BITCOIN Svcs In/SH SH (OTCMKTS:BTSC) continues to represent an archetypal example of the proliferation of the Bitcoin craze in our current market context. However, the stock hit a major technical snag toward the end of November when it topped out in the $0.60 area and subsequently dove as much as 75% in about two weeks. But that all ended with the start of this week, when shares of the stock launched as much as 100% in Monday’s action following the initial launch of the Bitcoin futures market on the Chicago Board of Exchange.
As many traders in the space may be well aware, the launch of Bitcoin futures been well-telegraphed. But many assets seemed to react nonetheless on Monday. The move is significant as it allows for the existence of hedging strategies, and thus the likely inclusion of more traditional elements of Wall Street money management, where hedging strategies are a must.
BITCOIN Svcs In/SH SH (OTCMKTS: BTSC) bills itself as a company engaged in the mining of Bitcoin as well as Blockchain software development. Bitcoin mining is the process by which transactions are verified and added to the public ledger, known as the blockchain, and also the means through which new Bitcoins are released.
According to BTSC press materials, “Our business operations are Internet based to the consumer and consist of two separate streams, as follows: (1) bitcoin mining, and (2) blockchain software development. The principal products and services are the mining of bitcoins, and the development and sale of blockchain software. The market for these services and products is worldwide, and sold and marketed on the Internet.”
BTSC is focused on bitcoin mining which is legal and is accomplished by running SHA256 double round hash verification processes in order to validate Bitcoin transactions and provide the requisite security for the public ledger of the Bitcoin network. The speed at which you mine Bitcoins is measured in hashes per second. The Bitcoin network compensates Bitcoin miners for their effort by releasing bitcoin to those who contribute the needed computational power. This comes in the form of both newly issued bitcoins and from the transaction fees included in the transactions validated when mining bitcoins.
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As noted above, with the advent of Bitcoin futures, we have a great deal of new excitement in the market, and it would seem to be predicated on the sense that larger, more traditional money is likely to be pouring into this market over the next few months given the new ability to hedge against bubble risk. Our sense is this will contain both ups and downs for straight bitcoin names, such as BTSC. Part of that story will about the likely onslaught of new regulatory moves that have yet to appear, but most certainly will, by the government as this phenomenon gradually becomes more and more established.
So far, BTSC has fared very well, along with many other names in the space, as the fervor surrounding the bitcoin story and the wider crypto story has come once again to a boil. But this is very much still a story in the making and we will be tracking it every step of the way.
As far as recent performance in the stock, recent action has seen a bit less than 290% piled on for shareholders of this particular name during the trailing month. This is emblematic of the stock. BTSC is a stock whose past is littered with sudden rips. Moreover, the stock has seen a growing influx of trading interest, with the stock’s recent average trading volume running just under 260% beyond what we have been seeing over the larger time frame.
At this time, carrying a capital value in the market of $201.2M, BTSC has virtually no cash on the books, which stands against virtually no total current liabilities. The company is pre-revenue at this point. This is an exciting story, and we look forward to a follow-up chapter as events transpire. Sign-up for continuing coverage on shares of $BTSC stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $BTSC, either long or short, and we have not been compensated for this article.