BTCS Reports Quarterly Loss of $3.8 Million

BTCS Inc (OTCMKTS:BTCS), formerly Bitcoin Shop, reported a net loss of $3.8 million last quarter and $8.4 million year-to-date.

As in previous filings with the US Securities and Exchange Commission (SEC), the company says that it will require significant additional capital to sustain short-term operations, and will have to make investments in order to execute its longer term business plan.

Late last year the company shifted practically its entire revenue-generating operation to bitcoin mining, seemingly shelving its e-commerce aspirations (the segment brought in $0 in 2015). However, the company states in the filing that it still operates the e-commerce business, without specifying future plans for it.

It also invested in Israel-based mining equipment maker Spondoolies-Tech, from whom it procures the hardware it operates, and entered into a merger agreement.

The shift was part of a rebranding and a move into the broader Bitcoin economy, including ATMs. The company invested in Coin Outlet, a bitcoin ATM provider.

In the filing, BTCS assesses a total impairment of $154,433 for Coin Outlet, and $254,433 when accounting for a promissory note. The filing implies that declining bitcoin prices were responsible.

The company also mentioned that it is interested in other Blockchain technologies. Indeed, its rebranding as BTCS stands for "Blockchain Technology Consumer Solutions".