Home Focus Stocks BTCS Inc. (OTCMKTS:BTCS) Receives $1 Million Investment

BTCS Inc. (OTCMKTS:BTCS) Receives $1 Million Investment

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BTCS Inc. (OTCMKTS:BTCS)
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BTCS Inc. (OTCMKTS:BTCS)

BTCS Inc. (OTCMKTS:BTCS) shares fell 12.4% as the blockchain technology company is finalizing plans to merge with Blockchain Global after receiving a $1 million investment. Also in the news was the confirmation of David Garrity, GVA Research LLC CEO, to serve as an independent member of the board of directors.

BTCS Inc. (OTCMKTS:BTCS)

BTCS Stock Performance

Wednesday’s plunge affirmed a sell-off wave that has plagued the stock in recent weeks. Blockchain Inc. has shed more than 60% in market value over the past two months as it continues to trade in a strong downtrend. However, it is still up by more than 50% for the year. The stock faces immediate support at the $0.12 a share mark, below which it could drop to the $0.08 mark.

In a bid to strengthen investors’ confidence on the stock, BTCS Inc. (OTCMKTS:BTCS) has announced plans to merge with Blockchain Global. The merger should strengthen the company’s prospects on digital currencies given that BCG operates four distinct business around Cryptocurrencies.

BTCS-Blockchain Global Merger

Blockchain Global owns an institutional exchange platform for bitcoin as well as a transaction verification service (bitcoin mining) and a blockchain startup accelerator. The company generated revenues of $4.4 million last year, a 300% increase from 2015 revenue. The company currently operates a bitcoin mine in China and bitcoin exchange in Australia.

Under the terms of Letter of Intent, BCG shareholders are to receive a combination of common stock, preferred stock, and warrants equal to 75% of the combined company.

The $1 million investment by BCG marks an important milestone as the two companies join forces to pursue opportunities in the bitcoin market. However, the planned merger is still subject to the execution of a definitive merger agreement, BGL shareholder, and board of director’s approval.

“With the opportunity in the burgeoning blockchain space is still in its infancy, our planned merger with Blockchain Global Ltd. (“BGL”) positions us with a diversified business model that sets the stage for market leadership globally, and this financing represents a strong commitment to move forward,” said BTCS CEO, Charles Allen.

Under the terms of the agreement, BTCS Inc. (OTCMKTS:BTCS) is to receive the first $100,000 of the $1 million financing. The balance, excluding the $250,000 in bitcoin, is to be released after the company files Form 10-Q for the period ending June 30, 2017.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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