Silver Spring, MD, Jan. 31, 2023 (GLOBE NEWSWIRE) — BTCS Inc. (Nasdaq: BTCS ) (“BTCS” or the “Company”), a blockchain technology-focused company, created a new series of convertible preferred stock, designated Series V Convertible Preferred Stock (the “Coupon”), and plans to distribute these coupons to each and every shareholder of record as of a record date to be announced. Each coupon is intended to be convertible into one share of the Company’s common stock listed on a security exchange using blockchain technology, subject to certain approvals and the terms of the coupon’s certificate of designation filed with the State of Nevada.
“We are excited to announce the creation and potential distribution of the coupon, which we believe will create a path for every single BTCS shareholder to use blockchain technology seamlessly in their daily lives on an exchange where order books are enforced by blockchain smart contracts,” said Charles Allen , CEO of BTCS. “Exchanges built on blockchain technology should enable transparent public order books, eliminate missing deliveries, provide access to a global digital-first investor base, and enable direct-to-investor communication, distributions and dividends without the friction we encountered with the processing of our Bividend.”
Allen continued, “To have fair and transparent markets that protect our retail investors, the time is now to move away from T+2 settlement. For the integrity of our markets and the protection of all investors, we must embrace blockchain technology and have real-time settlement.” Taking this step and creating a path to have every single BTCS shareholder use this technology is one way BTCS can illustrate the power of blockchain technologies we are securing and hopefully initiate and accelerate the ongoing discussion originally proposed by the SEC on 9 February 2022.”
“It is unconscionable that BTCS has been on the Reg SHO threshold list 77 times since its listing; further, between January 7 and January 19, 2022, a total of 2.16 million shares failed to deliver, representing approximately 26% of our public purchase as of December 31, 2021, raising many questions about the effectiveness of current systems, continued Allen. “With blockchain technology and instant settlement, intermediaries can be eliminated, thereby reducing potential stock imbalances and the risks and costs associated with traditional T+2 settlements. This move represents our commitment to innovation and delivering superior value to our investors.”
Some argue that blockchain technology lacks real-world applications, but security exchanges built on blockchains like Ethereum are strong use cases that illustrate the potential future of capital markets. BTCS believes the time to start the transition is now. While BTCS highlighted this use case in an investor presentation filed as an exhibit to an 8-K on July 7, 2015 (page 7), only now, after years of research, are we finally able to make this a reality. This is a natural extension of BTCS’s commitment to innovation and reflects the company’s belief in both Ethereum and the potential of decentralized technologies to bring innovation to traditional financial markets.
The vouchers will have no voting rights, no rights to dividends, will be redeemable by the company after one year from issue, and will not be eligible for conversion after December 31, 2024. The record date for distribution of the vouchers will be announced once greater clarity has been achieved in certain administrative processes to implement it, which include, among other things, obtaining a DTC-eligible CUSIP. Shareholders are encouraged to consult their financial advisor to understand the terms of the Coupon and its potential impact on their investment in BTCS.
*Investor announcement
Although the Coupon is not considered a “sale” under the Securities Act of 1933 and the Company does not believe it is a “sale” under state securities laws, investors should consider the following disclaimer:
This press release does not constitute an offer to sell or a solicitation of an offer to buy the Coupon, and no offer, solicitation or sale of the Coupon shall be made in any state or jurisdiction where such offer, solicitation or sale would be illegal prior to registration or qualification under the securities laws of such state or jurisdiction. Offers, solicitations and sales of the coupon will only be made by means of a prospectus supplement and the accompanying prospectus, which forms part of an effective registration statement or under an applicable exemption from registration. Investors should note that the company does not plan to list the coupon for trading on any exchange.
About BTCS:
BTCS Inc. is a Nasdaq-listed company operating in the blockchain technology space since 2014 and is one of the first US publicly traded companies with a primary focus on blockchain infrastructure and efforts. BTCS secures and operates validation nodes on the disruptive next-generation blockchain network powering Web 3, earning native token rewards by staking our proof-of-stake digital assets. “StakeSeeker” is BTCS’ newly introduced proprietary Cryptocurrency Dashboard and Staking-as-a-Service platform, designed to empower users to better understand and grow their crypto holdings with innovative portfolio analysis and a non-custodial process for earning stake rewards on digital assets inventory. Users can easily connect and monitor their cryptocurrency portfolios across exchanges, wallets, validator nodes and other sources; and have access to a range of data analysis tools such as performance and reward tracking. StakeSeekers Staking Hub allows users to earn rewards by participating in network consensus mechanisms by staking and delegating their cryptocurrencies to company-run validator nodes for a growing number of supported blockchains. As a non-custodial validator operator, BTCS will receive a percentage of token holders staking rewards generated as a validator node fee, creating a potential opportunity for a highly scalable business with limited additional costs. For more information visit: www.btcs.com.
Forward-looking statements:
Certain statements in this press release constitute “forward-looking statements” within the meaning of the federal securities laws, including statements regarding the potential distribution of the coupons, including the time, terms and stock exchange on which the common stock on which the coupon is to be. convertible will be listed for trading, so as well as the perceived and expected benefits for shareholders and the financial markets in general of vouchers and blockchain technology. Words such as “may,” “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “estimate,” “continue,” “anticipate,” “predict,” “project,” ” “plans”, “intends” or similar expressions, or statements regarding intent, belief or current expectations, are forward-looking statements. Although the Company believes these forward-looking statements are reasonable, no reliance should be placed on any such forward-looking statements, which are based on information available to us as of the date of this release.These forward-looking statements are based on current estimates and assumptions and are subject to various risks and uncertainties, including, but not limited to, the possibility that the Company may not proceed with the distribution of coupons due to administrative, regulatory or other challenges, including failure to obtain a DTC-eligible CUSIP number, the company’s broad discretion with respect to the coupons, possible trading volatility, price deviations or other negative characteristics of the exchange that e r elected for trading with the common stock into which the voucher is to be converted, dilution for voucher holders who do not make a conversion election until the voucher is redeemed, future regulatory issues, market or economic downturns or other adverse developments with respect to our business and the the digital assets on which it depends, as well as risks set forth in the Company’s filings with the Securities and Exchange Commission including Form 10-K for the year ended December 31, 2021. Thus, actual results may differ materially. The company expressly disclaims any obligation to update or change statements, whether as a result of new information, future events or otherwise, except as required by law.
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