Bitcoin firm BTCS incurs $2.25 million impairment loss as a result of Spondoolies demise

BTCS Inc (OTCMKTS:BTCS), formerly known as Bitcoin Shop, Inc, has just filed its financial report for the quarter to March 31, 2016, with the company staying in the red, although revenues showed a significant rise from the same period a year earlier.

The company posted a net loss of $2.04 million, reflecting high operating expenses. In 2015, BTCS reported a net loss of $10.05 million.

Revenues for the quarter to March 31, 2016 amounted to $199,143, up from $39,076 a year earlier, on the back of solid performance of transaction verification services.

But investors were mainly focused on any piece of news concerning the deal with Spondoolies, especially after last week’s announcement about the appointment of a temporary liquidator at the Israeli firm and its ceasing of operations.

In its financial report, BTCS said it had total investment of $2,250,000 to Spondoolies Tech Ltd. as of December 31, 2015. The company assessed impairment for the Spondoolies investment and determined that this investment is not recoverable and as such fully impaired it due to the temporary liquidator appointed by the Court on May 4, 2016.

During the three months ended March 31, 2016, the company recorded impairment loss of $2,250,000.

Because of the situation at Spondoolies, BTCS says there is no guarantee that the planned merger will be effectuated.

For the full report from BTCS, click here.

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