Bitcoin Shop, Inc. Expands Mining Operations With New Facility and Launches Multi-Signature Security Solution to New Website

Bitcoin Shop, Inc. Expands Mining Operations With New Facility and Launches Multi-Signature Security Solution to New Website

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: http://investors.btcs.com/BTCS_Corporate_Presentation_January_2015.pdf

About BTCS

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 (www.btcs.com) 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.

BTCS
http://www.btcs.com/

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 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.


Related News

Bitcoin Shop (BTCS) to Merge with Spondoolies-Tech to Create a Publicly Traded Bitcoin Mining Company

Bitcoin Shop, one of the first Bitcoin companies quoted on the U. S. stock market, announced that it has signed a Letter of Intent to merge with Israeli Bitcoin mining hardware manufacturer Spondoolies-Tech. The Letter of Intent follows last week's announcement that Bitcoin Shop raised $2.3 million in a venture capital funding round. Bitcoin Shop, quoted on the OTC Market with the ticker BTCS, is based in Arlington, Virginia. Besides operating an e-commerce store which accepts a variety of digital currencies and offering a multi-signature wallet with bank-grade security, the company is the....

South Korean Bitcoin Exchange Launches Multi-Signature Wallet

Coinone, a bitcoin exchange in South Korea, recently announced a multi-signature wallet. According to its CEO Myunghun Cha, it was time for the bitcoin exchange to offer "equal level of safety and control" as other multi-signature wallet providers. The company makes use of a third-party API through BitGo, which they deemed as the answer to many security concerns facing exchanges and online wallets. "With its implementation, we hope to bring in more users from the national and international pool of bitcoin users," Cha added. Coinone Bitcoin Exchange Operations. Coinone was built by Devign....

Gem Brings Bitcoin Multi-Signature Security to expresscoin Platform

Gem, the Venice, Calif. -based Bitcoin startup offering a multi-signature-based security platform to Bitcoin developers, has partnered with expresscoin, the Santa Monica, Calif. -based digital currency retailer. The partnership will offer Gem's scale-able and secure API wallet to expresscoin users, initially powering internal accounts and operations and eventually powering co-branded, end-user wallets with Gem's multi-signature security solution, thus providing an alternative to expresscoin's current bring-your-own-wallet environment.

Cleanspark Acquires Plug-in-Ready Bitcoin Mining Facility With up to 86 MW of...

On Tuesday, the bitcoin mining company Cleanspark announced it acquired a plug-in-ready bitcoin mining facility that is scalable to 86 megawatts (MW) of capacity. Presently, the newly opened site in Washington, Georgia, has 36 megawatts, which is expected to give Cleanspark’s hashrate a 38% boost this quarter. Publicly-Listed Bitcoin Miner Cleanspark Expands Operations in Georgia After Cleanspark Inc. (Nasdaq: CLSK) revealed last month that it acquired 1,061 bitcoin miners at a “discounted price,” the company announced it has acquired a new facility in Washington, the....

Coinkite Goes Free! Offers Privacy and Multi-Signature Wallets at No Cost

For those that may not know Coinkite, it’s an independent business that focuses of bitcoin wallets, along with multi-signature wallets, touts bank-grade security along developer API and privacy. As CEO Rodolfo Novak would describe it, it’s a one-stop shop for everything you need. Coinkite just celebrated a year’s worth of hard work and dedication to the bitcoin infrastructure. To kick the next chapter off, they decided to offer a starter package to all users for free, knocking off the previous one percent withdrawal charges.