BTCS Inc. (OTCQB: BTCS), a publicly-traded company focused on digital assets and Blockchain technologies, recently announced that management invested $1.1 million in the Company. This is a particularly bullish sign for investors in BTCS, as it provides strong evidence of management’s belief in its business model and growth potential. The round was led by its CEO, Charles Allen, who personally invested $810,000.
BTCS was one of the first public companies to focus its business model around providing opportunities for investors to indirectly own Bitcoin, Ethereum, other digital assets. Charles Allen, a highly respected crypto industry pro, has spent the last 7 years building the BTCS platform. The BTCS crypto portfolio grew 1,327% from December 31, 2019 to December 31, 2020.
BTCS Stock Continues Its Breakout Move As Bitcoin’s Reaches All-Time High of over $41,000
The market value of OTCQB: BTCS has increased 500% in the first two weeks of January, its stock price up from $0.20 cents to $1.34 as of January 8, 2021. Its market cap is now $50M, but relative to its publicly traded peers may still be considered undervalued. With the bullish trend in cryptocurrency prices driven by large institutional investors as a hedge against inflation, cryptocurrencies are reaching all-time highs. While Bitcoin reached an all-time high of over $41,000 on January 9th, 2021, there are analysts who believe we are still in the very early stages of a very bullish trend for cryptocurrencies. There are some analysts who believe Bitcoin could reach $400,000, a potential upside of 1,000%. Cryptocurrency stocks are rising in direct correlation with the movement in crypto prices.
BTCS Growth Strategy, Crypto Portfolio Up 80% in January
The BTCS crypto portfolio increased from approximately $4 million to $7 million in January alone, up 80%, mostly due to management’s well-timed investments in Bitcoin (BTC) and Ethereum (ETH).
In fact, with the newly raised capital, the Company recently added to its portfolio of cryptocurrencies with purchases of both Bitcoin and Ethereum.
Its growth strategy is focused on three areas: (1) Strategic purchases of digital assets to continue to increase the value of its crypto portfolio; (2) making strategic accretive acquisitions of innovative technologies in the crypto space; (3) developing a unique data analytics platform that would allow crypto investors to track crypto holdings for performance metrics and tax purposes. With this innovative platform, investors would be able to analyze not only their own performance data, but they could also follow and shadow the performance of other crypto investors. The plan is to make this a subscription-based service in which investors can follow and shadow traders with a proven track record of performance.
Management Aligned With Shareholders
Not only did management invest $1.1 million in the recent financing, the CEO was also granted 2 million restrictive stock units which are only earned upon an uplisting to the NASDAQ or NYSE. CEO Charles Allen, commented: “My interests are totally aligned with investors. I have made a considerable investment in the Company.”
He also added, “I believe the cryptocurrency space is still in its infancy and there is enormous upside for those who invest in Companies like BTCS. Moreover, at some point we intend to uplist our stock to either the New York Stock Exchange or the NASDAQ stock exchange. An uplisting to a national stock exchange will give us greater access to capital and further propel our growth opportunities.”