Btcs Inc. · NASDAQ:BTCS
Btcs — Bitcoin Shop — Investor Presentation (July 2015)
29 slides from Btcs's investor presentation, Jul 7, 2015
Slide 1: Corporate Presentation
43 BTCS www.btcs.com Corporate Presentation Bitcoin Shop Inc. (OTCQB: BTCS) July 2015
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 Bitcoin Shop, Inc. (*Bitcoin Shop*, "BTCS", “we” or *us"), While we believe the information provi
Slide 3: Table of Contents
Table of Contents Investment Highlights 4 Industry Overview 3 Corporate Overview 13 Broader Initiatives 24 Summary 28
Slide 4: Investment Highlights
Investment Highlights * Bitcoin Shop, Inc. ("BTCS”) is an early mover in the blockchain and digital currency ecosystems and the only “Pure Play” U.S. public company focused on blockchain technologies * The blockchain is a decentralized public ledger and has the ability to fundamentally impact all in
Slide 5: Industry Overview
és BTCS Blockchain Technology Consumer Solutions Industry Overview
Slide 6: The Blockchain Explained
The Blockchain Explained Whatisit? “The blockchain is a decentralized 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 rely on or utilize record keeping and require trust” DECENT
Slide 7: Blockchain Potential Applications & Disruption
Blockchain Potential Applications & Disruption The blockchain is radically changing the future of transaction based industries Digital Rights a) © Global Payments Wagers @ THE BLOCKCHAIN Private Markets a) Debt ) Crowdfunding © i Derivatives ) OD criss Property
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 @SeeeOO OO SS CC OCO OOOCOSCOCO @0006C0
Slide 9: Why it Truly Matters
Why it Truly Matters Greece Exposes Risks and the Fragile Nature of Government Backed Currencies The Default Zone ce, Haszdéfallltedionr Rs restr a redsits rechits debt five: i number of sovereign defaults and/or reschedulings in Europe since 1800 iffe ent times sin since the n ¥ 10 country "declare
Slide 10: Bitcoin Ranking/Acceptance
Bitcoin Ranking/Acceptance i ES European Union $6,736 Microsoft $94 2 ES China $5,846 Dell $57 3 {@| | Japan $5,403 DISH $14 4 = United States $2,943 Expedia $5.9 5 ME Germany $2,236 Time Inc. $3.1 6 Italy $1,185 Systemax Inc. (Tiger Direct) $3.3 we eS & x Overstock $1.5 114 HE selarus $3.75 1-800-F
Slide 11: Bitcoin Adoption is Rapidly Accelerating
Bitcoin Adoption is Rapidly Accelerating User Wallets © 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 Jani Mar-13 May-13 Julea3 Sep-13 Nov-13 Jana Mar-14 May-14 Julaa Sep-14 Nov14 Janis Est. Merchants Accepting Bitcoins Mar-15 Cumulative Trading Volume * 2
Slide 12: Over $190 million of venture capital funds invested
——— * Over $190 million of venture capital funds invested to secure the blockchain, bitcoin’s key innovation * BTCS is the only public company focused on securing the blockchain with a fully integrated Trpniseaion Verficagion Series solution Universal Platforms Digital Wallets Payment Processor Fina
Slide 13: Corporate Overview
és BTCS Blockchain Technology Consumer Solutions Corporate Overview 13
Slide 14: Securing the Blockchain
Securing the Blockchain * BTCS secures the blockchain through transaction verification ® 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 Digital Rights Ca) Wagers @ Deriva
Slide 15: Breakout Growth Across Key Metrics
Breakout Growth Across Key Metrics 600 552 1,000 | 900 =o 971% 800 400 YTD Growth 700 600 300 ‘500 400 200 300 Boa 200 aa | | o_ of . 201494 2015Q1 201592 201494 2015Q1*, 2015Q2 * Bitcoins earned are a non-GAAP financial measure. * 715 Th/s came online in last month of Q1 Key Facts: ° BTCS current c
Slide 16: Pending Merger with Spondoolies
Pending Merger with Spondoolies Een Lave aie * Spondoolies-Tech Ltd. ("ST") founded in $28 million in revenue for 2014 August 2013 develops, builds and sells world * Received $10m in funding ea (o} class ASIC servers from prominent Israeli VC's ‘BRI ‘ * 3'¢ generation ASIC servers expected to be spo
Slide 17: A Timed Entrance to Securing the Blockchain
A Timed Entrance to Securing the Blockchain — Bitcoin Price (USD) — Difficulty (millions) Viable Long Term Opportunity Unsustainable IRRs High-Risk Volatility + GP GP QP gh gD gh Gh ab Gh ab gh ah ahh DO Wo SP ov ov o vv ov oo 6 8 97.8" 9 0 ee v aa ve oe wv Waa Us ve oe Ua ve wv wv os BY pr g™ Wr’ Y
Slide 18: Operational Hedge
Operational Hedge* 2 Number of Estimated BTCS's Revenue e Bitcoin Price Bitcoins Earned % 2 & 2 Vt 3 ra g = g g & 3 = Time Time Time * Declining bitcoin price forces smaller operations offline, decreasing competition and increasing market share potential for BTCS * Low operational costs and increasi
Slide 19: Transaction Verification Services Facility
Transaction Verification Services Facility
Slide 20: Competition to Secure the Blockchain
Competition to Secure the Blockchain BITMAIN 25% Source: Blacktrail.com/BTC, as of 6/30/2015 Bitmain Tech Ltd ; China Develop * Tech: 28nm (TSMC) Build unknown BITMAIN | 2c, Ea Eficency. 05 GH (current gen) Bitfury Holding B.V. Netherlands Develop suid | MM] som | oe a such an %@ BitFury Deploy | id
Slide 21: Capitalization and Public Peer Comparison
Capitalization and Public Peer Comparison 34rcs BTCS Market Cap = $28m (as of 7/1/2015) spondooliestech Spondoolies 2014 revenue = $28m (announced May 20, 2015, unaudited) 2 BT cs : 157 52% spondooliestech NA 48% Total 100% vogog0 | TSXV: VGO | $1.43 | 41 | $59 $0.23 257.4x ‘Average | 131.4« 1. Pro-
Slide 22: 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
Slide 23: Advisory Board
Advisory Board David Bailey, Chief Executive Officer of BTC Media BTC Media is one of the largest Bitcoin Media groups with assets like yBitcoin + Advisory Board Director for College Cryptocurrency Network + Served on the Culverhouse Investment Management Group Board of Directors + Founded two long-
Slide 24: Broader Initiatives
és BTCS Blockchain Technology Consumer Solutions Broader Initiatives 24
Slide 25: 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 a es |) ‘>| eee =) | gse
Slide 26: Building a Universal Ecosystem: The Solution
Building a Universal Ecosystem: “The Solution” ATM FINANCIAL SERVICES BICS Wallet & ii ©e | @expresscoin Transaction Verification BTCS was Lead Investor ~ Series A Advisor BICS Transaction $38 Ss @ (GoCoins a leading ternational digital r 7 ( ORME | Srrecycaractcsion (v} Verification | Processes Bit
Slide 27: Growth Strategy and Path Forward
Growth Strategy and Path Forward ® Vertically integrate though pending merger with Spondoolies ® Drive revenue growth through deployment of 3"? generation ASIC servers in North Carolina facility *® Evaluate other low-cost data centers to expand and diversify our transaction verification services bus
Slide 28: Summary
Summary * Early mover in the blockchain and digital currency ecosystems and the only “Pure Play” U.S. public company in the world focused on blockchain technologies *® The blockchain is a decentralized public ledger and has the ability to fundamentally impact all industries globally that rely on or
Slide 29: Contact Info
Contact Info Charles Allen Chief Executive Officer Investor Contact Info ir@btcs.com (202) 430-6576 29