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Here Are Two Major Near Term Catalysts For BTCS Inc (OTCMKTS:BTCS)

Here Are Two Major Near Term Catalysts For BTCS Inc (OTCMKTS:BTCS)
Written by
Chris Sandburg
Published on
October 20, 2017
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BTCS Inc (OTCMKTS:BTCS) is one of the companies that has made a regular appearance on our top bitcoin stocks lists over the past six months or so.The company has experienced plenty of volatility during the period, but it stands out as one of the few allocations in the space that not only offers traders and investors an exposure to bitcoin without requiring them to buy the underlying asset, but that also has a considerable degree of ongoing operations underlying its press releases. BTCS Daily ChartThat's not something we can say for many of the plays in this space and that is what has made this one interesting to us of late.During the session on Thursday, BTCS ran up to the tune of 12%, despite no major news having been reported and nothing having been filed with the SEC since the start of the week.We think this is a sign that markets are (albeit belatedly) absorbing a couple of key developments that have hit the press over the last couple of weeks and, in turn, we think this could be a great time to pick up an exposure to a company that is slowly but surely moving into the spotlight in the cryptocurrency sector.The first major development came back at the end of August when BTCS announced that it had agreed on a merger with an Australian bitcoin and cryptocurrency company called Blockchain Global Limited. As we said at the time, the merger is pretty complicated and it's still not closed, but we also said that if it did close it could propel BTCS into a leadership position from a publicly traded bitcoin exposure perspective and that the risk of the merger not closing out successfully was outweighed by the potential reward of a smooth conclusion.Fast-forward to the end of last week and, while we haven't seen a close confirmation yet, the company did announce a financing that further strengthens the link between BTCS and Blockchain Global Limited, suggesting that the two companies fully expect the merger to close out without any issue.Specifically, BTCS secured $1 million in financing with $250,000 of this due in bitcoin and funded by Blockchain Global Limited. The first $100,000 of the transaction has already been closed on and the balance is to be released subject to BTCS' filing of its 10-Q for the period ended June 30, 2017, within two weeks of this initial closing.This has a couple of important implications.First, that BTCS is now relatively well-funded (given its positioning in the space) and that, for the time being, any immediate dilution risk is reduced or removed entirely.Second, that the company now has a deadline in place by which it has to get its second-quarter financials with the SEC. On numerous occasions in the past, we have suggested that the publication of these financials is going to serve to reduce a large portion of the risk associated with an investment in this company at the current stage, based on the fact that it will remove uncertainty surrounding BTCS' ability to generate revenues, as well as offer insight into its balance sheet positioning.As and when the 10-Q hits press, therefore, there is a good chance that we are going to see the company pick up some strength on the back of an inflow of speculative volume, driven by investors looking to gain exposure to bitcoin and the blockchain and, at the same time, looking to do so ahead of the merger discussed above closing out.That sets us up for two major near-term catalysts, then.One, the SEC filing and the subsequent closing on the outstanding funds associated with the financing transaction and two, the closing of the merger.Check out our previous coverage of this one here. We will be updating our subscribers as soon as we know more. For the latest updates on BTCS, sign up below!Image courtesy of BTC Keychain via FlickrDisclosure: We have no position in BTCS and have not been compensated for this article.

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