BTCS (BTCS) 10-Q/A 16 Nov 15 2015 Q3 Quarterly report (amended) Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 11, 2015
Document And Entity Information
Entity Registrant Name	BTCS Inc.
Entity Central Index Key	1,436,229
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		157,400,545
Trading Symbol	BTCS
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,015

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash	$ 91,623	$ 5,403
Digital currencies	61,306	16,040
Prepaid expense and other current assets	22,627	46,654
Total current assets	175,556	68,097
Other assets:
Property and equipment, net	564,205	$ 190,190
Investment	1,500,000
Websites	7,364	$ 10,700
Deposits	56,700	4,815
Total other assets	2,128,269	205,705
Total Assets	2,303,825	273,802
Liabilities and Stockholders' (Deficit)/Equity:
Accounts payable and accrued expense	$ 304,112	258,130
Short term loan from related party		$ 7,990
Short term loan	$ 45,000
Derivative liability	3,186,372
Total current liabilities	3,535,484	$ 266,120
Stockholders' (deficit)/equity:
Common stock, 975,000,000 shares authorized at $0.001 par value, 170,198,077 and 153,186,804 shares issued and outstanding, respectively	170,198	153,187
Treasury stock, at cost, 13,000,000 and 12,750,000 shares at September 30, 2015 and December 31, 2014, respectively	(4,991)	(2,491)
Additional paid in capital	21,761,856	14,594,677
Accumulated deficit	(23,158,722)	(14,739,891)
Total stockholders' (deficit)/equity	(1,231,659)	7,682
Total Liabilities and stockholders' (deficit)/equity	$ 2,303,825	273,802
Series C Convertible Preferred Stock [Member]
Stockholders' (deficit)/equity:
Preferred stock; 20,000,000 shares authorized at $0.001 par value:		$ 2,200
Total stockholders' (deficit)/equity

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2015	Dec. 31, 2014
Preferred stock; shares authorized	20,000,000	20,000,000
Preferred stock, par value	$ 0.001	$ 0.001
Common stock; shares authorized	975,000,000	975,000,000
Common stock; par value	$ 0.001	$ 0.001
Common stock; shares issued	170,198,077	153,186,804
Common stock; shares outstanding	170,198,077	153,186,804
Treasury stock, shares	13,000,000	12,750,000
Series C Convertible Preferred Stock [Member]
Preferred stock; shares issued	0	2,200,000
Preferred stock; shares outstanding	0	2,200,000
Preferred stock, liquidation preference	$ 0.001	$ 0.001

Condensed Consolidated Statemen

Condensed Consolidated Statement of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenues
E-commerce		$ 1,520	$ 6,290	$ 17,806
Transaction verification services	$ 169,069		344,822
Total revenues	169,069	$ 1,520	351,112	$ 17,806
Power and mining expenses	(101,824)		(179,109)
Gross profit	67,245	$ 1,520	172,003	$ 17,806
Operating expenses:
Marketing	8,347	26,241	12,386	89,697
General and administrative	$ 4,160,461	$ 2,566,486	7,814,548	$ 6,743,637
Impairment loss			254,433
Total operating expenses	$ 4,168,808	$ 2,592,727	8,081,367	$ 6,833,334
Net loss from operations	(4,101,563)	$ (2,591,207)	(7,909,364)	(6,815,528)
Other income (expenses):
Fair value adjustments for warrant liabilities	$ 286,087		610,039	$ 204,957
Inducement expense			(58,380)
Interest (expenses) income	$ (2,291)	$ 1,709	(8,073)	$ 1,709
Loss on issuance of Units			(1,050,911)
Other expenses	$ (1,672)		(2,142)
Total other (expenses) income	282,124	$ 1,709	(509,467)	$ 206,666
Net loss	$ (3,819,439)	$ (2,589,498)	$ (8,418,831)	$ (6,608,862)
Net loss per share, basic and diluted	$ (0.02)	$ (0.02)	$ (0.05)	$ (0.05)
Weighted average number of shares outstanding
Basic and diluted	170,162,708	151,649,201	165,394,960	133,662,723

Condensed Consolidated Stateme5

Condensed Consolidated Statement of Stockholders' (Deficit)/Equity (Unaudited) - 9 months ended Sep. 30, 2015 - USD ($)	Series C Convertible Preferred Stock [Member]	Common Stock [Member]	Treasury Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings (Accumulated Deficit) [Member]	Total
Beginning Balance at Dec. 31, 2014		$ 153,187	$ (2,491)	$ 14,594,677	$ (14,739,891)	$ 7,682
Beginning Balance, Shares at Dec. 31, 2014	2,200,000	153,186,804	(12,750,000)
Issuance of private placement units for cash		$ 12,038		$ (12,038)
Issuance of private placement units for cash, Shares		12,038,342
Common stock repurchase			$ (2,500)			$ (2,500)
Common stock repurchase, Shares			(250,000)
Conversion of Series C Convertible Preferred to common stock	$ (2,200)	$ 2,200
Conversion of Series C Convertible Preferred to common stock, Shares	(2,200,000)	2,200,000
Issuance of common stock for asset purchase		$ 351		$ 48,275		$ 48,626
Issuance of common stock for asset purchase, Shares		351,193
Conversion of accounts payable to common stock		$ 824		246,100		246,924
Conversion of accounts payable to common stock, Shares		824,056
Inducement expenses associated with conversion of accounts payable to common stock				58,380		58,380
Issuance of common stock for investment		$ 702		153,731		154,433
Issuance of common stock for investment, Shares		701,966
Issuance of common stock for services		$ 896		188,959		189,855
Issuance of common stock for services, Shares		895,716
Issuance of warrants for services				100,000		100,000
Stock based compensation				$ 6,383,772		6,383,772
Net loss					$ (8,418,831)	(8,418,831)
Ending Balance at Sep. 30, 2015		$ 170,198	$ (4,991)	$ 21,761,856	$ (23,158,722)	$ (1,231,659)
Ending Balance, Shares at Sep. 30, 2015		170,198,077	(13,000,000)

Condensed Consolidated Stateme6

Condensed Consolidated Statement of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Net Cash flows used from operating activities:
Net loss	$ (8,418,831)	$ (6,608,862)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expenses	205,240	5,913
Stock based compensation	6,383,772	5,814,963
Change in fair value of digital currencies	$ (7,476)	112,149
Interest income on investment		$ (1,685)
Issuance of common stock for services	$ 189,855
Issuance of warrants for services	100,000
Loss on issuance of Units	1,050,911
Fair value adjustments for warrant liabilities	(610,039)	$ (204,957)
Inducement expenses	58,380
Impairment loss	254,433
Changes in operating assets and liabilities:
Digital currencies	(37,790)	$ (298,608)
Prepaid expenses and other current assets	24,027	(88,699)
Accounts payable	$ 292,906	125,007
Customer deposits		(4,263)
Net cash used in operating activities	$ (514,612)	(1,149,042)
Net cash used in investing activities:
Purchase of intangible assets		(15,469)
Purchase of property and equipment	$ (531,434)	$ (199,115)
Sale of property and equipment, net	4,141
Deposits	(51,885)	$ (4,815)
Investments at cost	(1,600,000)	(350,000)
Net cash used in investing activities	$ (2,179,178)	(569,399)
Net cash provided by financing activities:
Proceeds from the former members of BCSLLC		$ 8,000
Common stock repurchase	$ (2,500)
Net proceeds from issuance of Private Placement Units	2,695,500	$ 1,813,000
Net proceeds from issuance of Private Placement Units from related party	50,000
Proceeds from short term loan	45,000
Payment on short term loan from related party	(7,990)
Net cash provided by financing activities	2,780,010	$ 1,821,000
Net increase in cash	86,220	102,559
Cash, beginning of period	5,403	9,052
Cash, end of period	$ 91,623	111,611
Supplemental disclosure of non-cash financing and investing activities:
Conversion of Series B Convertible Preferred to common stock		40,000
Conversion of Serise C Convertible Preferred to common stock	$ 2,200	1,550
Exchange warrants for common stock		$ 100
Issuance of common stock for asset purchase	$ 48,626
Reclassification of derivative liability warrant to additional paid in capital		$ 22,282
Conversion of accounts payable to common stock	$ 246,924
Issuance of common stock for investment	$ 154,433

Business Organization and Natur

Business Organization and Nature of Operations	9 Months Ended
	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business Organization and Nature of Operations	Note 1 - Business Organization and Nature of Operations BTCS Inc. (formerly Bitcoin Shop, Inc.), a Nevada Corporation (the “Company”) in February 2014 entered the business of hosting an online ecommerce marketplace where consumers can purchase merchandise using digital currencies, including bitcoin and is building a diversified company with operations in the blockchain and digital currency ecosystems. In January 2015, the Company began a rebranding campaign using its BTCS.COM domain (shorthand for Blockchain Technology Consumer Solutions) to better reflect its broadened strategy. The Company released its new website which included broader information on its strategy, access to its ecommerce site, and launching an invite only beta version of its multi-sig secure storage solution (digital wallet). Although we continue to support and develop our ecommerce marketplace, we recently shifted a portion of our focus towards our transaction verification service business, also known as bitcoin mining. The Company was incorporated in the State of Nevada in 2008 under the name “Hotel Management Systems, Inc.”. On February 5, 2014, the Company entered into an Exchange Agreement with BitcoinShop.us, LLC, a Maryland limited liability company (“BCSLLC”), and the holders of the membership interests in BCSLLC (“Share Exchange”). Upon closing of the Share Exchange, BCSLLC members transferred all the outstanding membership interests of BCSLLC to the Company in exchange for an aggregate of 100,773,923 shares of the Company’s common stock (the “Common Stock”) (the “Reverse Merger”). As a result, BCSLLC became a wholly-owned subsidiary of the Company. Immediately following the Share Exchange with BCSLLC, the Company discontinued its business as manufacturer of touch screen and touch board products, interactive whiteboard displays and large touch-screens. The Company is an early entrant in the blockchain and digital currency markets and one of the first U.S. publicly traded companies to be involved with digital currencies. The Company aims to enable users to engage in the digital currency ecosystem through one point of access - a universal digital currency platform. The Company plans to design and build this platform under the brand “Blockchain Technology Consumer Solutions,” or “BTCS.” The Company currently operates a beta ecommerce marketplace which already accepts a variety of digital currencies, has designed a beta secure digital currency storage solution BTCS Wallet, and has been expanding its transaction verification services business, recently adding servers capable of generating bitcoins (i.e. bitcoin mining). In the short term, the Company believes its transaction verification services business will be a growing source of revenue for it. On July 28, 2015, the Company released a press release announcing the name change from Bitcoin Shop, Inc. to BTCS Inc. On September 21, 2015, the Company, Spondoolies-Tech Ltd., an Israeli company (“Spondoolies”), and Shareholders of Spondoolies (the “Selling Shareholders”) entered into a Share Purchase Agreement, dated as of September 21, 2015, (the “Agreement”) pursuant to which the Company shall purchase all the shares in Spondoolies (the “Spondoolies Shares”) from the Selling Shareholders so that Spondoolies will be a wholly-owned subsidiary of the Company after the closing of the transactions contemplated by the Agreement (the “Transaction”). In exchange for the Spondoolies Shares, the Selling Shareholders will receive either shares of the Company’s common stock or shares of the Company’s Series A preferred stock, convertible into the Company’s common stock as described below (collectively, the “Company’s Securities”). After the completion of the Transaction, the Company’s shareholders will own a 54.4% to 55.4% stake in the combined company and Spondoolies’ shareholders will own a 44.6% to 45.6% of the combined company, based on the number of the Company’s securities outstanding immediately following the Transaction. The ownership range is a function of the Company’s liquidation preference associated with its existing $1.5 million investment in Spondoolies. The final ownership percentages will be determined prior to closing. In addition to standard closing conditions, the closing of the Transactions will not occur until the Selling Shareholders receive rulings from the Israeli Tax Authority confirming, among other things, that the Selling Shareholders may defer the payment of applicable Israeli taxes with respect to the Company’s securities received by each Selling Shareholder until the Company’s securities are sold by the Selling Shareholder, and the approval of the transaction by the Israeli Office of Chief Scientist. The Company cannot predict the exact timing of the consummation of the merger and can provide no assurances that the merger will be consummated.

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Note 2 - Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information, the instructions to Form 10-Q and the rules and regulations of the SEC. Accordingly, since they are interim statements, the accompanying condensed consolidated financial statements do not include all of the information and notes required by GAAP for annual financial statements, but reflect all adjustments consisting of normal, recurring adjustments, that are necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented. In the opinion of the Company’s management, all adjustments, consisting of only normal and recurring adjustments, necessary for a fair presentation of the financial position and the results of operations for the periods presented have been included. Interim results are not necessarily indicative of results for a full year. The condensed consolidated financial statements and notes should be read in conjunction with the financial statements and notes for the year ended December 31, 2014.

Liquidity, Financial Condition

Liquidity, Financial Condition and Management's Plans	9 Months Ended
	Sep. 30, 2015
Liquidity Financial Condition And Managements Plans
Liquidity, Financial Condition and Management's Plans	Note 3 - Liquidity, Financial Condition and Management’s Plans The Company has commenced its planned operations but had limited operating activities to date. The Company has financed its operations from inception using proceeds received from capital contributions made by its members and proceeds in financing transactions. On January 19, 2015, the Company raised $433,000 of capital in a private placement transaction, $20,000 of capital through the issuance of a promissory note to Michal Handerhan, the Company’s Chief Operating Officer, and $45,000 of capital through the issuance of a promissory note to a third party. On April 20, 2015, the Company raised $2,312,500 of capital in a private placement transaction. Notwithstanding, the Company has limited revenues, limited capital resources and is subject to all of the risks and uncertainties that are typical of an early stage enterprise. Significant uncertainties include, among others, whether the Company will be able to raise the capital it needs to finance its longer term operations and whether such operations, if launched, will enable the Company to sustain operations as a profitable enterprise. The Company used approximately $0.5 million of cash in its operating activities for the nine months ended September 30, 2015. The Company incurred an $8.4 million net loss for the nine months ended September 30, 2015. The Company had cash of $0.09 million and a working capital deficiency of approximately $3.4 million at September 30, 2015. The Company expects to incur losses into the foreseeable future as it undertakes its efforts to execute its business plans. The Company will require significant additional capital to sustain its short-term operations and make the investments it needs to execute its longer term business plan. The Company’s existing liquidity is not sufficient to fund its operations and anticipated capital expenditures for the foreseeable future. If the Company attempts to obtain additional debt or equity financing, it cannot provide assurance that such financing will be available to the Company on favorable terms, if at all. Because of recurring operating losses, net operating cash flow deficits, and an accumulated deficit, there is substantial doubt about the Company’s ability to continue as a going concern. The condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern. The Company has not made adjustments to the accompanying condensed consolidated financial statements to reflect the potential effects on the recoverability and classification of assets or liabilities should the Company be unable to continue as a going concern. The Company continues to incur ongoing administrative and other expenses, including public company expenses, in excess of corresponding (non-financing related) revenue. While the Company continues to implement its business strategy, it intends to finance its activities through: ● managing current cash and cash equivalents on hand from the Company’s past equity offerings, ● seeking additional funds raised through the sale of additional securities in the future, and ● increasing revenue from its transaction verification services business.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 4 - Summary of Significant Accounting Policies A summary of the significant accounting policies applied in the preparation of the accompanying condensed consolidated financial statements is as follows: Transaction Verification Services Revenue earned from bitcoin processing activities (“Transaction Verification Services”), commonly termed ‘mining’ activities, is recognized at the fair value of the bitcoins received as consideration on the date of actual receipt. The Company generates revenue by performing computer processing activities for bitcoin generation. In the digital-currency industry such activity is generally referred to as Transaction Verification Services or bitcoin mining. The Company receives consideration for performing such transaction verification activities in the form of bitcoins. Revenue is recorded upon the actual receipt of bitcoins. Expenses consist of utilities paid to cover our electric costs, rent for our facility and personnel to run our facility. The expenses related to our Transaction Verification Services activities are affected by the level of activities and not the ultimate generation of bitcoins. The Company expenses these costs as they are incurred. Earnings per Share Basic earnings per share (“EPS”) is computed by dividing net loss applicable to common stock by the weighted-average number of common shares outstanding during the period. For purposes of calculating basic and diluted earnings per share, vested restricted stock awards are considered outstanding. Under the treasury stock method, diluted EPS reflects the potential dilution that could occur if securities or other instruments that are convertible into common stock were exercised or could result in the issuance of common stock. As of September 30, 2015, the Company had 22,991,679 warrants outstanding, which were not included in the diluted loss per share calculation for the three months and nine months ended September 30, 2015 because their effect was anti-dilutive. Recent Accounting Pronouncements In September 2015, the Financial Accounting Standards Board (“FASB”) issued ASU 2015-16, “Business Combinations: Simplifying the Accounting for Measurement-Period Adjustments” (ASU 2015-16). ASU 2015-16 eliminates the requirement for an acquirer to retrospectively adjust its financial statements for changes to provisional amounts that are identified during the measurement-period following the consummation of a business combination. Instead, ASU 2015-16 requires these types of adjustments to be made during the reporting period in which they are identified and would require additional disclosure or separate presentation of the portion of the adjustment that would have been recorded in the previously reported periods as if the adjustment to the provisional amounts had been recognized as of the acquisition date. ASU 2015-16 is effective prospectively for fiscal years beginning after December 15, 2015, including interim periods within those years. The Company does not expect the adoption of ASU 2015-16 will have a material impact on its results of operations. In April 2015, the FASB issued ASU No. 2015-03 , In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers: Topic 606” (ASU 2014-09), to supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues, when promised goods or services are transferred to customers, in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than required under existing U.S. GAAP including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU 2014-09 is effective the first quarter of 2018 using either of two methods: (i) retrospective to each prior reporting period presented with the option to elect certain practical expedients as defined within ASU 2014-09; or (ii) retrospective with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application and providing certain additional disclosures as defined per ASU 2014-09. The Company is currently evaluating the impact of ASU 2014-09 on its consolidated financial statements. Subsequent events Subsequent events have been evaluated through the date of this filing.

Property and Equipment

Property and Equipment	9 Months Ended
	Sep. 30, 2015
Property, Plant and Equipment [Abstract]
Property and Equipment	Note 5 - Property and Equipment Property and equipment consist of the following at September 30, 2015 and December 31, 2014: September 30, 2015 December 31, 2014 Equipment $ 111,885 $ 14,189 Computer 3,086 3,469 Leasehold improvement 223,587 - Transaction verification servers 449,911 194,891 Property and equipment 788,469 212,549 Accumulated depreciation (224,264 ) (22,359 ) Property and equipment, net $ 564,205 $ 190,190 During the quarter ended September 30, 2015, the Company incurred $151,712 leasehold improvement cost for the facilities in North Carolina. The lease commenced on January 28, 2015. The cost of leasehold improvement and office equipment are recorded at cost and depreciated using the straight-line method over the lease period of 2 years. Depreciation expense was $88,161 and $2,011 for the three months ended September 30, 2015 and 2014, respectively, and $201,905 and $2,967 for the nine months ended September 30, 2015 and 2014, respectively.

Shareholders' Equity

Shareholders' Equity	9 Months Ended
	Sep. 30, 2015
Equity [Abstract]
Shareholders' Equity	Note 6 - Shareholders’ Equity Common Stock First Quarter 2015 On January 19, 2015 (the “Closing Date”), the Company sold an aggregate of 4,330,000 units (each a “January Unit”) in a private placement (the “January Private Placement”) of its securities to certain investors at a purchase price of $0.10 per January Unit pursuant to subscription agreements for an aggregate purchase price of $433,000. Each January Unit in the January Private Placement consists of (i) one share of Common Stock and (ii) a warrant to purchase 2.5 shares of Common Stock at an exercise price of $0.10 per share (“January Warrant”). The January Units are subject to a “Most Favored Nations” provision and the January Warrants are subject to price protection in the event of lower priced issuances for a period of twenty four months from the Closing Date in the event the Company issues Common Stock or securities convertible into or exercisable for shares of Common Stock at a price per share or conversion or exercise price per share which shall be less than $0.10 per share, subject to certain customary exceptions. Additionally, the shares of Common Stock issued as part of the January Unit and issuable upon exercise of the January Warrants are subject to demand and piggy back registration rights. The January Warrant may be exercised on a cashless basis in the event there is no effective registration statement covering the resale of the Common Stock issuable upon exercise of the January Warrants. The January Warrants may be called for cancelation by the Company if: (i) the price per share exceeds $0.20 for 15 consecutive trading days, and (ii) the average daily dollar trading volume for such 15 consecutive trading days exceeds $50,000 per trading day. Because of the “Most Favored Nations” and call provision discussed above, the net value to shareholders’ equity is 0. The fair value of all components of the January Units was $952,600 ($649,500 attributed to the unit warrants, and $303,100 attributed to the derivative liability component with “Most Favored Nations” Provision), and as such the Company recorded a loss on issuance of January Unit of $519,600 for the three month ended March 31, 2015. (see Note 9 for assumptions) On January 23, 2015, the Company purchased 100 Spondoolies S35 digital currency mining servers from Spondoolies Tech Ltd. (“Spondoolies”) for $223,500 (the “Purchase Price”) pursuant to a purchase order agreement (the “Purchase Agreement”). $25,000 of the total Purchase Price was paid in the form of 250,000 shares of the Company’s common Stock. On January 26, 2015, the Company entered into a Share Redemption Agreement and Release (the “Redemption Agreement”) with Charles Kiser, its Executive Vice President pursuant to which Mr. Kiser agreed to return an aggregate of 250,000 shares of the Company’s Common Stock, held by him to the Company for cancellation in consideration for an aggregate payment of $2,500. On February 20, 2015, the Company issued 55,693 shares of Common Stock at a price of $0.26 to purchase hardware from a seller for $14,480. On March 26, 2015 the Company acquired 166,756 shares (an additional 2% equity ownership) of Coin Outlet from Eric Grill, Coin Outlet’s CEO, for 701,966 shares of the Company’s Common Stock. The Company now owns approximately 4.2% of Coin Outlet’s equity and has the ability to own up to 11% upon exercise of the Company’s previously issued option and warrant. Mr. Grill entered into a lock-up agreement with the Company with respect to his shares, pursuant to the lockup agreement Mr. Grill is prohibited from the sale of any his shares until after February 5, 2017. The Company assessed impairment for the Coin Outlet investment and determined that this investment is not recoverable and as such fully impaired it due to the steady price decline in Bitcoins throughout 2015. The Bitcoin Price Index was $319.70 and $243.39 as of December 31, 2014 and March 31, 2015, respectively. Total impairment was $154,433 for Coin Outlet. During the quarter ended March 31, 2015, a preferred stockholder converted 2,200,000 shares of Series C Preferred Stock to 2,200,000 shares of Common Stock. This conversion was in accordance with the original terms of the Series C Preferred Stock agreement. During the quarter ended March 31, 2015, the Company converted accounts payable due to certain vendors of $143,694 into 552,669 shares of Common Stock. In addition to common shares issued, the Company also granted “Conversion Price Protection” to each vendor. For one year after the date of conversion if the Company issues any equity or an equity-linked security at a price less than $0.26 per common share it will result in the issuance of additional Common Stock in an amount equal to an amount such that total number of shares issued to the vendors will be equal to the number of shares that would have been issued had the accounts payable been converted at the subsequent lower offering price. The fair value of the Common Stock on each of the issuance date with “Conversion Price Protection” was $202,074. The Company recorded $58,380 of inducement expense associated with the issuance of the common shares (based upon a monte-carlo simulation). A summary of quantitative information with respect to valuation methodology for the three months ended March 31, 2015 is as follows: Date of valuation February 18, 2015 February 18, 2015 March 5, 2015 Fair value of Common Stock $ 0.32 $ 0.32 $ 0.24 Dividend yield (per share) 0 0 0 Strike price $ 0.26 $ 0.26 $ 0.26 Volatility (annual) 123.36 % 123.36 % 124.56 % Risk-free rate 0.23 % 0.23 % 0.25 % Expected life (years) 5 5 5 Second Quarter 2015 On April 20, 2015 (the “Closing Date”), the Company sold an aggregate of 7,708,342 units (each a “April Unit”) in a private placement (the “April Private Placement”) of its securities to certain investors at a purchase price of $0.30 per January Unit pursuant to subscription agreements for an aggregate purchase price of $2,312,500. Each April Unit in the April Private Placement consists of (i) one share of Common Stock and (ii) a warrant to purchase 1.4 shares of Common Stock at an exercise price of $0.375 per share (“April Warrant”). Charles Allen, the Company’s Chief Executive Officer and Michal Handerhan, the Company’s Chief Operating Officer each purchased 66,667 April Units for $20,000 per executive in the April Private Placement. The April Units are subject to a “Most Favored Nations” provision and the April Warrants are subject to price protection in the event of lower priced issuances for a period of twenty four months from the Closing Date in the event the Company issues Common Stock or securities convertible into or exercisable for shares of Common Stock at a price per share or conversion or exercise price per share which shall be less than $0.30 per share, subject to certain customary exceptions. Additionally, the shares of Common Stock issued as part of the April Unit and issuable upon exercise of the April Warrants are subject to demand and piggy back registration rights. The April Warrant may be exercised on a cashless basis in the event there is no effective registration statement covering the resale of the Common Stock issuable upon exercise of the April Warrants. The April Warrants may be called for cancelation by the Company if: (i) the price per share exceeds $0.938 for 15 consecutive trading days, and (ii) the average daily dollar trading volume for such 15 consecutive trading days exceeds $200,000 per trading day. Because of the “Most Favored Nations” and call provision discussed above, the net value to shareholders’ equity is 0. The fair value of all components of the April Units was $2,843,811 ($1,878,957 attributed to the unit warrants, and $964,854 attributed to the derivative liability component with “Most Favored Nations” Provision), and as such the Company recorded a loss on issuance of April Unit of $531,311 on the issuance date. (see Note 9 for assumptions) On April 20, 2015, the Company issued an aggregate of 418,716 shares of Common Stock to its advisory board members. Each of the nine members of the advisory board received 46,524 shares of common stock. The fair value of the Common stock on the issuance date was $102,585. On May 12, 2015, the Company agreed to convert accrued and unpaid salaries owed to Charles Allen, the Company’s Chief Executive Officer, and Michal Handerhan, the Company’s Chief Operating Officer (collectively the “Employees”) into shares of Common Stock pursuant to conversion agreements (collectively, the “Salary Conversion Agreements”). The Company recorded $25,000 accrued salaries as of March 31, 2015. Charles Allen converted $25,000 of accrued and unpaid salary for the months of March 2015 and April 2015 into 50,000 shares of Common Stock at a per share price of $0.50. Michal Handerhan converted $25,000 of accrued and unpaid salary for the months of March 2015 and April 2015 into 50,000 shares of Common Stock at a per share price of $0.50. During the quarter ended June 30, 2015, the Company issued a total 171,387 shares of Common Stock at a per share price of $0.31 to certain vendors. The shares were issued pursuant to a conversion agreement for an aggregate conversion amount of $53,230. The conversion amount was in consideration for advisory services. On June 16, 2015, the Company issued 45,500 shares of Common Stock to a vendor for construction works provided in our North Carolina facility. The fair value of the Common Stock on the issuance date was $9,146, and was capitalized as leasehold improvement. Third Quarter 2015 During the quarter ended September 30, 2015, the Company issued 477,000 shares of Common Stock to various independent contractors for services provided at its facility in North Carolina and investor relations services. The weighted average fair value of the common stock on the issuance date was $0.18 per share. The Company recorded expenses of $87,270 for the three months ended September 30, 2015. Stock Purchase Warrants The following is a summary of warrant activity for the nine months ended September 30, 2015: Number of Weighted Average Warrants Exercise Price Outstanding as of December 31, 2014 875,000 $ 1.0 Issuance of warrants with Units - January 19, 2015* 10,825,000 0.10 Issuance of warrants with Units - April 20, 2015* 10,791,679 0.37 Issuance of warrants for services 500,000 0.31 Outstanding as of September 30, 2015 22,991,679 $ 0.23 * The warrants contain most favor nation and call provision and the Company classifies these warrant instruments as liabilities measured at fair value and re-measures these instruments at fair value each reporting period. (See FN 9) Demand Registration Rights. The shares of Common Stock issued upon conversion of Series C Shares or the warrant underlying the January Units are subject to “piggy-back” and “demand” registration rights until such shares of Common Stock may be sold under Rule 144 under the Securities Act of 1933, as amended (the “Securities Act”). The Company shall pay to holders a fee of 0.25% per month of the investors’ investment, payable in cash, for every thirty (30) day period up to a maximum of 3%, (i) following the filing date that the registration statement has not been filed and (ii) following the effectiveness date that the registration statement has not been declared effective; provided, however, that the Company shall not be obligated to pay any such liquidated damages if the Company is unable to fulfill its registration obligations as a result of rules, regulations, positions or releases issued or actions taken by the Commission pursuant to its authority with respect to “Rule 415”, and the Company registers at such time the maximum number of shares of Common Stock permissible upon consultation with the staff of the Commission. If during the effectiveness period, the number of registerable Securities at any time exceeds 100% of the number of shares of Common Stock then registered in a registration statement, the Company shall file as soon as reasonably practicable an additional registration statement covering the resale of not less than the number of such registerable securities. The Company accounts for obligations under the Registration Rights Agreement in accordance with ASC 450 “Contingencies,” which requires us to record a liability if the contingent loss is probable and the amount can be estimated. At September 30, 2015, the Company has not recorded a liability pertaining to the Company’s obligations under the Registration Rights Agreement because the amount is not deemed probable.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2015
Related Party Transactions [Abstract]
Related Party Transactions	Note 7 - Related Party Transactions On December 18, 2014, Charles Allen, the Company’s Chief Executive Officer contributed $7,990 of brand new digital currency mining hardware at cost in exchange for a promissory note (the “Allen Note”). The Allen Note bears interest at a rate of 2% per year and is due on December 31, 2015. The Allen Note may be prepaid, at our option, without premium or penalty, in whole or in part at any time or from time to time prior to the Allen Note maturity. On February 10, 2015, the Company paid back $3,000 on the Allen Note. On May 8, 2015, the Company paid in full the remaining balance of the promissory note issued to Charles Allen, including $4,990 in principal and $48 in accrued interest. On January 19, 2015, Michal Handerhan, the Company’s Chief Operating Officer loaned the Company $20,000 pursuant to Promissory Notes (the “Handerhan Note”). The Handerhan Note bears interest at the rate of 2% per annum and matures on December 31, 2015. The Handerhan Note may be prepaid, at the option of the Company, without premium or penalty, in whole or in part at any time or from time to time prior to the Handerhan Note maturity. On February 17, 2015, the Company paid back $3,000. On May 4, 2015, the Company repaid $10,000 in principal of the promissory note issued to Michal Handerhan. On May 13, 2015, the Company paid in full the remaining balance of the promissory note issued to Michal Handerhan, including $7,000 in principal and $108 in accrued interest. On January 19, 2015 (the “Closing Date”), the Company sold an aggregate of 4,330,000 units (each a “January Unit”) in a private placement (the “January Private Placement”) of its securities to certain investors at a purchase price of $0.10 per January Unit pursuant to subscription agreements for an aggregate purchase price of $433,000. Charles Allen, the Company’s Chief Executive Officer, and Michal Handerhan, the Company’s Chief Operating Officer, each purchased 50,000 January Units in the January Private Placement for $5,000 per executive. On April 20, 2015 (the “Closing Date”), the Company sold an aggregate of 7,708,342 units (each a “April Unit”) in a private placement (the “April Private Placement”) of its securities to certain investors at a purchase price of $0.30 per April Unit pursuant to subscription agreements for an aggregate purchase price of $2,312,500. Charles Allen, the Company’s Chief Executive Officer and Michal Handerhan, the Company’s Chief Operating Officer each purchased 66,667 April Units for $20,000 per executive in the April Private Placement.

Investment at Cost

Investment at Cost	9 Months Ended
	Sep. 30, 2015
Schedule of Investments [Abstract]
Investment at Cost	Note 8 - Investment at Cost Coin Outlet On January 19, 2015, the Company entered into a Convertible Note Purchase Agreement (the “Purchase Agreement”) with Coin Outlet, Inc. (“Coin Outlet”) pursuant to which the Company purchased a convertible promissory note in the principal amount of $100,000 (the “Coin Outlet Note”). The Coin Outlet Note accrues interest at 4% per annum and matures on January 31, 2016. The Coin Outlet Note will convert, on or before the maturity date, upon the occurrence of Coin Outlet’s next equity financing (or series of financings) in which Coin Outlet receives gross proceeds of at least $1 million (the “Trigger Financing”). Upon the occurrence of a Trigger Financing, all outstanding principal on the Coin Outlet Note (and, at the Coin Outlet’s option, accrued but unpaid interest thereon), will convert into such Coin Outlet securities sold in the Trigger Financing at a price per share equal to 80% of the per share price of the securities sold in the Trigger Financing (the “Note Conversion Price”). In the event the Note Conversion Price exceeds the quotient of (x) $6 million divided by (y) Coin Outlet’s fully diluted capitalization (as calculated in the Coin Outlet Note) (such quotient, the “Fully Diluted Value”), then the Note Conversion Price shall equal the per share price of the securities sold in the Trigger Financing and Coin Outlet shall issue such additional number of shares of Coin Outlet to the Company such that the average purchase price per share of Coin Outlet common stock (including shares of Coin Outlet common stock issuable upon conversion of the Coin Outlet Note into the Trigger Financing) is equal to the Fully Diluted Value. On March 26, 2015 the Company acquired 166,756 shares (an additional 2% equity ownership) of Coin Outlet Inc. (“Coin Outlet”) from Eric Grill, Coin Outlet’s CEO, for 701,966 shares of the Company’s Common Stock (“Coin Outlet Investment”). The Company now owns approximately 4.2% of Coin Outlet’s equity and has the ability to own up to 11% upon exercise of its previously issued option and warrant. Mr. Grill entered into a lock-up agreement with the Company with respect to his shares, pursuant to the lockup agreement Mr. Grill is prohibited from the sale of any his shares until after February 5, 2017. (see Note 6) As of March 31, 2015, the Company assessed the carrying amount of this investment for potential impairment and determined that this investment is not recoverable due to uncertainties regarding the stability of digital currency markets and steady price decline in the US dollar equivalent of Bitcoins throughout 2015. The Bitcoin Price Index was $319.70 and $243.39 as of December 31, 2014 and March 31, 2015, respectively. Total impairment was $254,433 for the Coin Outlet Note and Coin Outlet Investment. The fair value of investment was measured under Level 3 on a non-recurring basis. Spondoolies On May 12, 2015, the Company entered into a Series B Preferred Share Purchase Agreement (the “Share Purchase Agreement”) and the Management Rights Letter (the “Rights Letter”) with Spondoolies Tech Ltd. (“Spondoolies”) a Bitcoin equipment manufacturer, by way of a joinder agreement (the “Joinder Agreement”) pursuant to which the Company purchased 29,092 Series B Preferred Shares of Spondoolies (the “Series B Shares”) for an aggregate purchase price of $1,500,000 (the “Investment”). After giving effect to the Investment, the Company owns approximately 6.6% of Spondoolies’ equity on a fully diluted basis. The Series B Preferred Shares are convertible into Spondoolies’ ordinary shares by dividing the original issuance price of the Series B Preferred Shares ($51.56) by the initial conversion price ($51.56) (the “Conversion Price”). Until Spondoolies consummates a “Qualified IPO” (as defined substantially as an initial firm commitment underwritten public offering of Spondoolies’ ordinary shares with net proceeds to Spondoolies of not less than $40 million), the Series B Preferred shares are subject to anti-dilution protection in the event Spondoolies issues ordinary shares or securities convertible into or exercisable for ordinary shares at a price per share or conversion or exercise price per share which shall be less than Conversion Price then in effect, subject to certain customary exceptions. The Conversion Price is subject to adjustment in the event of stock splits, stock dividends, combination of shares and similar recapitalization transactions. The Series B Shares are also entitled to certain preemptive rights, and a liquidation preference in the event of dissolution of Spondoolies. The Series B Preferred Shares are automatically convertible into ordinary shares of Spondoolies upon the occurrence of a Qualified IPO. In connection with the Company’s purchase of the Series B Preferred Shares, the Company and Spondoolies executed the Rights Letter which provided the Company with certain rights, including inspection rights, and information rights with respect to Spondoolies financial statements, appurtenant to the Investment. On May 12, 2015, the Company and Spondoolies entered into a letter agreement (the “Letter Agreement”) to clarify and expand upon certain terms related to a proposed merger (“Proposed Merger”) contained in the LOI. Under the terms of the Letter Agreement, Spondoolies agreed to provide to the Company: (i) certain exclusivity rights for a period of nine months (the “Term”) with respect to any proposals or offers from, or enter into any agreements with, any third party relating to (a) any investment in, or acquisition of, equity interests of Spondoolies or (b) any possible sale or other disposition of all or any material portion of assets of Spondoolies; (ii) a breakup fee of $50,000 payable by Spondoolies, if the Proposed Merger is not consummated during the Term as a result of certain circumstances; (iii) a breakup fee of $1,000,000 if the Proposed Merger is not consummated because the approval of Spondoolies’ board of directors or shareholders for the Proposed Merger is not obtained and a competing deal is consummated, during the Term; and (iv) Spondoolies agreed to continue to sell its products to the Company for a period of 3 years, if the Proposed Merger is not consummated and Spondoolies continues to design and manufacture ASIC digital currency mining hardware. On September 21, 2015, the Company, Spondoolies-Tech Ltd., an Israeli company (“Spondoolies”), and Shareholders of Spondoolies (the “Selling Shareholders”) entered into a Share Purchase Agreement, dated as of September 21, 2015, (the “Agreement”) pursuant to which the Company shall purchase all the shares in Spondoolies (the “Spondoolies Shares”) from the Selling Shareholders so that Spondoolies will be a wholly-owned subsidiary of the Company after the closing of the transactions contemplated by the Agreement (the “Transaction”). In exchange for the Spondoolies Shares, the Selling Shareholders will receive either shares of the Company’s common stock or shares of the Company’s Series A preferred stock, convertible into the Company’s common stock as described below (collectively, the “Company’s Securities”). After the completion of the Transaction, the Company’s shareholders will own a 54.4% to 55.4% stake in the combined company and Spondoolies’ shareholders will own a 44.6% to 45.6% of the combined company, based on the number of the Company’s securities outstanding immediately following the Transaction. The ownership range is a function of the Company’s liquidation preference associated with its existing $1.5 million investment in Spondoolies. The final ownership percentages will be determined prior to closing. In addition to standard closing conditions, the closing of the Transactions will not occur until the Selling Shareholders receive rulings from the Israeli Tax Authority confirming, among other things, that the Selling Shareholders may defer the payment of applicable Israeli taxes with respect to the Company’s securities received by each Selling Shareholder until the Company’s securities are sold by the Selling Shareholder, and the approval of the transaction by the Israeli Office of Chief Scientist. The Company cannot predict the exact timing of the consummation of the merger and can provide no assurances that the merger will be consummated.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 9 - Fair Value Measurements The Company’s assets and liabilities recorded at fair value have been categorized based upon a fair value hierarchy. The following table presents information about the Company’s liabilities measured at fair value on a recurring basis and the Company’s estimated level within the fair value hierarchy of those assets and liabilities as of September 30, 2015 and December 31, 2014: Fair value measured at September 30, 2015 Total carrying value at September 30, 2015 Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Assets: Digital Currencies $ 61,306 $ 61,306 $ - $ - Liabilities: Derivative Liabilities $ 3,186,372 $ - $ - $ 3,186,372 Fair value measured at December 31, 2014 Total carrying value at December 31, 2014 Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Digital Currencies $ 16,040 $ 16,040 $ - $ - Derivative liabilities as of September 30, 2015 consists of Unit warrants with most favored nation clauses that were issued on January 19, 2015 and April 20, 2015 in connection with the Company’s financing. There were no transfers between Level 1, 2 or 3 during the nine months ended September 30, 2015. The following table presents additional information about Level 3 assets and liabilities measured at fair value. Both observable and unobservable inputs may be used to determine the fair value of positions that the Company has classified within the Level 3 category. As a result, the unrealized gains and losses for assets and liabilities within the Level 3 category may include changes in fair value that were attributable to both observable (e.g., changes in market interest rates) and unobservable (e.g., changes in unobservable long-dated volatilities) inputs. Changes in Level 3 liabilities measured at fair value for the nine months ended September 30, 2015: Balance - January 1, 2015 $ - Fair value of derivative liability on date of issuance (January 19, 2015) 952,600 Fair value of derivative liability on date of issuance (April 20, 2015) 2,843,811 Change in fair value of derivative liability (610,039 ) Balance - September 30, 2015 $ 3,186,372 A summary of quantitative information with respect to valuation methodology, estimated using a probability-weighted Black-Scholes option pricing model, which is comparable to a Binomial option pricing model, and significant unobservable inputs used for the Company’s warrant liabilities that are categorized within Level 3 of the fair value hierarchy for the nine months ended September 30, 2015 is as follows: Date of valuation January 19, 2015 April 16, 2015 September 30, 2015 Fair value of Common Stock $ 0.08 $ 0.24 $ 0.14 Strike price $ 0.10 $ 0.38 $ 0.10-$0.38 Volatility (annual) 108 % 160 % 108 % Risk-free rate 1.3 % 1.3 % 1.2%-1.3 % Expected life (years) 5.0 5.0 4.3-4.6 Dividend yield (per share) 0 0 0 The development and determination of the unobservable inputs for Level 3 fair value measurements and fair value calculations are the responsibility of the Company’s management.

Stock Based Compensation

Stock Based Compensation	9 Months Ended
	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Based Compensation	Note 10 - Stock Based Compensation Compensation expense for all stock-based awards is measured on the grant date based on the fair value of the award and is recognized as an expense, on a straight-line basis, over the employee’s requisite service period (generally the vesting period of the equity award). The fair value of each option award is estimated on the grant date using a Black-Scholes option valuation model. Stock-based compensation expense is recognized only for those awards that are expected to vest using an estimated forfeiture rate. The Company estimates pre-vesting option forfeitures at the time of grant and reflects the impact of estimated pre-vesting option forfeitures in compensation expense recognized. For options and warrants issued to non-employees, the Company recognizes stock compensation costs utilizing the fair value methodology over the related period of benefit. Stock-based compensation expense was $3,629,804 and $2,247,800 for the three months ended September 30, 2015 and 2014, respectively. Stock-based compensation expense was $6,383,772 and $5,814,963 for the nine months ended September 30, 2015 and 2014, respectively. Stock Option Activity On July 2, 2015, the Company entered into Option Cancellation and Release Agreements with each of Charles Allen, its Chief Executive Officer, Chief Financial Officer and Chairman, and Michal Handerhan, its Chief Operating Officer and corporate secretary (collectively, the “Company Option Holders”) pursuant to which the Company Option Holders agreed to return options to purchase up to 12,450,000 shares in the aggregate of the Company’s Common Stock, par value $0.001 per share, with an exercise price of $0.10. The Company Option Holders canceled their options without replacement, and the amortization of the unrecognized stock compensation expenses were accelerated on July 2, 2015 for a total $3,629,804. There are no stock options outstanding as of September 30, 2015.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 11 - Commitments and Contingencies On January 28, 2015, BTCS Digital Manufacturing a wholly owned subsidiary of the Company entered into a commercial lease agreement (the “Lease”). The term of the Lease commenced on January 28, 2015 and ends on January 25, 2017. The annual rental fee for the first and second year will be $58,271 and $66,750, respectively. The Company also has the option to purchase the property during the second year of the Lease term for a purchase price of $775,000 less the $10,000 security deposit and all lease payments. On May 28, 2015 the Company entered an operating sub-lease agreement ending on May 31, 2016 for its headquarters in Arlington, Virginia. Prepaid expenses include $12,000 of fixed minimum lease payment that is prepaid through May 31, 2016.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2015
Subsequent Events [Abstract]
Subsequent Events	Note 12 - Subsequent Events On October 14, 2015, the Company issued 162,037 shares of common stock to an individual investor for his cashless warrants exercise. On October 29, 2015, the Company issued 40,000 shares of common stock to a consultant for investor relations services.

Summary of Significant Accoun19

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Transaction Verification Services	Transaction Verification Services Revenue earned from bitcoin processing activities (“Transaction Verification Services”), commonly termed ‘mining’ activities, is recognized at the fair value of the bitcoins received as consideration on the date of actual receipt. The Company generates revenue by performing computer processing activities for bitcoin generation. In the digital-currency industry such activity is generally referred to as Transaction Verification Services or bitcoin mining. The Company receives consideration for performing such transaction verification activities in the form of bitcoins. Revenue is recorded upon the actual receipt of bitcoins. Expenses consist of utilities paid to cover our electric costs, rent for our facility and personnel to run our facility. The expenses related to our Transaction Verification Services activities are affected by the level of activities and not the ultimate generation of bitcoins. The Company expenses these costs as they are incurred.
Earnings per Share	Earnings per Share Basic earnings per share (“EPS”) is computed by dividing net loss applicable to common stock by the weighted-average number of common shares outstanding during the period. For purposes of calculating basic and diluted earnings per share, vested restricted stock awards are considered outstanding. Under the treasury stock method, diluted EPS reflects the potential dilution that could occur if securities or other instruments that are convertible into common stock were exercised or could result in the issuance of common stock. As of September 30, 2015, the Company had 22,991,679 warrants outstanding, which were not included in the diluted loss per share calculation for the three months and nine months ended September 30, 2015 because their effect was anti-dilutive.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In September 2015, the Financial Accounting Standards Board (“FASB”) issued ASU 2015-16, “Business Combinations: Simplifying the Accounting for Measurement-Period Adjustments” (ASU 2015-16). ASU 2015-16 eliminates the requirement for an acquirer to retrospectively adjust its financial statements for changes to provisional amounts that are identified during the measurement-period following the consummation of a business combination. Instead, ASU 2015-16 requires these types of adjustments to be made during the reporting period in which they are identified and would require additional disclosure or separate presentation of the portion of the adjustment that would have been recorded in the previously reported periods as if the adjustment to the provisional amounts had been recognized as of the acquisition date. ASU 2015-16 is effective prospectively for fiscal years beginning after December 15, 2015, including interim periods within those years. The Company does not expect the adoption of ASU 2015-16 will have a material impact on its results of operations. In April 2015, the FASB issued ASU No. 2015-03 , In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers: Topic 606” (ASU 2014-09), to supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues, when promised goods or services are transferred to customers, in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than required under existing U.S. GAAP including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU 2014-09 is effective the first quarter of 2018 using either of two methods: (i) retrospective to each prior reporting period presented with the option to elect certain practical expedients as defined within ASU 2014-09; or (ii) retrospective with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application and providing certain additional disclosures as defined per ASU 2014-09. The Company is currently evaluating the impact of ASU 2014-09 on its consolidated financial statements.
Subsequent Events	Subsequent events Subsequent events have been evaluated through the date of this filing.

Property And Equipment (Tables)

Property And Equipment (Tables)	9 Months Ended
	Sep. 30, 2015
Property, Plant and Equipment [Abstract]
Schedule of Property And Equipment, Net	Property and equipment consist of the following at September 30, 2015 and December 31, 2014: September 30, 2015 December 31, 2014 Equipment $ 111,885 $ 14,189 Computer 3,086 3,469 Leasehold improvement 223,587 - Transaction verification servers 449,911 194,891 Property and equipment 788,469 212,549 Accumulated depreciation (224,264 ) (22,359 ) Property and equipment, net $ 564,205 $ 190,190

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2015
Equity [Abstract]
Summary of Fair Value of Valuation Assumptions	A summary of quantitative information with respect to valuation methodology for the three months ended March 31, 2015 is as follows: Date of valuation February 18, 2015 February 18, 2015 March 5, 2015 Fair value of Common Stock $ 0.32 $ 0.32 $ 0.24 Dividend yield (per share) 0 0 0 Strike price $ 0.26 $ 0.26 $ 0.26 Volatility (annual) 123.36 % 123.36 % 124.56 % Risk-free rate 0.23 % 0.23 % 0.25 % Expected life (years) 5 5 5
Summary of Warrant Activity	The following is a summary of warrant activity for the nine months ended September 30, 2015: Number of Weighted Average Warrants Exercise Price Outstanding as of December 31, 2014 875,000 $ 1.0 Issuance of warrants with Units - January 19, 2015* 10,825,000 0.10 Issuance of warrants with Units - April 20, 2015* 10,791,679 0.37 Issuance of warrants for services 500,000 0.31 Outstanding as of September 30, 2015 22,991,679 $ 0.23 * The warrants contain most favor nation and call provision and the Company classifies these warrant instruments as liabilities measured at fair value and re-measures these instruments at fair value each reporting period. (See FN 9)

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Summary of Fair Value liabilities Measured at Fair Value on Recurring Basis	The following table presents information about the Company’s liabilities measured at fair value on a recurring basis and the Company’s estimated level within the fair value hierarchy of those assets and liabilities as of September 30, 2015 and December 31, 2014: Fair value measured at September 30, 2015 Total carrying value at September 30, 2015 Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Assets: Digital Currencies $ 61,306 $ 61,306 $ - $ - Liabilities: Derivative Liabilities $ 3,186,372 $ - $ - $ 3,186,372 Fair value measured at December 31, 2014 Total carrying value at December 31, 2014 Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Digital Currencies $ 16,040 $ 16,040 $ - $ -
Schedule of Changes in Level 3 Liabilities Measured at Fair Value	Changes in Level 3 liabilities measured at fair value for the nine months ended September 30, 2015: Balance - January 1, 2015 $ - Fair value of derivative liability on date of issuance (January 19, 2015) 952,600 Fair value of derivative liability on date of issuance (April 20, 2015) 2,843,811 Change in fair value of derivative liability (610,039 ) Balance - September 30, 2015 $ 3,186,372
Summary of Quantitative Information to Valuation Methodology	A summary of quantitative information with respect to valuation methodology, estimated using a probability-weighted Black-Scholes option pricing model, which is comparable to a Binomial option pricing model, and significant unobservable inputs used for the Company’s warrant liabilities that are categorized within Level 3 of the fair value hierarchy for the nine months ended September 30, 2015 is as follows: Date of valuation January 19, 2015 April 16, 2015 September 30, 2015 Fair value of Common Stock $ 0.08 $ 0.24 $ 0.14 Strike price $ 0.10 $ 0.38 $ 0.10-$0.38 Volatility (annual) 108 % 160 % 108 % Risk-free rate 1.3 % 1.3 % 1.2%-1.3 % Expected life (years) 5.0 5.0 4.3-4.6 Dividend yield (per share) 0 0 0

Business Organization and Nat23

Business Organization and Nature of Operations (Details Narrative) - USD ($)	Feb. 05, 2014	Sep. 21, 2015
Liquidation preference		$ 1,500,000
Minimum [Member]
Ownership percent		54.40%
Maximum [Member]
Ownership percent		55.40%
Bitcoin Shop Us LLC [Member]
Shares issued for membership interests	100,773,923
Spondoolies-Tech Ltd [Member] | Minimum [Member]
Ownership percent		44.60%
Spondoolies-Tech Ltd [Member] | Maximum [Member]
Ownership percent		45.60%

Liquidity, Financial Conditio24

Liquidity, Financial Condition and Management's Plans (Details Narrative) - USD ($)	Apr. 20, 2015	Jan. 19, 2015	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014	Dec. 31, 2013
Proceeds from private placement		$ 433,000
Proceeds from notes payable		45,000
Capital raised in private placement	$ 2,312,500
Net cash used in operating activities					$ 514,612	$ 1,149,042
Net loss			$ 3,819,439	$ 2,589,498	8,418,831	6,608,862
Cash			91,623	$ 111,611	91,623	$ 111,611	$ 5,403	$ 9,052
Working capital deficiency			$ 3,400,000		$ 3,400,000
Handerhan (COO) [Member]
Proceeds from notes payable		$ 20,000

Summary of Significant Accoun25

Summary of Significant Accounting Policies (Details Narrative) - shares	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015
Warrant Outstanding [Member]
Anti-dilutive securities	22,991,679	22,991,679

Property and Equipment (Details

Property and Equipment (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Property, Plant and Equipment [Abstract]
Leasehold improvement cost	$ 151,712
The lease commencement date	Jan. 28, 2015
Lease period	2 years
Depreciation expense	$ 88,161	$ 2,011	$ 2,967	$ 201,905

Property And Equipment - Schedu

Property And Equipment - Schedule of Property And Equipment, Net (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Property, Plant and Equipment [Abstract]
Equipment	$ 111,885	$ 14,189
Computer	3,086	$ 3,469
Leasehold improvement	223,587
Transaction verification servers	449,911	$ 194,891
Property and equipment	788,469	212,549
Accumulated depreciation	(224,264)	(22,359)
Property and equipment, net	$ 564,205	$ 190,190

Stockholders' Equity (Details N

Stockholders' Equity (Details Narrative)	Jun. 16, 2015USD ($)shares	Apr. 20, 2015USD ($)TradingDays$ / sharesshares	Mar. 26, 2015shares	Feb. 20, 2015USD ($)$ / sharesshares	Jan. 26, 2015USD ($)shares	Jan. 23, 2015USD ($)Integershares	Jan. 19, 2015USD ($)TradingDays$ / sharesshares	Apr. 30, 2015USD ($)$ / sharesshares	Sep. 30, 2015USD ($)$ / sharesshares	Mar. 31, 2015USD ($)$ / sharesshares	Sep. 30, 2015USD ($)$ / sharesshares	Sep. 30, 2014USD ($)	Dec. 31, 2014USD ($)$ / shares
Derivative liability									$ 3,186,372		$ 3,186,372
Issuance of common stock for asset purchase											48,626
Bitcoin index price | $ / shares										$ 243.39			$ 319.70
Impairment charges											$ 154,433
Equity price per share | $ / shares									$ 0.18		$ 0.18
Inducement expense											$ 58,380
Number of common stock shares for services | shares									477,000
Stock based compensation expense									$ 87,270		6,383,772
Fair value of common stock											$ 189,855
Percentage of fees per month											0.25%
Percentage of investment payable in cash | $ / shares											$ 0.03
Percentage of registerable securities | $ / shares											1
Advisory Board [Member]
Number of common stock shares for services | shares		418,716
Nine Advisory Board [Member]
Number of common stock shares for services | shares		46,524
Fair value of common stock		$ 102,585
Charles Allen [Member]
Equity price per share | $ / shares										$ 0.50
Accrued salaries										$ 25,000
Number of common stock value converted for accrued and unpaid salary								$ 25,000
Number of common stock shares converted for accrued and unpaid salaries | shares								50,000
Michal Handerhan [Member]
Equity price per share | $ / shares								$ 0.50
Accrued salaries								$ 50,000
Number of common stock value converted for accrued and unpaid salary								$ 25,000
Number of common stock shares converted for accrued and unpaid salaries | shares								50,000
Redemption Agreement [Member] | Charles Kiser [Member]
Number of common stock shares return | shares					250,000
Number of common stock return					$ 2,500
Series C Preferred Stock Agreement [Member]
Conversion of Series C Convertible Preferred to common stock, Shares | shares										2,200,000
Conversion of accounts payable to common stock, Shares | shares										143,694
Conversion of accounts payable to common stock										$ 552,669
Equity price per share | $ / shares										$ 0.26
Fair value of common stock grants										$ 202,074
Spondoolies-Tech Ltd [Member] | Purchase Agreement [Member]
Number of Spondoolies purchased | Integer						100
Number of digital currency mining servers purchased | Integer						35
Purchase price of assets						$ 223,500
Issuance of common stock for asset purchase, Shares | shares						250,000
Issuance of common stock for asset purchase						$ 25,000
Seller [Member]
Number of common stock unit sold | shares				55,693
Common stock purchase price per share | $ / shares				$ 0.26
Number of common stock sold				$ 14,480
Coin Outlet [Member]
Issuance of common stock for acquisition, share | shares			166,756
Percentage of additional equity ownership			2.00%
Issuance of common stock shares for stock compensation | shares			701,966
Percentage of equity ownership			4.20%
Percentage of equity ownership ability increase upto exercise of previously issued option and warrant			11.00%
Vendors [Member]
Number of common stock shares for services | shares	45,500
Fair value of common stock	$ 9,146
Vendors [Member] | Conversion Agreement [Member]
Equity price per share | $ / shares									$ 0.31		$ 0.31
Number of common stock shares for services | shares											171,387
Fair value of common stock											$ 53,230
January Private Placement [Member]
Number of common stock unit sold | shares		7,708,342					4,330,000
Common stock purchase price per share | $ / shares		$ 0.30					$ 0.10
Number of common stock sold		$ 2,312,500					$ 433,000
Issuance of warrants to purchase of common stock | shares							2.5
Common stock exercise price per share | $ / shares							$ 0.10
Stock conversation price per share | $ / shares							0.10
Warrant price per share exceeds | $ / shares							$ 0.20
Consecutive trading days | TradingDays							15
Average daily dollar trading volume exceeds per trading day							$ 50,000
Net value to shareholders' equity							$ 0
Fair value of Units											952,600
Derivative liability warrants									$ 649,500		649,500
Derivative liability									$ 303,100		303,100
Loss on issuance of units										$ 519,600
April Private Placement [Member]
Number of common stock unit sold | shares		7,708,342
Common stock purchase price per share | $ / shares		$ 0.30
Number of common stock sold		$ 2,312,500
Issuance of warrants to purchase of common stock | shares		1.4
Common stock exercise price per share | $ / shares		$ 0.375
Warrant price per share exceeds | $ / shares		$ 0.938
Consecutive trading days | TradingDays		15
Average daily dollar trading volume exceeds per trading day		$ 200,000
Fair value of Units		2,843,811									$ 531,311
Derivative liability warrants		1,878,957
Derivative liability		$ 964,854
April Private Placement [Member] | Charles Allen And Michal Handerhan [Member]
Issuance of warrants to purchase of common stock | shares		66,667
Stock conversation price per share | $ / shares		$ 0.30
Issuance of warrants to purchase of common stock, value		$ 20,000

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Fair Value of Valuation Assumptions (Details) - $ / shares	Apr. 16, 2015	Mar. 05, 2015	Feb. 18, 2015	Jan. 19, 2015	Sep. 30, 2015
Equity [Abstract]
Fair value of common stock	$ 0.24	$ 0.24	$ 0.32	$ 0.08	$ 0.14
Dividend yield (per share)	0	0	0	0	$ 0
Strike price	$ 0.38	$ 0.26	$ 0.26	$ 0.10
Volatility (annual)	160.00%	124.56%	123.36%	108.00%	108.00%
Risk-free rate	1.30%	0.25%	0.23%	1.30%
Expected life (years)	5 years	5 years	5 years	5 years

Shareholders' Equity - Summary

Shareholders' Equity - Summary of Warrant Activity (Details) - Warrant Outstanding [Member]	9 Months Ended
	Sep. 30, 2015$ / sharesshares
Number of Warrants Outstanding Beginning Balance | shares	875,000
Number of Warrants Issuance of warrants with Units - January 19, 2015 | shares	10,825,000	[1]
Number of Warrants Issuance of warrants with Units -April 20, 2015 | shares	10,791,679	[1]
Number of Warrants Issuance of warrants for services | shares	500,000
Number of Warrants Outstanding Ending Balance | shares	22,991,679
Weighted Average Exercise Price Outstanding Beginning Balance	$ 0.10
Weighted Average Exercise Price Outstanding Issuance of warrants with Units - January 19, 2015	0.10	[1]
Weighted Average Exercise Price Outstanding Issuance of warrants with Units -April 20, 2015	0.37	[1]
Weighted Average Exercise Price Outstanding Issuance of warrants for services	0.31
Weighted Average Exercise Price Outstanding Ending Balance	$ 0.23
[1]	The warrants contain most favor nation and call provision and the Company classifies these warrant instruments as liabilities measured at fair value and re-measures these instruments at fair value each reporting period. (See FN 9)

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	May. 04, 2015	Apr. 20, 2015	Feb. 17, 2015	Feb. 10, 2015	Jan. 19, 2015	Dec. 18, 2014	May. 13, 2015	May. 08, 2015
Repayment of note payable			$ 3,000
January Private Placement [Member]
Number of common stock unit sold		7,708,342			4,330,000
Common stock purchase price per share		$ 0.30			$ 0.10
Number of common stock sold		$ 2,312,500			$ 433,000
Charles Allen [Member]
Number of common stock shares purchased		66,667			50,000
Number of common stock purchased		$ 20,000			$ 5,000
Charles Allen [Member] | Allen Note [Member]
Loan from related party						$ 7,990
Note bear interest rate						2.00%
Note due date						Dec. 31, 2015
Repayment of note payable				$ 3,000
Principal amount of promissory note								$ 4,990
Accrued interest relate to note								$ 48
Michal Handerhan [Member]
Number of common stock shares purchased		66,667			50,000
Number of common stock purchased		$ 20,000			$ 5,000
Michal Handerhan [Member] | HanderhanNote[Member]
Loan from related party					$ 20,000
Note bear interest rate					2.00%
Note due date					Dec. 31, 2015
Repayment of note payable	$ 10,000
Principal amount of promissory note							$ 7,000
Accrued interest relate to note							$ 108

Investment at Cost (Details Nar

Investment at Cost (Details Narrative) - USD ($)	May. 12, 2015	Mar. 26, 2015	Jan. 19, 2015	Sep. 30, 2015	Sep. 30, 2014	Sep. 21, 2015	Mar. 31, 2015	Dec. 31, 2014
Bitcoin index price							$ 243.39	$ 319.70
Investment impairment				$ 254,433
Liquidation preference						$ 1,500,000
Minimum [Member]
Percentage of equity ownership						54.40%
Minimum [Member] | Spondoolies-Tech Ltd [Member]
Percentage of equity ownership						44.60%
Maximum [Member]
Percentage of equity ownership						55.40%
Maximum [Member] | Spondoolies-Tech Ltd [Member]
Percentage of equity ownership						45.60%
Coin Outlet [Member]
Issuance of common stock for acquisition, share		166,756
Percentage of additional equity ownership		2.00%
Issuance of common stock shares for stock compensation		701,966
Percentage of equity ownership		4.20%
Percentage of equity ownership ability increase up to exercise of previously issued option and warrant		11.00%
Purchase Agreement [Member] | Coin Outlet [Member]
Convertible promissory note principal amount			$ 100,000
Note accrues interest rate			4.00%
Note maturity date			Jan. 31, 2016
Proceeds from convertible promissory note			$ 1,000,000
Percentage of sale of price per shares			80.00%
Note conversion price exceeds			$ 600,000
Share Purchase Agreement [Member] | Spondoolies-Tech Ltd [Member] | Series B Preferred Stock [Member]
Percentage of equity ownership				6.60%
Number of preferred stock shares purchased				29,092
Number of preferred stock purchased				$ 1,500,000
Preferred stock original issuance price per share				$ 51.56
Preferred stock initial conversation price per share				$ 51.56
Proceeds from issuance of public offering				$ 40,000,000
Letter Agreement [Member] | Spondoolies-Tech Ltd [Member]
Breakup fee payable	$ 50,000
Letter Agreement [Member] | Spondoolies-Tech Ltd [Member] | Board Of Directors Or Shareholders [Member]
Breakup fee payable	$ 1,000,000
Letter agreement period	3 years

Fair Value Measurements - Summa

Fair Value Measurements - Summary of Fair Value liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Digital currencies	$ 61,306	$ 16,040
Derivative Liabilities	3,186,372
Level 1 [Member]
Digital currencies	$ 61,306	$ 16,040
Derivative Liabilities
Fair Value, Inputs, Level 2 [Member]
Digital currencies
Derivative Liabilities
Fair Value, Inputs, Level 3 [Member]
Digital currencies
Derivative Liabilities	$ 3,186,372

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Changes in Level 3 Liabilities Measured at Fair Value (Details) - USD ($)	Apr. 20, 2015	Jan. 19, 2015	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Fair Value Disclosures [Abstract]
Beginning balance
Fair value of derivative liability on date of issuance	$ 2,843,811	$ 952,600
Change in fair value of warrant liability			$ (286,087)		$ (610,039)	$ (204,957)
Ending balance			$ 3,186,372		$ 3,186,372

Fair Value Measurement - Summar

Fair Value Measurement - Summary of Quantitative Information to Valuation Methodology (Details) - $ / shares	Apr. 16, 2015	Mar. 05, 2015	Feb. 18, 2015	Jan. 19, 2015	Sep. 30, 2015
Fair value of common stock	$ 0.24	$ 0.24	$ 0.32	$ 0.08	$ 0.14
Strike price	$ 0.38	$ 0.26	$ 0.26	$ 0.10
Volatility (annual)	160.00%	124.56%	123.36%	108.00%	108.00%
Risk-free rate	1.30%	0.25%	0.23%	1.30%
Expected life (years)	5 years	5 years	5 years	5 years
Dividend yield (per share)	$ 0	$ 0	$ 0	$ 0	$ 0
Minimum [Member]
Strike price					$ 0.10
Risk-free rate					1.20%
Expected life (years)					4 years 3 months 18 days
Maximum [Member]
Strike price					$ 0.38
Risk-free rate					1.30%
Expected life (years)					4 years 7 months 6 days

Stock Based Compensation (Detai

Stock Based Compensation (Details Narrative) - USD ($)	Jul. 02, 2015	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Stock-based compensation expense		$ 3,629,804	$ 2,247,800	$ 6,383,772	$ 5,814,963
Common stock, par value		$ 0.001		$ 0.001		$ 0.001
Unrecognized compensation expenses	$ 3,629,804
Stock option outstanding shares		0		0
Charles Allen [Member]
Aggregate shares options to purchase	12,450,000
Common stock, par value	$ 0.001
Common stock, exercise price per share	$ 0.10
Michal Handerhan [Member]
Aggregate shares options to purchase	12,450,000
Common stock, par value	$ 0.001
Common stock, exercise price per share	$ 0.10

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative) - USD ($)	Sep. 30, 2015	Jan. 28, 2015
Commitments and Contingencies Disclosure [Abstract]
Annual rental fee first year		$ 58,271
Annual rental fee second year		66,750
Option, purchase price		775,000
Security deposit		$ 10,000
Prepaid expenses of fixed minimum lease payment	$ 12,000

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - Subsequent Event [Member] - shares	Oct. 29, 2015	Oct. 14, 2015
Individual Investor [Member]
Common stock issued		162,037
Consultant for Investor [Member]
Common stock issued	40,000