Bcause

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Bcause
Bcause.jpg
Founded 2013
Headquarters Virginia Beach, VA
Key People Fred Grede, Thomas Flake
Twitter @Bcausellc
Website Bcause.com

Bcause, LLC is a cryptocurrency start up headquartered in Virginia Beach, Virginia. It provides cryptocurrency "farming" services, whereby it provides infrastructure and services to bitcoin and other miners. It has also appled 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]

Background

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 be using Nasdaq’s matching engine, clearing and market surveillance tools through the Nasdaq Financial Framework platform to operate a spot cryptocurrency market, to be launched within the next few months.[7]

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.[8]

An April 30, 2018, filing with the U.S. Securities and Exchange Commission stated that starting the previous October Bcause had taken in $5 million of equity investment.[9]

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.[10][11]

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
  • William Boyk, Chief Operating Officer and Chief Regulatory Officer
  • Mike Adolphi, Chief Technology Officer
  • Thomas Flake, Founder and Chief Marketing Officer

References