BTCS Inc. (OTCQB:BTCS)’s Bounce Fails
BTCS Inc. (OTCQB:BTCS)’s green start yesterday looked promising enough, in the end the heavy buying at the session’s very opening failed to carry the day.
By now, it does really seam that BTCS has dug itself into a hole it well and truly can’t get out of. The ticker’s dead cat bounce didn’t even manage to last one single session, before BTCS was dragged back to the bottom of the charts again. Then again, such a turn of events should have easily been foreseen by anyone who’s kept an eye on the company in recent weeks.
True enough, BTCS has never been all that impressive. A look at its latest financial report shows investors a picture of textbook OTC Markets mediocrity:
- Cash – $62 thousand
- Total current assets – $126 thousand
- Total current liabilities – $5.4 million
- Quarterly revenues – $199 thousand
- Quarterly net loss – $2 million
Still, it is not the company’s meager financial results that did its investor value in.
No, things took a turn for the worse when it agreed to to issue 37.8 million shares of its common stock as a result of a warrant exercise agreement. Combined with the lowering of the exercise price of warrants for the purchase of 10.2 million shares and 17.5 million shares to $0.055 and $0.069, this agreement all but ensured that BTCS investor value would eventually be drowned in dilution.
And if that wasn’t bad enough, the same agreement lowered the conversion price of the junior and senior convertible notes that the company had outstanding to $0.055 per share.
Long story short – BTCS wasn’t a very impressive company even before it signed the agreement that caused its investors a ton of grief. There seems to be very little it can do to remedy its current situation – which is why it is still dropping like a rock.
