bitcoin

Bitcoin Shop Inc (OTCMKTS:BTCS) Starts The Week On A Strong Note

With gains of more than 28% Bitcoin, Shop Inc (OTCMKTS:BTCS) managed to start the week on a strong note. After low trading activity, it started to gain momentum last Thursday when it posted gains of over 10% to close at $0.1695. On Friday, the gains were even better as Bitcoin Shop closed with almost 16% gain at $0.198. The last time the company touched these levels was back in June 2014.

The reasons

The strong momentum in Bitcoin Shop is supported by reasons. Bitcoin, Shop Inc (OTCMKTS:BTCS) closed a $498 thousand financing and received two digital currency ATMs. It is also working to expand its Bitcoin mining facilities. Fulfilling the same purpose, it acquired a hundred $35 miners from Spondolies Tech Ltd. The new assets brought the mining hash rate of Bitcoin Shop to 891TH/s. Also, the company made an investment of $100 thousand in Coin Outlet.

The financial performance

Analyzing all the positive developments that occurred in past two months, it may appear that Bitcoin Shop operations are flourishing. However, the optimism is not supported by the latest financial report, which states that Bitcoin, Shop Inc (OTCMKTS:BTCS) has $111,000 cash , total current assets worth $561,000 and $131,000 total current liabilities.

The poor performance

The generated revenues of $1,520 in 3Q2014 are not only disappointing but have also been declining on QOQ basis. Bitcoin shop reported revenue of $11,000 for 1Q2014, which declined by more than 50% in 2Q2014 and now have declined by further 60%. Bitcoin, Shop Inc (OTCMKTS:BTCS) could cover its expenses for a little while, with $498,000 financing but then have to look out for new means to generate capital. Apart from funds, the stocks of Bitcoin Shop can remain subdued due to the negative publicity and volatility of the Bitcoin cryptocurrency. The popular Bitcoin exchange Bter was shut down after the incident of stolen Bitcoin.

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