BTCS Reports $4.5 Million Net Loss as Mining Revenue Grows

Bitcoin mining and consumer services firm BTCS Inc (formerly Bitcoin Shop) lost more money than it made the first half of this year.

The Nevada company reported a net loss of $4.59m for the first half of 2015 in its 10-Q filing with the SEC. The loss represented an increase over the roughly $4m loss incurred over the same period in 2014.

The change seems to have been driven largely by rise in non-operational costs, which rose from $205,000 to $791,000. In interview, however, CEO Charles Allen suggested that he views the report as a validation of BTCS' recent market strategy shift.

Allen stated that he views BTCS' pivot from e-commerce to transaction processing services as a success that will continue to benefit investors, telling CoinDesk:

In particular, Allen cited the fact that BTCS is now spending $109 on average to mine 1 BTC, worth roughly $220 at press time. He indicated he expects this cost to lower as BTCS nears opening new North Carolina-based mining facilities.

Other numbers showed similar improvements as operational losses narrowed between the two periods. The company reported $3.8m in operational losses for the first half of 2015, compared to $4.2m the year prior.

BTCS further recorded a second quarter net loss of about $1.25m, a drop by half compared to the second quarter of 2014 when it posted a second quarter net loss of $2.59m. Second quarter expenditures for 2015 were $2.05m compared to $2.66m the year before.

In a note, however, BTCS indicated that it "expects to incur losses into the foreseeable future". As of 30th June, the company had roughly $300,000 in cash on the books, as well as $46,100 in digital currency.

At press time, BTCS stock was trading at $0.13 a share.

Additional reporting by Stan Higgins.

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