Btcs Inc. · NASDAQ:BTCS
Btcs — Bitcoin Shop — Investor Presentation (January 2015)
44 slides from Btcs's investor presentation, Jan 28, 2015
Slide 1: Bitcoin Shop, Inc. Corporate Presentation
Bitcoin Shop, Inc. 6 BTCS Blockchain Technology Consumer Solutions |] Bitcoin Shop (jz) BICS Wallet QD ores mining @ oresarms Corporate Presentation (OTCQB: BTCS) January 2015
Slide 2: Safe Harbor
Safe Harbor “The folowing presentations an outine o matters for informational purposes only. This document doesnot consitute an offer osellora solctatonotan offer to buy any seeurites of Btcon Shop, ne. Bte0in Shop’, "BTS", We" ors) While we beleve the information provided herein is reliabe, a8 of t
Slide 3: Table of Contents
Table of Contents Investment Highlights 4 Digital Currency Industry Overview 5 Corporate Overview 14 Digital Currency Mining 24 ATM Solutions 29 Ecommerce Business 32 Bitcoin Secure Storage Solution 38 Summary 43
Slide 4: Investment Highlights
Investment Highlights Bitcoin Shop, Inc. (“BTCS”) is an early mover in the digital currency ecosystem and one of the first U.S. publicly traded companies in the space We plan to build a digital currency ecosystem and have made strategic investments and partnerships to utilize and leverage the techno
Slide 5: Digital Currency Industry Overview
as BTCS Blockchain Technology Consumer Solutions Digital Currency Industry Overview
Slide 6: The Traditional Traits of Money
The Traditional Traits of Money* Highly Divisible Globally Transferable Durable Secure (counterfeiting) Acceptable Scarce (Predictable Supply) Not Sovereign (Government issued) Decentralized"* ‘Smart (Programmable)** O\O@CleCe\@O\|O O|O@G|G|C|@C®@ O\OO|@\e|@ ee OO @@C OO @@ ~The above data was prepa
Slide 7: Digital Currency Ranking/Acceptance
Digital Currency Ranking/Acceptance European Union $36,205 Microsoft $02 Japan 36,176 Dell 387 China 34,007 DISH 14 United States $2,311 Time Ine 535 Germany $2,025 Systemax Ino. (Tiger Direct) 534 Italy set Overstock 31.4 = = | 1-800-FLOWERS 308 Bosnia and emt | Zynga 307 Heteacovine, Digital River
Slide 8: Bitcoin Adoption is Rapidly Accelerating
Bitcoin Adoption is Rapidly Accelerating User Wallets Cumulative Trading Volume = | +00,000,000 | 80,000,000 | 60,000,000 40,000,000 20,000,000 ° una suet Aug sep-14 wana # of Transactions on Blockchain 700,000 > 600,000 | 500,000 Pas a S8R83 888283 Soures: 7. bloskehain info, z blocker, Bipay, 4 Bk
Slide 9: Potential Market Cap. Disruption by Bitcoin
Potential Market Cap. Disruption by Bitcoin [rectors ae, ‘is ne ‘Amecan Exes Co Mit Trust/ Escrow Capit! One Finan Corp ‘gen iscove Financial Sees ‘lance Daa Systems Corp Teta System Serves ne lobe Payments ne S48 on Trackinnovations Lis uronet Won ne 26 Four $300 Heoriond Payment Systems ne EEE Gre
Slide 10: The Ecosystem Driving the Disruption
The Ecosystem Driving the Disruption ;0in is the most mature digital currency Decentralized H Worldwide Network What is a cryptocurrency? A cryptocurrency is a type of digital currency | & that relies on cryptography, H Pom peer-to-peer networking, and decentralization! SE al bits © crcie S coinbase
Slide 11: We Believe the Industry Should Favor Ecosystem Providers
We Believe the Industry Should Favor Ecosystem Providers Growth Time "
Slide 12: Venture Capital Landscape
Venture Capital Landscape Payment Processors $54 Exchanges 49 Financial Services $60 Mining Hardware $82 Universal Saat Wallets $80 Other at Total $517 Bitcoin vs. Early Internet VC Investment (millions) 2013Bitcoin 2014 Bitcoin Run 1995 Internet Rate ‘Sours: GoinDesk com as of T2GAOTS + Number of U
Slide 13: 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 million $160 million Xapo! Wallet $40 million Not Disclosed Blockchain’ Wallet $30.5 million Not Disclosed BitGo®
Slide 14: Corporate Overview
as BTCS Blockchain Technology Consumer Solutions Corporate Overview
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” FINANCIAL SERVICES @expresscoin v # BTCS was Lead Investor ~ Series A Board Seat” Goce a leading tematorl état o o—> GACOIN | currency payment plttorm ”) > $8 TCS a ercéning shirt + Gacoin recent loca ea wth Paypal B7CS was Lead investor~ Bdge Round [Ad
Slide 17: Corporate Structure
Corporate Structure Investments 100% 100% 2AM ANA BTCS Digital Express Bitvautt, ine Bitcoinshopus LLC scape Gocointic PP express | Bitvautts inc. coin outlet Ine vers Barwersaay (Cetaware) ET Delaware) fl (Delaware) (Delaware) 1. BICS received: ().@ warrant fo purchase an addllional 16,668 shares a
Slide 18: Key Accomplishments
Key Accomplishments . ‘sane Januory 49 Fobra 586 jetnestorin Lead nvetcrin J Fallow on investment a “Con Gute In, BVoutine- (Gem) Cain Outlet ne Teenatose, ne January 18 Closed $499 fnanengt Tad by management — every ‘company Prinership established with Hosnmaser Teen LC faruary 23 Purenased $50 Tis
Slide 19: Growth Strategy & Timeline
Growth Strategy & Timeline Time H Development [customerAcquisition > Monetization BTCS Development Phase: focus on R&D and build robust and scalable enterprise grade universal platform * Integrate new service offerings * Develop single account ecosystem access Customer Acquisition Phase: focus on gr
Slide 20: Capitalization Table & Performance Options
Capitalization Table & Performance Options Shares % Basic % Diluted Gammon Shares Financial Performance Goals) FYE2016) FYE 2046 Public Float 62,093,312 429% 36.4% EBITDA Target, and $500,000 $3,000,000 Founders & ? 82,673,923 57.1% 48.4% _EBITDA per Share Target $0.003__$0.014 Total Common144,767,2
Slide 21: 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 cap
Slide 22: Advisory Board
Advisory Board David Bailey, Chief Executive Officer of BTC Media BTC Media is one of the largest Bitcoin Media group with assets like yBitcoin. Founded Forza Financial, building it from concept to one of America’s preeminent MFI's, and serves as Chairman Served on the Advisory Board for Lend for Am
Slide 23: Advisory Board
Advisory Board Jason King, Founder of Sean's Outpost * Sean's Outpost has fed thousand of meals to the needy and is funded through bitcoin donations + Founder of Satoshi Forest, a 9 acre homeless shelter near Pensacola FL + Organizer Bitcoin conferences across the country including Bitcoins in the B
Slide 24: Digital Currency Mining
as BTCS Blockchain Technology Consumer Solutions 9 BTCS Mining Digital Currency Mining 24
Slide 25: The Waiting is Over - A Timed Mining Entrance
The Waiting is Over - A Timed Mining Entrance + Rapid difficulty increases rendered mining hardware obsolete in a matter of months + Poor investment due to risk / reward profile Network hash rate doubled every 1.87 months in 2014". According to Moore's law CPU power should double every 2 years. ASIC
Slide 26: Mining Overview
Mining Overview ® Over $1.5 billion worth of un-mined bitcoins 7,000 ® High IRR's expected on equipment with tolerable so risk profile 800 406% Pro Forma * Synergies with other BTCS businesses 2 Growth Hardware: spondooliestech Ps * 93% of current hardware are Spondoolies S35s_ = * Spondoolies is a
Slide 27: New Facility
New Facility
Slide 28: Operational Hedge
Operational Hedge* Our facility has low operational costs USD Exchange Rate & & Bitcoin Price x Time ‘Small Miners Go Offine Small Miner's “~ Time Ss Dectining bitcoin price forces smaller mining ‘operations offine Biteoins Hashrate Number of Estimated BTCS' Mining Bitoins ined Revenue —_ = Ul é L_,
Slide 29: ATM Solutions
@ BTCS ATMs as BTCS Blockchain Technology Consumer Solutions ATM Solutions © COINOUTLET 29
Slide 30: ATM Market Overview
ATM Market Overview ° Bitcoin ATMs are rapidly gaining popularity as a method to bring bitcoin adoption to the masses ° Converting traditional ATMs to utilize bitcoin is typically not practical * BTCS owns two BitXatms, which it plans to deploy and have operated by its partner Coin Outlet if ‘Souce:
Slide 31: Coin Outlet — Key Facts
Coin Outlet — Key Facts* © BTCS has the ability to own up to 11.4% of Coin Outlet at a $6 million dollar valuation assuming BTCS exercises its Option and Warrant © Coin Outlet has 4 digital currency ATMs in service and plans to expand to over 150 in 2015 © Coin Outlet partnered with Locant Services
Slide 32: Ecommerce Business
as BTCS Blockchain Technology Consumer Solutions Bitcoin Shop Ecommerce Business 32
Slide 33: U.S. Ecommerce Market Overview
U.S. Ecommerce Market Overview ° Ecommerce represented only 6% of total {)UIS! Online Retail Forecast (billions) | U.S. retail sales in 2012 leaving significant $279 growth opportunities sie stor $197 $259 3 8240 © Electronics and apparel/accessories estimated to account for approximately 46% of U.S
Slide 34: The Solution — Intelligent Shopping Engine
The Solution — “/ntelligent Shopping Engine” We search retailers you TRUST We find the most COMPETITIVE DEALS We strive to make you HAPPY! Prce SiMPPING TOTAL 816 80x! soo sil5, 816 80x 495 ‘lo 816 8x M3120 BIG 80K. * INTELLIGENT SHOPPING @ We search over 250 retailers ~ You spend less time searchin
Slide 35: The User Experience
The User Experience (pore > Soper ee San Sa Site wide Hlecte Crosley - Corded Kettle Classic Desk Phone - Black ac Saat etaler 001359 00082 800136 OH ob Brookstone} 0.1358 B0.001 00136 3% IWTELLIGENT ‘SHOPPING EE NORDSTROM 21260 scove2 enoize 38 ENGINE Grugstores oe30 poc0ss Boorse =H 80.191: RUNS I
Slide 36: Intelligent Shopping Offers Universal Benefits
Intelligent Shopping Offers Universal Benefits DMs as _©bitcoin "ACCEPTED HERE ° Enable fast and secure payments ° Offer lower transaction fees if Fe ; ° Eliminate charge backs ©litecoin © New currencies may fuel customer growth Seed * International growth potential . . A 7 fo) dogecoin Improved cus
Slide 37: Ecommerce Vendor Growth Initiatives
Ecommerce Vendor Growth Initiatives Price sM@PPIG TOTAL miceox! soo als. BIGBOKN $95 slo. Glos) BIGBOX M3120. FREE #120. BIG BOX... INTELLIGENT SHOPPING ‘Typical Margin Affiliate Programs. Estimated Sales & Products Offered
Slide 38: Bitcoin Secure Storage Solution
C BTCS Wallet as BTCS Blockchain Technology Consumer Solutions Bitcoin Secure Storage Solution Se re) Powered by Gem 38
Slide 39: Secure Storage Overview
Secure Storage Overview Bitcoin storage security is necessary for mass adoption According to Gem over 9% of all bitcoins have been stolen or lost Multi-signature technology allows users to protect their bitcoins without entrusting a third-party with their funds, thus eliminating a single point of fa
Slide 40: The User Interface
The User Interface Security Logs and Settings Real time USD balance estes paziere-768 00 ourchnn eons sooote Most recent transactions
Slide 41: A Secure Storage Solution
A Secure Storage Solution ®D 1 Every transaction requires a 3 O BA 2 of 3 keys _— — KEY #1: KEY #2: KEY #3: BTCS Cosigning Key Primary Key Offline Backup Key (G= S O- BICS Wallet ; Ss < BTCS hold one key, Walfet can be User is always in ‘so user is always in recovered if ‘control of funds control of
Slide 42: Planned User Experience
Planned User Experience User accesses wallet: @) --- )\@) = | Authentication = — a | Primary Key Gm |p 1 Cosigning Key G= ", CBTCS Wallet I 4 Levels of Security (Br vse hey whon ese eters posse) User Name / Password 6 “ Multi-Signature User sends Bitcoin: SSS @ 2-Factor Authentication* Recipient © 2
Slide 43: Summary
Summary BTCS is an early mover in the digital currency ecosystem and one of the first U.S. publicly traded companies in the space We plan to build a digital currency ecosystem and have made strategic investments and partnerships to utilize and leverage the technologies and services of 4 key digital
Slide 44: Contact Info
Contact Info Charles Allen Chief Executive Officer Investor Contact Info ir@btcs.com (202) 430-6576