Bitcoin mining outfit BTCS, Inc. is counting its days with the company disclosing in a Securities and Exchange Commission (SEC) filing that it has nearly run out of money.

The filing, required as BTCS is listed on the OTC (over the counter) exchange, saw the company state that it has had limited operating activities to date and that it will require significant additional capital to sustain short-term operations (ie: they’ve run out of money) and that they will have to make investments in order to execute its longer term business plan.

If the not so clear newspeak may cover the firms perilous financial situation, the following sentence may sum up the position of the company somewhat more clearly:

“Because of recurring operating losses, net operating cash flow deficits, and an accumulated deficit, there is substantial doubt about the Company’s ability to continue as a going concern.”

Proving that you can apparently never burn money quickly enough, the company also reported a net loss of $3.8 million in the previous quarter, and $8.4 million year-to-date to September 30, up from a $2.5 million quarterly loss for the same quarter in 2014 on a $6.6m year-to-date net loss.

Its mining operations did bring in some money however with the company earning $169,000 on a $67,000 profit after costs, begging the question what exactly it was spending the rest of its money on.

BTCS was originally founded as a Blockchain focused e-commerce fintech provider before bizarrely shifting its business model to Bitcoin mining around 12 months ago at a time where the price of Bitcoin started to fall and existing, bigger, Bitcoin miners started going out of business.

Along with its failed interest in Bitcoin mining the company also has a stake in a Bitcoin ATM company called Coin Outlet, Inc.

Giving up

The insanity of BTCS’ position is that instead of simply giving up and liquidating what is left of the company, they seriously are going to try to raise more capital so they can keep on trading, and by trading we mean throwing good money after bad.

Not all Bitcoin miners are clueless twats and 2015 has been a particularly difficult year for the business relative to the lower price of Bitcoin making mining a hard proposition to make profitable, but when you’re this far behind the only honorable thing to do is fall on your sword and put an end to what you’re clearly unsuccessful in doing.

The little-traded shares in BTCS dropped 9.1 percent, or 1 cent to 12 cents on the OTCMKTS on the filing leaving it with a surprising market cap of $18.1 million, a suspiciously large figure for a company that is for all intents and purposes broke.

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