BTCS Inc. Announces $9.5 Million Registered Direct Offering

Rhea-AI Summary

BTCS has entered a definitive agreement for a registered direct offering of 9,500,000 shares of common stock, along with warrants to purchase up to 7,125,000 additional shares. The offering price is set at $1.00 per share, with the warrants exercisable at $1.15 each and expiring in five years. The expected close date is March 4, 2021, with gross proceeds estimated at $9.5 million before expenses. A.G.P./Alliance Global Partners serves as the placement agent. This transaction will enhance BTCS's capacity in the digital asset and blockchain technology sector.

Positive

• Gross proceeds from the offering are projected to be approximately $9.5 million, enhancing financial resources.
• The offering price of $1.00 per share is favorable compared to market expectations.

Negative

• Potential dilution of existing shareholders due to the issuance of new shares.
• -

Silver Spring, MD, March 02, 2021 (GLOBE NEWSWIRE) -- (via Blockchain Wire)  BTCS, Inc. (OTCQB: BTCS) ("BTCS", "BTCS" or "the Company"), a digital asset and blockchain technology focused company, today announced that it has entered into a definitive agreement with institutional investors for the purchase and sale of 9,500,000 shares of its common stock and common stock warrants to purchase up to 7,125,000 shares of common stock at a combined purchase price of $1.00 per share in a registered direct offering. The common stock warrants will be immediately exercisable, have an exercise price of $1.15 per share and will expire five years from the date of issuance. The closing of the offering is expected to occur on or about March 4, 2021, subject to the satisfaction of customary closing conditions. The gross proceeds of the offering will be approximately $9.5 million before deducting placement agent fees and other offering expenses. 

A.G.P./Alliance Global Partners is acting as sole placement agent for the offering.

This offering is being made pursuant to an effective shelf registration statement on Form S-3 (File No. 333-252509) previously filed with the U.S. Securities and Exchange Commission (the “SEC”) and declared effective on February 16, 2021. A prospectus supplement describing the terms of the proposed offering will be filed with the SEC and will be available on the SEC’s website located at http://www.sec.gov. Electronic copies of the prospectus supplement may be obtained, when available, from A.G.P./Alliance Global Partners, 590 Madison Avenue, 28th Floor, New York, NY 10022, or by telephone at (212) 624-2060, or by email at prospectus@allianceg.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About BTCS:

BTCS is an early entrant in the digital asset market and one of the first U.S. publicly traded companies focused on digital assets and blockchain technologies. The Company through its transaction verification services business actively verifies and validates blockchain transactions and is rewarded with digital assets for its work. The Company is also developing a proprietary digital asset data analytics platform that allows users to consolidate their crypto trades from multiple exchanges onto a single platform, enabling users to view and analyze their performance, risk metrics, and potential tax implications. The Company employs a digital asset treasury strategy with a primary focus on disruptive non-security protocol layer assets such as bitcoin and ethereum. For more information visit: www.btcs.com

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements related to the timing of the closing. The words “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “could,” “target,” “potential,” “is likely,” “will,” “expect” and similar expressions, as they relate to us, are intended to identify forward-looking statements. These statements are based on management’s current expectations and beliefs, as well as a number of assumptions concerning future events. Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions, and other important factors, such as market and other conditions, many of which are outside management’s control. Important factors that could cause actual results to differ from those in the forward looking statements are identified and discussed in the Company’s filings with the SEC, including the Annual Report on Form 10-K for the year ended December 31, 2020 and the registration statement on Form S-3 filed on January 28, 2021. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Additional factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

Contact:

Dave Gentry

RedChip Companies, Inc.

(407) 491-4498

dave@redchip.com

FAQ

What is the purpose of BTCS's recent stock offering?

BTCS aims to enhance its financial capacity within the digital asset and blockchain sector through the offering.

When is the expected closing date for the BTCS stock offering?

The expected closing date for the BTCS stock offering is March 4, 2021.

What are the terms of the warrants issued by BTCS in the recent offering?

The warrants allow the purchase of up to 7,125,000 shares at an exercise price of $1.15 each and will expire in five years.

How much money is BTCS expected to raise from the stock offering?

BTCS expects to raise approximately $9.5 million from the offering before deducting fees and expenses.

Who is acting as the placement agent for BTCS's offering?

A.G.P./Alliance Global Partners is acting as the sole placement agent for BTCS's stock offering.