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Bcause LLC Opens Cryptocurrency Mining Facility

Largest Digital Mining Data Center in North America is First Part of Cryptocurrency Ecosystem to Launch

VIRGINIA BEACH, Va., Feb. 12, 2018 – Bcause LLC, creator of the world’s first full-stack cryptocurrency ecosystem, today announced that it has successfully launched its state-of-the-art cryptocurrency mining facility and data center in Virginia Beach. Staffed around the clock, the facility is the largest of its kind in North America and represents the first component of the ecosystem to launch.

The data center will support digital mining of bitcoin and other leading cryptocurrencies for a broad range of customers from all over the world – from beginners who may choose to participate in “mining pools,” to institutional market participants and professional miners. Bcause is able to host, maintain and service the high-powered computers, known as mining rigs, with substantial efficiencies due to its scale. Larger customers supply their own mining rigs.

Bcause CEO Fred Grede said: “We’ve seen tremendous demand for this service, with inquiries coming in from all over the world. I’m pleased to report at launch that our Virginia facility, initially outfitted with 84 megawatts of capacity, is already completely allocated. This validates our business plan, and as we provide our new customers with the highest level of service, we are taking steps to support the incredible demand by adding new capacity in Virginia and elsewhere in the coming weeks. We have the ability to make mining substantially more economical for customers – whether they have large numbers of mining rigs or are trying their hand at mining with one machine.”

Just as credit card companies process transactions by moving value from the buyer’s ledger to the seller’s ledger, mining is a similar process of moving ownership of a cryptocurrency through a process called cryptography. The process allows the high-powered machines, or rigs, to solve complex math problems in a specified period of time, which – if successful – may result in the rigs’ owners receiving cryptocurrency as an award for their work.

Bcause has created a series of videos for those interested in exploring cryptocurrencies and the mining process, available at https://www.bcause.com/mining/.

In addition to mining, Bcause intends to offer spot trading and a regulated derivatives exchange and clearing house, pending regulatory approval.

About Bcause LLC
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, and will launch spot trading in the first half of 2018. The company is headquartered in Virginia Beach, with operations in Chicago. For more information, visit www.bcause.com.

MEDIA CONTACT:
Ellen G. Resnick
Crystal Clear Communications
+773-929-9292; +312-399-9295 (mobile)
[email protected]

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Bcause LLC Announces Board Election Results for World’s First Full-Stack Cryptocurrency Ecosystem

Karan Rai Elected Chairman

Jerry Chan, Scott Early, Ron Filler, Tom Hammond, Chris Sikes Elected Directors

VIRGINIA BEACH, Va., Jan. 24, 2018 – Bcause LLC, creator of the world’s first full-stack cryptocurrency ecosystem, announced today the results of its Board of Managers and Chairman elections certified at its Board meeting last night. Members of the Board of Managers elected Karan Rai as the new Chairman of the Board. Shareholders of the privately held company elected five new directors – including three highly accomplished financial industry veterans specializing in futures, clearing, and securities and derivatives law and compliance; a cryptocurrency expert from the firm’s lead investor, and one of the company’s founders.

Fred Grede, Bcause CEO, said: “We have been steadily assembling a world-class team to help us implement our vision of providing a full ecosystem of quality cryptocurrency offerings – from digital ‘mining’ and spot, to derivatives and clearing. This election ensures that we have on our Board and team many of the leading minds not only in cryptocurrency, cybersecurity, infrastructure and technology, but also in finance and derivatives. We’re honored to benefit from the advice, counsel and direction of our newest Board members.”

Karan Rai is founder and CEO of ASGARD Partners & Co., a New York based investment and advisory firm. He has served on the Board of Bcause since September 2016 and has been affiliated with the company since 2013. He was previously CEO of Theodor Wille Intertrade Inc. and President of ADS Inc. Prior to that Rai was with JPMorgan’s investment banking practice in New York. He was appointed in August to the Wall Street Journal’s CEO Council.

The newest Board members elected are:
• Jerry Chan, a veteran of financial technology and cryptocurrency, who serves as Chief of Digital Asset Solutions of SBI BITS, the fintech arm of Tokyo-based SBI Holdings. SBI became the lead investor in Bcause following a Series A equity raise last fall. Chan is also Chief Strategy Officer of SBI Crypto. He held positions at Goldman Sachs and JPMorgan before entering the field of cryptocurrencies, including at Bitcoin start-ups in Japan and ultimately at SBI.

• Scott E. Early, a retired attorney as of 2012 from Foley & Lardner, America’s oldest law firm. With 38 years of legal practice, Early is nationally recognized as one of America’s Best Attorneys for Derivatives. He served as General Counsel to the Chicago Board of Trade, Kansas City Board of Trade and numerous other exchanges. He also was the CEO and General Counsel of the Board of Trade Clearing Corp. (BOTCC) when it was the largest derivatives clearing organization in the world. He has testified before the U.S. Congress on numerous occasions regarding financial issues and legislation, and he has tried lawsuits in state and federal court on a wide variety of financial issues. His clients have ranged from individual traders to the world’s largest investment and commercial banks.

• Ronald H. Filler, a more than 35-year veteran of the futures industry. Filler is Professor of Law and Director of the Financial Services Law Institute at New York Law School who has also served as the Program Director of the school’s LL.M. in Financial Services Law Graduate Program. He is a Public Director and Executive Committee member of the National Futures Association and a Past Chair of the U.S. Commodity Futures Trading Commission (CFTC) Global Markets Advisory Committee. Filler previously was a Managing Director in the Capital Markets Prime Services Division at Lehman Brothers Inc. Before joining Lehman in 1993, he was a Partner and Executive Committee member of Chicago law firm Vedder Price Kaufman & Kammholz.

• Thomas Hammond, who served as President of ICE Clear U.S. for nearly 10 years until his retirement on Jan. 1 last year. Soon after, he was inducted into the FIA Futures Hall of Fame for his accomplishments in the industry over 37 years. Hammond has served as a board member of AtlasBanc Holdings Corporation since July. He also participates on the Chicago Federal Reserve Bank’s Working Group on Financial Markets. Before joining CME Group in 2003, Hammond served as CEO, Executive Vice President and Chief Operating Officer of BOTCC.

• Chris Sikes, one of the founders of Bcause, with more than 25 years of experience in management, information technology (IT), data center operations and computer security. Sikes is the Computer Security Official and IT Project Manager in the Center Operations Directorate at NASA Langley Research Center, and he previously served on the Because Board and as Board Secretary for three years until January 2017. He also served as the company’s Manager of IT Infrastructure and Security. Before joining NASA in 2013, Sikes was the Manager of the Systems Administration and Security group for Jacobs Technology, one of the nation’s largest engineering and technical services-only companies. He also served as Project Lead – Enterprise Applications and then Area Manager for Northrop Grumman and as Systems Manager for Langley Federal Credit Union from 2001 through 2009.

Continuing to serve their terms on the Board are:
• Michael Adolphi, also Chief Operating Officer and Chief Technology Officer of Bcause
• Dr. John Ashby, Jr., Founder of Ashby Orthodontics and an owner of US Computing
• Thomas Flake, Founder, Chief Marketing Officer and Treasurer of Bcause
• Jonathan Tanemori, Chief Business Development Officer of SBI BITS

About Bcause LLC
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, and will launch spot trading in the first half of 2018. The company is headquartered in Virginia Beach, with operations in Chicago. For more information, visit www.bcause.com.

MEDIA CONTACT:
Ellen G. Resnick
Crystal Clear Communications
+773-929-9292; +312-399-9295 (mobile)
[email protected]

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SBI Holdings and bcause announce closing of Series “A” funding

Chicago, Ill – October 16, 2017 -SBI Holdings and Bcause LLC announced today the closing of a Series “A” equity round in which SBI Holdings has agreed to be the lead investor. In this round, SBI Holdings has agreed to acquire a 40% holding in Bcause LLC and to provide significant amounts of crypto-currency mining gear to be co-located at Bcause’s mining operations in Virginia Beach, Virginia. Additional equity investments will be contributed by Bcause’s existing equity members and other interested parties.

Yoshitaka Kitao, Representative Director, President, and CEO of SBI Holdings, Inc., said, “Our investment into bcause will help them become the first US-regulated Designated Contracts Market exchange in the cryptocurrency derivatives market in the United States that can be provided for retail investors and will support the creation of a digital currency ecosystem in the strategic US market. This is an important, long-term partnership that will advance the development and wide spread use of digital currencies around the world.”

Frederick Grede, CEO of Bcause, said, “We are really excited to partner with SBI Holdings. Their success in Asia is well respected and we are honored to have them as both an investor and a strategic partner. Their deep experience operating markets in Asia sets them apart from the many other potential investors that we considered. This investment and this partnership will allow bcause to bring multiple pieces of the missing puzzle to the Crypto-Currency eco-system. Today, if you hold Bitcoin or any Alt-coin, and want to hedge the risk of holding that currency, your options are virtually non-existent. In a world with bcause, you will be able to mine coin, buy, and sell on our spot market, and once approved by the Commodity Futures Trading Commission, be able to buy and sell a variety of derivative product types that will allow you to mitigate the risks from price fluctuations.”

For the Series A, ASGARD Partners & Co. was appointed as Strategic and Capital Markets Advisor to the Company and Castle Placement acted as exclusive placement agent.

[About the SBI Group]

The SBI Group was established in 1999 as a pioneer of Internet-based financial services in Japan. Since then, the SBI Group has formed the world’s first Internet-based financial conglomerate, providing financial services in a broad range of fields including securities, banking and insurance. In addition, the SBI Group provides Asset Management Business, with a prime focus on investment in venture companies – an activity undertaken since before the Group’s founding. In this sphere, the SBI Group has made focused investments in the IT and biotechnology sectors, which are the 21st century growth industries. Currently, the development of new technologies is accelerating within the FinTech, IoT, AI, big data and related fields thus attracting global attention. The SBI Group is proactively investing in venture companies within these fields.

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