Btcs Inc. · NASDAQ:BTCS
Btcs — Investor Presentation (January 2015)
44 slides from Btcs's investor presentation, January 2015
Slide 1: Corporate Presentation
Corporate Presentation (OTCQB: BTCS) January 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 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 Digital Currency Mining 24 ATM Solutions 29 Ecommerce Business 32 Bitcoin Secure Storage Solution 38 Summary 43 3
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 te
Slide 5: Digital Currency Industry Overview
Digital Currency Industry Overview 5
Slide 6: The Traditional Traits of Money
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 (Predictable Supply) Not Sovereign (Government Issue
Slide 7: Digital Currency Ranking/Acceptance
Digital Currency Ranking/Acceptance Rank Country Money Supply Notable Companies Revenue (billions) Accepting Bitcoin (billions) 1 European Union $6,205 Microsoft $92 2 Japan $6,176 Dell $57 3 China $4,907 DISH $14 4 United States $2,311 Time Inc. $3.5 5 Germany $2,025 Systemax Inc. (Tiger Direct) $3
Slide 8: Bitcoin Adoption is Rapidly Accelerating
Bitcoin Adoption is Rapidly Accelerating User Wallets (1) Cumulative Trading Volume (2) 5,000,000 4,500,000 100,000,000 4,000,000 3,500,000 80,000,000 3,000,000 60,000,000 2,500,000 2,000,000 40,000,000 1,500,000 1,000,000 20,000,000 500,000 - 0 Oct-13 Dec-13 Jan-14 Jun-14 Jul-14 Mar-14 Feb-14 Apr-1
Slide 9: Potential Market Cap. Disruption by Bitcoin
Potential Market Cap. Disruption by Bitcoin Market Cap (billions) $547 Billion $500 Processors Market Cap Payment Hardware Market Cap Securities Exchange Visa Inc $128.3 MICROS Systems Inc $5.3 American Express Co $87.1 Ingenico $5.0 Payment Hardware MasterCard Inc $80.8 NCR Corp $4.8 Verifone Syste
Slide 10: The Ecosystem Driving the Disruption
The Ecosystem Driving the Disruption Peer-to-Peer What is Bitcoin? Bitcoin is the most mature digital currency 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
Slide 11: We Believe the Industry Should Favor Ecosystem Providers
We Believe the 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 11
Slide 12: Venture Capital Landscape
Venture Capital Landscape Investment Distribution Early Stage VC Industry Comparison Bitcoin vs. Early Internet VC Investment Exchanges Payment (millions) 10% Processors 10% $400 Financial $350 Services $300 12% Wallets $250 17% $337 Other $200 8% $150 $250 $100 $50 $96 Mining Hardware Universal $0
Slide 13: Notable Industry Comparables
Notable Industry Comparables Valuation / Company Type 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 Disclosed
Slide 14: Corporate Overview
ee BTCS Blockchain Technology Consumer Solutions 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” WALLET ATM FINANCIAL SERVICES Strategic Partnerships BTCS was Lead Investor – Series A MINING Board Seat* • GoCoin is a leading international digital currency payment platform • Processes Bitcoin, Litecoin and Dogecoin • GoCoin recently signed deal with
Slide 17: Corporate Structure
Corporate Structure Bitcoin Shop, Inc. (Nevada) Minority Investments 100% 100% ~2% ~2.4%-11.4% (1) BTCS Digital Express Bitvault, Inc. Bitcoinshop.us LLC GoCoin LLC Coin Outlet Inc. Manufacturing Technologies, Inc. Gem Platform (Maryland) (Delaware) (Delaware) (Nevada) (Delaware) (Delaware) 1. BTCS
Slide 18: Key Accomplishments
Key Accomplishments May 9 October 1 January 19 February 5 & 6 Strategic Investor in Lead Investor in Follow on Investment in Begins Trading as a BitVault Inc. (Gem) Coin Outlet Inc. Coin Outlet Inc. Public Company & Raised $1.875M September 1 Website Launched January 28 July 10 Signed lease on new S
Slide 19: Growth Strategy & Timeline
Growth Strategy & Timeline Time Development Customer Acquisition Monetization 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 growing use
Slide 20: Capitalization Table & Performance Options
Capitalization Table & Performance Options Equity Cap Table1 Management Performance Option Triggers* Shares % Basic % Diluted Common Shares Financial Performance Goals FYE 2015 FYE 2016 Public Float 62,093,312 42.9% 36.4% EBITDA Target, and $500,000 $3,000,000 2 Founders & Management 82,673,923 57.1
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
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
ee BTCS Blockchain Technology Consumer Solutions Digital Currency Mining 9 BTCS 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 1 • 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.
Slide 26: Mining Overview
Mining Overview Overview: BTCS Hashing Power (Th/s) • Over $1.5 billion worth of un-mined bitcoins • High IRR’s expected on equipment with tolerable 1,000 900 risk profile 800 406% Pro Forma • Synergies with other BTCS businesses 700 Growth 600 500 Hardware: 400 891 • 93% of current hardware are Spo
Slide 27: New Facility
New Facility 27
Slide 28: Operational Hedge
Operational Hedge* Our facility has low operational costs USD Exchange Rate Number of Estimated BTCS’s Mining Bitcoin Price Bitcoins Mined Revenue Revenue Bitcoins Time Time Time WHY? Small Miners Go Offline Small Miner’s Network Mining Number of IRR Hashrate Difficulty Bitcoins Mined Hashrate Diffi
Slide 29: ATM Solutions
ee BTCS Blockchain Technology Consumer Solutions ATM Solutions re BTCS ATMs © COINOUTLET 29
Slide 30: ATM Market Overview
ATM Market Overview • Bitcoin ATMs are rapidly gaining U.S. Bitcoin ATM Locations popularity as a method to bring bitcoin adoption to the masses • Converting traditional ATMs to utilize Headquarters bitcoin is typically not practical • BTCS owns two BitXatms, which it plans to deploy and have operat
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
ee BTCS Blockchain Technology Consumer Solutions Ecommerce Business Bitcoin Shop 32
Slide 33: 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 34: The Solution – "Intelligent Shopping Engine"
The Solution – “Intelligent Shopping Engine” 1 We search over 250 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 most competitive deals. 3 We oversee fulfillment and strive for a smooth shoppin
Slide 35: The User Experience
The User Experience Site wide currency selector RUNS IN REAL TIME Add Best Price to Add to Wish List Cart 35
Slide 36: 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 37: 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 37
Slide 38: Bitcoin Secure Storage Solution
Bitcoin Secure Storage Solution Powered by 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
Slide 40: The User Interface
The User Interface Security Logs and Real time USD Settings balance Unlimited Wallets Most recent transactions 40
Slide 41: A Secure Storage Solution
A Secure Storage Solution Every transaction requires 2 of 3 keys KEY #1: KEY #2: KEY #3: BTCS Cosigning Key Primary Key Offline Backup Key BTCS hold one key, Wallet can be User is always in so user is always in recovered if control of funds control of funds one key is lost 41
Slide 42: Planned User Experience
Planned User Experience User accesses wallet: 1 2 User Login 2-Factor Authentication Primary Key Cosigning Key 4 Levels of Security (BTCS uses its key when user enters password) 1 User Name / Password Multi-Signature User sends Bitcoin: 2 2-Factor Authentication* 3 3 2-Factor Authentication* Recipie
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 digi
Slide 44: Contact Info
Contact Info Charles Allen Chief Executive Officer Investor Contact Info ir@btcs.com (202) 430-6576 44
Bitcoin Shop, Inc. (BTCS) — Investor Presentation (January 2015) on 6ix