Georgi Kamburov

BTCS Inc (OTCMKTS:BTCS) Moves Above $0.001

by Georgi Kamburov July 21, 2016

In about six weeks the stock of BTCS Inc (OTCMKTS:BTCS, BTCS message board) fell from prices over 10 cents per share all the way down to the triple zero ranges. In that period the company lost more than 99% of its value. For the past three sessions, however, the ticker has been showing some encouraging signs. The stock has been retracing its steps back up the chart and after a gain of 10% during yesterday's trading it is now once again sitting above $0.001 at $0.0011 per share. Will the uptrend continue, though?

Well, it might depend on whether investors will be scared off by the increasing dilution and the contractual obligations of the company that are starting to reach mind-boggling levels. If you don't know what we are talking about you might want to check out the last four 8-K filings submitted by BTCS. The first three of them reveal that between June 16 and July 12 the company had to issue approximately 191 million shares as a conversion of notes and exercise of warrants.

The latest 8-K, which came yesterday, showed that the printing presses of the company have been kicked into an even higher gear - in the span of just 7 days, between July 12 and July 20, nearly 336 million shares had come into existence. As a whole the outstanding shares of the company have grown by more than 5 times from the 157.5 million that were outstanding as of May 16 to the current 846 million shares. BTCS can issue another 130 million shares before reaching its authorized shares.

It is no wonder that the company has stated that it will seek approval from the shareholders to adjust its capitalization. The change will have to be rather drastic. As we said earlier the obligations of the company are starting to reach astronomical amounts - according to yesterday's 8-K BTCS will have to issue 6.5 BILLION shares and warrants for the purchase of another 10 BILLION shares. At the same time the conversion price of the company's convertible notes will have to lowered to $0.00042, which will further exacerbate the already abysmal dilution.

Even if you believe in the potential of BTCS to recover its positions on the chart the red flags remain as serious as ever. Use caution when committing to any trades and never put unaffordable sums of money on the line when dealing with any of the pennystock companies out there.

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