Bitcoin Shop Inc (OTCMKTS:BTCS) continues to trade near $0.10 support levels in recent weeks on moderate volume. The stock saw a huge move in the first few months of this year running from $0.0681 low’s to highs of $0.375.
BTCS is in the business of developing, marketing and operating an e-commerce website, which offers its users an online marketplace for transacting business in digital currencies, including Bitcoins, Litecoins and Dogecoins. The Company is also in the business of mining Digital Currencies specifically Bitcoin.
Bitcoin Shop Inc (OTCMKTS:BTCS) operates the website btcs.com where consumers can purchase products using digital currency such as bitcoin, litecoin and dogecoin, by searching through a selection of over 2,000,000 items from 85 retailers (“Beta”), as well as their legacy site at legacy.bitcoinshop.us.
BTCS does not take physical possession or title to any inventory in either the Beta or Legacy sites. All orders are originated by the Company’s customers through its websites and are fulfilled by third party vendors. The Company charges its customers a processing fee and earns a profit margin on each transaction. Customers purchase merchandise on the Company’s websites in amounts denominated in Digital Currencies.
The Company converts a portion of the Digital Currencies received from its customers as payment, to an amount of USD that are needed to remit payments to third party vendors that ultimately fulfill the orders; provided, however the Company from time to time elects to retain the Digital Currencies and pay third party vendors with the Company funds.
BTCS has been making several important acquisitions and investments in recent months to drive future growth, some of them very smart investments; BTCS was one of just four investors in GoCoins Series A back almost a year ago. Since then PayPal partnered with GoCoin for their upcoming bitcoin integration. See here.
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On October 1 BTCS said it gained significant traction in its core transaction verification services business segment during the third quarter of 2015, achieving multiple strategic milestones. In September, the Company signed a definitive merger agreement with Spondoolies-Tech Ltd. a leading global manufacturer of transaction verification servers which reported audited revenue of more than $28 million for the year ended December 31, 2014.
Also in September, Spondoolies announced the pending debut of its third-generation Application Specific Integrated Circuit server, the SP50. Expected to provide a 4x efficiency improvement over current technology, the implementation of SP50s at the Company’s North Carolina facility should significantly increase the Company’s hashing power and improve operating margins. While BTCS operated ASIC servers with a hash rate of 891 TH/s (trillion calculations per second) during the third quarter of 2015, its North Carolina facility has the power capacity to run approximately 20,000 TH/s of the Spondoolies’ SP50 servers.
Earlier in the third quarter, laying the foundation for future increases in hashing rates, BTCS doubled the operating capacity at its North Carolina facility from 1.5 megawatts (“mw”) to 3mw.
BTCS earned 683 bitcoins during the third quarter of 2015. This represents quarter-on-quarter growth of 24% compared to the second quarter of 2015, where BTCS earned 552 bitcoins for its transaction verification services. For the nine months ended September 30, 2015, BTCS earned 1,329 bitcoins, up 2,481% compared to 52 bitcoins earned during the full year 2014.
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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 with over $100,000 in cash and over $200,000 in digital currencies on the books. BTCS seems to be making all the right moves with an aggressive business plan and rapid expansion in a fast growing industry. 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.