Bcause LLC, a privately-held company established in Virginia Beach in 2013, will expand its operations and move its corporate headquarters to 5465 Greenwich Road in Virginia Beach. The new location offers 84,000 square feet of space that will house its corporate headquarters and the computers and systems necessary to mine digital currency for the global financial market and support other data processing needs of the company.
The company plans to add 100 new full-time jobs with average annual salaries of $60,000 with this expansion. Virginia Beach competed with Pennsylvania, Montana and Turkmenistan for the digital mining operation.
"Virginia Beach is again on the forefront of innovative technology, and we are extremely pleased that Bcause LLC will remain here," said Virginia Beach Economic Development Director Warren D. Harris. "The cryptocurrency market is rapidly expanding, and we anticipate Bcause LLC will be at the forefront of this emerging financial system."
Bcause is developing the world's first full-stack cryptocurrency ecosystem. This type of currency, including bitcoin, is available only in digital form. Cryptocurrency is a digital asset that uses cryptography to secure transactions, control the creation of additional units and verify the transfer of assets. Bitcoin is a worldwide cryptocurrency and digital payment system that works without a central repository or single administrator. The U.S. Treasury classified bitcoin as a legal, convertible, decentralized virtual currency in 2013.
Bcause LLC has leased 84,000 square feet of the former Hoffman Beverage building and has an additional 21,000 square feet of space available for future expansion. The company and its customers will make a $64.8 million capital investment for business property, furniture, fixtures, and digital mining equipment and construction.
Fred Grede, CEO of Bcause LLC, said: "Bcause is pleased to locate what we expect will be part of the largest cryptocurrency mining operation in North America here in Virginia Beach. The region has a growing reputation for innovation and technology, and we believe that our state-of-the-art operation will add to that reputation. We have been pleased to work with the City's economic development staff over the last several months. After looking at many facilities across the globe, we were able to find one that met all of our requirements for floor space, proximity to power and access to highly skilled people that a facility like ours requires to be successful."
The Virginia Beach Development Authority has approved an Economic Development Investment Program grant in the amount of $500,000 based on the company's capital investment. Additionally, the company will be eligible to take advantage of the City's recently reduced business property tax rate for computers and peripherals used in data centers, which is now $0.40 per $100 of 40% of assessed value. The company has also requested additional assistance from the Virginia Economic Development Partnership.
About Bcause LLC
Bcause LLC is building the world's first full-stack cryptocurrency ecosystem, which includes a digital mining facility, spot market, and pending 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 facilities, and will launch spot trading in the first half of 2018.
The mission of the Virginia Beach Department of Economic Development is to attract and retain national and international businesses to stimulate capital investment and create jobs. Virginia Beach is the most populous city in Virginia with a population of 450,000, and it is the 37th largest in the United States. The Department of Economic Development received re-accreditation through the International Economic Development Council in 2016 and is one of only 50 economic development organizations in the world to have this recognition. Most recently, Virginia Beach was named America's #1 best big city to live in by wallethub.com. For more information, visit www.yesvirginiabeach.com.