BTCS Inc (BTCS)

[FreezeThese]

It means pain ahead. The CEO and COO are the convertible note holders ... they foregave some of the balances in exchange for preferred B shares ... which convert in to common shares at the rate of 200 to 1 ... it was a work around to ease the company books [which they're no longer filing] and still collect some cash

On March 15, 2017, the Company filed a Certificate of Designation for the Preferred with the Secretary of State of the State of Nevada. The Preferred Certificate of Designation provides authorization for the issuance of 1,108,861 shares of Preferred, par value $0.001. Each holder of Preferred may, from time to time, convert any or all of such holder’s shares of Preferred into fully paid and non-assessable shares of common stock in an amount equal to two hundred (200) shares of common stock for each one (1) share of Preferred surrendered. However, at no time may all or a portion of shares of Preferred stock be converted if the number of shares of common stock to be issued pursuant to such conversion which would exceed, when aggregated with all other shares of common stock owned by such holder at such time, the number of shares of common stock which would result in such holder beneficially owning more than 4.99% of all of the common stock outstanding at such time.

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=11963352