About The Company


What We Do:

Bcause LLC is building the world’s first full-stack cryptocurrency ecosystem, which will include a digital mining facility, spot market, regulated derivatives exchange and clearing house. Bcause has filed with the U.S. Commodity Futures Trading Commission to become a designated contract market (DCM) and intends to file with the Commission to establish a derivatives clearing organization (DCO). Once regulatory approvals are in place, and trading and clearing begins in derivatives, Bcause will become the only venue to serve as a one-stop shop for all parts of the digital currency value chain. Bcause has laid the groundwork to launch in 2018, initially with its state-of-the-art digital mining facility in Virginia Beach, Virginia – the largest facility of its kind in North America – and in the first half of the year with spot trading. The company is headquartered in Virginia Beach, with additional operations in Chicago.


Who We Are:

Our founders, Board of Managers and senior management have diverse backgrounds in technology, infrastructure, cybersecurity, trading, clearing and cryptocurrencies. They have designed and overseen some of the most complex IT projects for organizations such as NASA and others with the highest quality standards for technology, and they have built and run successful regulated exchanges and clearing houses. [See more in timeline]


Who We Serve:

Professional traders, institutional investors, retail traders, bitcoin miners and a growing, diverse base of non-traditional, everyday investors intrigued by cryptocurrencies and interested in learning more.


How We Do It:

Our emphasis is on regulated, transparent markets, customer service and education, and user-friendly technology. Each business segment is a wholly owned subsidiary of Bcause LLC. Our business lines include the following, currently under various stages of development:

  • Digital Bitcoin/Cryptocurrency Mining
  • Spot Exchange for digital currencies
  • Derivatives Exchange, pending regulatory approval
  • Clearing House, pending regulatory approval

Our unique value proposition is the ability to handle all aspects of cryptocurrencies in one place. We do the heavy lifting and provide the highest levels of customer service around the clock. We supply, maintain and upgrade the sophisticated equipment (“mining rigs”) used in digital mining. We source power in the most environmentally friendly manner possible, and we educate our clients on how they can leverage cryptocurrencies for mining, investing, diversifying assets and managing risk. We provide the technology, knowledge and infrastructure our customers need to succeed.



Vision:

Long before bitcoin became a recognized term in popular culture, our co-founders recognized that blockchain technology held tremendous progress; that “virtual” or “digital” currencies such as bitcoin, ethereum and others would grow and need a regulated marketplace for asset allocation and risk management; and that no one was addressing the entire ecosystem, from digital mining to spot and derivatives trading to clearing.


Timeline:


2012: Bcause LLC is founded by:


  • Thomas Flake, successful entrepreneur with decades of experience in software development, telecommunications and information technology infrastructure and a strong track record of achieving excellence in customer relations;
  • Dr. Robert Lindberg, formerly a research physicist and former President and Executive Director of the National Institute of Aerospace (NIA), among the largest and most successful of NASA’s research institutes;
  • Frank Byrum, Chief Scientist at defense contractor Spectrum Comm and a senior advisor to the Air Force Acquisition CIO/Director;
  • Chris Sikes, Computer Security Official and IT Project Manager in the Center Operations Directorate at NASA Langley Research Center; and
  • Jeremy Alessi, an author and software entrepreneur with over 20 years of experience in building major projects, including delivering top-ranking software for Apple, Google and Nintendo and building major projects for the U.S. Department of Transportation, The Marine Corps and NATO
2013: Bcause LLC assesses the prospects for bitcoin and determines that a derivatives exchange is the most promising business to enter longer term. Recognizing that this effort will take time to lay the groundwork and involve additional expertise, the firm begins a digital mining initiative using Field Programmable Gate Arrays (FPGAs).

2014: Bcause LLC matures mining operations to application-specific integrated circuit (ASIC) based miner Gen 1 and then moves to Gen 2. Begins to recruit management team for CFTC application process.

2015: Bcause LLC continues to recruit management team, stops mining due to shift in the economic model, raises $1MM seed round and submits preliminary DCM application to CFTC.

2017:

Fred Grede, former CEO of the Hong Kong Futures Exchange and long-time Executive Vice President of the Chicago Board of Trade, signs on as a senior advisor in February and is later appointed CEO. SBI Holdings, a financial conglomerate and pioneer of Internet-based financial services in Japan, in October becomes the lead investor of Bcause, following a Series A equity raise of $5MM. The company establishes a Chicago office and builds staff to support the anticipated growth of the organization.



2018: Bcause will open a state-of-the-art, highly secure digital mining facility in Virginia Beach and will begin offering spot trading. Pending regulatory approval, Bcause will launch its derivatives exchange and clearing house.