BTCS Inc (OTCMKTS:BTCS) has been among the most active OTC-traded stocks for quite awhile, since the beginning of the recent and ongoing bitcoin boom that has carried the value to all-time highs and given a massive amount of exposure to the burgeoning cryptocurrency space.
When we last touched upon the stock, we were mentioning how companies have been scrambling to fill the vacuum of a new industry, and BTCS has been among the top names early in the sector’s history. We also talked about its intended merger with Blockchain Global, Ltd.(“BGL”) which is the subject of the company’s most recent press release.
BTCS Inc (OTCMKTS:BTCS) announced today it has secured $1,000,000 in financing, which includes $250,000 in bitcoin. The funds will go toward the completion of the proposed deal.
“This financing represents a major milestone in the ongoing evolution of our Company,” stated Charles Allen, CEO of BTCS. “With the opportunity in the burgeoning blockchain space is still in its infancy, our planned merger with Blockchain Global Ltd. 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.”
Under the terms of the agreement, BTCS has closed on the first $100,000 (the “First Closing”) of the financing. BGL funded $250,000 in bitcoin. The balance of the funding is to be released upon the Company’s filing of Form 10-Q for the period ended June 30, 2017 ; provided, however if the Company fails to file its 10Q within two weeks from the First Closing, unless otherwise extended by one of the investors that invested cash, the escrow agent will be required to return the $650,000 remaining in escrow and the Company will return all the bitcoins. The full terms of the financing are detailed in a Form 8-K filed with the SEC on October 10, 2017.
Additional conditions of the planned merger, disclosed in a press release issued on August 21, will be met upon the completion of the financing, including the waiver of anti-dilution protections by four BTCS shareholders and the settlement of all of BTCS’ outstanding debt.
Sam Lee, CEO of BGL, stated, “We believe joining together the expertise of our organizations through this merger will further our leadership position in blockchain technologies. Completing this financing is the first step in bringing this vision to reality.”
The planned merger is subject to negotiation and execution of a definitive merger agreement, BGL shareholder and board approvals and other customary closing conditions. Further, BTCS can provide no assurances or guarantees it will be able to consummate the planned merger. (Source:
With nothing guaranteed about the merger at this point, we don’t want to count on it, but the fact that Blockchain Global has co-led the funding for the deal, we would be surprised if it does not in fact see its way to completion. If the deal does go through, it could mean the next level for BTCS so we’ll want to keep our eyes and ears open to stay on top of the story. Meanwhile, Bitcoin topped the elusive $5000 mark this week, and there’s really no telling where the ceiling might be. Stay locked to Street Register for updates, and we’ll deliver important developments on BTCS as they unfold. In the meantime, if you’ve yet to sign up for our 100% free newsletter, do so now! Just enter your active email address into the box below and submit!
Disclosure: No one at Street Register has been compensated in any way for the publishing of this article, nor do we hold any position in BTCS stock, short or long.