Monday, June 27, 2022

BTCS Inc (OTCMKTS:BTCS) Shaking Out The Weak Hands

BTCS Inc (OTCMKTS:BTCS) is once again the spotlight company in the blockchain space that seems to be continuously underperforming or lagging. Imagine you had found a bitcoin play on the OTC in March 2017 — one with “Bitcoin” actually in the name — and decided to invest your life savings into it at $0.09/share.
Now imagine I call you on a time-machine phone from November 2017 and tell you that the company you found ended up raising significant funding and merging with another company with “Blockchain” in the name. I also tell you that Bitcoin took off and went from under $1,000/coin to over $7,000/coin in the months separating us in time. Then, on top of all that, suppose that I told you most stocks in any way associated with “Bitcoin”, “Blockchain”, or “Cryptocurrencies” went hundreds or even thousands of percentage points higher. I imagine you would be pretty bummed when I next told you that BTCS was still under a dime/share. Well, that’s exactly how a lot of folks holding this bag are starting to feel.
BTCS Inc (OTCMKTS:BTCS) describes itself as an early mover in the blockchain and digital currency ecosystems and the first “Pure Play” U.S. public company focused on blockchain technologies. BTCS goal is to enable users to engage in the digital currency ecosystem through one point of access – the Companys universal digital currency platform.
“As a firm believer in the blockchain technology, we offer various solutions including Bitcoin Shop – our ecommerce store which accepts a variety of digital currencies, BTCS Wallet – our secure storage solution and more. We deliver each solution by leveraging innovative technologies. We also leverage the services offered by our strategic partners. To date, we have made investments in and partnered with 4 key digital currency companies including: GoCoin, Gem, Expresscoin, and Coin Outlet.”
BTCS operates a beta eCommerceE marketplace. It hosts an online ecommerce marketplace where consumers could purchase merchandise using digital currencies, such as bitcoin, litecoin, and dogecoin. The company was formerly known as Bitcoin Shop, Inc. and changed its name to BTCS Inc. in July 2015. BTCS Inc. was founded in 2013 and is headquartered in Arlington, Virginia.
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As noted above, BTCS has been perhaps the notable laggard among the often-named OTC crypto players. The stock has recently been wilting even further following the company’s release announcing that the company has closed on the remaining balance of its previously announced financing, which was co-led by Blockchain Global Ltd.
According to the release, “the Company received a total of $1.1 million from the sale of its Series C -1 Convertible Preferred Stock and Warrants. On October 10, 2017, the Company closed on the initial $100,000 of a $1 million minimum financing which included $250,000 in bitcoin paid directly to BTCS and $750,000 in cash. The Escrow Agent was permitted to release $100,000 to BTCS which allowed BTCS to pay its auditors, a valuation consultant, an accounting advisory firm and counsel so it could file its Form 10-Q for the six months ended June 30, 2017. The Form 10-Q was filed on October 24th after which the Escrow Agent paid BTCS the $650,000 held in escrow as well as an additional $100,000 paid by a new investor.”
While this is useful, we imagine investors in this company are starting to get a little antsy. We would look for the company to try to get the word out about some kind of operational positive before long. Even though shares haven’t been tearing it up, we would be willing to bet that lots of weak hands are probably in there living on hope at the moment. And this company doesn’t want to see that humidity turn into rain.
At this time, carrying a capital value in the market of $19.2M, BTCS has virtually no cash on the books, which stands against virtually no total current liabilities. BTCS is pulling in trailing 12-month revenues of $161K. However, the company is seeing declines on the top-line on a quarterly y/y basis, with revenues falling dramatically over that period. This may be a very interesting story and we will look forward to updating it again soon. Sign-up for continuing coverage on shares of $BTCS stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $BTCS, either long or short, and we have not been compensated for this article.

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