Bitcoin Shop Inc. (OTCMKTS:BTCS) Crashes After Announcing Merger
Interestingly enough, the unimpressive 10-K that Bitcoin Shop Inc. (OTCMKTS:BTCS) filed mid April didn’t have all that profound an impact on the company’s stock prices – but the announcement that it is going to merge with Spondoolies-Tech Ltd. sure did.
In the PR that hit the web yesterday,Charles Allen, CEO of BTCS, tried to be absolutely clear that they “believe this merger once completed would create significant value for BTCS and Spondoolies shareholders”. Evidently he failed to convince investors, as the ticker plummeted 12.35% immediately after the news came out.
And in this case the investors’ displeasure with the company is completely justified. Truth be told, BTCS‘s balance sheets were never impressive to begin with:
- Cash – $5403 (NUMBER NOT IN THOUSANDS)
- Total current assets – $68 thousand
- Total current liabilities – $266 thousand
- Annual revenue – $38 thousand
- Annual net loss – $14.7 million
Who knows what will happen when it merges with a LLC? BTCS management claims the merger with the “group of Israeli high-tech veterans” will all be for the best, but in light of their history of dilution and overall shenanigans, it’s no wonder that the investors’ patience is growing dangerously thin.
This is most likely why BTCS‘s share price fell yesterday, and why the ticker may well end up even further down the chart today.