Blockchain Firm BTCS Cutting Equipment Costs

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Blockchain Firm BTCS Cutting Equipment Costs. Newsbtc bitcoin news
Blockchain Firm BTCS Cutting Equipment Costs. Newsbtc bitcoin news

Blockchain firm BTCS Inc. (OTCQB: BTCS) has entered into an equipment financing deal with CSC Leasing Company in order to lower the cost of capital. CSC is an independent lessor of technology equipment providing custom lease solutions to several firms.

Charles Allen, Chief Executive Officer of BTCS said,

The financing flexibility provided by our agreement with CSC puts us in an advantageous position to improve shareholder value as we move forward on the next phase of our growth strategy. While specific terms of the facility will be determined as we add new equipment, such as Spondoolies-Tech’s (“Spondoolies”) next-generation SP50 transaction verification servers, we anticipate we will now be able to grow operations with a lower cost of capital while limiting equity dilution.

The decision to finance mining equipments is only apt given that the blockchain firm incurred a huge $4.5 million loss in the first half of 2015. Detailed information about the same can be obtained from the Company’s 10-Q filing with the US SEC.

John Corey, President of CSC was equally pleased with the agreement.

We’re pleased to partner with BTCS as it begins to scale up its transaction verification services operations. Operating leases are increasingly becoming the preferred procurement path for users of IT equipment, and our solutions enable companies like BTCS to preserve cash flow, lower costs, and accelerate technology upgrades.

The blockchain technology focused firm is in the business of providing transaction verification services for the digital currencies. In May 2015, the Company invested $1.5 million in the transaction verification server manufacturer Spondoolies-Tech to boost its operating revenues and grab a bigger market share. BTCS is continuously evaluating and building additional blockchain technology consumer solutions. BTCS is actively partnering and integrating with strategic digital currency and blockchain technology companies who provide products or services that are complementary to its business strategy.