is unsecured, not convertible into equity, prepayable without penalty, and default interest rises to 15% per annum if an uncured event of default persists for five days.

Why It Matters

• The note creates a direct financial obligation of $25,000 and is a related‑party financing from the CEO, which investors should note for governance and liquidity transparency.
• The note does not dilute shareholders (not convertible) but does increase the company’s debt obligations and contains a governance‑linked maturity clause that could accelerate repayment if the board composition changes.