Bitcoin mining firm BTCS has indicated there are concerns within the public company’s management about its ability to sustain operations.

As noted in its latest quarterly SEC filing, BTCS believes it will require “significant additional capital” to sustain short-term operations as well as long-term plans. The company cited recurring operating losses and net operating cash flow deficits as reasons for the lack of optimism about its prospects.

“Because of recurring operating losses, net operating cash flow deficits, and an accumulated deficit, there is substantial doubt about the Company’s ability to continue as a going concern,” the filing reads.

The document continues:

“The Company will require significant additional capital to sustain its short-term operations and make the investments it needs to execute its longer term business plan. The company’s existing liquidity is not sufficient to fund its operations and anticipated capital expenditures for the foreseeable future.”

BTCS said it plans to finance its activities by seeking additional funds through the sale of securities, as well as increasing revenue from its bitcoin mining efforts, though it warned debt or equity financing were unlikely to come on favorable terms.

The filing indicates BTCS experienced a net loss of $3.8m during the third-quarter of 2015, and that its net loss for the nine months ending 30th September equalled $8.4m. The figures were up from the $2.5 quarterly net loss and $6.6m year-to-date net loss observed in 2014.

Launched as a consumer-facing e-commerce portal specializing in bitcoin, BTCS has shifted its operations in 2015 in an effort to enter the industrial mining market, merging with Israel-based bitcoin mining firm Spondoolies-Tech earlier this year.

The latest filing found BTCS earned $169,000 from its mining efforts in Q3, though after expenses it obtained only $67,000 in gross profit.

As of 30th September, BTCS indicated it had $2.3m in current assets and $2.3m in liabilities. The Nevada-based company reported a net loss of $4.59m for the first half of 2015.

At press time, the company’s stock was trading for just over 12 cents per share.

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