BTCS Inc (OTCMKTS:BTCS) Starts Correcting
On Tuesday BTCS Inc (OTCMKTS:BTCS) surged up the chart gaining nearly 40% in a single day. Investors rushed towards the stock and the daily volume of 1.28 million shares surpassed the monthly average significantly. We warned you, however, that there was no discernible reason for the upwards move and that caution is required.
Yesterday the market showed even greater interest and the traded volume nearly doubled the one from Tuesday. The intense trading did not translate into another massive jump in valuation though. In fact, when the closing bell rang BTCS was sitting 3.3% in the red at $0.145. The correction wasn’t that scary but it remains to be seen if the company will manage to hold on to its gains.
The latest financial results didn’t inspire much confidence. The quarterly report for the period ended June 30 contained the following numbers:
• $303 thousand cash
• $404 thousand total current assets
• $3.7 million total current liabilities
• $144 thousand quarterly revenues
• $1.25 million net loss
A working capital deficit of over $3 million and a net loss of over a million are definitely not a pretty sight. Not to mention that for the first half of 2015 BTCS has incurred a net loss of $4.6 million.
The company has been able to improve its operations though stating an increase of 24% in mined bitcoins for the third quarter of the year. For the first nine months of 2015 BTCS has earned a total of 1,329 bitcoins.
Back in September BTCS entered into a definitive merger agreement with the transaction verification server manufacturer Spondoolies-Tech Ltd. According to the announcement the company generated revenues of $28 million for 2014. Equally as important was the launch of Spondoolies’ next transaction verification server that should help BTCS increase their effectiveness while lowering the costs.
Investors should keep in mind that recently BTCS registered for resale around 39 million shares and if the share price continues to rise the owners of the shares might become tempted to take some gains. Take the red flags around BTCS into consideration and adjust your trades accordingly.
