Bcause

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Bcause
Bcause.jpg
Founded 2013
Headquarters Virginia Beach, VA
Key People Fred Grede, CEO; Thomas Flake, Founder; Tom Hammond, Chairman of the Board; Scott Early, Director
Employees 27
Twitter @Bcausellc
Website Bcause.com

Bcause, LLC is a cryptocurrency startup headquartered in Virginia Beach, Virginia. It offers cryptocurrency "farming" services, acting as a data center for bitcoin and other miners. It has also applied to be a Designated Contract Market (DCM) to trade futures and options on cryptocurrencies.

Overview

Bcause is a start-up that is developing what it terms "the world’s first full-stack cryptocurrency ecosystem," including mining, spot market trading, and derivatives trading and clearing.[1]

Company History

Bcause was formed in 2013. In March of 2017 the company chose to enter a business partnership with Connamara Systems in order to develop Bcause's software platform.[2]

Based in Virginia Beach, VA, and Chicago, IL, Bcause was originally planned as a platform to offer bitcoin options as a hedging tool. Later, the founders identified potentially profitable opportunities in providing infrastructure and services for bitcoin mining as well as offering logistical and support services to both retail and institutional bitcoin miners at its data center. By February 2018, Bcause was running thousands of mining rigs for clients in Asia and the U.S. in an old beverage warehouse in Virginia Beach. [3]

Bcause applied to the Commodity Futures Trading Commission in September 2016 for registration as a designated contract market to trade bitcoin futures.[4] As of May 2018, the application was pending approval. [5]

Bcause was one of 20 companies chosen to exhibit in the Innovators Pavilion at the 33rd Annual FIA Expo in Chicago in 2017. The Innovators Pavilion showcased startup companies providing forward-thinking solutions for the futures, options and cleared swaps industry.[6]

Nasdaq and Bcause announced on March 13, 2019, that Bcause would use Nasdaq’s matching engine, clearing and market surveillance tools through the Nasdaq Financial Framework platform to operate a spot cryptocurrency market. Bcause planned to launch its spot market within the next few months.[7]

Bcause filed for bankruptcy in April 2019. Despite this, the company told Coindesk in early May that it planned on tentatively launching cryptocurrency spot trading services on May 23, 2019.[8]

Funding

Bcause announced that it had closed Series A funding from SBI Holdings in October of 2017, and SBI took a 40 percent stake in the company.[9]

A filing on April 30, 2018 with the U.S. Securities and Exchange Commission stated that starting the previous October Bcause had taken in $5 million of equity investment.[10]

In October 2018 Bcause announced that China Health Checkmate, an investment group managing family office assets and Asian-Pacific institutional funds, had agreed to be a "substantial" equity holder to help Bcause open its exchange and work on an Asia initiative to create new exchanges and asset-backed payment products.[11][12]

Virginia Beach granted Bcause $500,000, based on the company spending at least $64.8 million in capital investment at its 84,000-square-foot rented space at 5465 Greenwich Road.[13]

Bcause Mining, LLC, the mining affiliate operating in Virginia Beach, Virginia, filed voluntarily for bankruptcy court protection on April 11, 2019 in order to reorganize its debts. Unsecured creditors included a Virginia power company ($1,459,267.38) and the U.S. Customs and Border Patrol ($737,041.90).[14]

Products and Services

  • Bitcoin Mining
  • Spot Trading - bcause plans to offer cryptocurrency exchange for Fiat currency and U.S. Dollars by May of 2018.
  • Derivatives
  • Clearing

Key People

  • Frederick J. Grede, Chief Executive Officer
  • Tom Hammond, Chairman of the Board
  • Scott Early, Director
  • William Boyk, Chief Operating Officer and Chief Regulatory Officer
  • Mike Adolphi, Chief Technology Officer
  • Thomas Flake, Founder and Chief Marketing Officer

References