Btcs Inc. · NASDAQ:BTCS
Btcs — Bitcoin Shop — Investor Presentation (October 2014)
34 slides from Btcs's investor presentation, October 2014
Slide 1: Corporate Presentation
Corporate Presentation (OTCQB: BTCS) October 2014 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 Bitcoin Shop, Inc. (“Bitcoin Shop”, “BTCS”, “we” or “us”). While we believe the information provi
Slide 3: Table of Contents
Table of Contents Section Page Investment Highlights 4 Digital Currency Industry Overview 5 Corporate Overview 14 Ecommerce Business Overview 23 Summary 33 3
Slide 4: Investment Highlights
Investment Highlights • Bitcoin Shop, Inc. (“Bitcoin Shop”) is an early mover in the digital currency ecosystem and one of first U.S. publicly traded companies in the space • We plan to build a digital currency ecosystem by using ecommerce as an on- ramp. We have partnered with 5 key digital currenc
Slide 5: Digital Currency Industry Overview
Digital Currency Industry Overview 5
Slide 6: Bitcoin Ecosystem
Bitcoin Ecosystem Peer-to-Peer What is Bitcoin? Bitcoin is the most mature cryptocurrency Decentralized Worldwide Network What is a cryptocurrency? A cryptocurrency is a type of digital currency that relies on cryptography, peer-to-peer networking, and decentralization Universal Mining Exchanges Wal
Slide 7: Potential Market Cap. Disruption by Bitcoin
Potential Market Cap. Disruption by Bitcoin Market Cap (billions) $547 Billion Processors Market Cap Payment Hardware Market Cap $500 Visa Inc $128.3 MICROS Systems Inc $5.3 Securities Exchange American Express Co $87.1 Ingenico $5.0 MasterCard Inc $80.8 NCR Corp $4.8 Payment Hardware Verifone Syste
Slide 8: Bitcoin Adoption is Rapidly Accelerating
Bitcoin Adoption is Rapidly Accelerating User Wallets (1) Cumulative Trading Volume (bitcoins) (2) 4,000,000 100,000,000 3,500,000 3,000,000 80,000,000 2,500,000 60,000,000 2,000,000 1,500,000 40,000,000 1,000,000 20,000,000 500,000 - 0 Oct-13 Dec-13 Jan-14 Jun-14 Jul-14 Feb-14 Mar-14 Apr-14 Sep-13
Slide 9: Industry Should Favor Ecosystem Providers
Industry Should Favor Ecosystem Providers Ecosystem Providers Growth Aggregate Solution Providers Growth Ceiling Single Solution Providers May Hit Growth Ceiling Wallets, Exchanges, Processors, Mining, Financial Services Time 9
Slide 10: Venture Capital Landscape
Venture Capital Landscape Investment Distribution Early Stage VC Industry Comparison Bitcoin vs. Early Internet VC Investment Payment (millions) Exchanges Processors $350 12% 11% $300 $250 Financial $200 Services 15% Wallets $150 $290 24% $250 $100 $50 $92 Mining Hardware 19% $0 Universal 2013 Bitco
Slide 11: Notable Industry Comparables
Notable Industry Comparables Valuation / Company Type Recent Investment Size Market Cap Vogogo Inc.1 (TSXV: VGO) Financial Services $8.5 million $118 million Digital CC Ltd.2 (ASX: DCC) Mining $8 million $28.5 million Bitpay3 Payment Processor $30 million $160 million Xapo4 Wallet $40 million Not Di
Slide 12: Digital Currency Acceptance
Digital Currency Acceptance • Financial services and technology Companies Accepting Revenue industry leaders such as Bank of Digital Currency (billion) America and IBM are applying for Dell $57 patents and issuing guidance as economic opportunities in the digital DISH $14 currency sector rise System
Slide 13: Digital Currency Landscape
Digital Currency Landscape Currencies are typically compared using common categories describing the total value and capacity of each specific currency at their fullest designed utilization USD Exchange Coin Market Cap USD Total Supply Features Rate $4,419,533,131 Bitcoin $330.84 13,358,400 First and
Slide 14: Corporate Overview
Bitcoin Shop, Inc. Corporate Overview 14
Slide 15: Consumer Education & Adoption: The Challenge
Consumer Education & Adoption: “The Challenge” Current User Experience Optimal User Experience • 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
Slide 16: Building a Universal Ecosystem: The Solution
Building a Universal Ecosystem: “The Solution” PAYMENT PROCESSOR ECOMMERCE WALLET FINANCIAL SERVICES MINING ATM 16
Slide 17: Strategic Partnerships
Strategic Partnerships Company Description Rationale Lead Investor – Series A • Leading international digital currency • Received integration and development support Board Seat* payment platform for our 2.0 site • Processes Bitcoin, Litecoin and Dogecoin • Established key industry relationship • Rec
Slide 18: Corporate Structure
Corporate Structure Bitcoin Shop, Inc. (Nevada) Minority Investments 100% 100% ~2% (1) 0.83%-9.8% (2) Express Bitvault, Inc. Bitcoinshop.us LLC BTCS Acquisition Corp. GoCoin LLC Coin Outlet Inc. Technologies, Inc. Gem Platform (Maryland) (Nevada) (Delaware) (Delaware) (Delaware) (Delaware) • Formed
Slide 19: Key Accomplishments
Key Accomplishments May 9 February 5 & 6 Strategic Investor in Begins Trading as a BitVault Inc. (Gem) Public Company & September 1 Raised $1.875M October 1 Website Lead Investor in Launched July 10 Coin Outlet Inc. March 26 Strategic and Lead Investor in Strategic and Express Technologies, Inc. Lea
Slide 20: Growth Strategy & Timeline
Growth Strategy & Timeline Time Development Customer Acquisition Monetization Development Phase: focus on R&D and build robust and scalable enterprise grade ecommerce platform as an on ramp for customer acquisition • Completely rebuilt our enterprise grade fully scalable e-commerce platform from the
Slide 21: Capitalization Table
Capitalization Table Equity Cap Table* Shares % Basic % Diluted Common Shares Public Float 52,913,312 34.5% 32.6% Founders & Management 100,273,923 65.5% 61.7% Total Common 153,187,235 100.0% 94.3% Preferred Stock (as converted) Series C Preferred 2,200,000 1.4% Total Preferred 2,200,000 1.4% Warran
Slide 22: 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 23: Ecommerce Business Overview
Ecommerce Business Overview 23
Slide 24: U.S. Ecommerce Market Overview
U.S. Ecommerce Market Overview • Ecommerce represented only 6% of total U.S. Online Retail Forecast (billions) U.S. retail sales in 2012 leaving significant $259 $279 $240 growth opportunities $218 $197 $176 $157 • Electronics and apparel/accessories estimated to account for approximately 46% of U.S
Slide 25: Current Challenges for Ecommerce Shoppers
Current Challenges for Ecommerce Shoppers Why isn’t online shopping easier? Shoppers typically have to manage multiple accounts Searching for great prices can be time consuming Not all online vendors can be trusted Search engine price quotes aren’t all inclusive 25
Slide 26: The Opportunity
The Opportunity Category Average Spread Max Spread Books 8.30% 47.42% Video Games 5.65% 23.66% Cell Phones 5.02% 19.01% TVs 2.67% 11.40% Toys 2.37% 12.83% Recreational Equipment 1.42% 12.76% Home Improvement 1.44% 7.94% Beauty 2.57% 13.65% Food/Cooking 1.30% 5.01% Footwear 0.53% 3.21% We believe thi
Slide 27: The Solution – Intelligent Shopping Engine
The Solution – “Intelligent Shopping Engine” 1 We search over 85 retailers − You spend less time searching site to site − You count on top name retailers you know and trust 2 Our “Intelligent Shopping Engine” finds the best deal 3 We oversee fulfillment to ensure a smooth shopping experience − We pr
Slide 28: The User Experience
The User Experience Site wide currency selector RUNS IN REAL TIME Add Best Price to Cart Add to wish list 28
Slide 29: Intelligent Shopping Offers Universal Benefits
Intelligent Shopping Offers Universal Benefits Digital Currencies • Enable fast and secure payments • Offer lower transaction fees • Eliminate charge backs • New currencies may fuel customer growth • International growth potential • Improved Customer Service options offered Traditional Payments (Com
Slide 30: Ecommerce Vendor Growth Initiatives
Ecommerce Vendor Growth Initiatives Product Source Higher Manufacturers On-Going and Discussions Exclusives “Intelligent Shopping Engine” Typical Margin Applying Drop Shippers Expanding Affiliate Programs Lower Estimated Sales & Products Offered 30
Slide 31: Near Term Marketing Initiatives
Near Term Marketing Initiatives • Focus on leveraging ecommerce platform as on ramp to drive mass digital currency adoption • Leverage social media to target shoppers and influencers in technology, finance, ecommerce and digital currency audiences • SEO/PPC firm engaged to optimize site traffic and
Slide 32: Ecommerce Business Goal
Ecommerce Business Goal * lead SE ae the I A. ‘ : ki To Fo ay E3 1 2 » th he alle A a eh apace crm vw WE a EIS ERP re eas .
Slide 33: Summary
Summary • Bitcoin Shop is an early mover in the digital currency ecosystem and one of first U.S. publicly traded companies in the space • We plan to build a digital currency ecosystem by using ecommerce as an on- ramp. We have partnered with 5 key digital currency companies to utilize their technolo
Slide 34: Contact Info
Contact Info Charles Allen Chief Executive Officer Investor Contact Info ir@bitcoinshop.us (202) 430-6576 34