PINX:BTCSBTCS Provides Shareholder Update
BTCS Expands Ethereum Hosting Business
ARLINGTON, VA--(Marketwired - May 25, 2016) - BTCS Inc. (OTCQB:
BTCS) ("BTCS" or the "Company"), a blockchain technology focused company which secures the blockchain through its transaction
verification services business, increased its Ethereum-mining hosting business to approximately 150 kilowatts ("kw"), up from
approximately 50kw announced in March 2016.
"We have gained valuable expertise since launching our Ethereum pilot program in March," stated Charles Allen, CEO of BTCS.
"Ethereum has rocketed to nearly 20% of the market cap of Bitcoin in less than two years, led by rapid adoption and growing
support from major players in tech and finance including Gemini and Coinbase (which just rebranded to GDAX). We believe our
experience, in connection with additional capital, should allow us to further expand our Ethereum mining and hosting businesses,
to diversify our exposure to bitcoin, and to use more of our available power capacity."
Ethereum is a digital currency and blockchain platform focused on smart contract applications. Like bitcoin-based blockchain
technologies, the decentralized network of Ethereum enables transactions without downtime, censorship, fraud, or third-party
interference. Year to date, the value of Ether, the digital token or fuel that powers the Ethereum network, in USD terms, has
grown over 1,300% the total value of all Ether, or market cap of Ether, surpassing $1 billion.
"With the year-to-date increase in the difficulty of mining Bitcoins, and the more attractive economics currently displayed by
Ether, we've taken the opportunity to sell some of our early-generation ASIC ("application specific integrated circuit")
servers," continued Allen. "We've also entered preliminary discussions with a designer of specialized Ether mining servers, and
we're exploring the possibility of being the exclusive hardware assembler for that designer. Unlike ASIC servers, Ether mining
servers utilize off the shelf computer hardware, custom software and can be made-to-order with limited capital investment. We
have the space to operate the assembly business at our NC facility, and we are in talks to become the exclusive distributor.
While we can provide no assurances that any partnership or relationship will materialize, we are currently hosting their first
generation prototype servers. We plan to provide updates on this initiative as it develops."
Allen concluded, "In regards to Spondoolies-Tech Ltd., we are actively exploring potential claims we may have from prior
investments and we will pursue all options ahead of the July hearing."
About BTCS:
BTCS secures the blockchain through its 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 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.