The stocks belonging to BTCS, the bitcoin company has been seeing a considerable amount of activity in the recent days. Being traded on OTCMarkets, the ‘Pure Play’ US public company has been under the weather lately as its stocks hit an all-time low.
The company’s stock prices have plunged steeply to trade at $0.06 a pop. As the price started to exhibit a downward trend, there has been a significant increase in the trade volumes. The increased trade volumes were a result of investors selling/liquidating their BTCS shares to prevent further losses. With investors panicking, it has been a field day for the shorters.
The company has been throwing a lot of warning signs, with the latest one being Spondoolies Tech, an Israeli company in which BTCS had made a significant investment filed for bankruptcy after the company’s employees filed a lawsuit for non-payment of salary. According to reports, BTCS made investments in Spondoolies Tech with the intention of merging with it on a later date, but with the Beersheva district court in Israel appointing a temporary liquidator for Spondoolies Tech, it is highly unlikely to materialize.
This year’s first quarter financial report of BTCS shows that the company has been making huge losses. The net loss suffered by the company was around $2 million, with liquid cash holdings at around $63 thousand. The current assets held by the company stood at $127 thousand alongside liabilities worth $5.4 million.
BTCS has been around for a while now. The company was started in 2013 and it has been working on developing blockchain and digital currency ecosystem since then. Some of the other services offered by the company include transaction verification services, e-commerce marketplace, and bitcoin wallet. The company has also invested significant amounts in GoCoin and Gem. It is to be seen whether BTCS will be able to recover from the current situation or not.
Ref: OTCMarkets | HotStocked | Image: BTCS