SOURCE: BTCS Inc.

BTCS Inc.

August 17, 2015 08:35 ET

BTCS Gains Traction in Its Transaction Verification Business

ARLINGTON, VA--(Marketwired - Aug 17, 2015) - BTCS, Inc. (OTCQB: BTCS) ("BTCS" or the "Company"), a blockchain technology focused company which secures the blockchain through its transaction verification services business, gained significant traction in its core business segment, transaction verification services, during the second quarter of 2015, with segment revenue increasing 280% to $139,123 during the period, up from $36,630 in the first quarter of 2015.

"We believe the growth we've achieved in the first half of the year evidences the evolution of our business model," stated Charles Allen, Chief Executive Officer of BTCS. "By focusing our business on securing the blockchain through transaction verification services, we believe we are positioning BTCS to become a leader in a market which can potentially disrupt nearly every industry that relies on secure and immutable transactions. The fact that we accomplished triple-digit growth while only utilizing 0.65 megawatts ("mw") of our capacity, which was increased to 3mw in July 2015, is supportive of our long-term growth potential."

The Company's pending merger with Spondoolies-Tech is expected to further accelerate growth of BTCS' transaction verification services. The addition of Spondoolies' third-generation Application Specific Integrated Circuit ("ASIC") servers, which are anticipated to provide a 3x-5x efficiency improvement, should significantly increase the Company's hashing power and improve operating margins. The implementation of third-generation servers at the Company's North Carolina facility is expected to yield a hash rate of between 13,000 and 29,000 Th/s (trillion calculations per second). BTCS averaged a hash rate of 891 TH/s during the first half of 2015.

Allen continued, "Overall, we're well-positioned to scale operations moving forward, and with gross margins coming in at 55% and 58% in the first and second quarters respectively, we believe we could see significant improvements to shareholder value as we capitalize on the immense potential of the blockchain."

About BTCS:
The blockchain is a decentralized public ledger and has the ability to fundamentally impact all industries on a global basis that rely on or utilize record keeping and require trust. BTCS secures the blockchain through its rapidly growing transaction verification services business and plans to build a broader ecosystem to capitalize on opportunities in this fast growing industry. BTCS continues to evaluate and build additional blockchain technology consumer solutions. BTCS also actively partners and integrates with strategic digital currency and blockchain technology companies who provide products or services that are complementary to its business strategy. For more information visit: www.btcs.com

Forward-Looking Statements:
Certain statements in this press release, including those related to an anticipated merger, 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.

Contact Information

  • BTCS Investor Relations:
    Michal Handerhan
    BTCS Inc.
    (202) 430-6576
    IR@btcs.com

    Michael Sullivan
    RedChip Companies, Inc.
    (407) 644-4256, ext. 115
    michael@redchip.com