December 28, 2015

Market Data

Fiscal Year December
Industry Blockchain & Bitcoin
Market Cap $17.3M
Price/Earning (ttm) N/A
Price/Book (mrq) N/A
Price/Sales (ttm) 46.6x
Insider Ownership 46.0%
Shares Outstanding 157.5M
Float 77.2M
Avg. Volume (3 mo.) 322,169
As of December 24, 2015

Balance Sheet Snapshot

Cash* $1.5M
Debt* $1.5M

*Includes proceeds from $1.45 million convertible debt financing on 12/16/15

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.

Given BTCS's strong long-term potential, transaction verification services revenue, focus on blockchain technology, and universal ecosystem business model, we are valuing BTCS at a target price of $0.62, representing current upside of 343%. Venture capital investments in bitcoin totaled approximately $335 million in 2014, which is greater than the value of early venture capital investment in the Internet ($250 million in 1995). The transaction verification services business has the potential to be very scalable, and we are projecting total revenue of $20.4 million in 2016. Long-term, transaction verification services companies can gain revenue through transaction verification fees from consumer usage. Additionally, transaction verification services help to secure the blockchain. This gives long-term profit potential as applications and transactions take place on the blockchain. Early investments in digital currency companies could lead to significant returns if digital currency adoption and blockchain technology development continue to accelerate.

  • Revenue currently generated through transaction verification services business, or digital currency mining; merging with Spondoolies-Tech ($28M in 2014 rev)
    • BTCS shareholders will own a 55.4%-54.4% stake in the combined Company
    • Declining bitcoin prices and increased cost of transaction verification services driving companies out of the transaction verification business; leads to opportunity for BTCS
    • Spondoolies is the premier developer of Bitcoin transaction verification servers; cutting edge technology should maximize the value of BTCS's transaction verification business

BTCS is attempting to create a universal digital currency platform with one point of access; majority of digital currency competitors focus on one product inside the ecosystem

BTCS has developed a series of strategic partnerships and investments to develop this ecosystem:

Wallet: Syndicate investor in Gem, which is developing a secure, cloud wallet storage technology

ATM: Lead investor in the seed round in Coin Outlet, a digital currency ATM manufacturer Financial services: Lead investor in the bridge round in Expresscoin, a digital currency exchange with multiple payment options

Payment processor: Lead investor in the Series A financing for GoCoin, a leading international digital currency payment platform

BTCS's beta ecommerce business offers an "Intelligent Shopping Engine" to find consumers competitive prices on products from over 250 retailers

Company Website

Investor Contact Info:
RedChip Companies, Inc.
1017 Maitland Center Commons Blvd.
Maitland, FL 32751
(407) 644-4256



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  • Bob McCooey, Senior Vice President The NASDAQ Stock Market