BTCS Inc (OTCMKTS:BTCS) Sinks To Record Lows

Last week was a total disaster for the stock of BTCS Inc (OTCMKTS:BTCS) For the whole week the ticker went nowhere but down logging five straight sessions of losses. Friday’s trading, however, was particularly painful – from an opening price of $0.09 the stock crashed all the way down to a close at $0.077, for a daily loss of more than 16%. During the trading day BTCS also registered a new 52-week low of $0.065.

On that day the company submitted a new 8-k filing, which could explain the even greater desire of investors to shed their holdings. Apparently on June 8 BTCS entered into a warrant exercise agreement pursuant to which the company agreed to accept the sum of $27,500 as a full payment for 500 thousand warrant shares. Far scarier, however, were the obligations of the company that arose from it accepting this agreement. Now BTCS will have to issue 37.9 million shares, change the exercise of outstanding warrants for the purchase of over 10 million shares to $0.055, change the exercise price of warrants for the purchase of more than 17.5 million shares to $0.069, and, as if that wasn’t enough, it will also have to lower the conversion price of its junior and senior convertible notes to $0.055. According to the PR BTCS doesn’t have enough room to “fulfill its obligations with respect to the issuance of new shares”.

Keep in mind that this comes just a little over a month after the troubles with Spondoolies. BTCS had signed an agreement for a merger with Spondoolies and its management team even escrowed millions of shares with the clause that they will get their shares back if the merger is successfully completed by the end of the year. At the start of May, however, a district court in Israel appointed a temporary liquidator for Spondoolies Tech. BTCS had already made a total investment of $2.25 million that it now believes to not be recoverable.

This put even greater strain of the already dire financial state of the company. BTCS finished the first quarter of the year with:

• $63 thousand cash
• $127 thousand total current assets
• $5.4 million total current liabilities
• $199 thousand revenues
• $2 million net loss

Jumping into BTCS is extremely dangerous. If you are determined to trade the stock it is paramount to use caution and to do extensive research before putting any amount of money on the line.