COIN CITADEL COM NPV (OTCMKTS:CCTL) Is A Top Bitcoin Play

COIN CITADEL COM NPV (OTCMKTS:CCTL), the holding company, founded in 1986, has recently received large attention from the market. Management decided to invest in bitcoins last year. The BTC/USD exploded up the charts and the money invested last year returned astonishing returns. Have a look at the following charts:Little by little, market participants got to know that the company had made a smart investment and the volume increased. You can see in the following chart that the volume crossed the 1.0 billion share mark. The interest in the market for this stock is very high.SourceIn this article, we will assess the investment made, the most recent news, check the business history, and the other businesses of the holding.BusinessCoin Citadel is a very old business entity founded in Nevada in May 1986. Its business owners seem to have acquired a lot of experience, as the company was used for operating in very different sectors. These are the names used to appropriately describe the business of the company:

• Fertility Advancements, Inc. (1986)
• Eubix Technologies, Inc. (1990)
• Nettel, Inc. (1999)
• One Touch Total Communications (1999)
• Carbon Jungle, Inc. (2006)
• Global New Energy Industries, Inc. (2013)
• Coin Citadel Inc. (2014)

That is a long business history. According to the last annual report, at the moment, the administrative offices are located in Reno, NV. This is the business objective of the company:

"Coin Citadel is a holding company organized with a goal of acquiring and managing a diversified portfolio of profitable, growth-oriented companies."

More specifically, in the same document, it is noted that the company invests in the Bitcoin industry. This was found hidden in the 10-k about the most recent operations:

"In September, 2014, the Company purchased 513 Bitcoins, 2 websites and 1 year of website hosting and maintenance for 74,000,000 shares of Company common stock. The Company also received cash in the amount of $10,000 in this transaction. Because of technical problems, 15,000,000 of the common shares were actually issued in September, 2014 and the remaining 59,000,000 shares were issued in July." Source

Recent DevelopmentsThe press release that the market seemed to like is this one, wherein it explained the bitcoin investment. This is the most important paragraph:

"Coin Citadel, a holding company, is closing on acquiring over $750,000 in Bitcoins. We are diligently working on finalizing a transaction for 1,675 Bitcoins, which will bring our Bitcoin assets up to 2,251 Bitcoins and closer to a value of one million USD dollars. This will be a Non-dilutive preferred stock transaction. We are extremely excited to be in the Bitcoin Industry. We feel that we are at the right place at the right time. We plan to announce more details of this transaction as well as two additional asset acquisitions later this week."

In addition, the CEO commented the following:

"As I said in our last press release, my job is to add value to the company, and to take advantage of opportunities like this. The more prudent acquisitions we make, and assets we have, the more valuable our company will be. With this Bitcoin asset, we will have over $1 million dollars in Bitcoins to complement our new upcoming acquisitions. With everything falling into place we feel we are moving forward in the right direction."

Most recently, on March 27, 2017, the company put out some other information about the company's operations. The company was working on a deal to increase the amount of bitcoins:

"It is diligently working on finalizing a transaction to substantially increase our Bitcoin inventory and add substantial value to our current assets. At the same time, we are searching for additional opportunities in the Bitcoin sector that can add revenue and value to our core business model, and ultimately, to our shareholders." Source

Additionally, we could also see a comment on the iHub forum, wherein it was noted that the company was thinking about acquiring a gaming company using the bitcoin investments. In addition, it was promised that no more shares were going to be sold and the convertible debt was finished. Hence, the dilution risk is not very relevant here. Have a look:

"Hey guys, great news, just got off the phone with Bill today, He said he's working on a merger possibly with an electronic gaming company but if that doesn't go through, he has 2 other candidates. We could see the website up soon and hopefully news after that. Yes, he does have the 570 bitcoins but he said it cost too much now to get anymore because of the bitcoin prices. Big things coming folks. Just gotta have a little more patience. He also said no more shares to dilute. All convertible debt finished. Only thing trading is retail now." iHub Forum

Financial SituationThe only problem in this company is that the financial statements are quite old; from December 31, 2015. However, the company operates as a bitcoin investment fund. Here are the most relevant assets, and liabilities:

• Cash on hand: $730
• Property, plant & equipment: $64,000
• Bitcoin investment (we added it): 570 bitcoins
• Notes payable: $352,000
• Securities: 230,300,086 common stock, and preferred stock A, B, and C (non convertible)

If we take into account the investment in bitcoins, the net asset is positive. Thus, the company seems to have oxygen enough to keep operating in the future in this or any other sector. For example, merging with another company from another high growth industry may be a very good idea.ConclusionCoin Citadel made a very smart investment last year. In our opinion, the long expertise accumulated in the company helped the management team successfully decide to invest in bitcoin when it was valued at approximately $650 (the price has not been disclosed). Now its value has multiplied. In our opinion, CCTL is one of the best ways for investors to play bitcoin without actually having to buy bitcoin themselves. That's the only way that we can explain the recent volume. Additionally, we saw that the company is looking at other sectors and is growing. To sum up, try to stay alert, the company may surprise again soon. We will be updating our subscribers as soon as we know more. For the latest updates on CCTL, sign up below!Disclosure: We have no position in CCTL and have not been compensated for this article.