Publicly traded bitcoin startup BTCS is planning to create a portfolio of digital assets, its chief executive told shareholders in a new letter.
In the letter, released today, CEO Charles Allen wrote that the firm would invest in initial coin offerings, or ICOs, through which cryptographic tokens tied to a particular blockchain platform or application are sold. It's a funding mechanism that has attracted significant interest among both startups, investors and would-be buyers, though regulatory and ethical concerns have been raised about the model in the past.
Allen indicated that BTCS, which is publicly traded as a pink sheet at OTCQB, would invest in blockchain tokens through ICOs as well as direct market purchases and mining.
Though the company had previously suspended its mining activities – it reported a robbery last September which resulted in the theft of 165 mining computers – BTCS indicated that it may resume mining through third-party sources.
Those plans, the letter goes on to acknowledge, are incumbent on the raising of more money.
Allen explained:
As previously reported by CoinDesk, BTCS raised $1m early last month in an equity sale. Allen wrote that this sale was undertaken "to settle liabilities and provide working capital". That move came as part of a broader restructuring process that played out in the past year.
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The startup first revealed its digital asset portfolio plans to prospective investors starting in February. That was before the start of what some observers are calling a bubble in cryptocurrency markets.
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