SOURCE: Bitcoin Shop, Inc.

Bitcoin Shop, Inc.

September 30, 2014 08:00 ET

Bitcoin Shop Enters Digital Currency Mining Through Partnership With Hashmaster

ARLINGTON, VA--(Marketwired - Sep 30, 2014) - Bitcoin Shop, Inc. (OTCQB: BTCS) ("Bitcoin Shop" or the "Company"), an operator of the digital currency ecommerce marketplace www.bitcoinshop.us which is undertaking the build-out of a universal digital currency ecosystem that leverages its ecommerce platform as an on-ramp, announced today it is entering the digital currency mining arena through its new agreement with Hashmaster Tech, LLC ("Hashmaster").

As opposed to printing money, bitcoins are digitally mined. Bitcoin mining is the process of creating bitcoins through solving complex mathematical equations on sophisticated computer hardware. There are only 21 million bitcoins available for mining. Hashmaster operates a digital currency data mining center located in Burlington, North Carolina, which specializes in mining bitcoins. Hashmaster will be responsible for acquiring and operating digital currency mining equipment on behalf of the Company.

Bitcoin Shop purchased 103.2 bitcoins worth of Bitmain Antminer S4 -B1s to mine bitcoins which Hashmaster will operate at its facility on behalf of the Company. The Company plans to continue to invest in mining equipment upon positive execution of the business plan. Under the agreement, Hashmaster will act as an independent contractor in the purchasing and operating of mining equipment which the Company will own. The agreement contemplates lower operating fees in a tiered manner until Hashmaster is operating $1 million of the Company's mining equipment. Hashmaster has also agreed to an exclusivity clause with Bitcoin Shop such that the Company will be the only public company for whom Hashmaster mines.

Bitcoin Shop CEO Charles Allen commented, "It is increasingly hard for small mining operators to stay relevant, however, we believe there is great potential for larger-scale data center operators to mine digital currency and generate strong returns. Hashmaster offers both a state-of-the-art facility with low cost power and the experience necessary to acquire and manage mining equipment on our behalf. As we broaden our footprint in the digital currency ecosystem, we feel Hashmaster offers the right opportunity for us to enter this area of digital currency. Not only do we expect bitcoin mining to be highly profitable, it should also provide bitcoins for other efforts currently under way."

Hashmaster CEO Gerald Wilkie stated, "We have long been searching for a partner who has expertise in the digital currency industry and working capital capable of scaling our mining facility. We found synergies with Bitcoin Shop and their team, which brings qualities to the table that I believe, will make this a great success. We look forward to building a long lasting and profitable business together."

About Bitcoin Shop, Inc.:
Bitcoin Shop, Inc. plans to build a universal digital currency platform with the goal of enabling users to engage in the digital currency ecosystem through one point of access. We currently operate an ecommerce website (www.bitcoinshop.us) where consumers can purchase products using digital currency such as bitcoin, litecoin and dogecoin, by searching through a selection of over 400 categories and over 140,000 items. All ecommerce customer orders are fulfilled by third party vendors. We plan to use our ecommerce platform as a customer on-ramp for a broader digital currency platform. We have been actively partnering with strategic digital currency companies who have technologies, services or products that are complementary to our business strategy by making investments in them and integrating with them.

Digital currencies use peer-to-peer networks to facilitate instant payments. They are categorized as cryptocurrencies, as they use cryptography as a security measure. Digital currency issuances and transactions are carried out collectively by the network, with no central authority, and allow users to make verified transfers.

About Hashmaster Tech, LLC:
Hashmaster Tech, LLC runs a digital currency data mining center located in Burlington NC which specializes in mining bitcoins. Hashmaster's facility has both low cost electricity and industrial cooling equipment which are both needed for profitable digital currency mining.

Forward Looking Statements:
Certain statements in this press release constitute "forward-looking statements" within the meaning of the federal securities laws. Words such as "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "predict," "forecast," "project," "plan," "intend" or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including without limitation those set forth in the Company's filings with the Securities and Exchange Commission, not limited to Risk Factors relating to its digital currency business contained therein. Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.

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