# EDGAR Filing Document

**Accession Number:** 0001436229
**File Stem:** 0001493152-23-004218
**Filing Date:** 2023-2
**Character Count:** 12126
**Document Hash:** 63b3a0039f3206c54c872c63c95b668b
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-23-004218.hdr.sgml**: 20230210

**ACCESSION NUMBER**: 0001493152-23-004218

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20230210

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230210

**DATE AS OF CHANGE**: 20230210

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** BTCS Inc.
- **CENTRAL INDEX KEY:** 0001436229
- **STANDARD INDUSTRIAL CLASSIFICATION:** FINANCE SERVICES [6199]
- **IRS NUMBER:** 262477977
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-40792
- **FILM NUMBER:** 23610092

**BUSINESS ADDRESS:**
- **STREET 1:** 9466 GEORGIA AVENUE #124
- **CITY:** SILVER SPRING
- **STATE:** MD
- **ZIP:** 20910
- **BUSINESS PHONE:** 202-430-6576

**MAIL ADDRESS:**
- **STREET 1:** 9466 GEORGIA AVENUE #124
- **CITY:** SILVER SPRING
- **STATE:** MD
- **ZIP:** 20910

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Bitcoin Shop, Inc.
- **DATE OF NAME CHANGE:** 20150422

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** BITCOIN SHOP INC.
- **DATE OF NAME CHANGE:** 20140204

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** TouchIT Technologies, Inc.
- **DATE OF NAME CHANGE:** 20100524

?xml version="1.0" encoding="utf-8"?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): **February 10, 2023**

**<u>BTCS INC.</u>**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Nevada** | **001-40792** | **90-1096644** |
| (State or Other Jurisdiction<br> of Incorporation) | (Commission<br> File Number) | (I.R.S. Employer<br> Identification No.) |

---

**9466 Georgia Avenue #124, Silver Spring, MD 20910**

(Address of Principal Executive Offices, and Zip Code)

**(202) 430-6576**

Registrant's Telephone Number, Including Area Code

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Common Stock, $0.001 par value | BTCS | The Nasdaq Stock Market<br> (The Nasdaq Capital Market) |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

**Item 7.01 Regulation FD Disclosure.**

On February 10, 2023, BTCS Inc. issued a press release addressing the SEC Complaint against Kraken. A copy of the press release is furnished with this report as Exhibit 99.1.

The foregoing (including Exhibit 99.1) is being furnished pursuant to Item 7.01 and will not be deemed to be filed for purposes of Section 18 of the Securities and Exchange Act of 1934 (the "Exchange Act"), or otherwise be subject to the liabilities of that section, nor will it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, or the Exchange Act, regardless of any general incorporation language in such filings.

**Item 9.01 Financial Statements and Exhibits.**

---

| | |
|:---|:---|
| (d) | Exhibits |
| 99.1 | [Press Release dated February 10, 2023+](ex99-1.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

+ Furnished herewith.

**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | BTCS INC. | BTCS INC. |
| Date: February 10, 2023 | By: | */s/ Charles W. Allen* |
|  | Name: | Charles W. Allen |
|  | Title: | Chief Executive Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

![](ex99-1_001.jpg)

**BTCS Clarifies its Staking Operations In Response to the Recent SEC Complaint Against Kraken**

 ****

Silver Spring, MD – (Globe Newswire – February 10, 2023) – BTCS Inc. (Nasdaq: BTCS) ("BTCS" or the "Company"), a blockchain technology-focused company, clarified today how StakeSeeker, its non-custodial staking-as-a-service platform, differs from other industry staking programs.

On February 9, 2023, the Securities and Exchange Commission ("SEC") charged Kraken with failing to register the offer and sale of their crypto asset staking-as-a-service program, whereby investors transfer crypto assets to Kraken for staking in exchange for advertised annual investment returns of as much as 21 percent. BTCS's non-custodial staking-as-a-service platform, StakeSeeker, differs from Kraken's custodial model in several key material ways.

The current test to determine if an offering is a security is the Howey test, which can be summarized as an investment of money in a common enterprise with the expectation of profits solely from the efforts of others.

<u>Kraken's custodial model:</u>

*Key Howey Test Components:*

 

&nbsp;&nbsp;&nbsp;&nbsp;1. They
 take control of your crypto assets

2. They
 pool your crypto assets with others (common enterprise)

3. There
 is an expectation of profit from their efforts

*Other key factors:*

&nbsp;&nbsp;&nbsp;&nbsp;1. They
 determine the annual percentage return ("APR") and have right to change at their discretion

2. They
 offer instant rewards and instant unstaking

3. Customers
 earn passive rewards

4. Fees
 are located in Terms of Service documents

5. They
 need stringent cybersecurity measures

6. They
 claim high annual returns

<u>BTCS's non-custodial StakeSeeker model:</u>

*Key Howey Test Components:*

 

&nbsp;&nbsp;&nbsp;&nbsp;1. We
 do **not** take control of your crypto assets or crypto rewards

2. Since
 we don't have control of your crypto assets, we can't pool them

3. While
 there is an expectation of profit, we believe our work is ministerial in nature

 

*Other key factors:*

 

&nbsp;&nbsp;&nbsp;&nbsp;1. The
 respective blockchains determine both the APR and directly pay the crypto asset rewards to the delegator, not us

2. Both
 the reward frequency and unstaking is determined by the respective blockchain protocol

3. We
 don't have customers; delegators are active and participate in a respective blockchain consensus mechanism by staking their
 crypto assets

4. Our
 fees are publicly available both on our website and broadcast to the respective blockchain protocols

5. While
 we have strong cybersecurity measures in place, we don't have control over your crypto assets and you are depending on the
 security of the respective blockchain to keep your crypto assets secure

6. We
 clearly disclose that StakeSeeker returns are estimated based on reported network data.

"SEC Commissioner Gary Gensler clearly stated in his <u>video tweet</u>, "Not your Keys, Not your Crypto", and we couldn't agree more," stated Charles Allen, BTCS's CEO. "When you stake with us, you are not an investor in our platform. You are a delegator to our nodes. If we go bankrupt, you do not get in line because we don't have your crypto assets, you unstake them and move on," continued Allen. We encourage investors to watch Commissioner Gensler's video tweet.

"As the oldest public company in the crypto and blockchain sector, we've learned many lessons over the years. For example, we once held crypto at Mt. Gox but luckily withdrew it prior to its implosion. We learned from that near miss in 2014 and keep minimal crypto at exchanges," said Charles Allen. In light of FTX, it's time to get educated and take control of your crypto assets. **Your keys, your crypto**. When you stake with us, you are participating in a blockchain's consensus mechanism, and you do not transfer ownership of your crypto assets to us.

In light of recent failures such as FTX, Blockfi, and Celsius we encourage investors and crypto enthusiasts alike to learn about the value proposition of our non-custodial staking model. **Your keys, your crypto, stake (not steak) with us.**

Many investors ask why we don't offer staking for Ethereum, and the reason is simple. It's a proof-of-stake blockchain, not a delegated proof-of-stake blockchain, and in our opinion, there isn't currently a clear path to offer Ethereum staking without inadvertently creating a security. While we believe our non-custodial staking does not create securities, we can provide no assurances that either the SEC or other regulatory authorities will agree.

**What is StakeSeeker?**

StakeSeeker is a leading crypto dashboard that offers a unique solution for crypto holders to manage and grow their digital assets. StakeSeeker sets itself apart by solving the common problem of central tracking for crypto holdings stored on various exchanges and digital wallets, providing crypto holders with an improved user experience and the ability to easily track and analyze the performance of their entire portfolio. The platform combines innovative portfolio analytics and a simplified staking process, all in one place. With StakeSeeker, crypto holders can earn rewards by staking through the non-custodial Stake Hub and evaluate their portfolios across multiple exchanges and wallets with ease. The platform was developed to empower crypto holders, to self-custody their crypto, and to better understand and grow their digital asset holdings through a secure platform.

For more details on StakeSeeker and the value it creates for crypto holders, please visit <u>https://stakeseeker.com/</u>.

**About BTCS:**

BTCS Inc. is a Nasdaq listed company operating in the blockchain technology space since 2014 and is one of the first U.S. publicly traded companies with a primary focus on blockchain infrastructure and staking. BTCS secures and operates validator nodes on disruptive next-generation blockchain networks that power Web 3, earning native token rewards by staking our proof-of-stake digital assets. "StakeSeeker" is BTCS' newly introduced proprietary Cryptocurrency Dashboard and Staking-as-a-Service platform, developed to empower users to better understand and grow their crypto holdings with innovative portfolio analytics and a non-custodial process to earn staking rewards on digital asset holdings. Users can easily link and monitor their cryptocurrency portfolios across exchanges, wallets, validator nodes, and other sources; and have access to a suite of data analytic tools such as performance and reward tracking. StakeSeeker's Staking Hub allows users to earn rewards by participating in network consensus mechanisms by staking and delegating their cryptocurrencies to company-operated validator nodes for a growing number of supported blockchains. As a non-custodial validator operator, BTCS will receive a percentage of token holders staking rewards generated as a validator node fee, creating the potential opportunity for a highly scalable business with limited additional costs. For more information visit: <u>www.btcs.com</u>.

*Investor Relations:*

<u>ir@btcs.com</u>

*Public Relations:*

Mercy Chikowore

<u>m.chikowore@btcs.com</u>