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BTCS Outlines $4.5m Loss in New SEC Filing

Avatar Yashu Gola 4 years ago

Bitcoin mining company BTCS Inc has incurred a $4.5 million loss in the first half of 2015.

According to its recent 10-Q filing with the US Securities and Exchange Commission (SEC), a major part of the said loss have been navigated by the surge in the company’s non-operational costs, which jumped from $205,000 to around $791,000 since December 31st last year. The said non-operational costs include some additional expenses, such as inducement expense, interest expenses, loss on issuance of units, and others.

At the same time, BTCS reported revenues from some of its services, including customer transaction processing and transaction verification businesses. The company grossed a 39.84% profit from the fees it earned from its transaction verification service business. As it stated in the said SEC filing, the net profit “accounted for 96.5% of BTCS revenue for the six months ended June 30, 2015.”

CEO Charles Allen further described it in his statement to CoinDesk, saying that he is hopeful of BTCS’s transaction processing services to gain more investment and offer better returns in future. He stated:

“We had 2,000% revenue growth. We went from $45,000 in revenue to $145,000 in revenue [quarter over quarter]. We’re seeing tremendous growth on the transaction verification services side.”

Allen further ensured to lower the difference between their operation costs and returns by launching new mining facilities in North Carolina. Prior to that, he had confirmed BTCS to have been spending around $109 to mine 1 unit of Bitcoin, which current costs around $215.

In the same note, the company mentioned that it might incur some more losses in near-future.

Yashu Gola

Yashu Gola is a Mumbai-based finance journalist. He is profoundly active in the bitcoin space since 2014 – and has contributed to several cryptocurrency media outlets, including NewsBTC, FxDailyReport, Bitcoinist, and CCN...

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