Bitcoin company BTCS suffered a net loss of $10 million in 2015

BTCS Ltd. (formerly known as Bitcoin Shop Ltd.) released its 2015 financial report, which showed that the company's revenue increased, but it suffered a large net loss, mainly due to high operating expenses.

For those who follow BTCS, the company's performance in 2015 was not surprising. The company has been investing in its transaction confirmation business, which has increased its revenue, but in the first half of 2015, the company suffered a net loss of $4.6 million and a net loss of $3.82 million in the third quarter, mainly due to the continued increase in operating expenses.

2015 Highlights

In 2015, the company's revenue was $506,190, compared to $38,214 in 2014, an increase of $467,976, or 1,225%. The revenue growth was mainly due to BTCS's transaction confirmation service. The company invested in Spondoolies Tech Ltd.'s ASIC servers and used the servers to support its transaction confirmation service business.

Operating expenses in 2015 were $8.4 million, of which $6.7 million were non-cash items such as depreciation and amortization, common stock and warrant issuance servicing expenses, and stock-based compensation payments.

Net loss: $10,047,036.

Net loss per share was $0.06.

The Company acknowledges that it requires additional capital to sustain short-term operations and to ensure the investments necessary to execute its long-term business plan and that its current liquidity is insufficient to sustain operations and foreseeable capital expenditures.

Due to recurring operating losses, net operating cash flow deficit and accumulated deficits, the company's ability to continue operating deserves attention.