BTCS, a U.S. public company focused on blockchain technologies, has announced its plans to participate in Initial Coin Offerings (ICOs) – a fund raising mechanism that is quickly growing in popularity among startups and investors.
In a letter to the shareholders, CEO and Chairman Charles Allen outlined the company’s corporate strategy for the rest of 2017.
Allen said that the company was unable to realize the potential of blockchain technology without the ability to raise sufficient capital last year. As such, BTCS focused on restructuring liabilities to improve its financial position – it successfully exchanged nearly $3.9 million of convertible notes and liquidated damages for fixed-price Series B preferred stock, entered a leak-out agreement with the former note holders, and raised $1 million to settle liabilities and provide working capital.
BTCS also suspended its mining activities, following a robbery last September in which 165 mining computers were stolen, CoinDesk reported. Allen hinted that the firm might resume its mining business.
Noting the recent highly successful ICO drives including Block.One and Bancor, Allen said:
“Moving forward, subject to the completion of additional financing, we plan to create a portfolio of digital assets, through participation in initial coin offerings, strategic market purchases, and by resuming our transaction verification services business, through outsourced data centers. We are also keenly focused on the potential acquisition of target opportunities across the blockchain space.”
The company has been indicating its intention to build a portfolio of digital assets for quite some time. BTCS had stated:
“Subject to additional financing, the Company plans to create a portfolio of digital assets including bitcoin and other “protocol tokens” to provide investors a diversified pure-play exposure to the bitcoin and blockchain industries. The Company intends to acquire digital assets through: open market purchases, participating in initial digital asset offerings (often referred to as initial coin offerings).”
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