Bitcoin Shop Inc (OTCMKTS:BTCS) is making a highly explosive move up on accelerating volume since reversing off $0.0705 lows. The move up comes as a big welcome to shareholders who have endured over a year of steady downward movement.
The run on BTCS comes on the heels of a number of positive announcements including the completion of a $1.45 million capital raise in December 2015, 1,225% year-over-year revenue growth for the fiscal year ended 2015. BTCS management also voluntarily returned 12.75 million shares of stock valued at $1.15 million in late 2014 and the Company just received approval from the Israeli OCS to merge with Spondoolies-Tech Ltd.
Bitcoin Shop Inc (OTCMKTS:BTCS) secures the blockchain through its rapidly growing transaction verification services business and plans to build a broader ecosystem to capitalize on opportunities in this fast growing industry. The blockchain is a decentralized public ledger and has the ability to fundamentally impact all industries on a global basis that rely on or utilize record keeping and require trust.
BTCS continues to evaluate and build additional blockchain technology consumer solutions. BTCS also actively partners and integrates with strategic digital currency and blockchain technology companies who provide products or services that are complementary to its business strategy.
BTCS originally began operations focused exclusively on the Bitcoin ecosystem but plans to evaluate broader opportunities in blockchain consumer solutions. According to recently published research from Goldman Sachs, the real opportunity lies in the underlying technology of Bitcoin, the blockchain. Referred to as the golden egg, the blockchain can not only live outside of Bitcoin, it has the potential to streamline a multitude of businesses.
BTCS current transaction verification operation touches every blockchain transaction. Even after doubling their server processing power in January of 2016, the Company is currently using just 33% of the expanded power capacity added in July 2015. The foundation to rapidly scale operations is in place.
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BTCS recently announced the coming merger with Israeli based Spondoolies-Tech; a transaction verification server manufacturer. Spondoolies raised ten million dollars in capital from leading Israeli venture capital firms and assembled a team of leaders in the Israeli Semiconductor industry, with the goal of building the infrastructure on which digital currencies will flourish. Building digital currency transaction verifying servers from the bottom up, Spondoolies is producing machines that are designed for efficiency and performance. During 2014, Spondoolies successfully launched five different products.
According to the agreement after giving effect to BTCS’s recent $750,000 investment in Spondoolies, BTCS shareholders will own a 69.7% to 61.2% stake in the combined company, and Spondoolies shareholders will own 30.3% to 38.8% of the combined company, based on the number of common and preferred securities outstanding immediately following the merger. The ownership range is a function of BTCS’ liquidation preference associated with its existing $2.25 million investment in Spondoolies. The final ownership percentages will be determined prior to closing.
BTCS CEO Charles Allen commented, “Our merger with Spondoolies marks a major milestone for us and sets the stage for rapid revenue acceleration in the years ahead. BTCS produced year-over-year revenue growth of 1,225% in 2015, while cash used in operations was reduced by 25%. To combine this strong performance with Spondoolies’ industry leading technology, which generated impressive revenues for its first and second generation products, we’ll be positioned to create a new global leader in the blockchain sector.”
BTCS recently announced that management voluntarily returned 12.75 million shares of stock valued at $1.15 million in late 2014, which absorbed nearly all of the dilution from the January 2015 funding, to the recent voluntary escrowing of founder shares representing 15% of the outstanding shares of the company.
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Currently trading at a $16 million market valuation BTCS has a ton going for it here; the Company’s balance sheet has improved significantly and the Company continues to put out some big press including the completion of a $1.45 million capital raise in December 2015, 1,225% year-over-year revenue growth for the fiscal year ended 2015. BTCS management also voluntarily returned 12.75 million shares of stock valued at $1.15 million in late 2014 and the Company just received approval from the Israeli OCS to merge with Spondoolies-Tech Ltd. We will be updating on BTCS when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with BTCS.
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Disclosure: we hold no position in BTCS either long or short and we have not been compensated for this article.