Btcs Inc. · NASDAQ:BTCS
Btcs — Investor Presentation (January 2022)
35 slides from Btcs's investor presentation, Jan 5, 2022
Slide 1: Corporate Presentation
Corporate Presentation BTCS Inc. (Nasdaq: BTCS) January 5, 2022 1
Slide 2: Safe Harbor
Safe Harbor The following presentation contains statements, estimates, forecasts and projections with respect to future performance and events, which constitute forward-looking statements. Those statements include statements regarding the intent and belief or current expectations of BTCS and its man
Slide 3: Table of Contents
Table of Contents Section Page About and 2021 Highlights 4 Industry Overview 7 Corporate Overview 12 Appendix: Blockchain 101 26 3
Slide 4: About
About Focused on powering and securing next-generation blockchains. BTCS Inc. (“BTCS”) is the first U.S. public company Our Digital Asset Dashboard at focused on blockchain infrastructure and https://analytics.btcs.com allows users to easily technology. We secure disruptive next-generation evaluate
Slide 5: 2021 Highlights (unaudited)
2021 Highlights (unaudited) $37.8 million $15.9 million $3 million Balance Realized Crypto Gain Sheet Crypto Mkt. Value & Cash 2021 Capital raised via Growth 748% YoY increase* common stock at average $20 million $36.4m crypto & $1.4m cash price of $8.20 per share** Unrealized Crypto Gain Mgmt. RSUs
Slide 6: 2021 Operations and Achievements
2021 Operations and Achievements BTCS powers the infrastructure to secure numerous blockchains and is actively developing software to capitalize on the disruptive potential of blockchain technology. Blockchain Infrastructure Digital Asset Platform Other Company Solutions: Development: Highlights: •
Slide 7: Industry Overview
Update – from accounting deck Industry Overview 7
Slide 8: Blockchains Ushering in a New Era of Technology
Blockchains Ushering in a New Era of Technology The computer and internet age ushered in the digitization and proliferation of information on a global scale Blockchains are ushering in an age of asset digitization and transfer without the need for trusted intermediaries (banks, exchanges, government
Slide 9: Enormous Market Opportunity & Relative Comparison
Enormous Market Opportunity & Relative Comparison Web 3.0 and transaction-based industries built on next-generation blockchain technologies represent a multi-trillion market opportunity. 1st Generation Blockchains Next-Generation PoS Blockchains Bitcoin and gold are storers of value. If both assets
Slide 10: Blockchain Use Cases & Disruption
Blockchain Use Cases & Disruption BTCS powers the infrastructure that serves as the backbone of Web 3.0 • Decentralized finance (DeFi), Non- fungible tokens (NFTs), and the Metaverse utilize smart contract based blockchains. • Proof-of-Stake (PoS) based blockchain infrastructures such as Ethereum pr
Slide 11: Emerging Opportunities in Proof-of-Stake Industry
Emerging Opportunities in Proof-of-Stake Industry BTCS’ focus on securing Proof-of-Stake (PoS) blockchains is part of its core Blockchain Infrastructure Solutions segment and positions us firmly in the center of the exponentially growing staking industry. The market cap of JPMorgan Chase estimates s
Slide 12: Corporate Overview
Corporate Overview 12
Slide 13: Comparing Business Models
Comparing Business Models High Energy Consumption We operate validator nodes on next generation blockchains and are building a platform to enable users to easily stake tokens. Increasingly Centralized Our validator nodes should allow us to receive a Increasing Hash Rate percentage of token holders s
Slide 14: Understanding Consensus Mechanisms – PoW vs. PoS
Understanding Consensus Mechanisms* – PoW vs. PoS ASIC miners (computers) Pool operators run validator Pooled ASICs solve Pools distribute crypto purchased have $0 residual nodes and pool ASIC complex cryptographic rewards to pool value at end-of-life. computing power to secure puzzles and transacti
Slide 15: BTCS Operations
BTCS Operations BTCS secures disruptive Proof-of-Stake (PoS) blockchains that can power DeFi, NFT, and Metaverse ecosystems. Running validator nodes on PoS blockchains is core to BTCS’ operations and the focus of the proprietary Staking-as-a-Service feature of our Digital Asset Platform. Current Ope
Slide 16: Digital Asset Holdings
Digital Asset Holdings +930% increase in fair market value of digital holdings year-over-year as of December 31, 2021 Current Holdings* Fair Market Value of Digital Assets ETH** BTC ADA** XTZ** SOL KSM LUNA MATIC AVAX** DOT ALGO ATOM** 8,097 ETH $50m U.S. GAAP requires us to carry our digital 90 BTC
Slide 17: Building an Integrated Platform
Building an Integrated Platform BTCS is developing a Digital Asset Platform designed to provide users a one-stop-shop dashboard to consolidate crypto portfolios across multiple exchanges, track cumulative performance, and provide data insights to users while encouraging delegation of user tokens to
Slide 18: Current Platform
& BTCS Current Platform Bas ‘Transactions a cet fi © reomaare 2) BTCS Dashboard Bas meen © sauere ° eure evs © oameen: Dashboard ecm * f. on rcs @ oovmterre ¥ . ex seins on « . = € Capital Gains Report Add Exchange cain type Céteulaton Method Set care ¥ Dashboard © Realized Gains © Unrealized Gains
Slide 19: Features Under Development / Preview
Features Under Development / Preview 19
Slide 20: Roadmap – Digital Asset Platform
Roadmap – Digital Asset Platform Research and Development Beta Release Public Release Beta Development/ Public Beta Release Testing Q1 2020 Q3 2021 2022 Q2-Q4 2020 Q4 2021 – Q1 2022 Initial Design/Requirements; Invite Only Beta V1 Public Release Exchanges Selection and Release for Full Stack Selecti
Slide 21: A Value Play Amongst Peers
A Value Play Amongst Peers* We believe BTCS Inc. is undervalued compared to its peers. Stock Price Market Price / Company Name 12/31/2021 Cap Cash & Crypto Bitcoin Mining Focused: Marathon Digital Holdings Inc. $32.86 $3,368m 31.5x Riot Blockchain Inc. $22.33 $2,171m 13.6x CleanSpark, Inc. $9.52 $35
Slide 22: A Value Play Amongst Peers (cont.)
A Value Play Amongst Peers (cont.) BTCS is currently trading at a discount to the FMV of its Cash and Crypto assets held, making it a value investment opportunity in an industry where comparable private companies have been recent targets of blockbuster acquisitions by larger companies. $45m Market C
Slide 23: Management
Management Charles Allen CEO and Chairman of the Board Charles has been involved in the blockchain industry since its earliest days. Since joining BTCS in 2013, he has leveraged his extensive experience in business strategy, investment banking, and capital markets transactions to develop and lead th
Slide 24: Independent Directors
Independent Directors David Garrity Director David has over 30 years’ experience in the financial services industry. He has held senior roles including CFO and board of director positions for both publicly- held and private companies, and has extensive experience in several disciplines including ope
Slide 25: Key Service Providers Contact Us
Key Service Providers Contact Us Charles Allen 202-430-6576 (IR #) Transfer Agent ir@btcs.com www.btcs.com Legal Counsel Dave Gentry Auditor RedChip Companies Inc. 407-491-4498 Investor Relations dave@redchip.com Mercy Chikowore Media Requests 803-347-6905 mercy@mercyc.com 25
Slide 26: Appendix Blockchain 101
rt Appendix @ _Blockchain 101 ES) “E
Slide 27: Blockchains Explained
Blockchains Explained Blockchains are decentralized digital ledgers that record and enable secure peer-to-peer transactions without third party intermediaries. CURRENT TECHNOLOGIES BLOCKCHAINS (Centralized Systems) (Distributed Systems) Trust / consensus entrusted to third Trust / consensus built in
Slide 28: Blockchain Ledger
Blockchain Ledger • A blockchain ledger is a distributed ledger maintained by a • All transactions on a blockchain can be viewed through network of computer nodes that verify and validate blockchain explores which read and display the public transactions. data. • An explorer allows you to look up a
Slide 29: How Blockchains Work
How Blockchains Work A transaction The transaction is broadcasted to The network of nodes uses A verified transaction can is request a peer-to-peer (P2P) network that consensus algorithms to involve cryptocurrency, consists of computers (otherwise validate the transaction contracts, records or other
Slide 30: Consensus Mechanisms to Secure Blockchains
Consensus Mechanisms to Secure Blockchains The key difference between PoW and PoS is the consensus algorithm used by the network nodes. Proof of Work VS Proof of Stake Miners receive block Validating capacity Validators do not receive Mining capacity rewards to solve a depends on the depends on a bl
Slide 31: Blockchain Protocols Value Proposition
Blockchain Protocols Value Proposition Blockchain protocols represent the next generation of internet technology. Web 1.0 & 2.0 Web 3.0 Information Exchange Era Value Exchange Era 1995 < 2008 < • Compared to Web 1.0/2.0, Web 3.0 Experience Interface & Companies: blockchain protocols handle business
Slide 32: Internet vs. Blockchain Technology Stacks
Internet vs. Blockchain Technology Stacks* Internet Blockchain Technology Overview Stateless Protocol Unable to store data Stateful Protocol Able to both transmit and store data World Wide Web Crypto Currencies Email Identity Management Application Layer Video Streaming Smart Contracts Cloud App
Slide 33: Blockchain Use Case #1: Crypto Currency
Blockchain Use Case #1: Crypto Currency In transitioning to our current monetary system, control of our assets has been yielded to trusted intermediaries that often fail. CREDIT CARDS, GOLD, ELECTRONIC CRYPTO BARTER SILVER FIAT BANKING CURRENCIES Before 600BC 600BC - present C806 - present C1950 - p
Slide 34: Blockchain Use Case #2: Securities
Blockchain Use Case #2: Securities Blockchains have the potential to remove middleman, lower asset exchange fees, and reduce instability of securities markets. Current Process Blockchain Based Shareholders Buyer Seller Buyer Seller Trading EXCHANGE Clearing CLEARING HOUSE Exchange and Post-Trade Blo
Slide 35: Blockchains are in "1st Inning"
Blockchains are in “1st Inning” First 10 Years 10 – 20 Years 20 – 30 Years TCP/IP Email Protocols World Wide Invented Adopted Web Created Internet 1969 1984 1991 1995 Timeline 1972 1983 1989 1994 1999 First Limited DNS Internet Message Established Open Transferred To Public Ethereum Smart Commercial