Silver Spring, MD, Jan. 07, 2021 (GLOBE NEWSWIRE) -- (via Blockchain Wire) BTCS Inc. (OTCQB: BTCS) (“BTCS” or the “Company”), a digital asset and blockchain technology focused company, today announced its management invested $1.1 million into the Company through a convertible preferred share offering. Charles Allen, the Company’s Chief Executive Officer invested $810K. The preferred shares are only convertible after two years.
“The strong foundation we have built and our unwavering commitment to the disruptive potential of digital assets over the last seven years has placed us in a great position to capitalize on the many opportunities ahead,” commented Michal Handerhan, COO of BTCS.
“Michal and I now have a serious financial investment in BTCS, providing a strong indication of our belief in the long-term potential of the Company,” commented Charles Allen, CEO of BTCS. “Our investment, which is effectively locked up for two years with resale severely limited thereafter, demonstrates that we are in this for the long haul and aligns our interests with those of our shareholders.”
The preferred stock is redeemable for $1,177,000 or 107%. The redemption feature allows for the return of invested capital if shareholders vote to reject management’s investment. Because this is a related-party transaction, the Company will seek shareholder ratification of the issuance of the preferred shares.
“Management does not currently own any equity in the Company,” commented Allen, “This investment changes that dynamic and ensures management has skin in the game to take the Company to the next level.”
The preferred shares have a conversion price of $0.17 and have anti-dilution protection as set forth in the Series C-2 Certificate of Designation. Further details of the preferred shares are disclosed in a Form 8-K filed with the SEC on January 6, 2021.
About BTCS:
BTCS is one of the first U.S. publicly traded companies focused on digital assets and blockchain technologies. BTCS plans to acquire additional Digital Assets to provide investors with indirect ownership of Digital Assets that are not securities, such as bitcoin and ether. We intend to acquire Digital Assets through open market purchases. We are not limiting our assets to a single type of Digital Asset and may purchase a variety of Digital Assets that appear to benefit our shareholders, subject to the limitations of the Investment Company Act of 1940. We are also internally developing a digital asset data analytics platform and seeking to acquire controlling interests in businesses in the blockchain industry. For more information visit: www.btcs.com