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<\/p>\ntags: BTCS <\/p>\n
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Yesterday BTCS<\/a> Inc (OTCMKTS:BTCS<\/a>)’s stock not only managed to stop its abysmal drop towards the bottom of the chart but it actually finished the session with an impressive gain of nearly 30%. Despite the massive daily gain BTCS<\/a> <\/strong>failed to close above the $0.001 mark and remained in the triple zeroes at $0.0009. Not to mention that even with the 30% rise in share price the company is still down by more than 99% from its position at the start of June. Is there a chance that yesterday’s jump is actually something more than a dead cat bounce and that BTCS<\/a> <\/strong>might form a more prolonged recovery?<\/p>\n Yesterday’s surge up the chart definitely got some investors reinvigorated but getting overly excited may not be that wise. Apart from the technical indicators there is nothing that could support an upwards move. In fact, the exact opposite is true – the red flags surrounding BTCS<\/a> <\/strong>are getting more and more serious.<\/p>\n The conversion of notes has caused the contractual obligations of the company to skyrocket to mind-boggling amounts. According to the latest 8-K BTCS<\/a> <\/strong>will have to issue over 3.5 BILLION shares and warrants for the purchase of another 1.7 BILLION shares. The conversion price of the company’s junior and senior convertible notes will also be lowered to $0.00078.<\/p>\n The last quarterly report filed by BTCs <\/strong>covered the first three months of the year and revealed that as of May 16 the company had approximately 157.5 million outstanding shares. As a result of the rampant dilution as of July 12 the O\/S had more the tripled and now BTCS<\/a> <\/strong>had over 510 million outstanding shares.<\/p>\n The authorized shares of the company simply cannot accommodate all of the fresh shares that will have to be printed. BTCS<\/a> <\/strong>has stated that it will seek shareholder approval in order to adjust its capitalization.<\/p>\n