Btcs Inc. · NASDAQ:BTCS

Btcs — Investor Presentation (October 2015)

34 slides from Btcs's investor presentation, Oct 1, 2015

  1. Slide 1: Corporate Presentation

    a3 BICS www.btcs.com A Blockchain Technology Company Corporate Presentation BTCS Inc. (OTCQB: BTCS) October 2015

  2. 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 ofan offer to buy any securities of BTCS Inc. (BTCS, we" or "us", While we believe the information provided herein is reliable, as of

  3. Slide 3: Table of Contents

    Table of Contents Investment Highlights 4 Industry Overview 5 Corporate Overview 13 BTCS Tools 25 Broader Initiatives 29 Summary 33

  4. 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 decentralized public ledger that has the ability to fundamentally impact all industries gl

  5. Slide 5: Industry Overview

    6s BTCS Blockchain Technology Consumer Solutions Industry Overview

  6. Slide 6: The Blockchain Explained

    The Blockchain Explained Whatisit? = “The blockchain is a decentralized public ledger” Why it matters? “ore 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” DECEN

  7. 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 a € OBitGo’ O Bitcoin Shop bitCasino.io @coinbase counter Digital Rights a) wasers BEscrowCoin — Escrow e

  8. Slide 8: Bitcoin - Most Prominent Blockchain Use Case

    Bitcoin - Most Prominent Blockchain Use Case 0000 The Traditional Traits of Money* Poor Excellent Highly Divisible Globally Transferable Durable Secure (counterfeiting) Acceptable Scarce (Predictable Supply) Not Sovereign (Government Issued) Decentralized** OO @SSGQG00 OO SS CCOCO OOOCOS O68 0000600

  9. Slide 9: Why it Truly Matters

    Why it Truly Matters Greece Exposes Risks and the Fragile Nature of Government Backed Currencies The Default Zone [ Greece, HaStdéfauiltedion: | restru i \rechits;debtfi fiVE ms Total number of sovereign defaults and/or reschedulings in Europe since 1800 14 i ferent times sin since the BS countrydec

  10. Slide 10: Bitcoin Ranking/Acceptance

    Bitcoin Ranking/Acceptance 1 European Union $6,736 Microsoft $94 D: China $5,846 Dell $57 3 Japan $5,403 DISH $14 4 United States $2,943 Expedia $5.9 5. Germany $2,236 Time Inc. $3.1 6 Italy $1,185 Systemax Inc. (Tiger Direct) $3.3 w wz wy Overstock $1.5 114 Belarus $3.75 1-800-FLOWERS $1.1 115 Brun

  11. Slide 11: Bitcoin Adoption is Rapidly Accelerating

    Bitcoin Adoption is Rapidly Accelerating —UserWallets Cumulative Trading Volume» ‘9000000 200,000,000 8000000 180,000,000 7000000 160,000,000 eaanogG 140,000,000 500800 120,000,000 100,000,000 4000000 80,000,000 anan000 60,000,000 mann000. 40,000,000 1000000 20,000,000 0 0 O_O Bm Oo R epee ese et Fe

  12. Slide 12: Venture Capital Invested in Blockchain

    Venture ES aT Transaction Verfication Services Universal Platforms Digital Wallets infrusteucture Payment Processor Financial Services Exchange * Over $210 million of venture capital funds invested to secure the blockchain, bitcoin’s key innovation * BTCS is the only U.S. public company focused on s

  13. Slide 13: Corporate Overview

    és BTCS Blockchain Technology Consumer Solutions Corporate Overview 13

  14. Slide 14: Securing the Blockchain

    Securing the Blockchain * BTCS secures the blockchain through transaction verification and touches every transaction ® Initial and early focus areas centered on digital currencies * Refined focus over time to reduce risk and capitalize on disruptive potential of blockchain across all industries ~) P

  15. Slide 15: Principals of Transaction Verification Fees

    Principals of Transaction Verification Fees Newly User Portion of the Issued Bitcoins Transaction Fee Bob sends Kate Kate receives 3 bitcoins 3 bitcoins Transaction Verification Processor (Le. Bitcoin Miner) Miner verifies the transaction and receives a fee from Bob and newly issued bitcoins from th

  16. Slide 16: A Timed Entrance to Securing the Blockchain

    A Timed Entrance to Securing the Blockchain — Biteoin Price vs. DifficultyLevel = 25% timc niente 4% Giially incente < ae > $1400 —Biteoin Price (USD) 70000 $1200 — Difficulty (millions) BTCS Entry Point & 60,000 $1,000 $800 $600 Viable Long Term Opportunity $400 20,000 Unsustainable IRRs $200 10,00

  17. Slide 17: Operational Hedge

    Operational Hedge* 2 Number of Estimated BTCS's Revenue = Bitcoin Price Bitcoins Earned % 2 6 2 || 8 fy i | 5 g & é 2 Time Time cies * Declining bitcoin price forces smaller operations offline, decreasing competition and increasing market share potential for BTCS * Low operational costs and increasi

  18. Slide 18: Breakout Growth Across Key Metrics

    Breakout Growth Across Key Metrics 1,000 Be 800 2 600 600 we 400 1 400 ae 200 0 s ps 209 B52 2014Q4 2015Q1 2015Q2 201593 0 += Electric Capacity (mw): mUsed mAvailable 2014 -2015Q1_—-2015Q2_——-2015Q3__-2015 YTD lm Hashing Power (Th/s) * Bitcoins earned are @ non-GAAP financial measure, as of 9/30/201

  19. Slide 19: Transaction Verification Services Facility

    Transaction Verification Servi ces Facility 19

  20. Slide 20: Pending Merger with Spondoolies-Tech

    Pending Merger with spondooliestech * Spondoolies founded in August 2013 * $28.1 million in revenue for 2014 develops, builds and sells world class ASIC * Received $10m in funding a ro) servers from prominent Israeli VC's RM oe * 3'¢ generation ASIC servers expected to be 4x more efficient and cost

  21. Slide 21: Competition to Secure the Blockchain

    Competition to Secure the Blockchain Bitmain Tech Ltd China Develop + Tech: 28nm (TSMC) BITMAIN = it BB eters ettcieng 022 sh fuente Bitfury Holding B.V. Devel Netherlands velo a, a $6om | * Tech. 28am BitFury Depioy — + Efficiency: 0.35 |/GH (4 gen) 21 Ine us Sine = gizim | 1 Tech 22nm intel + Effi

  22. Slide 22: Spondoolies SP50

    Spondoolies SP50 * Simplicity of 110 TH/s (Tera hash per second) in just one unit * Extremely low power consumption 0.15 J/GH (presently below many competitors) and an estimated 4x improvement over current Spondoolies units at 0.61 J/GH * Cost effective 28 nanometer (nm) process * Replaceable modula

  23. Slide 23: Capitalization and Public Peer Comparison

    Capitalization and Public Peer Comparison sics BTCS Market Cap = $24m (as of 9/30/2015) spondooliestech Spondoolies 2014 revenue = $28.1m (announced May 20, 2015, audited by Deloitte) ey 157 54.4- 55.4% oe SICS spondooliestech NA 44.6 -45.6% Total 100% 168 | $25 > digitalBTC | asx: DCC $0.15 $3.97 6

  24. Slide 24: Management Team

    Management Team Charles Allen, Chief Executive Officer, Chief Financial Officer, and Chairman of the Board Responsible for overall corporate strategy and direction as well as managing corporate finances Extensive experience in business strategy, investment banking, investing and capital markets tran

  25. Slide 25: BTCS Tools

    6s BTCS Blockchain Technology Consumer Solutions BTCS Tools 25

  26. Slide 26: Explorer

    Explorer * BTCS Explorer allows users to view real-time blockchain transactions, latest blocks confirmations and overall blockchain network distribution Blockchain Network Distribution (MTD) Latest Blocks Latest Transactions algae ‘enections ined iy ioe ah 26

  27. Slide 27: Simulator

    Simulator * Simulator offers a glimpse into how the transaction verification services industry may be analyzed eee; o tools bes.com toois| TCS BTCS $0.15 446,481 ~ 27

  28. Slide 28: Calculator

    Calculator * BTCS Calculator allows users to easily calculate daily, weekly and monthly amount of bitcoins earned based on transaction verification server capacity Transaction Verification Calculator 28

  29. Slide 29: Broader Initiatives

    6s BTCS Blockchain Technology Consumer Solutions Broader Initiatives 29

  30. Slide 30: Consumer Education & Adoption: "The Challenge"

    Consumer Education & Adoption: “The Challenge” * Misperception of what Bitcoin is and can do * Limited ways to enter ecosystem * Uncertain and unknown risks * Mass adoption will be driven by: Increased education and awareness ~ Simple user interfaces ~ Value-added use cases a V = as =] Ss 3 0

  31. Slide 31: Building a Universal Ecosystem: "The Solution"

    Building a Universal Ecosystem: “The Solution” FINANCIAL SERVICES @expresscoin Transaction Verification BTCS Transaction (7) Verification Services PAYMENT PROCESSOR C $3 S8ITCcs www.btcs.com BTCS was Lead Investor - Series A Advisor GoCoinis a leading international digtal ‘currency payment platform

  32. Slide 32: Growth Strategy and Path Forward

    Growth Strategy and Path Forward ° Ver ically integrate though merger with Spondoolies ® Drive revenue growth through deployment of Spondoolies SP50 in ° Eva orth Carolina facility uate other low-cost data centers to expand and diversify our transaction verification services business ° Eva uate and

  33. Slide 33: 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 decentralized public ledger that has the ability to fundamentally impact all industries globally that require trust and rely on o

  34. Slide 34: Contact Info

    Contact Info Charles Allen Chief Executive Officer Investor Contact Info ir@btcs.com (202) 430-6576

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