BTCS Inc. (OTCQB:BTCS) Gets Crushed To Nothing
So how did this happen? Sure, BTCS‘s achievements to date are mediocre – but then again, that can be said about most of the OTC Markets’ lower tiers. No, something else entirely has brought BTCS investor value to ruin – and that factor is called dilution.
It is a well known fact of reality that many OTC Markets companies resort to dilution as a means of acquiring working capital from time to time. Quite a few do this in the form of toxic funding, which is certainly detrimental to investor value, but might prove manageable if not taken to excess.
Unfortunately for the investors that believed in the company, BTCS took toxic funding to a level rarely seen on the OTC Markets. Suffice it to say that in the five days ended and June 21, the company issued a grand total of 49.8 million shares as a result of a conversion of around $600 thousand worth of the company’s outstanding debt.
Little more than two weeks later, the company filed yet another 8-K, announcing that another 37.8 million shares had been issued as a result of conversions of $37 thousand worth of notes debt and the exercise of some warrants.
And that’s not even the worst news that the 8-K gave investors. As per the filing, BTCS is now forced to issue ANOTHER 474 million shares of common stock to satisfy old debt, as well as print warrants for the purchase of nearly A BILLION more shares. Furthermore, it turned out that the conversion prices of the company’s outstanding junior and senior convertible notes also dropped from about a nickel to a number almost ten times lower – $0.00564, to be precise.
With this in mind, it is no wonder that the company’s market cap is less than half a million dollars. How much lower can it fall? Only time will tell, but if the last few sessions are any indication, BTCS may be scraping the bottom of the triple zero barrel before very long.