BTCS Inc (OTCMKTS:BTCS) deserves a strong look at this point. BTCS has been somewhat perplexing in its unwillingness to follow the broader Bitcoin space on anything close to a swing for swing basis. That said, one gets the sense that this story could still pivot in the right direction. If it does, the crowd could seize on it as perhaps the only undervalued crypto stock left in play.
As we noted previously with this stock: “the company isn’t moving forward with operations that take advantage of the theme. They aren’t presenting a dream. This company is just owning the name Bitcoin, and has presented the idea of a merger with another industry player. Otherwise, its operations are non-existent, and the BTC it now has on the balance sheet do not represent a large enough percentage of its ledger to bring correlation into gear with the underlying spot market.” But, this time we ask what might happen if that scenario were to change.
BTCS Inc (OTCMKTS:BTCS) describes itself as an early mover in the blockchain and digital currency ecosystems and the first “Pure Play” U.S. public company focused on blockchain technologies. BTCS goal is to enable users to engage in the digital currency ecosystem through one point of access – the Companys universal digital currency platform.
“As a firm believer in the blockchain technology, we offer various solutions including Bitcoin Shop – our ecommerce store which accepts a variety of digital currencies, BTCS Wallet – our secure storage solution and more. We deliver each solution by leveraging innovative technologies. We also leverage the services offered by our strategic partners. To date, we have made investments in and partnered with 4 key digital currency companies including: GoCoin, Gem, Expresscoin, and Coin Outlet.”
BTCS operates a beta eCommerceE marketplace. It hosts an online ecommerce marketplace where consumers could purchase merchandise using digital currencies, such as bitcoin, litecoin, and dogecoin. The company was formerly known as Bitcoin Shop, Inc. and changed its name to BTCS Inc. in July 2015. BTCS Inc. was founded in 2013 and is headquartered in Arlington, Virginia.
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As noted above, we have been relatively bearish on this name over the past 3 months because we didn’t see any sense of urgency when it came to serious operational activity in the crypto space. However, with the company has a major catalyst in the works that could spark renewed interest and suddenly put this stock back on the map as perhaps the world’s only uncelebrated bitcoin stock – a status that could change very quickly once the crowd steps in.
That major catalyst would be the announcement of a definitive merger agreement with Blockchain Global Ltd. The company had previously announced that it signed a non-binding Letter of Intent to merge with Blockchain Global Limited, an Australian blockchain company, subject to a number of conditions detailed by the company in its communications. However, some skepticism appears to have stepped into that equation since, and a new announcement that confirmed the inevitability of that merger might be the spark that lights a fire under this stock going forward.
Recent action has been flat for the listing in the past week. Market participants may want to pay attention to this stock. BTCS is a stock whose past is littered with sudden rips. Furthermore, the stock has benefitted from a jump in recent trading volume to the tune of above 110% above the average volume levels in play in this stock over the longer term.
Now commanding a market cap of $22.1M, BTCS has virtually no cash on the books, which is balanced by virtually no total current liabilities. BTCS is pulling in paltry trailing 12-month revenues of $20K. However, the company is seeing declines on the top-line on a quarterly y/y basis, with revenues falling precipitously of late. This may be a very interesting story and we will look forward to updating it again soon. Sign-up for continuing coverage on shares of $BTCS 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 $BTCS, either long or short, and we have not been compensated for this article.