BTCS Inc. (OTCQB:BTCS) Falls Closer To A Penny
tags: BTCS
Unsurprisingly, BTCS Inc. (OTCQB:BTCS) took another step down on Friday, and is now sitting on the threshold of double zero land. So, will the ticker make that step?
Well, there are a couple of factors one must consider before drawing that conclusion. First and foremost is the stinking mess that is the company’s share structure at the moment. As a result of “being unable to meet the repayment terms of the notes issued in December 2015”, as BTCS itself put it, the company has been forced to issue an aggregate of approximately 50 MILLION shares of common stock, bringing its total shares of common stock outstanding as of a couple of days ago to approximately 209 million.
That’s a whole lot of dilution to dump on investor value all at once – especially since we’re talking about an OTC Markets underachiever.
And, truth be told, it would be something of a stretch to call BTCS anything but underachiever, with its latest financial report looking like this:
- Cash – $62 thousand
- Total current assets – $126 thousand
- Total current liabilities – $5.4 million
- Quarterly revenues – $199 thousand
- Quarterly net loss – $2 million
So things aren’t really looking up for BTCS at the moment. Still, silver lining could be found in this situation, if investors cared enough to look for it.
First of all, the company’s market cap is currently lower than $2 million – which is low even for an OTC Markets QB tier company, even an unimpressive one.
Another detail that may be worth considering is the fact that warrant holders can still get their hands on about 27.7 MILLION shares of the company’s common stock, they could only do so at prices varying between a $0.055 and $0.069 – which wouldn’t exactly be a profitable move at this point in time.
In conclusion – BTCS looks a step away from both double zero territory and illiquid obscurity, and there are very few things that could prevent it from making that step or remedy the situation if it is taken. Will the ticker continue its fall? We’ll see in today’s trading session.
