BTCS Raises $1.45 Million, Increases Stake in Spondoolies-Tech

BTCS (OTCMKTS:BTCS), formerly Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term Shop, has raised another $1.45 million in financing. Cavalry Fund LP led the round, which was closed on December 16.

BTCS, which now engages primarily in bitcoin mining, needed the injection of cash in order to continue operations. For several quarters, the company indicated in filings that its financial position leaves “substantial doubt about the company’s ability to continue as a going concern.”

BTCS procures its hardware from Israel-based Spondoolies-Tech, with whom it recently entered into a merger agreement. $750,000 from the investment is going toward additional investment in Spondoolies, raising BTCS's stake to 9.6%.

The merger is expected to be completed in several months. It is anticipated that the increased cash flows will make for a more stable combined entity. Spondoolies CEO Guy Corem commented that the investment will accelerate the rollout of its SP50 mining hardware.

CEO Charles Allen told Finance Magnates that the funding is a short-term Bridge Bridge The bridge or liquidity bridge is an essential component for brokers that are enabling their clients to trade at interbank rates directly via a Prime Broker or a Prime-of-Prime (PoP). While market makers do not require a bridge in order to service their clients, brokers which are sending through orders to a liquidity provider or an electronic execution venue need a bridge to connect their trading platform to the interbank market.Bridges are used extensively in forex trading, specifically for Met The bridge or liquidity bridge is an essential component for brokers that are enabling their clients to trade at interbank rates directly via a Prime Broker or a Prime-of-Prime (PoP). While market makers do not require a bridge in order to service their clients, brokers which are sending through orders to a liquidity provider or an electronic execution venue need a bridge to connect their trading platform to the interbank market.Bridges are used extensively in forex trading, specifically for Met Read this Term, part of a larger financing effort that aims to upgrade the company's stock listing to the Nasdaq.

The capital was raised through a note which is convertible into common shares of BTCS stock at a conversion price of $0.30 per share. The note has a 9-month maturity and includes warrants to purchase 6.77 million common shares for $0.375.

The notes were issued at a 5% original issue discount (OID); net proceeds from the financing were $1,377,500.

RK Equity Advisors, LLC acted as financial advisor. Broker-dealer services were provided through Pickwick Capital Partners, LLC.

Another $325,000 of the funding was advanced to CSC Leasing Corporation to facilitate the purchase of mining hardware via a sale-lease-back arrangement. BTCS expects to double its mining capacity to 1.8 PH/s (1 PH = 10¹⁵ hashes, or encryption operations) in January.

The investment is only the second during what has been the quietest month for industry venture funding in more than two years. Combined with Purse's round earlier this month, only $2.45 million has been raised thus far.

The financing is the second for BTCS this year. It raised $2.3 million in April.