Business
BTCS Calls On Shareholders to Protect their Investment by Not Lending their Shares
Silver Spring, MD, Feb. 06, 2023 (GLOBE NEWSWIRE) -- BTCS Inc. (Nasdaq: BTCS) (“BTCS” or the “Company”), a blockchain technology-focused company, is calling
About this update from Btcs Inc.
[{"type":"text","content":"Silver Spring, MD, Feb. 06, 2023 (GLOBE NEWSWIRE) -- BTCS Inc. (Nasdaq: BTCS) (“BTCS” or the “Company”), a blockchain technology-focused company, is calling on its shareholders to take action to protect their investment. The Company’s public float is comprised of over 35,000 shareholders holding approximately 8.7 million shares, of which it estimates over 80% are held at 4 brokerage firms. In addition to this concentration of shares, the Company believes many of these shares may be held in margin accounts, potentially making it very easy for short sellers to borrow those shares. “I want to alert our shareholders that they can take simple actions to protect their investment,” said Charles Allen, CEO of BTCS. “Over the past few decades, the financial industry has undergone a profound transformation with the shift towards zero-commission trading. This evolution has led to an increased reliance on alternative sources of revenue for brokerage firms, such as paying for order flow and lending out shares to facilitate short selling. This dynamic is both veiled and detrimental to Main Street, creating an unfair playing field for retail investors who make up the majority of BTCS's shareholders. At BTCS, we believe in fair and transparent markets and the innovative technology behind blockchains which can help restore fairness and transparency to our financial systems.” For long-term shareholders that believe in the Company’s future, the Company implores you to consider taking one of the following actions: 1) hold your BTCS shares in a cash account at your brokerage firm instead of a margin account, or 2) opt-out of any securities lending programs which should stop your broker from lending your shares, or 3) move your shares to Equity Stock Transfer, the Company’s transfer agent. The Company will pay all transfer agent costs associated with moving your shares both to and from your brokerage account provided they are DRS transfers. Please note that once your shares are moved to our transfer agent, your ability to timely transfer your shares back to a brokerage firm and sell may be a longer process. “Any long term investor holding shares in a company implies an inherent belief in that company’s success. Therefore, it’s counterintuitive to support actions that make it easier for institutions to bet against you and your investment,” continued A...