Btcs Inc. · NASDAQ:BTCS
Btcs — Bitcoin Shop — Investor Presentation (October 2014)
34 slides from Btcs's investor presentation, Oct 16, 2014
Slide 1: Bitcoin Shop, Inc. Corporate Presentation
Bitcoin Shop, Inc. Corporate Presentation (OTCQB: BTCS) October 2014
Slide 2: Safe Harbor
Safe Harbor “The follning presentation i a outine of matters for ifrmational purposes onl. This document does nt consul an oe to soto a soltation ofan orto buy any securtes of con Shop Inc (Bizon Shop’, "STOS" "we" of us) While we believe he Ifomation provided herein reliable, a8 of the cate hee, et
Slide 3: Table of Contents
Table of Contents Investment Highlights 4 Digital Currency Industry Overview = Corporate Overview 14 Ecommerce Business Overview 23 Summary 33
Slide 4: Investment Highlights
Investment Highlights Bitcoin Shop, Inc. (“Bitcoin Shop”) is an early mover in the digital currency ecosystem and one of first U.S. publicly traded companies in the space We plan to build a digital currency ecosystem by using ecommerce as an on- ramp. We have partnered with 5 key digital currency co
Slide 5: Digital Currency Industry Overview
Bitcoin Shop, Inc. Digital Currency Industry Overview
Slide 6: Bitcoin Ecosystem
Bitcoin Ecosystem Bltooins the most mature eryptocurrency What is a cryptocurrency? A cryptocurrency is a type of digital ‘currency that relies on cryptography, peer-to-peer networking, and decentralization Universal J Mining @HashMasterTech 7 Bitfury CZduonastay -DashFast SoCMiner Exchanges Payment
Slide 7: Potential Market Cap. Disruption by Bitcoin
Potential Market Cap. Disruption by Bitcoin Processors ‘MasterCard Inc se08 NCR Cop Laud Green Dot Corp EE ———Ea ve wT nmaasnn =_— — Source: Wedbush Securities, CapiteIQ, as of October 13,2014 ‘$600 ‘$400 $300 $200 $100 $547 Billion Market Cap
Slide 8: Bitcoin Adoption is Rapidly Accelerating
Bitcoin Adoption is Rapidly Accelerating 4,000,000 3,600,000 3,000,000 100,000,000 + 80,000,000 160,000,000 2,500,000. } 2,000,000 1,800,000 40,000,000 600,000 500,000 ooo + 300000 + 200,000 + 100,000 Canbeak com Bilpay, 4 bioainiy com, as of TOTROTS om 2 bconiy com 3.
Slide 9: Industry Should Favor Ecosystem Providers
Industry Should Favor Ecosystem Providers Growth ‘Aggregate Solution Providers Growth Ceiling Time
Slide 10: Venture Capital Landscape
Venture Capital Landscape Financ peer cn neg Hardware * aa Total vested ition) SES 082 Etat om Fra SR seas Ming Herre 68 Unban! ee Wats seas Teta a8 Bitcoin vs. Early Internet VC Investment t $350 9 $300 250 | $200 | $150 100 $50 2013 Bitooin 2014 Bitcoin Run 1995 Internet Rate ‘Source: CanDesk com
Slide 11: Notable Industry Comparables
Notable Industry Comparables Vogogo Inc. (TSXV: VGO) Financial Services $8.5 million $118 million Digital CC Ltd? (ASX: DCC) Mining $8 million $28.5 million Bitpay® Payment Processor $30 milion $160 million Xapo! Wallet $40 milion Not Disclosed Blockchain® Wallet $30.5 million Not Disclosed BitGo® W
Slide 12: Digital Currency Acceptance
Digital Currency Acceptance * Financial services and technology industry leaders such as Bank of America and IBM are applying for patents and issuing guidance as economic opportunities in the digital currency sector rise . Financial Crimes Enforcement Network (“FinCEN”) has issued guidance on severa
Slide 13: Digital Currency Landscape
Digital Currency Landscape Currencies are typically compared using common categories describing the total value and capacity of each specific currency at their fullest designed utilization $4,419.593.131 °o Tn $930.84 43,358,400 | First and largest currency <i $136,201 902 re sooosso 28 900,252,282
Slide 14: Corporate Overview
Bitcoin Shop, Inc. Corporate Overview “4
Slide 15: Consumer Education & Adoption: The Challenge
Consumer Education & Adoption: “The Challenge” © Misperception of what Bitcoin is and can do * Mass adoption will be driven by: * Limited ways to enter ecosystem ~ Increased education and awareness * Uncertain and unknown risks ~ Simple user interfaces ~ Value-added use cases
Slide 16: Building a Universal Ecosystem: The Solution
Building a Universal Ecosystem: “The Solution” PAYMENT PROCESSOR [33 GOCOIN © dieoinsioous 7 FINANCIAL SERVICES Osen-—>| BTCS |— il fa: COINDUTLET
Slide 17: Strategic Partnerships
Strategic Partnerships * Received integration and development support Lead investor Series A Board Seat" GOcoIN Leading intemationalcigtal currency payment platform + Processes Bitcoin, Liteoin and Dogecoin * Recently signed d with Paypal for our 20te + Established key industy relationship @ express
Slide 18: Corporate Structure
Corporate Structure Minority Investments 100% 100% 0.83%.9.8% ® Express Bitvault, Inc. BitcoinshopusLLC BCS Acquisition Corp. [CI ia MPietoame Korg (a) or) (Deleware) (Delaware) (Delaware) (Delaware) * Formed to capitalize on acquisition opportunities * Focus areas include ~ Offer products which are
Slide 19: Key Accomplishments
Key Accomplishments May 9 Strategic Investor in BitVault Inc. (Gem) February 5 & 6 Begins Trading asa Public Company & [September 1 Raised $1.875M October 1 | Website Lead Investor in Launched suiy 10] Coin Outlet ine March 23 Strategic and Lead Investor in Strategic and Express Technologies, inc. L
Slide 20: Growth Strategy & Timeline
Growth Strategy & Timeline Time Development Customer Acquisition Monetization BTCS Development Phase: focus on R&D and build robust and scalable enterprise grade ecommerce platform as an on ramp for customer acquisition © Completely rebuilt our enterprise grade fully scalable e-commerce platform fro
Slide 21: Capitalization Table
Capitalization Table Shares % Basic % Diluted ‘Common Shares Public Float 52,913,312 345% 32.6% Founders & Management 100,273,923 65.5% __—61.7% Total Common 153,187,235 100.0% 94.3% Preferred Stock (as converted) Series C Preferred 2,200,000 1.4% Total Preferred 2,200,000 14% Warrants Warrants (Str
Slide 22: Management Team
Management Team Charles Allen, Chief Executive Officer, Chief Financial Officer, and Chairman of the Board of Directors «Responsible for overall corporate strategy and direction as well as managing corporate finances + Extensive experience in business strategy, investment banking, investing and capi
Slide 23: Ecommerce Business Overview
Bitcoin Shop, Inc. Ecommerce Business Overview 23
Slide 24: U.S. Ecommerce Market Overview
U.S. Ecommerce Market Overview * Ecommerce represented only 6% of total | USS. Online Retail Forecast (billions) _ U.S. retail sales in 2012 leaving significant $240 $259 $278 growth opportunities oro SE $218 $187 Electronics and apparel/accessories estimated to account for approximately 46% a eee &
Slide 25: Current Challenges for Ecommerce Shoppers
Current Challenges for Ecommerce Shoppers Why isn’t online shopping easier? ae Shoppers typically have to manage multiple accounts (J) Searching for great prices can be time consuming = Not all online vendors can be trusted @p Search engine price quotes aren't all inclusive 25
Slide 26: The Opportunity
The Opportunity ae 230% araey = on Q on son woe a wom vn ie w= vim r) 7 = — = van By wom = —= on son Py oem same Wa batove Hs sariple daa s representative! the Total population of products we plan fo sel Dafa was randomly sarrpled usihg @ OO¥ confidence bevel whan Oe confidence interval and only app
Slide 27: The Solution — Intelligent Shopping Engine
The Solution — “/ntelligent Shopping Engine” We search retailers you TRUST We find the BEST DEALS We make sure you’re HAPPY! m6 BOX! ¢l00 6 8OXN 495 816 Box m —$!20. 816 BOX WTELLIGENT SHOPPING @ We search over 85 retailers ~ You spend less time searching site to site ~ You count on top name retaile
Slide 28: The User Experience
The User Experience Crosley - Corded Kettle Classic Desk Phone - Black petaer price Tax Shipping Procesneree Toul ysis: 7 sorsse eno cis ow nas” | INTELLIGENT. eov3se engce) s00136 = 3% (wn SHOPPING NORDSTROM e120 eoose eno1ss «oS (mnt ENGINE a RUNS IN REAL drugstore: so1es0 anos woniss =a anton Aa
Slide 29: Intelligent Shopping Offers Universal Benefits
Intelligent Shopping Offers Universal Benefits ©bitcoin * Enable fast and secure payments ACCEPTED HERE * Offer lower transaction fees * Eliminate charge backs * New currencies may fuel customer growth * International growth potential * Improved Customer Service options offered * Major credit cards
Slide 30: Ecommerce Vendor Growth Initiatives
Ecommerce Vendor Growth Initiatives Manufacturers and Exclusives PRce sMrPINe. TOTAL sie 2x! "Stoo sli lc eoxn $95 slo Glos fic fxm tie FREE BB BIG BOX WTELLIGENT SHOPPING Affiliate Programs Estimated Sales & Products Offered
Slide 31: Near Term Marketing Initiatives
Near Term Marketing Initiatives Focus on leveraging ecommerce platform as on ramp to drive mass digital currency adoption Leverage social media to target shoppers and influencers in technology, finance, ecommerce and digital currency audiences SEOJPPC firm engaged to optimize site traffic and drive
Slide 32: Ecommerce Business Goal
Ecommerce Business Goal FP nee ie ee ey f r
Slide 33: Summary
Summary Bitcoin Shop is an early mover in the digital currency ecosystem and one of first U.S. publicly traded companies in the space We plan to build a digital currency ecosystem by using ecommerce as an on- ramp. We have partnered with 5 key digital currency companies to utilize their technologies
Slide 34: Contact Info
Contact Info Charles Allen Chief Executive Officer Investor Contact Info ir@bitcoinshop.us (202) 430-6576 34