BTCS Inc (OTCMKTS:BTCS) on Monday announced the establishment of an equipment financing facility through an agreement with CSC Leasing Company, an independent lessor of technology equipment.
The agreement comes as BTCS seeks to expand its transaction verification business, and cut the costs at the same time. The latter is especially needed in the light of the company’s results for the first half of 2015, which showed operating expenses of $3.91 million and a net loss of $4.6 million.
“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,” stated Charles Allen, chief executive officer of BTCS. “While specific terms of the facility will be determined as we add new equipment, such as Spondoolies-Tech’s 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.”
BTCS recently sealed a definitive agreement to merge with Spondoolies-Tech, in a move set to bolster the transaction verification business of BTCS.
John Corey, President of CSC, stated,
“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.”
To view the press release on the partnership, click here.