BTCS was founded in June 2013 and is based in Silverspring in Maryland USA. It claims to be among the first U.S. companies to focus on digital assets and blockchain technologies, and is also “developing a digital asset data analytics platform”.
The ticker for BTCS is ‘BTCS’ and the stock itself has seen a stark rise in value since mid April 2020, after a long plateau between March and mid April which itself had followed a steady decline from around mid February. Mid May to present however, BTCS stock price appears to be in another plateau.
It could be assumed that the low price volatility through March and mid April was influenced by investors uncertainties towards markets, as a result of Coronavirus fears and the economic lockdown.
The Coronavirus pandemic had a similar impact (even leading to some negative volatility) amongst the crypto markets, including BTC and ETH. After COVID 19 had reached a pandemic status, the value of BTC dropped massively, but (along with the rest of the market) it has since enjoyed a recovery overall.
What is BTCS?
As the name suggests BTCS is largely focused on Bitcoin (BTC). Beyond BTC, the organisation plans to “acquire additional assets to provide investors with indirect ownership of digital assets that are not securities,” including Ether (ETH).
Furthermore, BTCS claims to be directing it’s “digital asset acquisition strategy” towards its ‘protocol layer’ (TCP/IP, HTTP, etc) as a means of driving its developer onboarding, innovation, as well as user appeal.
BTCS reported on April 21, 2020 via press release that it had emboldened its cash position: amounting to $500,000 in additional funding. This was achieved through ‘convertible note financing’, and a $42,000 loan from the CARES Act Paycheck Protection Program.
The CEO of BTCS Charles Allen confirmed our belief that Coronavirus had an effect on company stocks when he stated that:
“The coronavirus pandemic has sent shockwaves through the global economy… While digital assets tumbled with the initial sell-off in equities in March, we believe this is an anomaly that could create an opportunity for us to accumulate digital assets at attractive prices. With a strengthened cash position and lowered burn, we are in an ideal position to increase exposure to digital assets at depressed values.”
Back on July 29, 2019: Charles Allen distributed a letter to the shareholders of BTCS, which included information such as ongoing activities and long term strategic vision / roadmap. The letter mentioned that BTCS would be focusing on the ‘blockchain space’, seeking to “bridge the gap between public company experience and blockchain expertise”.
The letter highlights that in the first half of 2019, the company “signed an equity line of credit (ELOC) agreement to raise up to $10 million, an agreement that is in line with our goals of avoiding toxic funding and seeking out the lowest possible cost of capital while minimizing shareholder dilution”. It claims to have successfully raised $1.24 million since January in 2019.