![](\"\/\/s.hotstocked.com\/hotstocked.com\/repository\/articles\/93\/93883\/sc__1_.png\")
BTCS<\/a> Inc. (OTCQB:BTCS<\/a>) dropped another 22.73% down the charts yesterday, on a dollar volume of $280 thousand – which, upon further examination, is more than half its market cap. <\/p>\nSo how did this happen? Sure, BTCS<\/a>‘s<\/strong> achievements to date are mediocre – but then again, that can be said about most of the OTC Markets’ lower tiers. No, something else entirely has brought BTCS<\/a><\/strong> investor value to ruin – and that factor is called dilution.<\/p>\n It is a well known fact of reality that many OTC Markets companies resort to dilution as a means of acquiring working capital from time to time. Quite a few do this in the form of toxic funding, which is certainly detrimental to investor value, but might prove manageable if not taken to excess.<\/p>\n Unfortunately for the investors that believed in the company, BTCS<\/a><\/strong> took toxic funding to a level rarely seen on the OTC Markets. Suffice it to say that in the five days ended and June 21, the company issued a grand total of 49.8 million shares as a result of a conversion of around $600 thousand worth of the company’s outstanding debt.<\/p>\n Little more than two weeks later, the company filed yet another 8-K, announcing that another 37.8 million shares had been issued as a result of conversions of $37 thousand worth of notes debt and the exercise of some warrants.<\/p>\n And that’s not even the worst news that the 8-K gave investors. As per the filing, BTCS<\/a><\/strong> is now forced to issue ANOTHER 474 million shares of common stock to satisfy old debt, as well as print warrants for the purchase of nearly A BILLION more shares. Furthermore, it turned out that the conversion prices of the company’s outstanding junior and senior convertible notes also dropped from about a nickel to a number almost ten times lower – $0.00564, to be precise.<\/p>\n
![](\"\/\/s.hotstocked.com\/hotstocked.com\/repository\/articles\/93\/93883\/vzxcvxzcvx.png\")
With this in mind, it is no wonder that the company’s market cap is less than half a million dollars. How much lower can it fall? Only time will tell, but if the last few sessions are any indication,