Silver Spring, MD, Sept. 27, 2021 (GLOBE NEWSWIRE) — BTCS Inc. (Nasdaq: BTCS) (“BTCS” or the “Company”), a blockchain technology focused company, is pleased to announce that the Company has paid off its $1.0 million convertible note issued in December 2020.
“As our financial position has improved dramatically this year, we were able to capitalize on this opportunity to drive value for our shareholders through the elimination of potential dilution from this note by paying it off in full,” stated Charles Allen, Chief Executive Officer of BTCS. “With BTCS insiders owning approximately 43% of the outstanding shares of the Company, our interests are very well aligned with that of our shareholders, as evidenced by this action. This note had the potential to convert at a 35% discount to the closing market price on the date of conversion. Given the recent decline in our stock price, repaying this note allowed us to avoid unnecessary dilution and protect our shareholders.”
BTCS’ stock price was $1.60 (adjusted for the August 2021 reverse stock split) at the time of issuance of the note in December 2020 compared to $6.38 as of September 24, 2021. Similarly, the price of Ethereum was a mere $636 when the note was issued, compared to approximately $3,000 as of September 26, 2021.
“The note provided us the necessary capital to launch our blockchain infrastructure operations, which generated over $450,000 in revenue in the first half of 2021,” continued Allen. “With the benefit of this capital, we were able to begin securing and powering disruptive next generation blockchains such as Ethereum at advantageous prices before digital assets soared to new all-time highs in the second quarter. Now with our recent Nasdaq listing, we believe we may have improved access to debt financing and other lower cost of capital options to grow operations, drive revenue, and ultimately improve return on equity for our shareholders.”
BTCS is an early mover in the blockchain and digital currency ecosystem, and the first “Pure Play” U.S. publicly traded company focused on blockchain infrastructure and technology. Through its blockchain infrastructure operations, the Company secures next generation blockchains by actively validating blockchain transactions and is rewarded with native digital tokens. The Company is developing a proprietary Staking-as-a-Service platform to allow users to stake and delegate supported cryptocurrencies through a non-custodial platform. The Company is also developing a proprietary digital asset data analytics platform that allows users to consolidate their crypto trades from multiple exchanges onto a single platform, enabling users to view and analyze their performance, risk metrics, and potential tax implications. The Company employs a digital asset treasury strategy with a primary focus on disruptive non-security protocol layer assets. For more information visit: www.btcs.com.
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