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Here's Why The Latest BTCS Inc (OTCMKTS:BTCS) Announcement Is So Important

Here's Why The Latest BTCS Inc (OTCMKTS:BTCS) Announcement Is So Important
Written by
Chris Sandburg
Published on
November 2, 2017
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Here at Insider Financial, we've tried to keep our readers ahead of the game when it comes to bitcoin and the digital currency space.Things have been moving incredibly fast (bitcoin just broke the $7,000 mark today) and this has brought a huge amount of speculative capital to the space.People don’t want to buy bitcoin for the most part, however. Instead, large portions of the market are looking for indirect exposures – things like indexes, publicly traded companies, etc.One example of this sort of exposure is BTCS Inc (OTCMKTS:BTCS).The company is a publicly traded entity (over the counter) and it's one that operates in the bitcoin and wider blockchain ecosystem.This link to the cryptocurrency sector has caused it to track the price of the underlying bitcoin as the latter has risen across the last six to twelve months and – as said price continues to rise – we fully expect that of BTCS shares to do the same.Why?Because this company isn’t just one of the handful of that offer a publicly traded exposure to bitcoin, it's one of the most active and promising in terms of operational activity and advance. BTCS Daily ChartLast month, we learned that the company wanted to merge with an entity called Blockchain Global, which bills itself as a leading multi-national pure-play blockchain company that operates across four business segments, including transaction verification services, an institutional exchange platform, a blockchain start-up accelerator, and a blockchain technology consultancy. It's an Australian company and its spent the last couple of years growing into a pretty well-established entity on the Australian bitcoin scene, which is one of the leading scenes globally as far as integration and adoption is concerned.We saw this merger as being a strong upside catalyst on its close but, ahead of this catalyst coming into force, the BTCS needed to jump through a few hoops.One of these just hit press.BTCS just announced it has closed on the remaining balance of its previously announced financing, which was co-led by Blockchain Global, picking up a total of $1.1 million from the sale of its Series C -1 Convertible Preferred Stock in the process. The first $100K of this was closed on October 10 but the latest closing means that BTCS is able to pay off all of its existing debt, excluding derivative liabilities.Why is this important?Because the clearing of all of its debt is a term that the company needed to meet before Bitcoin Global would agree to consummate the merger. As such, getting this financing closed was an essential step towards the merger closing and – in turn – the real value-adding potential of the merger becoming a reality for BTCS.So what's next?There are still a few more hoops that BTCS needs to jump through before it can be completely confident that the above-discussed merger will go ahead but, as noted, this was one of those hoops that was the most important in terms of impact.As such, now this is closed out and the financing is in place to settle the debt, we're on the lookout for an announcement pointing towards the company clearing the majority of its liabilities from its balance sheet. That in and of itself is likely enough to serve up a bit of upside momentum.Beyond that, we're looking for the merger to close out and for the company to move forward with its Blockchain Global operations as driving long-term value.Keep in mind that this is a volatile space right now and as bitcoin moves, so will BTCS. So long as price is rising, this isn’t an issue. If price dips, however, it's going to inject some near-term weakness into the company.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 CafeCredit.com via FlickrDisclosure: We have no position in BTCS and have not been compensated for this article.

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