Saturday, September 13, 2014

Bitcoin-Related Firm's Management Forgo Salaries as Stock Collapses

Bitcoin Shop has announced that some of its management team would waive the majority of their salaries for the next six months, and that all the company’s officers had volunteered to cancel their employment contracts.

 that  described the efforts as part of a broader attempt to reduce the company’s fixed costs while protecting existing shareholders from dilution, because the company would not have to issue new shares at “deeply depressed” prices as compensation to executives. Allen added that he is also foregoing his salary as part of the temporary measures.

“Actions like this illustrate the dedication of our team to build and launch our new platform without further shareholder dilution,” Bitcoin Shop’s chief executive Charles Allensaid in a press release.

Coindesk reports, Bitcoin Shop, which is publicly traded on the OTCQB market, is an e-commerce platform that sells everything from Bowflex workout stations to ASUS laptops, with all prices quoted in bitcoin. The firm is one of the few publicly traded companies with direct exposure to the bitcoin economy.

The firm’s stock price has fallen in recent months, slipping from a high of $5.26 on 6th February, when Bitcoin Shop completed its reverse merger with OTCQB-quoted firm TouchIT Technologies, to $0.08 when the market closed yesterday.


1 comment:

  1. They recently sponsored a Bitcoin Meetup at what appeared to be their offices in Rosslyn, VA by a major metrorail station, so likely costly due to location. Jeffrey Tucker who of late seems enamored with Bitcoin, showed up to say a few words.