Recently BTCS, one of the first US publicly traded companies focused on digital assets and Blockchain technologies, has reported a 130% increase in its Asset Position in just one quarter.
With this, the company has amassed more than $1 million worth of digital assets position by the end of the 2nd Quarter ended June 30, 2020.
What are Digital Assets & how has the company achieved this feat?
With the origination of the term in mid-90s, digital assets only included videos, images, audio, or documentation.
Though in recent years, Bitcoin has brought up a massive change in the meaning of this term. Generally, 3 elements make any file a digital asset, first, it must be a digital file, second, it must provide value to the company and third, it should be searchable.
Now with regards to its achievement, the company states they focused on establishing a position in key digital assets because of the business plan they made.
It was revealed that lower value of currency owing to the recent economic bailouts had incentivized them to increase their digital asset inventory.
The company further plans to diversify its risk by expanding the digital currency holding it possesses. It has decided to avoid those digital assets altogether which come within the ambit of securities.
How does the company’s Balance sheet look after an increase in asset position?
BTCS has spiked up its Digital asset position at a rapid pace in the past 12 months. The company had Digital assets with a Fair market value of $228,908 (comprising of both BTC & ETH) by the end of the 3rd quarter of 2019.
The next quarter saw a QoQ change of 21% which was succeeded by -4% QoQ change in the 1st quarter of 2020.
Finally, the 2nd quarter of 2020 ended with a QoQ change of 285% with a fair market value of digital assets totalling a whopping $1,017,579.
All about BTCS
BTCS is an early entrant in Digital Asset Market and one of the first publicly traded companies dealing in Digital Assets and Blockchain tech.
The company focuses on providing indirect ownership of digital assets to the investors and specifically focuses on digital assets that are not securities.
The company has repeatedly stressed on creating a diversified digital asset pool and refrained from restricting the asset to a single type of asset.
In addition to that, it has ventured into the field of Analytics by creating a digital asset data analytics platform.
The company also seeks to gain a foothold in the Blockchain industry by acquiring controlling interests in businesses pertaining to the Blockchain industry.
This is in consonance with its belief that Blockchain has the ability to impact all industries on a global basis.
Research states that by 2022, at least one innovative business built on Blockchain technology will be worth $10 billion. The total business value addition by Blockchain in businesses is also set to reach $3.1 trillion by 2030.
Disclaimer: The content of this article is sponsored and does not represent the opinions of Finance Magnates.
