Business
With Convertible Note Retirement, BTCS Now Debt Free
Silver Spring, MD, Nov. 15, 2021 (GLOBE NEWSWIRE) -- BTCS Inc. (Nasdaq: BTCS) (“BTCS” or the “Company”), a blockchain technology focused company, is pleased
About this update from Btcs Inc.
[{"type":"text","content":"Silver Spring, MD, Nov. 15, 2021 (GLOBE NEWSWIRE) -- BTCS Inc. (Nasdaq: BTCS) (“BTCS” or the “Company”), a blockchain technology focused company, is pleased to announce that by paying off its last $1.0 million convertible note, issued in January 2021, the Company is now debt-free. With BTCS insiders owning approximately 42% of the Company’s outstanding shares, there is a strong alignment of shareholder interests, and desire to minimize dilution and create value. “By eliminating our remaining outstanding debt and avoiding the potential dilution from the conversion of this note, we are driving further value for our shareholders,” stated Charles Allen, Chief Executive Officer of BTCS. “The note could have converted at a discount to the closing market price on the date of conversion.” The retired note’s 12% cost of capital offered a favorable non-dilutive funding vehicle as evidenced by the +667% increase in the market value of the Company’s digital asset holdings from $4 million at the beginning of 2021 to $45.7 million as of November 4, 2021. The note helped drive this exponential increase, providing an exceptional return on investment and the fuel for our revenue generating blockchain infrastructure operations. From the January 15, 2021 issuance of the now retired note, BTCS’ stock price rose to $7.92 as of November 12, 2021 from $2.18 (adjusted for the August 2021 reverse stock split), representing a +263% increase. With inflation set to run at its highest rate in 30 years, possibly exceeding a 7% annual rate in the coming months, the digital assets held by BTCS are now increasingly recognized as an effective hedge against inflation thus positioning the Company to offer shareholders the opportunity to create real (i.e. inflation-adjusted) economic value. “Our September 2021 listing on Nasdaq has placed us in a position that we believe improves our 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,” continued Allen. “Thanks to the growth of our high profit margin blockchain infrastructure operations, which in part were supported by this now retired note, we are on track to exceed our March 2021 guidance of $1.1 million in revenue for fiscal year 2021. The Company is now in the strongest financial position ever. Our plan ...