Bitcoin Penny Stock Hits the Market

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One bitcoin will cost you more than $700 at current prices, but now investors can get a piece of the virtual currency's potential for $4 with this new Bitcoin penny stock.

Bitcoin Shop Inc. started trading Thursday – the first company with "Bitcoin" in its name to be publicly traded.

bitcoin stock

Bitcoin Shop Inc. is an online retailer that sells everything from appliances to gourmet goods; it accepts bitcoin as payment. The company that runs BitcoinShop.us  merged with Nevada-based TouchIT Technologies Inc. in a move known as a "reverse merger." TouchIt then changed its name to Bitcoin Shop Inc. 

Old TouchIt news releases describe it as a touched-based visual communications products company for use in both the education and corporate environments.

Bitcoin Shop shares currently trade on the over-the-counter market with the ticker TUCND. According to Securities and Exchange Commission (SEC) filings, on March 5 shares get a new symbol: BTCS.

Shares closed at $3.31 Thursday, on volume of 6,151 shares. Friday, as word got out, the stock surged some 40% intraday to a high of $5.26. Shares of this Bitcoin penny stock were last trading hands up 30% to $4.30, on volume of 122,141.

Bitcoin Shop Chief Executive Officer Charles Allen told The Wall Street Journal the company raised $1.875 million from institutional and high-net worth investors in efforts to execute the merger and complete the listing. The decision to become public was to gain exposure and validity.

"We think it brings us legitimacy," Allen said.

Don't miss: Three Tech Penny Stocks Set to Soar in 2014

Indeed, the digital currency, which has grown presence and price, has been under scrutiny of late from global currency regulators. Critics' concerns are that the virtual currency, whose transactions are not recorded through the traditional banking system but across a decentralized peer-to-peer network, can be used to launder money or buy illegal goods.

But they're missing a huge part of the Bitcoin story…

Join the conversation. Click here to jump to comments…

  1. Debra | February 10, 2014

    This is all to me how can i but bitcoin stock,thank you

  2. George Lindsey | February 10, 2014

    Is this surreal or unbelievable? What kind of money is this? I would call it rich mans money, but, this money belongs to the unseen internet!

  3. Batzi | February 25, 2014

    A fool and his money will soon be removed. The biggest scam to date.

  4. Edward | July 3, 2014

    Could another type of bitcoin be created without mining but instead be backed up by
    commodities? Why it could work or why not?

    • David Zeiler | July 4, 2014

      Edward:

      What you suggest has been already been tried, most notably in the late 1990s with something called Egold, but it proved very vulnerable to hacking and fraud. Egold's proprietors themselves were indicted in 2007 by the DOJ for money laundering. The project was suspended in 2009. Other attempts have all failed, partly because backing a digital currency with gold requires some sort of central control, which create a major vulnerability. Bitcoin is totally decentralized and under the control of no government or company just for this reason.

      More recently, two Toronto entrepreneurs announced they had purchased two 400-ounce gold bars to use as a reserve to launch a digital currency called Minacoin. It was supposed to fully launch in June, which it did not. Many point out that a commodity-backed crypto-currency isn't really necessary, as the value of Bitcoin does not come from its ability to be used as money but from the technology that underlies it. That technology enables many more applications than just a means of exchange.

      In addition, backing a crypto-currency with something like gold merely turns it into another way to buy gold, and we already have plenty of those.

      And one more thing: the mining is not just a way to regulate the creation of Bitcoins and other crypto-currencies — it's a vital part of how each and every Bitcoin transaction is verified. The mining ensures the validity of the entire Bitcoin network; it would be virtually impossible to have a practical digital currency without it.

      I hope this helps,

      -Dave Zeiler

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