BTCS Inc (OTCMKTS:BTCS)
Shares of BTCS Inc (OTCMKTS:BTCS) more than doubled in value after rallying by 105.37% as Bitcoin prices continue to hit record highs. The rally comes days after the company announced the appointment of Jonathan R. Read, to the board of directors, as part of an effort that seeks to strengthen the push to create a vertically integrated operation in the block chain space.
BTCS Stock Chart:
The BTCS Inc (OTCMKTS:BTCS) stock rally continues to flex its muscles around the cryptocurrency hype. A push by the management to diversify the company’s operations, spanning process transaction and a shift towards initial coin offering, has helped strengthen investor confidence on the stock.
Pursuing opportunities on initial coin offerings is a bold move that could see the company enjoy a first mover advantage as Bitcoin becomes mainstream. Getting a hold of the market which is believed to be worth a half a billion dollars could help BTCS Inc (OTCMKTS:BTCS) enjoy impressive growth in line with the growing demand for crypto currency.
BTCS Capital Challenges
Focusing the business on blockchain technologies has, however, come with its fair share of challenges. A lack of sufficient capital to pursue opportunities with speed poses the biggest challenge as the company tries to realize full potential from the disruptive opportunity.
BTCS Inc (OTCMKTS:BTCS) need significant additional capital to sustain its short term operations and make investments needed execute the long term business plan. Existing liquidity is not sufficient to fund operations and anticipated capital expenditures.
Over the past year, BTCS Inc (OTCMKTS:BTCS) has tried to restructure its liabilities as it seeks to improve its financial position. To date, the company has exchanged approximately $3.9 million of convertible notes and raised $1 million as it sought to raise funds to pay liabilities and raise working capital.
“We have taken these steps because we believe the rise of digital tokens as a new asset class has created a tremendous opportunity for us to leverage our experience in the sector, “BTCS in a statement.
Subject to completion of additional financing BTCS Inc (OTCMKTS:BTCS) plans to create a portfolio of digital assets through initial coins offerings, strategic market purchases. The company is also planning to carry out a number of acquisition across the blockchain space.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.