Slide 1: A Blockchain Technology Company Corporate Presentation
A Blockchain Technology Company Corporate Presentation BTCS Inc. (OTCQB: BTCS) February 2016 1
Slide 2: Safe Harbor
Safe Harbor The following presentation is an outline of matters for informational purposes only. This document does not constitute an offer to sell or a solicitation of an offer to buy any securities of BTCS Inc. (“BTCS”, “we” or “us”). While we believe the information provided herein is reliable, a
Slide 3: Table of Contents
Table of Contents Section Page Investment Highlights 4 Industry Overview 5 Corporate Overview 13 Summary 25 3
Slide 4: Investment Highlights
Investment Highlights • BTCS Inc. (“BTCS”) is an early mover in the blockchain and digital currency ecosystems and the first “Pure Play” U.S. public company focused on blockchain technologies • The blockchain is a distributed public ledger that has the ability to fundamentally impact all industries
Slide 5: Industry Overview
és BTCS: Blockchain Technology Consumer Solutions Industry Overview
Slide 6: The Blockchain Explained
The Blockchain Explained What is it? “The blockchain is a distributed public ledger” Why it matters? “More than just the foundational basis for digital currency, the blockchain has the ability to impact all industries on a global basis that require trust and rely on or utilize record keeping” DISTRI
Slide 7: Blockchain Potential Applications & Disruption
Blockchain Potential Applications & Disruption The blockchain is radically changing the future of transaction based industries BTCS powers the ecosystem and touches every blockchain transaction 7
Slide 8: Discerning the Blockchain Hype and Buzz
Discerning the Blockchain Hype and Buzz DISTRIBUTED MODELS Private Blockchains Public Blockchain (Bitcoin) • Closed source model • Open source model • Progressive innovation • Revolutionary technology shift • Private blockchains are • Bitcoin’s blockchain provides closed loop systems where an open s
Slide 9: Bitcoin - Most Prominent Blockchain Use Case
Bitcoin - Most Prominent Blockchain Use Case The Traditional Traits of Money* Poor Excellent Traits Barter Gold/Silver Fiat Bitcoin (Before 600BC) (600BC - present) (C. 806 - present) (C. 2009 - present) Highly Divisible Globally Transferable Durable Secure (counterfeiting) Acceptable Scarce (Predic
Slide 10: Bitcoin Ranking/Acceptance
Bitcoin Ranking/Acceptance M1 Country Money Supply Notable Companies Revenue Rank (billions) Accepting Bitcoin (billions) 1 European Union $6,736 Microsoft $88 2 China $5,667 Dell $58 3 Japan $4,896 DISH $14 4 United States $2,807 Expedia $5.9 5 Germany $1,841 Time Inc. $3.1 6 Italy $999 Systemax In
Slide 11: Bitcoin Adoption is Rapidly Accelerating
Bitcoin Adoption is Rapidly Accelerating User Wallets (1) Cumulative Trading Volume (2) 9000000 200,000,000 8000000 180,000,000 7000000 160,000,000 6000000 140,000,000 120,000,000 5000000 100,000,000 4000000 80,000,000 3000000 60,000,000 2000000 40,000,000 1000000 20,000,000 0 0 Jun-13 Feb-14 Jun-14
Slide 12: Venture Capital Landscape
Venture Capital Landscape • Over $210 million of venture capital funds invested Sector Distribution of Top 15 Funded to secure the blockchain, bitcoin’s key innovation Companies (millions) • BTCS is the first U.S. public company focused on Transaction Verification Services securing the blockchain wi
Slide 13: Corporate Overview
és BTCS: Blockchain Technology Consumer Solutions Corporate Overview 13
Slide 14: Securing and Building on the Blockchain
Securing and Building on the Blockchain • BTCS secures the blockchain through transaction verification and touches every transaction • Initial and early focus areas centered on digital currencies • Refine focus over time to reduce risk and capitalize on disruptive potential of blockchain across all
Slide 15: Principals of Transaction Verification Fees
Principals of Transaction Verification Fees Transaction Details Transaction Fees Over Time Bitcoin Transaction Bob sends Kate 3 bitcoins Kate receives • The network is currently programmed 3 bitcoins to only issue 21 million bitcoins • Over time the reward for securing the blockchain will be 100% co
Slide 16: Breakout Growth Across Key Metrics
Breakout Growth Across Key Metrics BTCS Bitcoins Earned* BTCS Electric Consumption 2,000 ฿1,797 & Hashing Power 1,800 mw Th/s 1,600 3,389% 1 2000 1,400 Growth 0.8 1,200 1500 1,000 0.6 800 0.95 1000 0.4 1800 600 0.65 891 500 400 0.2 200 ฿52 0 0.1 176 0 0 2014 2015 2016Q1 2014 2015 Estimated Electric
Slide 17: Revenue and Gross Profit Example
Revenue and Gross Profit Example Revenue Formula* Power and Mining Expense Formula Monthly H * B * N * S * X 20,900,000*10*25*30.41*84,600*430 Monthly Power = = = $957,529 = P * E * H = 3,135 * 0.055 * 730 = $125,870 Revenue D * 232 103 * 2 32 Usage Cost Definitions: Assumptions: Definitions: Assump
Slide 18: Pending Merger with Spondoolies
Pending Merger with Spondoolies Highlights Merger Highlights • Spondoolies founded in August 2013 develops, • Shared vision of building leading blockchain builds and sells world class ASIC servers company; complementary teams with no overlap in • $28.1 million in revenue for 2014 roles • Received $1
Slide 19: BTCS Facility Margin Expansion & Growth Strategy
BTCS Facility Margin Expansion & Growth Strategy Experienced team capable of expanding current operations and evaluating and deploying in other low cost regions to diversify operations Competitiveness Determined by Two Factors 1 North Carolina Strategically Selected: • North Carolina is the only sta
Slide 20: Spondoolies Technology Roadmap / Sales Model
Spondoolies Technology Roadmap / Sales Model Technology Roadmap* • Replaceable modular circuit boards (similar to blade servers) for quick upgrades and repairs SP10 • Reoccurring revenue potential through selling upgraded boards SP20 • High customer switching cost Efficiency (J/Gh) • Easily replacea
Slide 21: Competition to Secure the Blockchain
Competition to Secure the Blockchain Cumulative Company Strategy Country Capital Technology and Deployment Raised (Pool) Bitmain Tech Ltd China Develop Others 16% • Tech: 28nm (TSMC) 58% Build unknown • Efficiency: 0.25 J/Gh Deploy 15% Bitfury Holding B.V. Netherlands Develop • Tech: 16nm Build $60m
Slide 22: Blockchain Investment and Acquisition Potential
Blockchain Investment and Acquisition Potential Select Investments Strong pipeline of Only Strategic Investor in Series A Financing (September 2014) investment opportunities • Gem enables companies that might and acquisition targets in not otherwise have an advanced understanding of blockchain both
Slide 23: BTCS Management / Spondoolies Management
BTCS Management Charles Allen Michal Handerhan Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, Co-Founder and Director and Chairman of the Board • Supports business and R&D strategy • Responsible for overall corporate across the management team strategy and direction as we
Slide 24: Growth Strategy and Path Forward
Growth Strategy and Path Forward • Vertically integrate through merger with Spondoolies • Drive revenue growth through expansion in North Carolina facility • Evaluate other low-cost data centers to expand and diversify our transaction verification services business • Evaluate and build additional co
Slide 25: Summary
Summary • Early mover in the blockchain and digital currency ecosystems and the first “Pure Play” U.S. public company focused on blockchain technologies • The blockchain is a distributed public ledger that has the ability to fundamentally impact all industries globally that require trust and rely on
Slide 26: Contact Info
Contact Info Charles Allen Chief Executive Officer Investor Contact Info ir@btcs.com (202) 430-6576 26