Silver Spring, MD, Feb. 18, 2021 (GLOBE NEWSWIRE) — (via Blockchain Wire) BTCS Inc. (OTCQB: BTCS) (“BTCS” or the “Company”), a digital asset and blockchain technology focused company, issued a letter to its more than 37,000 shareholders describing the Company’s recent achievements and goals for 2021. The letter from Charles Allen, CEO of BTCS, is reprinted below in its entirety.
I want to begin by thanking our long-term shareholders for their steadfast commitment to BTCS as our business has evolved over the last seven years. We were one of the earliest movers in the blockchain and digital currency ecosystems and the first “Pure Play” U.S. public company focused on digital assets and blockchain technologies. Like the internet era that came before, which forever changed the way people communicate with each other, blockchain technology is now changing the way we transact with each other, and the opportunity is just getting started.
Through our vast experience participating across the blockchain ecosystem since its earliest days, we believe we have refined our strategy to create the most shareholder value given our resources, and we believe we demonstrated our ability to execute this strategy extremely well in 2020 as we generated a 1,327% year-over-year gain in our digital asset portfolio and laid the core foundation for our digital asset data analytics platform.
Michal, our COO, and I, along with board member David Garrity, invested $1.1 million into the Company earlier this year based on strong belief in our ability to capitalize on the disruptive and transformative potential of digital assets in the quarters ahead. Our investment, which is effectively locked up for two years with resale severely limited thereafter, demonstrates that we are in this for the long haul and aligns our interests with those of our shareholders.
Outlook and 2021 Goals
Looking ahead, we are shifting our focus to more active, revenue generating operations, and expect to resume transaction verification services operations in the first quarter of 2021. We believe our digital asset treasury will play a key role in our approach to this segment, and we look forward to sharing more insight into what we expect will be a very rewarding business as operations get underway.
As mentioned previously, our digital asset treasury strategy drove a 1,327% year-over-year gain in our digital asset portfolio in 2020. Our strategy is to focus on blockchain protocol layers, which enables us to avoid the low success rate of picking winning projects. We believe investing our treasury resources in blockchain protocol layers has the best risk adjusted return profile, and our performance to date provides significant validation of this approach, as does the success of multi-billion-dollar companies implementing similar strategies.
We believe bitcoin, ethereum, and certain other protocol layer digital assets are a great store of value and can be an effective hedge against monetary debasement in the wake of multi-trillion-dollar economic bailouts. Bitcoin and ethereum have rallied nearly 1,154% and 1,830% respectively from their March 2020 lows, which we believe is driven by institutional interest in digital assets, PayPal allowing its customers to buy and sell bitcoin and ethereum through their platform, and a flight to safety during the ongoing COVID-19 pandemic. As of February 17, 2021, the Company’s digital assets had a Fair Market Value of approximately $10.5 million, which includes $800,000 worth of digital assets (now worth approximately $1.23 million) purchased earlier this year with the proceeds of management’s recent $1.1 million investment.
The initial development of our digital asset data analytics platform is nearing completion, and we anticipate launching an invite only public beta release in the second quarter this year. In addition to performance metrics and aggregation of digital asset holdings data derived from API calls to connected exchanges or tied to blockchain wallet addresses, our innovative platform solution is being designed with a community focus in mind. We intend to expand our development team in the near-term to further accelerate development of our platform and to support additional revenue generating activities.
Our focus on expanding and growing active operations in 2021 will help to position BTCS for uplisting to a senior exchange, such as the Nasdaq or New York Stock Exchange. To bolster these efforts, we are actively seeking to appoint a CFO and plan to expand our board to further strengthen our corporate governance. Uplisting to a senior exchange, which we believe may be achievable in 2021, will enable us to reach a much larger investor audience, which ultimately supports our ability to execute on our growth strategy.
On behalf of our management team, I want to personally thank you for your continued support.
Chief Executive Officer
BTCS is one of the first U.S. publicly traded companies focused on digital assets and blockchain technologies. BTCS plans to acquire additional Digital Assets to provide investors with indirect ownership of Digital Assets that are not securities, such as bitcoin and ether. We intend to acquire Digital Assets through open market purchases. We are not limiting our assets to a single type of Digital Asset and may purchase a variety of Digital Assets that appear to benefit our shareholders, subject to the limitations of the Investment Company Act of 1940. We are also internally developing a digital asset data analytics platform and seeking to acquire controlling interests in businesses in the blockchain industry. For more information visit: www.btcs.com
Certain statements in this press release, constitute “forward-looking statements” within the meaning of the federal securities laws including statements regarding our belief regarding resuming our transaction verification business, the risk profile of our investments, expanding our development team, uplisting to a senior exchange in 2021, accelerating the development of our platform and expectations on commercializing our digital asset data analytics platform. Words such as “may,” “might,” “will,” “should,” “believe,” “expect,” “anticipate,” “estimate,” “continue,” “predict,” “forecast,” “project,” “plan,” “intend” or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward-looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including without limitation the price of our digital assets decreasing, the rewards and costs associated with mining and validating transactions on blockchains, failing to meet either senior exchanges quantitative or qualitative listing requirements, and unexpected issues with developing our platform as well as risks set forth in the Company’s filings with the Securities and Exchange Commission including its Form 10-K for the year ended December 31, 2020. Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.
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