Here's Our Take On The FIRST BITCOIN CAP COM NPV (OTCMKTS:BITCF) Halt

FIRST BITCOIN CAP COM NPV (OTCMKTS:BITCF) just picked up a temporary trading suspension from the SEC. The company, which is up more than 6000% year to date and close to 350% during the last 30 days alone, is one that we have highlighted in the past as being one to keep an eye on in the bitcoin space.Outside of a relatively vague and generic statement from the SEC highlighting the value of BITCF's assets and its capital structure, among other things, as being at the root of suspension, the driver behind the action remains unclear.A trading suspension is never good for anybody involved. Day traders can get caught holding shares they don't want and longer-term shareholders are generally left in the dark as to how long a suspension might last (in terms of how long it might take before a company returns to trade on its exchange) or what the outcome of the wait period might be.Here is an attempt to serve up some clarity as to what might be next for First Bitcoin.So, as noted, the halt is rooted in uncertainty surrounding valuation of the company's assets. This is reasonable, given that First Bitcoin doesn't have full reporting status and that demand for its shares has increased more than 24,000% in the last 12 months. In our eyes, the SEC has taken a look at this demand and been unable to do anything but halt trading while it attempts to verify the company's valuation.According to a letter to shareholders that hit press in the wake of the suspension, First Bitcoin was already working to move to a reporting status and is actively working to achieve audited financials with the intention to utilize a PCAOB auditor. With any luck, this advance action should serve to speed up time to resolution. There is also a merger on the table that we first learned about earlier this year, but chances are any such merger will now be shelved (at least temporarily) until the dust clears on the suspension.The real question here is can First Bitcoin show the SEC that its operations justify its continued listing?Of course, we can't say with any certainty, but the situation is reminiscent of various actions the SEC took with companies in the cannabis space back in 2014 and, at resolution, a number of suspensions during the period proved unwarranted. General Cannabis Corp (OTCMKTS:CANN) is a great example. Many will say that a clean transition through and out of suspension is a rarity at this end of the market and there is some credence to that statement. However, we are in something of a unique situation here, whereby the suspension is taking place in a brand-new market, one that is growing at a rapid speed and is seeing large numbers of new entrants attempt to stake a claim to a portion of the growth daily.There is a chance, therefore, that the SEC has been forced to move quicker than it would've liked in halting First Bitcoin and – by proxy – a chance that the justification behind the halting is invalid.So what's next?There's a good chance that, as trading resumes, First Bitcoin will dip as the more risk-averse holders bailout of their positions. This dip, however, might be a nice buying opportunity, in anticipation of a return to the upside action that has seen the company appreciate dramatically over the last few months to current levels.Sure, it's a punt, and, until we have a resolution, any action is purely speculative. With that said, however, this company has proven to be one of the more active in this space to date and from the evidence we have available to us, a suspension could be looked on as harsh.Here's management's take on the action.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 BITCF, sign up below!Image courtesy of Scott S via FlickrDisclosure: We have no position in BITCF and have not been compensated for this article.