Bitcoin Shop Inc(OTCMKTS:BTCS) share prices declined another 13.38% in last trading session, as more and more investors considered it wise to withdrew from the company. There is nothing irregular or surprising on the chart rather it seems a correction of price rise that began on February 12, 2015.
Investors assumed that as Bitcoin prices surged, it will have a positive impact on share price of Bitcoin Shop. However, the assumptions are flawed as the price of a virtual crypto-currency like Bitcoin, in and of itself has almost little or no impact on the specific achievements of Bitcoin Shop Inc(OTCMKTS:BTCS). Also, it doesn’t affect the financial performance.
If there is little impact on Bitcoin prices on Bitcoin Shop Inc(OTCMKTS:BTCS) then why the ticker gained last week. The answer can be summed up in one word, and that is hype. With all the noise in the media related to Bitcoin prices, it is no surprise that many investors put their money in the companies that contain ‘Bitcoin’ in its name.
The financial performance
A trendy name with Bitcoin in it doesn’t imply that a company is performing well. It is evident in the last quarter performance of Bitcoin Shop Inc(OTCMKTS:BTCS) when it posted cash reserves of $111,000 and sales of just $1,520. The current assets came at $561,000, and current liabilities were $131,000. The net loss in the last quarter was $2.9 million.
In unrelated news, CoinOutlets announced that the expansion of its operations in Europe. It is supported by Bitcoin Shop Inc(OTCMKTS:BTCS) who is an investor in CoinOutlets. The company said that it is poisoning well in the European market by introducing a Bitcoin ATM at BitPay HQ, Amsterdam. The place is the epicenter of immigration, which represent a large remittance market. It is the prime reason CoinOutlets selected to place ATM at BitPay HQ. Amsterdam fits into company’s strategic plan of bringing Bitcoin to large remittance markets.