Slide 1: Investor Presentation
Investor Presentation BTCS Inc. (Nasdaq: BTCS) March 2025 www.btcs.com 1
Slide 2: Safe Harbor
Safe Harbor The following presentation contains statements, estimates, forecasts, and projections regarding 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 manageme
Slide 3: Comments From Our CEO
Comments From Our CEO “In 2014, I recognized the growth potential of Bitcoin mining, and by year-end, BTCS became the first public company to mine Bitcoin. Unfortunately, we were ahead of the curve, and our operations couldn’t withstand the 72% drop in Bitcoin's price in 2015. In 2017, early investo
Slide 4: BTCS Business Overview
BTCS Business Overview BTCS Inc. is a technology company focused on blockchain infrastructure, with an emphasis on Ethereum. Current Goal: Drive scalable growth through a diverse range of blockchain-focused technological solutions, with a focus on block building and validator node operations. Valida
Slide 5: BTCS Business Overview (cont.)
BTCS Business Overview (cont.) Foundational Technology Blockchain infrastructure is the technology that enhances the security, efficiency, and accessibility of blockchain networks. Network Security and Transaction Propagation Our core blockchain infrastructure focuses Blockchain infrastructure invol
Slide 6: BTCS Business Overview (cont.)
BTCS Business Overview (cont.) Cloud-Based Validator Network BTCS operates a network of cloud-based validator nodes across proof-of-stake (PoS) and delegated proof-of-stake (dPoS) blockchain networks. These nodes are vital to maintaining network security by Validator Node Operations participating in
Slide 7: BTCS Business Overview (cont.)
BTCS Business Overview (cont.) Scalable Revenue Generation BTCS’s block-building strategy focuses on maximizing gas fee revenue by constructing high- value blocks. This involves acquiring block space through strategic bidding to include the most Block Building profitable transactions in blocks propo
Slide 8: Ethereum Focus
Ethereum Focus Ethereum (ETH) is the foundation of BTCS’s blockchain infrastructure strategy, with its unparalleled ecosystem and commitment to innovation aligning seamlessly with our vision for secure, scalable growth. * VanEck: ETH 2030 Price Target and Optimal Portfolio Allocations 8
Slide 9: Ethereum Focus (cont.)
Ethereum Focus (cont.) Proof-of-Stake (PoS) Consensus Cumulative Dilution Since ETH Merge* Ethereum’s shift to PoS aligns with BTCS's sustainable, scalable infrastructure focus, creating lower energy costs and increased Bitcoin (BTC) 3.41% staking rewards. 3% Ethereum (ETH) Deflationary Asset Since
Slide 10: ETH vs. BTC - Business Models Compared
ETH vs. BTC - Business Models Compared Benefits of BTCS's Ethereum-focused strategy compared to public Bitcoin miners – Marathon Digital Holdings (MARA), Riot Platforms (RIOT), TeraWulf Inc. (WULF), and Hut 8 Mining Corp. (HUT). Ethereum (ETH) Asset Breakdown* • Proof of Stake (“Staking”) Depreciati
Slide 11: BTCS Revenue Growth
BTCS Revenue Growth BTCS’s block-building has driven double-digit revenue BTCS is positioned to capture substantial growth growth over recent quarters, underscoring the opportunities within the rapidly expanding industry strategic value of focusing on Ethereum, the 2nd through vertical integration a
Slide 12: BTCS Ethereum Infrastructure
BTCS Ethereum Infrastructure BTCS operates and stakes its crypto to validator nodes to generate revenue through native token rewards. BTCS Ethereum Staking Infrastructure* BTCS Ethereum (ETH) Holdings* 522 $30.2 M FMV of ETH held 9,060 ETH owned (~99% staked) Ethereum validator nodes (200 solo-staki
Slide 13: Ethereum Transaction Process Flow
Ethereum Transaction Process Flow * BTCS’s does not include transactions with addresses on OFAC’s Specially Designated Nationals and Blocked Persons list and certain other addresses. 13
Slide 14: Block Building on Ethereum
Block Building on Ethereum Acquire Block Space $ (Cost of Sales) Process: Builder+ strategically participates in the Proposer-Builder Separation (PBS) auction system, bidding to secure the right to populate the next block in the chain from the current validator. Block Space Validator Objective:
Slide 15: Builder Competitor Landscape
Builder Competitor Landscape Currently there are 16 active block builders with 5 accounting for approximately 99% of block 2024 Builder Market Revenue $792m production. YoY Builder Market Growth 60.5% Builder Market Share Over Time Builder Revenue 2024 (ETH) 115,650 100% 120,000 90% 92,894 100,000 8
Slide 16: Vertical Integration and Scale Matter
Vertical Integration and Scale Matter BTCS Order Flow (2024) Market Searcher* Builder Relay Validator Share ** Titan ✓ ✓ 48.8% 101.7 M Transactions (Tx) Beaver ✓ ✓ 36.5% Rsync ✓ ✓ 11.0% 42.6 M BTCS ✓ ✓ ✓ 1.9% 22.1 M Builder 10.7 M Net ✓ 1.0% 2024Q1 2024Q2 2024Q3 2024Q4 Our vertically integrated appr
Slide 17: Growth Strategy
Growth Strategy Goal: Grow Revenue and Improve Margins Key Initiatives to achieve goal Tech Improvements Increase Order Flow Control Block Space Transitioned to Rust Investment / Partnership with ETHgas Introduced Stake Protection Plan (January 2025) (February 2025) (January 2025) Moved Servers to B
Slide 18: BTCS Supported Blockchain Technology
BTCS Supported Blockchain Technology ChainQ is an intuitive platform that simplifies the process of accessing and analyzing blockchain data, enabling deeper insights into on-chain activity. ChainQ utilizes cutting-edge generative AI and advanced customized search functionalities and provides efficie
Slide 19: Financial Highlights
Financial Highlights FY 2024 FY 2023 Financial Position Crypto Assets 11 tokens held (84% ETH) 17 tokens held (71% ETH) Total Assets $ 38,245,000 $ 27,147,000 Total Liabilities ($ 4,245,000) ($ 1,337,000) Results of Operations Revenue $ 4,074,000 $ 1,340,000 Costs of Revenues ($ 3,128,000) ($ 360,00
Slide 20: Management & Board
Management & Board Management Charles Allen Michal Handerhan Michael Prevoznik Benjamin Hunter Chief Executive Officer & Chief Operating Officer & Chief Financial Officer VP of Engineering Chairman of the Board Director Independent Directors Charlie Lee Melanie Pump Ashley DeSimone Director Director
Slide 21: Contact Us
Contact Us Social Media Channels Email: ir@btcs.com www.twitter.com/NasdaqBTCS www.btcs.com www.linkedin.com/company/nasdaq-btcs www.facebook.com/pg/NasdaqBTCS/posts/ www.youtube.com/c/BTCSInc Discord: https://discord.gg/9vW5HkWBJG www.medium.com/@BTCS 21
Slide 22: Appendix
«2 BTCS Appendix
Slide 23: Corporate
«2 BTCS re Corporate
Slide 24: Cap Table
Cap Table Weighted-Average Equity Instrument Outstanding(1) Strike Price(1) Common Shares Outstanding (2) 20,087,981 - Preferred Stock - Series V(4) 16,004,738 - Options 2,729,568 $2.22 Warrants 712,500 $11.50 Common Stock Outstanding % of Common Ownership Summary Shares(1) Shares Outstanding Public
Slide 25: Conservative Funding Strategy Protects Investors
Conservative Funding Strategy Protects Investors 2023 2021 - BTCS was 1st of any U.S. public Series V company to file 10k (Jan 28). Capitalized on $75m public float to facilitate S3 eligibility. Result: $2.8m raised at ~2x EV / book. Result: 11.5m raised at $98m EV 2024 Captured Administration Chang
Slide 26: www.btcs.com/builder
www.btcs.com/builder 26
Slide 27: Basics of Transaction Flow on Ethereum
Basics of Transaction Flow on Ethereum Mempool: When a user initiates a transaction, it goes to the mempool, a Next temporary storage for pending transactions awaiting Confirmed confirmation and inclusion in a block. Transactions in the Mempool Builder Validator Block mempool are publicly accessible
Slide 28: Builders and Block Construction
Builders and Block Construction What is Builder+? Builder+ is our Ethereum block builder, which utilizes advanced algorithms to meticulously construct optimized blocks for on-chain validation designed to maximize revenue (MEV). Builders monitor the Ethereum transaction queue (mempool) for pending tr
Slide 29: «2 BTCS
«2 BTCS GB Pleckshaie
Slide 30: Delegated Proof-of-Stake Blockchain Mechanics
Delegated Proof-of-Stake Blockchain Mechanics* What is Staking? 90% Rewards Staking cryptocurrencies involves supporting the consensus mechanism of a Proof-of-Stake blockchain. The process involves committing crypto assets to support and validate transactions on a blockchain network, earning rewards
Slide 31: StaaS Comparison to a More Widely Known Business Model
StaaS Comparison to a More Widely Known Business Model 90% 10% Individual Owns Property Listed on Property Rental Property Airbnb for Rent Rented Fee Asset Held by Decision to Monetizing Earnings & Individual Monetize Asset Activity Payouts 90% 10% Individual Holds Tokens Staked to Transaction Block
Slide 32: https://chainq.com/
«2 BTCS CE) Chain@ https://chaing.com/
Slide 33: What is ChainQ?
ChainQ provides a simple way for crypto holders to access otherwise hard-to-obtain blockchain data, similar to Bloomberg for financial research or Westlaw for legal research. ChainQ utilizes cutting-edge generative AI and advanced customized search functionalities and provides efficient querying of
Slide 34: Why is BTCS Launching ChainQ?
Why is BTCS Launching ChainQ? ChainQ leverages indexed data from BTCS's blockchain infrastructure operations to provide access to otherwise hard-to-access blockchain data which would not be accessible via Google searches or ChatGPT. Highly ChainQ offers the potential for a highly scalable software-a
Slide 35: ChainQ - Featured Highlights
ChainQ - Featured Highlights AI-Powered Queries The user-friendly search bar enables users to ask questions in natural language. Advanced Customized Searching The advanced customized search feature goes beyond typical blockchain explorers. By specifying criteria such as date ranges, transaction wall
Slide 36: Blockchain Basics
«2 BTCS (5 Blockchain Basics
Slide 37: Blockchains Explained
Blockchains Explained A blockchain ledger is a distributed ledger maintained by a network of computer nodes that validate transactions. Traditional vs. Blockchain Systems How Blockchains Work Distributed ledgers allow for ownership of assets to be recorded through a Transaction (payment, contract, p
Slide 38: 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 trusted intermediaries (banks, exchanges, etc.) Next-Generation
Slide 39: Next-Generation PoS Opportunity & Relative Comparison
Next-Generation PoS Opportunity & Relative Comparison Web 3 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. The internet’
Slide 40: Traditional vs Decentralized Finance Example
Traditional vs Decentralized Finance Example Traditional Finance Decentralized Finance Built on Ethereum Built on Ethereum, Aave and other DeFi protocols solve inefficiencies in traditional finance by enabling instant, permissionless lending and borrowing. By replacing intermediaries with smart cont
Slide 41: Importance of Custody in Today's Environment
Importance of Custody in Today’s Environment It is more crucial than ever to educate the public on the importance of taking control of their crypto assets through self-custody. Non-custodial staking offers a secure and rewarding solution for managing and growing your crypto assets with full control
Slide 42: Differentiating Non-Custodial Staking Model
Differentiating Non-Custodial Staking Model Staking to BTCS’s nodes is non-custodial, which differs from staking and earn programs offered by centralized crypto exchanges that have faced recent regulatory scrutiny. Custodial Staking vs. Non-Custodial Staking • Crypto exchanges create wallets for acc
Slide 43: Ethereum By the Numbers
«2 BTCS A Ethereum By the Numbers
Slide 44: Ethereum Statistics: Validators
Ethereum Statistics Ethereum (ETH) is the foundation of BTCS’s blockchain infrastructure strategy, with its unparalleled ecosystem and commitment to innovation aligning seamlessly with our vision for secure, scalable growth. Total Staked ETH and Validator Growth 35,000 1,200,000 30,000 1,000,000 Sta
Slide 45: Ethereum Statistics
Ethereum Statistics Electric Capital: https://www.developerreport.com/developer-report?s=newcomers-joined-crypto-in-2023 45
Slide 46: Ethereum Statistics
Ethereum Statistics Electric Capital: https://www.developerreport.com/developer-report?s=newcomers-joined-crypto-in-2023 46
Slide 47: Ethereum Statistics
Ethereum Statistics Electric Capital: https://www.developerreport.com/developer-report?s=developer-report 47
Slide 48: Ethereum Statistics
Ethereum Statistics Electric Capital: https://www.developerreport.com/developer-report?s=newcomers-joined-crypto-in-2023 48
Slide 49: Ethereum vs Bitcoin Performance Comparison
Ethereum vs Bitcoin Performance Comparison The chart below illustrates the performance of a $10,000 investment in Ethereum and Bitcoin over a 5 year period. Source: Portfolios Labs as of January 4, 2025. 49