Why is BTCS Inc’s stock rocketing? E-commerce firm adds this crypto - Kalkine Media

January 13, 2022 10:11 AM PST | By Versha Jain
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Highlights

  • BTCS Inc. (NASDAQ: BTCS) is adding a new crypto to its infrastructure staking operation, as announced January 13.
  • BTCS hosts an online e-commerce marketplace for merchandise where consumers can purchase them using digital assets, including Bitcoin. 
  • Its dividend yield is 0.75%.

The BTCS Inc. (NASDAQ: BTCS) stock surged 22.24% at 9:16 am ET in pre-market Thursday. It traded at US$8.19. 

The company announced adding Algorand (ALGO) to its infrastructure staking operation on January 13. The market reacted to this announcement and the stock jumped. 

Algorand is a decentralized, blockchain-based network that supports a range of applications. Its blockchain includes asset development, smart contract execution, and atomic swaps. 

Algorand was launched in 2019 by Silvio Micali, a Massachusetts Institute of Technology (MIT) professor and computer scientist. The network enables a processing speed of 1,000 transactions per second (TPS). It claims to achieve block finality in less than 5 seconds.

Also Read: Five metaverse cryptos that are making news

What does BTCS do? 

A Silver Spring, Maryland-based company, BTCS Inc. provides an online e-commerce marketplace. The marketplace offers merchandise, and consumers can purchase them using digital assets, including Bitcoin.

The company is focused on digital assets and the blockchain ecosystem. It has also designed a BTCS wallet, a beta secure digital currency storage solution. 

The company is developing a staking-as-a-service platform for clients to stake supported cryptocurrencies through a non-custodial platform. Besides this, it is also creating a data analytics platform for digital assets to provide users with a single platform where they can view their aggregate holdings in various wallets and exchanges, analyze performance, associated risks, and tax implications.

BTCS earns revenue by getting additional tokens in rewards. It also uses a proprietary script to compound its rewards daily.

Also Read: Top technology and gaming stocks to explore in 2022

BTCS Inc. (BTCS) jumped on adding Algorand (ALGO) to its operation 

Also Read: Top 5 US e-commerce stocks to explore in Q1 2022

Financials:

BTCS had a net loss of US$15.47 million for the nine months ended September 30, 2021, on revenue of US$0.776 million in the same period. It earned no revenue for the nine months ended September 30, 2020, and the net loss incurred was US$1.8 million in that duration.

The loss per share diluted for the nine months ended September 30, 2021 and 2020 was US$3.63 and US$0.66, respectively. 

Its revenue increased, but losses grew because the company spent significantly more on operating expenses, including research and development, marketing, general and  administrative costs, and compensation.  

Also Read: Top 5 US semiconductor stocks to watch in 2022

Its current market capitalization is US$68.84 million, and its dividend yield is 0.75%. The company went public in September 2008. Its stock fell 56.12% in one year.

The stock moved in the price range of US$32.40 to US$2.91 in one year and closed at US$6.7 on January 12. 

Also Read: Best US communication stocks with dividends to watch in 2022

Bottom line

Digital assets are making their way into the mainstream slowly but steadily. However, these are risky investments in the absence of proper regulations, so one must be careful while dealing with digital assets.


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