Silver Spring, MD, Jan. 08, 2018 (GLOBE NEWSWIRE) -- BTCS Inc. (OTCQB: BTCS) (“BTCS” or the “Company”), a blockchain technology focused company, released a Letter to Shareholders updating current activities and outlining its corporate strategy, as follows:
Dear Shareholders,
Thank you for your continued dedication and support to our company.
The performance of the blockchain space over last year validates our original business thesis, which began in early 2014. Despite having the right idea at the right time, the challenge of raising the necessary capital to execute impacted our ability to truly realize the potential from this disruptive opportunity.
We entered 2017 with $45.3 million in total liabilities and only $98 thousand in assets. Through capital raises and debt restructuring achievements during last year, we’ve dramatically improved our financial position.
Together with other major accomplishments we believe we have positioned the company for what may be a brighter future. Over the course of 2017, we’ve:
- Restructured our toxic convertible debt
- Raised $2.1 million through two rounds of equity financing (May and October)
- Began building our portfolio of digital assets
- Broadened our board directors with the appointment of Jonathan Read and David Garrity
- Eliminated all anti-dilution and investor friendly features from certain of our securities
As a result of the above efforts and accomplishments as of December 31, 2017 we had no debt and cash of approximately $303K and digital assets valued at $621K for an aggregate of $924K in total assets.
With respect to the merger with the Australian blockchain company, due to delays in receiving their audited financials and other due diligence items, the board unanimously decided to evaluate other potential merger targets. While it is still possible we may complete the merger with the Australian company, we are actively focused on other opportunities and in preliminary discussions with other potential targets that may drive shareholder value. We cannot assure you we will complete any acquisition.
Lastly, while recent SEC filings noted the intention of management and current employees to resign should the merger with the Australian company fail to materialize, we have agreed to remain onboard for a limited time to evaluate other potential directions for the company.
On behalf of our entire team, I want to again personally thank you for your continued support.
Sincerely,
Charles Allen
CEO and Chairman
About BTCS:
BTCS is an early entrant in the Digital Asset market and one of the first U.S. publicly traded companies to be involved with Digital Assets and blockchain technologies. Subject to additional financing, BTCS plans to grow its portfolio of digital assets including bitcoin and other “protocol tokens” to provide investors a diversified pure-play exposure to the bitcoin and blockchain industries. BTCS intends to acquire digital assets through open market purchases and may, subject to additional financing, acquire digital assets by resuming our transaction verification services business (often referred to as mining) through outsourced data centers and earning rewards in digital assets by securing their respective blockchains. Additionally, BTCS may participate in initial digital asset offerings (often referred to as initial coin offerings) but has yet to do so due to regulatory concerns and the risk that many digital assets are digital securities. BTCS is also keenly focused on growth through acquisition and is actively evaluating potential acquisition targets. The blockchain is a decentralized public ledger and has the ability to fundamentally impact all industries on a global basis that rely on or utilize record keeping and require trust. For more information visit: www.btcs.com. Our website is not part of this press release. We cannot assure you that we will achieve any of the goals outlined in this paragraph.
Forward-Looking Statements:
Certain statements in this press release, including those related to the planned merger or any other proposed acquisition, obtaining financing, resuming our mining business and future acquisitions of digital assets constitute “forward-looking statements” within the meaning of the federal securities laws. Words such as “may,” “might,” “will,” “should,” “believe,” “expect,” “anticipate,” “estimate,” “continue,” “predict,” “forecast,” “project,” “plan,” “intend” or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While the Company believes these forward-looking statements are reasonable, some or all of expectations regarding these forward-looking statements may not occur, and undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward-looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including regulatory and other in the market for digital assets including substantial price declines, intense competition for the acquisition of blockchain companies which may affect the purchase price and difficulties in negotiating and closing any potential acquisitions including the absence of audited financial statements as we have experienced, and the future condition of the capital markets in general and the market for microcap securities. Investors should review the Risk Factors set forth in the Company's filings with the Securities and Exchange Commission, including those relating to its digital currency business. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.