BTCS Inc. (OTCQB:BTCS) Is Heading To Triple Zeros

tags: BTCS

BTCS Inc. (OTCQB:BTCS) dropped another 40% in Friday’s session – and would have probably plummeted all the way to the illiquid obscurity of triple zero land, if the week’s final bell hadn’t arrested its descent.

BTCS has been digging its way down through what you’d normally call “rock bottom” for a while now – and is it really any wonder that it is doing so?

After all, there is only so much dilution investors can tolerate before abandoning ship wholesale – and, BTCS has undoubtedly gone above and beyond that threshold during this last month.

Things were never all that peachy in BTCS – the company didn’t seem to be doing much of anything relevant before. However, as its latest 8-K reports hit the web it turned out that it wasn’t as idle as it appeared. During five days ended June 21 alone, BTCS issued about 50 million shares as a result of conversions of debt, which totaled just $600 thousand.

Last Wednesday, BTCS filed another report which made it clear that 37.8 million shares had been issued as due to the conversion of $37 thousand worth of notes, as well as some warrants being exercised.

By that point in time, BTCS investors were in full retreat, but what happened next made them recoil all the faster. And how could it not?

It turned out that BTCS is to issue ANOTHER 474 million shares of common stock to clear outstanding debt, as well as print warrants for the purchase of about a billion more shares. What’s more, it the conversion rates of the company’s outstanding junior and senior notes also shriveled from $0.06 to $0.00564.

Long story short – BTCS has successfully drowned its investor value in dilution, which is why it is not surprising to see it plummet this far, and why it would not be surprising to see it go even farther down.