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Written by
Chris Sandburg
Published on
June 5, 2017
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Back on May 24, we covered BITCOIN SERVICES I COM USD0.001 (OTCMKTS:BTSC) here. At the time, the company had run up to $0.04 a share from its start of the pricing at $0.004 and we asked the question, can the run continue?Our answer was that yes, it can. And we were right.Fast forward to the start of this week and the stock is trading for $0.11 a piece, just off highs of $0.12. For our readers that took a position on the back of our coverage that's a 200% seven-day gain.So it's now time to come back to the company and ask the same question – what's next? Can the stock continue to run as it has done so far or has the revaluation run its course? Let's take a look.For those new to Bitcoin Services, the company is – as its name suggests – a cryptocurrency company that's working on a variety of different operations in the bitcoin other digital currency spaces. The company's blurb informs markets that it has two distinct types of operations: 1) bitcoin mining, and 2) blockchain software development.The former is pretty self-explanatory; Bitcoin Services has a mining rig set up to process transactional confirmations on the bitcoin blockchain and – in return for the processing – receive bitcoin as a reward. Just how big this mining rig is (and where it is) we don't know. Management put out a PR at the start of the year detailing its purchasing of four Antminer S9s. These are gold standard miners but a stack of four isn’t going to provide much in the way of return. We also know that the company is mining Monero (as of the first quarter of this year) but that's not really software development and it's essentially the same process of the bitcoin mining operations (chances are that they are using the Antminers).On the development side of the picture, Bitcoin Services has an escrow system set up (although right now it seems to be unavailable) that essentially applies the escrow framework to a cryptocurrency transaction. Interesting and useful, but nothing new.All told, there's really not a lot happening under the hood. Based on some recent unaudited financials we know that first quarter revenues came in at $63K, with the assumption being that the vast majority of these revenues is mining based. Net loss for the period was $183K. Cash on hand at March 31 came in at $136K. Total liabilities at the same date were $118K.So Bitcoin Services isn’t generating much by way of revenues, is losing money and doesn’t look particularly active operationally. Sounds like a continuation of the run is out of the question? Well, not so fast. The thing is, none of this really matters right now. The bitcoin space is on fire and traders are looking to pick up an exposure to the dramatic rise in price we’ve seen over the last few months. Bitcoin as a currency is in and around the $2,600 mark right now and looks set to continue appreciating further. This isn’t just a speculative bubble – there are fundamental advances pushing bitcoin higher and the currency is revaluing to reflect a fundamentally strengthened landscape.People want a piece of this revaluation, but bitcoin remains off limits to a large portion of the market (for no other reason than a large amount of people don’t know how to buy it or store it). These people are looking for an exposure and Bitcoin Services is offering them that exposure. Sure, it's indirect, and sure, it's not a long-term investment thesis, but so long as bitcoin is running, Bitcoin Services is going to do the same.To answer our question, then, we remain near-term bullish on this one and anticipate a continuation of the upside action.We will be updating our subscribers as soon as we know more. For the latest updates on BTSC, sign up below!Disclosure: We have no position in BTSC and have not been compensated for this article.

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