Slide 1: Corporate Presentation
Corporate Presentation BTCS Inc. (OTCQB: BTCS) August 2015 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 Broader Initiatives 25 Summary 29 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 decentralized public ledger that has the ability to fundamentally impact all industrie
Slide 5: Industry Overview
6s BTCS Blockchain Technology Consumer Solutions Industry Overview
Slide 6: The Blockchain Explained
The Blockchain Explained What is it? “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 require trust and rely on or utilize record keeping” DECE
Slide 7: Blockchain Potential Applications & Disruption
Blockchain Potential Applications & Disruption The blockchain is radically changing the future of transaction based industries 7
Slide 8: 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 9: Why it Truly Matters
Why it Truly Matters Greece Exposes Risks and the Fragile Nature of Government Backed Currencies The Default Zone Greece, has defaulted or restructured its debt five Total number of sovereign defaults and/or reschedulings in Europe since 1800 14 different times since the 12 10 country declared its 8
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 $94 2 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
Slide 11: Bitcoin Adoption is Rapidly Accelerating
Bitcoin Adoption is Rapidly Accelerating User Wallets (1) Cumulative Trading Volume (2) 9,000,000 200,000,000 8,000,000 180,000,000 7,000,000 160,000,000 6,000,000 140,000,000 120,000,000 5,000,000 100,000,000 4,000,000 80,000,000 3,000,000 60,000,000 2,000,000 40,000,000 1,000,000 20,000,000 - - Ju
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 only public company focused on Transaction Verification Services $210 securing the blockchain wit
Slide 13: Corporate Overview
6s 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 INITIAL FOCUS BROADENED FOCUS CURR
Slide 15: Principals of Transaction Verification Fees
Principals of Transaction Verification Fees Transaction Fee Over Time Transaction in Detail Newly User Portion of the Issued Bitcoins Transaction Fee Bob sends Anna Anna receives 3 bitcoins 3 bitcoins Bob Anna Transaction Verification Processor (i.e. Bitcoin Miner) Miner verifies the transaction and
Slide 16: A Timed Entrance to Securing the Blockchain
A Timed Entrance to Securing the Blockchain Bitcoin Price vs. Difficulty Level $1,400 Bitcoin Price (USD) Difficulty (millions) BTCS Entry Point 2 60,000 $1,200 50,000 $1,000 1 40,000 $800 30,000 3 $600 Viable Long Term Opportunity 20,000 $400 Unsustainable IRRs 10,000 $200 High-Risk Volatility $- -
Slide 17: Operational Hedge
Operational Hedge* Our Facility Has Low Operational Costs Number of Estimated BTCS’s Revenue USD Exchange Rate Bitcoin Price Bitcoins Earned Revenue Bitcoins Time Time Time • Declining bitcoin price forces smaller operations offline, decreasing competition and increasing market share potential for B
Slide 18: Breakout Growth Across Key Metrics
Breakout Growth Across Key Metrics BTCS Bitcoins Earned* BTCS Hashing Power (Th/s) 700 ฿646 1,000 900 600 ฿552 1,155% 800 500 YTD Growth 700 400 600 500 300 891 891 400 200 300 ฿94 200 100 ฿52 100 176 0 0 2014 2015Q1 2015Q2 2015 YTD 2014Q4 2015Q1* 2015Q2 * Bitcoins earned are a non-GAAP financial me
Slide 19: Transaction Verification Services Facility
Transaction Verification Services Facility 19
Slide 20: Pending Merger with Spondoolies
Pending Merger with Spondoolies About Spondoolies Spondoolies Key Highlights • Spondoolies–Tech Ltd. (“ST”) founded in • $28 million in revenue for 2014 August 2013 develops, builds and sells world • Received $10m in funding class ASIC servers from prominent Israeli VC’s • 3rd generation ASIC server
Slide 21: Competition to Secure the Blockchain
Competition to Secure the Blockchain Cumulative Company Strategy Country Capital Technology and Deployment Raised Bitmain Tech Ltd China Develop Others • Tech: 28nm (TSMC) 25% Build unknown • Efficiency: 0.5 J/GH (current gen) 49% Deploy Bitfury Holding B.V. Netherlands Develop • Tech: 28nm Build $6
Slide 22: Capitalization and Public Peer Comparison
Capitalization and Public Peer Comparison BTCS Market Cap = $25m (as of 7/30/2015) Spondoolies 2014 revenue = $28m (announced May 20, 2015, unaudited) Shares Outstanding (m) Post-Merger Pro-Forma Company (as of 7/1/2015) Combined Percent Ownership (1) 157 52% NA 48% Total 100% Digital Currency and B
Slide 23: 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
Slide 24: Advisory Board
Advisory Board David Bailey, Chief Executive Officer of BTC Media Jason King, Founder of Sean’s Outpost • BTC Media is one of the largest Bitcoin Media groups with assets • Sean’s Outpost has fed thousand of meals to the needy and is like yBitcoin funded through bitcoin donations • Advisory Board Di
Slide 25: Broader Initiatives
6s BTCS Blockchain Technology Consumer Solutions Broader Initiatives 25
Slide 26: 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 27: Building a Universal Ecosystem: "The Solution"
Building a Universal Ecosystem: “The Solution” WALLET ATM FINANCIAL SERVICES Strategic Partnerships Transaction Verification BTCS was Lead Investor – Series A Advisor • GoCoin is a leading international digital currency payment platform • Processes Bitcoin, Litecoin and Dogecoin • GoCoin signed deal
Slide 28: Growth Strategy and Path Forward
Growth Strategy and Path Forward • Vertically integrate though pending merger with Spondoolies • Drive revenue growth through deployment of 3rd generation ASIC servers in North Carolina facility • Evaluate other low-cost data centers to expand and diversify our transaction verification services busi
Slide 29: Summary
Summary • Early mover in the blockchain and digital currency ecosystems and the first “Pure Play” U.S. public company in the world focused on blockchain technologies • The blockchain is a decentralized public ledger that has the ability to fundamentally impact all industries globally that require tr
Slide 30: Contact Info
Contact Info Charles Allen Chief Executive Officer Investor Contact Info ir@btcs.com (202) 430-6576 30