ARLINGTON, VA — (Marketwired) — 01/28/15 — Bitcoin Shop, Inc. (OTCQB: BTCS) (“BTCS” or the “Company”), which is undertaking the build-out of a universal digital currency ecosystem, announced today that the Company secured a 83,000 square foot facility, about 1.4 times the size of a regulations NFL football field, to expand its mining operations. The Company also purchased from Spondoolies Tech Ltd. (“Spondoolies”), 100 S35 miners totaling 550 TH/s of hashing power, a 161% increase in its mining capacity, and anticipates having the newly purchased equipment online in two to four weeks, which would bring BTCS–s total mining hash rate to 891 TH/s. Additionally, the operating costs (inclusive of power) at the new facility should be approximately 30% lower than our current facility. With minimal improvements, the new facility is anticipated to handle over 10 megawatts (mw) of power and can potentially house up to 40,000 TH/s of mining hardware. The Company launched a new website to demonstrate its planned services, which includes a new multi-signature secure bitcoin storage solution as a next step in the build-out of its universal ecosystem.
“We–re seizing market opportunities created by the recent downturn in bitcoin price and expanding accordingly. At the current price of bitcoin, cost structure matters, and we believe we–ll have one of the lowest cost mining operations in the industry,” says BTCS CEO Charles Allen. Without any further expansion, the Company believes their mining efforts should yield at least 350 bitcoins in the first quarter of 2015. Additionally, the Company agreed to issue 250,000 shares of its common stock to Spondoolies as partial compensation for the equipment. Charles Kiser, the Company–s Executive Vice President, voluntarily agreed to the redemption of 250,000 shares of his common stock for $2,500 such that the share issuance to Spondoolies will result in no additional dilution to the Company–s public shareholders.
“We–re thrilled to be working with Spondoolies as we seek to increase our capacity beyond 10,000 TH/s and 10 mw,” said Allen. Spondoolies- CEO Guy Corem commented, “Mining hardware companies should be prepared for market changes as part of their strategy. At Spondoolies, we–ve anticipated a full range of market scenarios such as the current bitcoin price decline and volatility, and are pleased to partner with an innovative company like BTCS.”
Along with the expansion of its mining operations, BTCS released a new website, which includes a beta version of a multi-signature secure bitcoin storage solution built on Gem.co–s multi-signature security platform. The beta version of the storage solution is currently only accessible by invitation. Additionally, BTCS is the only strategic investor in Gem.
“It was clear to us that BTCS was focused on offering a bitcoin storage solution that was both innovative and secure, and we were thrilled they chose Gem–s multi-sig platform to deliver this unique solution to their customers,” said Gem CEO and Founder Micah Winkelspecht.
The Company has also released an updated corporate presentation which can be found here: .
BTCS 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 our public beta site () where consumers can purchase products using digital currency such as bitcoin, litecoin and dogecoin, by searching through a selection of over 250,000 items. We provide our customers competitive pricing options from 256 retailers through our “Intelligent Shopping Engine.” 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.
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.
Charlie Kiser
Bitcoin Shop, Inc.
(202) 430-6576
Jon Cunningham
RedChip Companies, Inc.
(800) 733 2447 ext 107
Mercy Chikowore
Bitcoin Shop, Inc.
(803) 347-6905
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