BTCS Reports $4.5 Million Loss For This Year’s First Half – Bitcoin News


BTCS Reports $4.5 Million Loss For This Year’s First Half

BTCS Inc. is one of the early movers in the blockchain and digital currency ecosystems and the first U.S. public company focused on blockchain technologies.

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Following the annual, quarterly report (Form 10-Q) with the Security Exchange Commission – SEC, BTCS Inc., formerly known as Bitcoin Shop, reported losses over $4.5m for the first half of 2015. According to the same report over the same period last year, the company also sustained heavy losses.

BCTS_article_midimage_BitcoinThe company specializes in bitcoin mining and consumer services and offers consumers the ability to purchase products using digital currency such as bitcoin, litecoin and dogecoin, by searching through a selection of over 250,000 items from third party vendors.

It seems the company’s non-operational costs have been one of the major reasons for the heavy losses. The non-operational costs alone suffered a large increase going from $205,000 to $791,000. On the other hand, the operational losses remained around $3.8m for the first half of 2015, down from $4.2m, the figure seen in the same period in 2014.

BCTS reported the total revenues for the Q2 2015 stood at $144,375, significantly up from $4,912 accounted in the Q2 2014, while for the first half of 2015 it stood at 182,043, up from $130,180 the figure registered in the same period in 2014.

According to the company’s CEO Charles Allen, the report is a result and a validation of BTCS’ recent market strategy shift and reveals that the company is seeking to be a dominant player on the ecosystem:

“Our refined focus on securing the blockchain minimizes risk and positions us to capitalize on the massive market potential of the blockchain across all industries. We believe we selected an ideal timing for market entry that allowed us to pass over the high-risk period of extreme volatility that knocked many smaller players out of the space. With this latest increase in capacity, we believe we are well positioned to become a dominant player for the long-term.”

Back in January 2015, the Company began a rebranding campaign using its domain (short for Blockchain Technology Consumer Solutions) to better reflect its broadened strategy. The company’s CEO believes BTCS’ shift from e-commerce to transaction processing services will come as a success that will continue to benefit investors. Nevertheless, the company noted that throughout the process, it was expecting to incur some losses.

BTCS estimates that it curBCTS_article_midimage1_Bitcoinrently costs the Company approximately $100-$120 to earn each Bitcoin. Assuming the implementation of third-generation ASIC servers from Spondoolies at the Company’s facility in North Carolina, the increased capacity of 3mw is expected to power a hash rate of between 13,000 and 29,000 Th/s. Further analysis suggests this is part of the company’s efforts to maintain a re-investment strategy. The company also reunites other investments such as a Venture capital investment with SponDoolies-Tech, a seed fund With Gem and a Series A Investment fund with GoCoin.

BTCS is rapidly scaling its low-cost transaction verification services to provide revenue growth as it evaluates and builds additional consumer solutions that leverage the blockchain technology. The company is committed to securing the blockchain through its transaction verification services business and plans to build a broader ecosystem to capitalize on opportunities in the ecosystem. The company is currently expanding its new mining facilities in North Carolina and is certain that this will counterbalance its overall costs.

What’s your opinion on BCTS Inc.? 

Tags in this story
Bitcoin, Bitcoin Shop, mining, spondoolies tech, transactions

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Nuno Menezes is a Portuguese Bitcoin Entrepreneur and a crypto currency’s enthusiast supporting the Bitcoin Portuguese Community. He is an Anthropologist and a Writer and his current field of work is virtual currencies. Complementing his Social Sciences Master degree with a Professional background in telecommunications along some experience in Computer Science, he intends to bring knowledge and understanding about the impact of crypto currencies in society.

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