BTCS Inc(OTCMKTS:BTCS) saw a massive surge in recent trading after the price of bitcoin has exploded up the charts to $4700 overnight.
The Company has been quiet in recent months with the last press release coming in January when they announced a letter to shareholders.
The performance of the blockchain space over last year validates our original business thesis, which began in early 2014. Despite having the right idea at the right time, the challenge of raising the necessary capital to execute impacted our ability to truly realize the potential from this disruptive opportunity. We entered 2017 with $45.3 million in total liabilities and only $98 thousand in assets. Through capital raises and debt restructuring achievements during last year, we’ve dramatically improved our financial position.
Together with other major accomplishments we believe we have positioned the company for what may be a brighter future. Over the course of 2017, we’ve:
Restructured our toxic convertible debtRaised $2.1 million through two rounds of equity financing (May and October)Began building our portfolio of digital assetsBroadened our board directors with the appointment of Jonathan Read and David GarrityEliminated all anti-dilution and investor friendly features from certain of our securities
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.
BCG operates four distinct business lines, an institutional exchange platform, transaction verification services (bitcoin mining), a blockchain start-up accelerator, and a blockchain technology consultancy. BCG generated AU$5.9 million (approximately US$4.4 million) revenue in FY16, a 300% increase over FY2015 revenue. BCG has approximately US$3.5 million in assets comprised of bitcoin and cash as of July 1, 2017, and is currently supporting its business through profit from operations. The reported revenues are audited in accordance with International Financial Reporting Standards and are financial measures not calculated in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). See the section below under “Non-GAAP Financial Measures”.
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BCG wholly owns and operates ACX.io, an Australian Bitcoin Exchange and liquidity provider. Leveraging BCG’s asset security, exchange IP, and a proprietary liquidity engine, ACX provides a process to buy and sell bitcoin. Further, through ACX, BCG operates a proprietary arbitrage engine which captures a spread across multiple liquidity pools. BCG currently owns approximately 6 petahash (“PH”) of mining capacity in a purpose-built outsourced facility in China. BCG’s China operation has access to electricity at approximately US$0.04/kwh. BCG also provides blockchain technology advisory services including the preparation and support of crowd-sourced Blockchain token sales and Initial Coin Offerings.
As a result of the above efforts and accomplishments as of December 31, 2017 we had no debt and cash of approximately $303K and digital assets valued at $621K for an aggregate of $924K in total assets.
With respect to the merger with the Australian blockchain company, due to delays in receiving their audited financials and other due diligence items, the board unanimously decided to evaluate other potential merger targets. While it is still possible we may complete the merger with the Australian company, we are actively focused on other opportunities and in preliminary discussions with other potential targets that may drive shareholder value. We cannot assure you we will complete any acquisition.
Lastly, while recent SEC filings noted the intention of management and current employees to resign should the merger with the Australian company fail to materialize, we have agreed to remain onboard for a limited time to evaluate other potential directions for the company. On behalf of our entire team, I want to again personally thank you for your continued support.
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Currently trading at a $7 million market valuation BTCS has minimal assets or revenues and rising debt that has caused significant dilution here in the past. But BTCS is an exciting story developing in small caps; the Company is as an early mover in the blockchain and digital currency ecosystems and the first “Pure Play” U.S. public company focused on blockchain technologies. We will be updating on BTCS when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with BTCS.
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Disclosure: we hold no position in BTCS either long or short and we have not been compensated for this article.