SOURCE: Bitcoin Shop

Bitcoin Shop

September 10, 2014 09:00 ET

Bitcoin Shop Management Elects to Waive Salaries

ARLINGTON, VA--(Marketwired - Sep 10, 2014) - Bitcoin Shop, Inc. (OTCQB: BTCS) (the "Company"), operator of the virtual currency ecommerce marketplace www.bitcoinshop.us, is pleased to announce that members of its management team have agreed to waive their salaries for the next six months, beginning in September 2014. As a result, costs associated with salaries will be reduced from $609,000 per annum to $33,750 for the next six months. 

Charles Allen, Chief Executive Officer of the Company, commented, "In lieu of issuing new equity as compensation which would have the effect of diluting our current shareholders at what management believes is a deeply depressed valuation compared to private companies in our sector, management agreed to simply waive a portion of their salaries. Actions like this illustrate the dedication of our team to build and launch our new platform without further shareholder dilution. This is a first step in an effort to reduce our fixed costs while we continue the development of our new website which we plan to launch at www.btcs.com. I encourage those interested in signing up for beta to do so at http://beta.btcs.com."

Further all officers voluntarily elected to cancel their employment contracts (although certain provisions such as confidentiality survived termination). The Board of Directors and our officers fully agreed that senior management should be measured by their accomplishments and should not be entitled to their current position through a contract. As the Company grows its business, each management team member will be expected to lead by example and make sure that any new talent attracted to the team embraces the same work ethic.

In order to compensate those members of management that are forgoing their salaries in their entirety for the next six months, the Company has agreed to waive the lockup agreements of certain team members. Those members anticipate entering into 10b5-1 selling plans beginning next year covering equity already held by them for an amount of shares valued at the waived salary amount. The Company will disclose the details of this plan when finalized.

About Bitcoin Shop, Inc.:
Bitcoin Shop, Inc. operates an ecommerce website (www.bitcoinshop.us) where consumers can purchase products using virtual currency such as bitcoin, litecoin and dogecoin, by searching through a selection of over 400 categories and over 140,000 items. All orders are originated by the customers through our website and are fulfilled by third party vendors. We also plan to evaluate other strategic Virtual Currency opportunities as well as technologies that are complementary to our business strategy. This will include evaluating opportunities that cross market our ecommerce site, diversify our revenue streams and provide on-ramps for new users.

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

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 virtual 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.

Contact Information

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