BTCS Inc. (OTCQB: BTCS) is a publicly-traded cryptocurrency and blockchain-focused company that recently surpassed the $1.5 million milestones in crypto assets under management (AUM). The landmark achievement comes after crypto prices recovered from the mid-March slump (Black Thursday).
Reports indicate that Bitcoin-focused crypto hedge funds are outperforming their more-traditional counterparts. BTCS plans to pursue a measured approach to diversifying its current cryptocurrency holdings. BTCS shares are up more than 280% year-to-date.
In an in-depth interview with Charles Allen, CEO of BTCS, he shared his perspective on the crypto market and how BTCS is leveraging its position in the industry. The company focusses on three lines of business:
- Building a portfolio of digital assets with a keen focus on highly disruptive verticals;
- Actively looking at acquisitions in the blockchain space; and
- Developing a digital asset data analytics platform aimed at providing crucial information to users, enabling the tracking of multiple digital asset exchanges to aggregate portfolio holdings into a single platform to view and analyze performance and risk metrics.
The six-year-old company is driven by its team’s belief in crypto and blockchain technologies and their potential to disrupt globally many existing transaction reliant industries. According to Charles, BTCS’ ultimate goal is to provide the general public investment exposure through their public company.
“The last 6 years have indeed been a rough ride. Over that time, we’ve had exposure in one way or another to many aspects of the crypto space, including eCommerce, mining, digital wallets, payment processing, and ATMs to name a few. Through these experiences and candidly some failures, we’ve really dialed in what we believe to be an exceptional business model for a public crypto-focused company. We have an extremely low burn compared to our public peers and aren’t burdened by the operational risks of mining or other costly pre-revenue beyond the horizon endeavors.”
Charles also commented on the effects of COVID-19 in the industry and how BTCS overcame the difficulties that came with the global pandemic.
“The effects of COVID on the world economy are still yet to be seen. We expect continued government bailouts and further devaluing fiat currencies around the world. As such, we believe investors will seek scarce assets such as Bitcoin and Ethereum as a store of value. Over time this should drive more mainstream adoption of certain digital assets, likely resulting in substantial price appreciation.”
When it comes to investing, people tend to seek ways to shield their assets from inflation and obtain a profit larger than what financial institutions may offer. As a seasoned investor himself, Charles offered his point of view as to why investing in blockchain and crypto-related companies is a good choice to diversify portfolios. He strongly believes blockchain technology is poised to fundamentally change how assets are transferred on a global basis, without intermediaries, thereby providing a sustainable solution for almost every industry in existence, lowering fees and improving efficiency and security.
Charles continued to explain how BTCS offers investors indirect exposure to cryptocurrencies and an alternative way to invest in this market. BTCS offers a business plan that is diversified and should add value beyond what a traditional bank, to the extent they offered access to crypto-assets, could offer the average Joe.
How BTCS Surpassed the $1.5 Million Milestone
During the interview, we couldn’t help ask how BTCS surpassed this milestone in such a short period of time. According to Charles, the company raised over $1 million USD which enabled them to drastically increase their Bitcoin and Ethereum holdings. As of August 14, 2020, the fair market value of their digital assets under management increased to over $1.5 million, a 50% increase from their cost basis. In addition, Charles mentioned that the company plans on expanding its digital asset portfolio beyond BTC and ETH but is being very cautious at the moment due to economic uncertainty. The plan is to focus on digital assets in highly disruptive verticals such as cryptocurrencies, smart contracts, IoT, computing, and data storage and at the protocol layer where possible.
Despite the uncertainties of the future, Charles is very bullish on both Bitcoin and Ethereum, especially in the upcoming months as both cryptocurrencies have shown great growth during 2020. The digital asset firm is also reportedly developing its own in-house consumer-facing digital asset data analytics platform. With the crypto space still in its infancy, price benchmarks, indices, trading volume, and other important metrics are still being refined.
If you wish to know more about BTCS, visit their website.
Disclaimer: This is a paid post and should not be considered as news/advice.