ARLINGTON, VA--(Marketwired - Feb 22, 2016) - BTCS Inc. (OTCQB: BTCS) ("BTCS" or the "Company"), a blockchain technology focused company which secures the blockchain through its transaction verification services business, management demonstrates their commitment to execute on key milestones by voluntarily escrowing 24 million founder shares of their BTCS common stock holdings valued at approximately $2.14 million as of February 19, 2016.
Should the Company fail to close its pending merger with Spondoolies-Tech Ltd. ("Spondoolies"), half the escrowed shares (12 million) will be returned to the Company for cancellation for no consideration. The remaining half of the escrowed shares (12 million) will be returned to the Company for cancellation for no consideration should it fail to complete an uplisting to a major exchange such as the Nasdaq or NYSE.
"Michal and I are extremely confident in our ability to complete these key strategic milestones well within the timetable established in the escrow agreement," stated Charles Allen, CEO of BTCS. "Voluntarily placing shares representing 15% of the Company in escrow under the terms outlined shows how committed we are to executing on our plans and the future growth of the Company."
Allen continued, "Blockchain technologies are set to revolutionize transaction based business globally, and BTCS is well-positioned to be a leader in the space. Research from Goldman Sachs and analysis by leading publications such as The Economist forecast blockchain technologies will become a significant multi-billion dollar market opportunity. We've focused on building a strong foundation to capitalize on this opportunity, and we're now ready to reap the rewards."
The escrowed shares, representing 15% of BTCS shares outstanding, are personal holdings of Charles Allen, CEO, and Michal Handerhan, COO. The shares will remain in escrow until the completion of each respective milestone or December 31, 2016, whichever comes first.
Full details of the share escrow agreement are available in the Company's 8-K filed with the Securities and Exchange Commission on February 22, 2016.
BTCS secures the blockchain through its rapidly growing 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 and build 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.
Founded in 2013 by a group of Israeli high-tech veterans, Spondoolies is a transaction verification server manufacturer. Spondoolies raised ten million dollars in capital from leading Israeli venture capital firms and assembled a team of leaders in the Israeli Semiconductor industry, with the goal of building the infrastructure on which digital currencies will flourish. Building transaction-verifying servers from the bottom up, Spondoolies is producing machines that are designed for efficiency and performance. During 2014, Spondoolies successfully launched five different products. For more information visit www.spondoolies-tech.com
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.