SOURCE: BTCS Inc.

BTCS Inc.

October 01, 2015 08:33 ET

BTCS Provides Shareholder Update on Recent Accomplishments

ARLINGTON, VA--(Marketwired - Oct 1, 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 transaction verification services business segment during the third quarter of 2015, achieving multiple strategic milestones.

In September, the Company signed a definitive merger agreement with Spondoolies-Tech Ltd. ("Spondoolies"), a leading global manufacturer of transaction verification servers which reported audited revenue of more than $28 million for the year ended December 31, 2014. The merger combines the operational expertise of BTCS' transaction verification operations with Spondoolies' industry leading technology.

Also in September, Spondoolies announced the pending debut of its third-generation Application Specific Integrated Circuit ("ASIC") server, the SP50. Expected to provide a 4x efficiency improvement over current technology, the implementation of SP50s at the Company's North Carolina facility should significantly increase the Company's hashing power and improve operating margins. While BTCS operated ASIC servers with a hash rate of 891 TH/s (trillion calculations per second) during the third quarter of 2015, its North Carolina facility has the power capacity to run approximately 20,000 TH/s of the Spondoolies' SP50 servers.

Earlier in the third quarter, laying the foundation for future increases in hashing rates, BTCS doubled the operating capacity at its North Carolina facility from 1.5 megawatts ("mw") to 3mw.

BTCS earned 683 bitcoins during the third quarter of 2015. This represents quarter-on-quarter growth of 24% compared to the second quarter of 2015, where BTCS earned 552 bitcoins for its transaction verification services. For the nine months ended September 30, 2015, BTCS earned 1,329 bitcoins, up 2,481% compared to 52 bitcoins earned during the full year 2014.

"We've previously talked about our goal of building a broad ecosystem to capitalize on the multitude of opportunities in the evolving blockchain industry. The strategic milestones we've achieved during the third quarter represent a significant leap forward in making this ecosystem a reality," stated Charles Allen, chief executive officer of BTCS. "Complementing these successes, we're very pleased to have also recently announced a new equipment finance facility that will enable us to effectively grow our business and increase return on equity while avoiding dilution to our valued shareholders. This is yet another key accomplishment that we believe will prove invaluable as we ramp our growing transaction verification services business in the quarters ahead."

About BTCS:
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. 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 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