Document:

SUBSIDIARY
GUARANTY

 

This
SUBSIDIARY GUARANTY (as amended, restated, supplemented, or otherwise modified and in effect from time to time, this “Guaranty”)
is made as of this 16 day of December, 2015, jointly and severally, by and among BTCS, Inc., a Nevada corporation (“BTCS”),
BitcoinShop.us, LLC, a Maryland limited liability company, and BTCS Digital Manufacturing, a Nevada corporation, (collectively,
the foregoing three entities are referred to as the “Subsidiaries;” collectively, BTCS and the Subsidiaries are referred
to as the “Companies”), and with each other person or entity who becomes a party to this Guaranty by execution of
a joinder in the form of Exhibit A attached hereto, each referred to individually as a “Guarantor” and collectively
as the “Guarantors”); in favor of the Purchasers listed on the signature page of that certain Securities Purchase
Agreement, dated as of December 16, 2015 (each, a “Purchaser”, and together with its successors and assigns and each
other purchaser of a Note (as defined below) and their respective successors and assigns, individually and collectively, the “Purchasers”)

 

W
I T N E S S E T H:

 

WHEREAS,
the Purchasers have made, and may make, loans and certain other financial accommodations (collectively, the “Loans”)
to BTCS, as evidenced by those certain senior convertible notes dated as of December 16, 2015 (the “Initial Closing Date”)
in an original aggregate principal amount of $1,450,000 (such notes, together with any promissory notes or other securities issued
in exchange or substitution therefor or replacement thereof, and as any of the same may be amended, supplemented, restated or
modified and in effect from time to time, the “Notes”);

 

WHEREAS,
the Notes are being acquired by the Purchasers pursuant to a Securities Purchase Agreement dated as of the date hereof among the
Purchasers, BTCS and the Agent (as the same may be amended, restated, supplemented or otherwise modified from time to time, the
“Purchase Agreement”);

 

WHEREAS,
pursuant to a Pledge Agreement dated as of the Initial Closing Date by BTCS in favor of the Agent, BTCS has pledged a lien on
and security interest in all of the issued and outstanding equity interests of the Subsidiaries owned by BTCS;

 

WHEREAS,
pursuant to a Security Agreement dated as of the Initial Closing Date (as the same may be amended, restated, supplemented or otherwise
modified and in effect from time to time, the “Security Agreement”) by the “Debtors” (as defined therein)
in favor of the Collateral Agent, such Debtors have granted the Collateral Agent, for its benefit and the benefit of the Purchasers,
a first priority security interest in, lien upon and pledge of each of their rights in the Collateral (as defined in the Security
Agreement); and

 

WHEREAS,
the Guarantors are direct or indirect subsidiaries of BTCS and, as such, will derive substantial benefit and advantage from the
Loans and other financial accommodations available to BTCS set forth in the Purchase Agreement, the Notes and the other related
agreements (together, the “Transaction Documents”), and it will be to each Guarantor’s direct interest and economic
benefit to assist BTCS in procuring said Loans and other financial accommodations from the Purchasers.

 

    	 

    	 	 	 

    

 

NOW,
THEREFORE, for and in consideration of the premises and in order to induce Purchasers to make the Loans, and for other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each Guarantor hereby jointly and
severally agrees as follows:

 

1. Definitions: Capitalized
terms used herein without definition and defined in the Purchase Agreement are used herein as defined therein. In addition, as
used herein:

 

“Bankruptcy
Code” shall mean the Federal Bankruptcy Reform Act of 1978 (11 U.S.C. §101, et seq.), as amended and in effect
from time to time thereunder.

 

“Obligations”
shall mean (i) all obligations, liabilities and indebtedness of every nature of each Company from time to time owed or owing to
the Purchasers and Agent arising under, out of or in connection with the Purchase Agreement, the Notes, the Loans and the other
Transaction Documents, including, without limitation, the principal amount of all debts, claims and indebtedness, accrued and
unpaid interest and all fees, taxes, indemnities, costs and expenses, whether primary, secondary, direct, contingent, fixed or
otherwise, heretofore, now and/or from time to time hereafter owing, due or payable, whether before or after the filing of a bankruptcy,
insolvency or similar proceeding under applicable federal, state, foreign or other law and whether or not an allowed claim in
any such proceeding, and (ii) all obligations, liabilities and indebtedness of every nature of any subsequent Guarantor from time
to time owed or owing to the Purchasers and/or Agent, under or in respect of this Guaranty, the Pledge Agreement, the Security
Agreement, the Purchase Agreement, the Notes, the Loans and the other Transaction Documents, as the case may be, including, without
limitation, the principal amount of all debts, claims and indebtedness, accrued and unpaid interest and all fees, taxes, indemnities,
costs and expenses, whether primary, secondary, direct, contingent, fixed or otherwise, heretofore, now and/or from time to time
hereafter owing, due or payable, whether before or after the filing of a bankruptcy, insolvency or similar proceeding under applicable
federal, state, foreign or other law and whether or not an allowed claim in any such proceeding.

 

 2. Guaranty of Payment

 

(a) Each
Guarantor, jointly and severally, hereby unconditionally and irrevocably guarantees the full and prompt payment and performance
to Purchasers and Agent, on behalf of itself and in its capacity as agent for the benefit of Purchasers, when due, upon demand,
at maturity or by reason of acceleration or otherwise and at all times thereafter, of any and all of the Obligations.

 

(b) Each
Guarantor acknowledges that valuable consideration supports this Guaranty, including, without limitation, the consideration set
forth in the recitals above, as well as any commitment to lend, extension of credit or other financial accommodation, whether
heretofore or hereafter made by Purchasers to any Company; any extension, renewal or replacement of any of the Obligations; any
forbearance with respect to any of the Obligations or otherwise; any cancellation of an existing guaranty; any purchase of any
Company’s assets by any Purchaser or Agent; or any other valuable consideration.

 

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(c) Each
Guarantor agrees that all payments under this Guaranty shall be made in United States currency and in the same manner as provided
for the Obligations.

 

(d) Notwithstanding
any provision of this Guaranty to the contrary, it is intended that this Guaranty, and any interests, liens and security interests
granted by Guarantors as security for this Guaranty, not constitute a “Fraudulent Conveyance” (as defined below) in
the event that this Guaranty or such interest is subject to the Bankruptcy Code or any applicable fraudulent conveyance or fraudulent
transfer law or similar law of any state. Consequently, Guarantors, Agent and Purchasers agree that if this Guaranty, or any such
interests, liens or security interests securing this Guaranty, would, but for the application of this sentence, constitute a Fraudulent
Conveyance, this Guaranty and each such lien and security interest shall be valid and enforceable only to the maximum extent that
would not cause this Guaranty or such interest, lien or security interest to constitute a Fraudulent Conveyance, and this Guaranty
shall automatically be deemed to have been amended accordingly at all relevant times. For purposes hereof, “Fraudulent Conveyance”
means a fraudulent conveyance under Section 548 of the Bankruptcy Code or a fraudulent conveyance or fraudulent transfer under
the provisions of any applicable fraudulent conveyance or fraudulent transfer law or similar law of any state, as in effect from
time to time.

 

3. Costs
and Expenses. Each Guarantor, jointly and severally, agrees to pay on demand, all reasonable costs and expenses of every
kind incurred by any Purchaser or Agent: (a) in enforcing this Guaranty, (b) in collecting any of the Obligations from any Company
or any Guarantor, (c) in realizing upon or protecting or preserving any collateral for this Guaranty or for payment of any of
the Obligations, and (d) in connection with any amendment of, modification to, waiver or forbearance granted under, or enforcement
or administration of any Transaction Document or for any other purpose in connection with any Transaction Document, in each case,
to the extent Purchaser or Agent may take such action pursuant to the terms and conditions of this Agreement. “Costs and
expenses” as used in the preceding sentence shall include, without limitation, reasonable attorneys’ fees incurred
by any Purchaser or Agent in retaining legal counsel for advice, suit, appeal, any insolvency or other proceedings under the Bankruptcy
Code or otherwise, or for any purpose specified in the preceding.

 

4. Nature
of Guaranty: Continuing, Absolute and Unconditional.

 

(a) This
Guaranty is and is intended to be a continuing guaranty of payment of the Obligations, and not of collectability, and is intended
to be independent of and in addition to any other guaranty, endorsement, collateral or other agreement held by Purchasers or Agent
therefor or with respect thereto, whether or not furnished by a Guarantor. None of Purchasers and Agent shall be required to prosecute
collection, enforcement or other remedies against any Company, any other Guarantor or guarantor of the Obligations or any other
person or entity, or to enforce or resort to any of the Collateral or other rights or remedies pertaining thereto, before calling
on a Guarantor for payment. The obligations of each Guarantor to repay the Obligations hereunder shall be unconditional. Guarantor
shall have no right to exercise any right of subrogation, reimbursement, indemnity, exoneration, contribution or any other claim
which it may now or hereafter have against any Company in connection with this Guaranty until the termination of this Guaranty
in accordance with Section 8 below, and hereby waives any benefit of, and any right to participate in, any security or collateral
given to Purchasers to secure payment of the Obligations, and each Guarantor agrees that it will not take any action to enforce
any obligations of any Company to such Guarantor prior to the Obligations being finally and irrevocably paid in full in cash,
provided that, in the event of the bankruptcy or insolvency of any Company, to the extent the Obligations have not been
finally and irrevocably paid in full in cash, Agent, for the benefit of itself and Purchasers, and Purchasers shall be entitled
notwithstanding the foregoing, to file in the name of any Guarantor or in its own name a claim for any and all indebtedness owing
to a Guarantor by such Company (exclusive of this Guaranty), vote such claim and to apply the proceeds of any such claim to the
Obligations.

 

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(b) For
the further security of Purchasers and without in any way diminishing the liability of the Guarantors, following the occurrence
and during the continuance of an Event of Default, all debts and liabilities, present or future, of the Companies to the Guarantors,
and all monies received from any Company or for its account by the Guarantors in respect thereof shall be received in trust for
Purchasers and Agent and promptly following receipt shall be paid over to Agent, for its benefit and in its capacity as Agent
for the benefit of Purchasers, until all of the Obligations have been paid in full in cash. This assignment and postponement is
independent of and severable from this Guaranty and shall remain in full effect whether or not any Guarantor is liable for any
amount under this Guaranty.

 

(c) This
Guaranty is absolute and unconditional and shall not be changed or affected by any representation, oral agreement, act or thing
whatsoever, except as herein provided. This Guaranty is intended by the Guarantors to be the final, complete and exclusive expression
of the guaranty agreement among the Companies (as limited by the express terms of this Guaranty), the Guarantors, the Agent and
Purchasers. No modification or amendment of any provision of this Guaranty shall be effective against any party hereto unless
in writing and signed by a duly authorized officer of such party. This Guaranty, together with the other Transaction Documents,
supersedes all other prior oral or written agreements between each Purchaser, the Guarantors, the Agent, their Affiliates and
Persons acting on their behalf with respect to the matters discussed herein, and this Guaranty, together with the other Transaction
Documents and the other instruments referenced herein and therein, contain the entire understanding of the parties with respect
to the matters covered herein and therein and, except as specifically set forth herein or therein, neither any Guarantor, the
Agent nor any Purchaser makes any representation, warranty, covenant or undertaking with respect to such matters. As of the date
of this Guaranty, there are no unwritten agreement between the parties with respect to the matters discussed herein. No provision
of this Guaranty may be amended, modified or supplemented other than by an instrument in writing signed by the parties hereto.

 

(d) Each
Guarantor hereby releases each Company from all, and agrees not to assert or enforce (whether by or in a legal or equitable proceeding
or otherwise) any, “claims” (as defined in Section 101(5) of the Bankruptcy Code), whether arising under any law,
ordinance, rule, regulation, order, policy or other requirement of any domestic or foreign Governmental Authority or any instrumentality
or agency thereof, having jurisdiction over the conduct of its business or assets or otherwise, to which the Guarantors are or
would at any time be entitled by virtue of its obligations hereunder, any payment made pursuant hereto or the exercise by any
Purchaser or Agent of its rights with respect to the Collateral, including any such claims to which such Guarantors may be entitled
as a result of any right of subrogation, exoneration or reimbursement.

 

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5. Certain
Rights and Obligations.

 

(a) Each
Guarantor acknowledges and agrees that Purchasers and Agent, for its benefit and as agent for the benefit of Purchasers, may,
without notice, demand or any reservation of rights against such Guarantor and without affecting such Guarantor’s obligations
hereunder, from time to time:

 

(i) renew,
extend, increase, accelerate or otherwise change the time for payment of, the terms of or the interest on the Obligations or any
part thereof or grant other indulgences to any Company or others;

 

(ii) accept
from any person or entity and hold collateral for the payment of the Obligations or any part thereof, and modify, exchange, enforce
or refrain from enforcing, or release, compromise, settle, waive, subordinate or surrender, with or without consideration, such
collateral or any part thereof;

 

(iii) accept
and hold any endorsement or guaranty of payment of the Obligations or any part thereof, and discharge, release or substitute any
such obligation of any such endorser or guarantor, or discharge, release or compromise any Guarantor, or any other person or entity
who has given any security interest in any collateral as security for the payment of the Obligations or any part thereof, or any
other person or entity in any way obligated to pay the Obligations or any part thereof, and enforce or refrain from enforcing,
or compromise or modify, the terms of any obligation of any such endorser, guarantor, or person or entity;

 

(iv) dispose
of any and all collateral securing the Obligations in its reasonable discretion, as it may deem appropriate, and direct the order
or manner of such disposition and the enforcement of any and all endorsements and guaranties relating to the Obligations or any
part thereof as Agent in its reasonable discretion may determine;

 

(v) subject
to the terms of the Notes, determine the manner, amount and time of application of payments and credits, if any, to be made on
all or any part of any component or components of the Obligations (whether principal, interest, fees, costs, and expenses, or
otherwise), including, without limitation, the application of payments received from any source to the payment of indebtedness
other than the Obligations even though Purchasers might lawfully have elected to apply such payments to the Obligations or to
amounts which are not covered by this Guaranty; and

 

(vi) take
advantage or refrain from taking advantage of any security or accept or make or refrain from accepting or making any compositions
or arrangements when and in such manner as Agent, in its sole discretion, may deem appropriate;

 

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and
generally do or refrain from doing any act or thing which might otherwise, at law or in equity, release the liability of such
Guarantor as a guarantor or surety in whole or in part, and in no case shall Purchasers or Agent be responsible or shall any Guarantor
be released either in whole or in part for any act or omission in connection with Purchasers or Agent having sold any security
at less than its value.

 

(b) Following
the occurrence and during the continuance of an Event of Default, and upon demand by Agent, each Guarantor, jointly and severally,
hereby agrees to pay the Obligations to the extent hereinafter provided and to the extent unpaid:

 

(i) without
deduction by reason of any setoff, defense (other than payment) or counterclaim of any Company or any other Guarantor;

 

(ii) without
requiring presentment, protest or notice of nonpayment or notice of default to any Guarantor, to any Company or to any other person
or entity;

 

(iii) without
demand for payment or proof of such demand or filing of claims with a court in the event of receivership, bankruptcy or reorganization
of any Company or any other Guarantor;

 

(iv) without
requiring Purchasers or Agent to resort first to any Company (this being a guaranty of payment and not of collection), to any
other Guarantor, or to any other guaranty or any collateral which Purchasers or Agent may hold;

 

(v) without
requiring notice of acceptance hereof or assent hereto by any Purchaser or Agent; and

 

(vi) without
requiring notice that any of the Obligations has been incurred, extended or continued or of the reliance by any Purchaser or Agent
upon this Guaranty;

 

all
of which each Guarantor hereby waives.

 

(c) Each
Guarantor’s obligation hereunder shall not be affected by any of the following, all of which such Guarantor hereby waives:

 

(i) any
failure to perfect or continue the perfection of any security interest in or other lien on any collateral securing payment of
any of the Obligations or any Guarantor’s obligation hereunder;

 

(ii) the
invalidity, unenforceability, propriety of manner of enforcement of, or loss or change in priority of any document or any such
security interest or other lien or guaranty of the Obligations;

 

(iii) any
failure to protect, preserve or insure any such collateral;

 

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(iv) failure
of a Guarantor to receive notice of any intended disposition of such collateral;

 

(v) any
defense arising by reason of the cessation from any cause whatsoever of liability of any Company including, without limitation,
any failure, negligence or omission by any Purchaser or Agent in enforcing its claims against any Company;

 

(vi) any
release, settlement or compromise of any obligation of any Company, any other Guarantor or any other guarantor of the Obligations;

 

(vii) the
invalidity or unenforceability of any of the Obligations;

 

(viii) any
change of ownership of any Company, any other Guarantor or any other guarantor of the Obligations or the insolvency, bankruptcy
or any other change in the legal status of any Company, any other Guarantor or any other guarantor of the Obligations;

 

(ix) any
change in, or the imposition of, any law, decree, regulation or other governmental act which does or might impair, delay or in
any way affect the validity, enforceability or the payment when due of the Obligations;

 

(x) the
existence of any claim, setoff or other rights which the Guarantor, any Company, any other Guarantor or guarantor of the Obligations
or any other person or entity may have at any time against any Purchaser, Agent or any Company in connection herewith or any unrelated
transaction;

 

(xi) any
Purchaser’s or Agent’s election in any case instituted under chapter 11 of the Bankruptcy Code, of the application
of section 1111(b)(2) of the Bankruptcy Code;

 

(xii) any
use of cash collateral, or grant of a security interest by any Company, as debtor in possession, under sections 363 or 364 of
the Bankruptcy Code;

 

(xiii) the
disallowance of all or any portion of any of any Purchaser’s or Agent’s claims for repayment of the Obligations under
sections 502 or 506 of the Bankruptcy Code;

 

(xiv) any
stay or extension of time for payment by any Company or any other Guarantor resulting from any proceeding under the Bankruptcy
Code or any similar law; or

 

(xv) any
other fact or circumstance which might otherwise constitute grounds at law or equity for the discharge or release of a Guarantor
from its obligations hereunder, all whether or not such Guarantor shall have had notice or knowledge of any act or omission referred
to in the foregoing clauses (i) through (xiv) of this Section 5(c).

 

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6. Representations
and Warranties. Each Guarantor further represents and warrants to Purchasers and Agent that: (a) such Guarantor is a corporation
or other entity duly incorporated or organized, as applicable, validly existing and in good standing under the laws of the jurisdiction
of its incorporation or formation, as applicable, and has full power, authority and legal right to own its property and assets
and to transact the business in which it is presently engaged; (b) such Guarantor has full power, authority and legal right to
execute and deliver, and to perform its obligations under, this Guaranty, and has taken all necessary action to authorize the
guarantee hereunder on the terms and conditions of this Guaranty and to authorize the execution, delivery and performance of this
Guaranty; (c) this Guaranty has been duly executed and delivered by such Guarantor and constitutes a legal, valid and binding
obligation of such Guarantor enforceable against such Guarantor in accordance with its terms, except to the extent that such enforceability
is subject to applicable bankruptcy, insolvency, reorganization, fraudulent conveyance and moratorium laws and other laws of general
application affecting enforcement of creditors’ rights generally, or the availability of equitable remedies, which are subject
to the discretion of the court before which an action may be brought; and (d) the execution, delivery and performance by each
Guarantor of this Guaranty do not require any action by or in respect of, or filing with, any governmental body, agency or official
and do not violate, conflict with or cause a breach or a default under any provision of (i) applicable law or regulation, (ii)
the organizational documents of any Guarantor, (iii) any judgment, injunction, order, decree or other instrument binding upon
it, or (iv) any agreement binding upon it.

 

7. Negative
Covenants. Each Guarantor covenants with Purchasers and Agent that such Guarantor shall not grant any security interest
in or permit any lien, claim or encumbrance upon any of its assets in favor of any person or entity other than liens and security
interests in favor of Purchasers and Agent and Permitted Encumbrances. Each Guarantor agrees that it shall not take any action
or engage in any transaction that such Guarantor is prohibited from taking or engaging in pursuant to the terms of the Purchase
Agreement. In addition, each Guarantor agrees to comply with the terms of Section 8 of the Purchase Agreement to the same extent
that any Company is required to cause the Guarantors to comply with such Section of the Purchase Agreement. Each Company, by its
signature hereto, hereby acknowledges and agrees that any breach by a Guarantor of any term or provision of this Guaranty or the
Security Agreement, which is not cured to the Agent’s reasonable satisfaction within any applicable cure or grace period,
shall constitute an “Event of Default” under the Note.

 

8. Termination. This
Guaranty shall not terminate until such time, if any, as (i) all Obligations shall be finally and irrevocably paid in full in
cash, (ii) no Notes shall remain outstanding, (iii) all commitments to lend under the Purchase Agreement shall have terminated
and (iv) there shall exist no other outstanding payment or reimbursement obligations (other than contingent indemnification obligations
for which no claims shall have been asserted) of the Borrower or the Guarantors to the Agent under any of the Transaction Documents.
Thereafter, but subject to the following, Agent, on its behalf and as agent for Purchasers, shall take such action and execute
such documents as the Guarantors may request (and at the Guarantors’ cost and expense) in order to evidence the termination
of this Guaranty. Payment of all of the Obligations the owing from time to time shall not operate as a discontinuance of this
Guaranty. Each Guarantor further agrees that, to the extent that any Company makes a payment or payments to Purchasers or Agent
on the Obligations, or Purchasers or Agent receive any proceeds of collateral securing the Obligations or any other payments with
respect to the Obligations, which payment or receipt of proceeds or any part thereof is subsequently invalidated, declared to
be fraudulent or preferential, set aside or required to be returned or repaid to any Company, its estate, trustee, receiver, debtor
in possession or any other person or entity, including, without limitation, the Guarantors, under any insolvency or bankruptcy
law, state or federal law, common law or equitable cause, then to the extent of such payment, return or repayment, the obligation
or part thereof which has been paid, reduced or satisfied by such amount shall be reinstated and continued in full force and effect
as of the date when such initial payment, reduction or satisfaction occurred, and this Guaranty shall continue in full force notwithstanding
any contrary action which may have been taken by any Purchaser or Agent in reliance upon such payment, and any such contrary action
so taken shall be without prejudice to any Purchaser’s or Agent’s rights under this Guaranty and shall be deemed to
have been conditioned upon such payment having become final and irrevocable.

 

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9. Guaranty
of Performance. Each Guarantor also guarantees the full, prompt and unconditional performance of all obligations and agreements
of every kind owed or hereafter to be owed by the Companies and the Guarantors to Purchasers and Agent under the Purchase Agreement,
the Notes, and the other Transaction Documents. Every provision for the benefit of Purchasers and Agent contained in this Guaranty
shall apply to the guaranty of performance given in this paragraph.

 

10. Assumption
of Liens and Obligations. To the extent that a Guarantor has received or shall hereafter receive distributions or transfers
from any Company of property or cash that are subject, at the time of such contribution, to liens and security interests in favor
of Purchasers and/or the Agent in accordance with the Notes, the Security Agreement or any other Transaction Document, such Guarantor
hereby expressly agrees that (i) it shall hold such assets subject to such liens and security interests, and (ii) it shall be
liable for the payment of the Obligations secured thereby. Each Guarantor’s obligations under this Section 10 shall be in
addition to its obligations as set forth in other sections of this Guaranty and not in substitution therefor or in lieu thereof.

 

11. Miscellaneous.

 

(a) The
terms “Company” and “Guarantor” as used in this Guaranty shall include: (i) any successor individual or
individuals, association, partnership, limited liability company or corporation to which all or substantially all of the business
or assets of such Company or such Guarantor shall have been transferred and (ii) any other association, partnership, limited liability
company, corporation or entity into or with which such Company or such Guarantor shall have been merged, consolidated, reorganized,
or absorbed.

 

(b) Without
limiting any other right of any Purchaser or Agent, whenever any Purchaser or Agent has the right to declare any of the Obligations
to be immediately due and payable (whether or not it has been so declared), Agent, on its behalf and in its capacity as agent
for the benefit of Purchasers, at its sole election without notice to the undersigned may appropriate and set off against the
Obligations:

 

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(i) any
and all indebtedness or other moneys due or to become due to any Guarantor by any Purchaser or Agent in any capacity; and

 

(ii) any
credits or other property belonging to any Guarantor (including all account balances, whether provisional or final and whether
or not collected or available) at any time held by or coming into the possession of any Purchaser or Agent, or any affiliate of
any Purchaser or Agent, whether for deposit or otherwise;

whether
or not the Obligations or the obligation to pay such moneys owed by any Purchaser or Agent is then due, and the applicable Purchaser
or Agent shall be deemed to have exercised such right of set off immediately at the time of such election even though any charge
therefor is made or entered on such Purchaser’s or Agent’s records subsequent thereto. Agent agrees to notify such
Guarantor in a reasonably practicable time of any such set-off; however, failure to so notify such Guarantor shall not affect
the validity of any set-off.

 

(c) Each
Guarantor’s obligation hereunder is to pay the Obligations in full in cash when due according to the Notes, the other Transaction
Documents, this Guaranty and the other agreements, documents and instruments governing the Obligations to the extent provided
herein, and shall not be affected by any stay or extension of time for payment by any Company or any other Guarantor resulting
from any proceeding under the Bankruptcy Code or any similar law.

 

(d) No
course of dealing between any Company or any Guarantor and Purchasers or Agent and no act, delay or omission by Purchasers or
Agent in exercising any right or remedy hereunder or with respect to any of the Obligations shall operate as a waiver thereof
or of any other right or remedy, and no single or partial exercise thereof shall preclude any other or further exercise thereof
or the exercise of any other right or remedy. Any Purchaser or Agent may remedy any default by any Company under any agreement
with any Company or with respect to any of the Obligations in any reasonable manner without waiving the default remedied and without
waiving any other prior or subsequent default by any Company. All rights and remedies of Purchasers and Agent hereunder are cumulative.

 

(e) This
Guaranty shall inure to the benefit of the parties hereto and their respective successors and assigns.

 

(f) Agent
may assign its rights hereunder without the consent of Guarantors, in which event such assignee shall be deemed to be Agent hereunder
with respect to such assigned rights.

 

(g) Captions
of the sections of this Guaranty are solely for the convenience of the parties hereto, and are not an aid in the interpretation
of this Guaranty and do not constitute part of the agreement of the parties set forth herein.

 

(h) If
any provision of this Guaranty is unenforceable in whole or in part for any reason, the remaining provisions shall continue to
be effective.

 

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(i) All
questions concerning the construction, validity, enforcement and interpretation of this Guaranty shall be governed by the internal
laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the
State of New York or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State
of New York. Each Guarantor hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in
the City of New York, borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action
or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding
is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each Guarantor hereby irrevocably
waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing by registered
or certified mail a copy thereof to such party at the address for such notices to it under this Guaranty and agrees that such
service shall constitute good and sufficient service of process and notice thereof as of the date that is five (5) business days
after the mailing thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner
permitted by law.

 

12. Notices.
All notices, approvals, requests, demands and other communications hereunder shall be delivered or made in the manner set forth
in, and shall be effective in accordance with the terms of, the Purchase Agreement or, in the case of communications to the Agent,
directed to the notice address set forth in the Security Agreement; provided, that any communication shall be effective as to
any Guarantor if made or sent to BTCS in accordance with the foregoing.

 

13. WAIVERS.

 

(a) EACH
GUARANTOR WAIVES THE BENEFIT OF ALL VALUATION, APPRAISAL AND EXEMPTION LAWS.

 

(b) UPON
THE OCCURRENCE OF A DEFAULT OR EVENT OF DEFAULT, EACH GUARANTOR HEREBY WAIVES ALL RIGHTS TO NOTICE AND HEARING OF ANY KIND PRIOR
TO THE EXERCISE BY ANY PURCHASER OR AGENT, ON ITS BEHALF AND IN ITS CAPACITY AS AGENT FOR THE BENEFIT OF PURCHASERS, OF ITS RIGHTS
TO REPOSSESS THE COLLATERAL WITHOUT JUDICIAL PROCESS OR TO REPLEVY, ATTACH OR LEVY UPON THE COLLATERAL WITHOUT PRIOR NOTICE OR
HEARING. EACH GUARANTOR ACKNOWLEDGES THAT IT HAS BEEN ADVISED BY COUNSEL OF ITS CHOICE WITH RESPECT TO THIS TRANSACTION AND THIS
GUARANTY.

 

(c) EACH
GUARANTOR WAIVES ITS RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS
GUARANTY, OR THE TRANSACTIONS CONTEMPLATED HEREBY, IN ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY PURCHASER
OR AGENT. EACH GUARANTOR AGREES THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A JURY. WITHOUT
LIMITING THE FOREGOING, EACH GUARANTOR FURTHER AGREES THAT ITS RIGHT TO A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS SECTION
AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY
OF THIS GUARANTY OR ANY PROVISION HEREOF. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS
TO THIS GUARANTY.

 

    	11

    	 	 	 

    

 

14. Agent. The
terms and provisions of Section 5.11 of the Security Agreement which set forth the appointment of the Agent and the indemnifications
to which the Agent is entitled are hereby incorporated by reference herein as if fully set forth therein.

 

15. Payments
Free of Taxes.

 

(a) Definitions.
In this Section 14:

 

(i) “Excluded
Taxes” means, with respect to the Agent or the Purchasers, or any other recipient of any payment to be made by or on account
of any obligations of any Guarantor under this Guaranty, or under any other Security Document, income or franchise taxes imposed
on (or measured by) its net income by the United States of America or such other jurisdiction under the laws of which such recipient
is organized or in which its principal office is located.

 

(ii) “Governmental
Authority” means the government of the United States of America or any other nation, or any political subdivision thereof,
whether state or local, or any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government over
any of the Companies, or any of their respective properties, assets or undertakings.

 

(iii) “Indemnified
Taxes” means Taxes other than Excluded Taxes.

 

(iv) “Taxes”
means any and all present or future taxes, levies, imposts, duties, deductions, charges or withholdings imposed by any Governmental
Authority.

 

(b) Any
and all payments by or on account of the Obligations of any of the Guarantors under this Guaranty or any other Transaction Document
shall be made without any set-off, counterclaim or deduction and free and clear of and without deduction for any Indemnified Taxes;
provided that if any Guarantor shall be required to deduct any Indemnified Taxes from such payments, then (i) the sum payable
shall be increased as necessary so that after making all required deductions (including deductions applicable to additional sums
payable under this Section 14(b)), the Agent or Purchasers, as applicable, receives an amount equal to the sum it would have received
had no such deductions been made, (ii) such Guarantor shall make such deductions and (iii) such Guarantor shall pay the full amount
deducted to the relevant Governmental Authority in accordance with applicable law.

 

    	12

    	 	 	 

    

 

16. Indemnification
by the Guarantors. Each Guarantor shall indemnify the Agent and the Purchasers, within ten (10) days after written demand
therefor, for the full amount of any Indemnified Taxes paid by the Agent or Purchasers, as applicable, on or with respect to any
payment by or on account of any obligation of such Guarantor under this Guaranty and the other Transaction Documents (including
Indemnified Taxes or imposed or asserted on or attributable to amounts payable under this Section 14) and any penalties, interest
and reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally
imposed or asserted by the relevant Governmental Authority. A certificate of the Agent or any Purchaser as to the amount of such
payment or liability under this Section 14 shall be delivered to such Guarantor and shall be conclusive absent manifest error.

 

17. Counterparts;
Headings. This Guaranty may be executed in two or more identical counterparts, all of which together shall be considered
one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to each other
party; provided that a facsimile, .pdf or similar electronically transmitted signature shall be considered due execution and shall
be binding upon the signatory thereto with the same force and effect as if the signature were an original signature. The headings
in this Guaranty are for convenience of reference only and shall not alter or otherwise affect the meaning hereof.

 

18. Rights
of Contribution. The Guarantors hereby agree as among themselves that, if any Guarantor shall make an Excess Payment (as
defined below), such Guarantor shall have a right of contribution from each other Guarantor in an amount equal to such other Guarantor’s
Contribution Share (as defined below) of such Excess Payment. The payment obligations of any Guarantor under this Section 16 shall
be subordinate and subject in right of payment to the Obligations until such time as the Obligations have been paid in full in
cash and all commitments to lend under the Purchase Agreement have expired or terminated, and none of the Guarantors shall exercise
any right or remedy under this Section 16 against any other Guarantor until such Obligations have been paid in full in cash and
all commitments to lend under the Purchase Agreement have expired or terminated. For purposes of this Section 16, (a) “Excess
Payment” shall mean the amount paid by any Guarantor in excess of its Ratable Share of any Obligations; (b) “Ratable
Share” shall mean, for any Guarantor in respect of any payment of Obligations, the ratio (expressed as a percentage) as
of the date of such payment of Obligations of (i) the amount by which the aggregate present fair salable value of all of its assets
and properties exceeds the amount of all debts and liabilities of such Guarantor (including contingent, subordinated, unmatured,
and unliquidated liabilities, but excluding the obligations of such Guarantor hereunder) to (ii) the amount by which the aggregate
present fair salable value of all assets and other properties of the Companies and the Guarantors exceeds the amount of all of
the debts and liabilities (including contingent, subordinated, unmatured, and unliquidated liabilities, but excluding the obligations
of the Guarantors hereunder) of the Companies and the Guarantors, provided, however, that, for purposes of calculating the Ratable
Shares of the Guarantors in respect of any payment of Obligations, any Guarantor that became a Guarantor subsequent to the date
of any such payment shall be deemed to have been a Guarantor on the date of such payment and the financial information for such
Guarantor as of the date such Guarantor became a Guarantor shall be utilized for such Guarantor in connection with such payment;
and (c) “Contribution Share” shall mean, for any Guarantor in respect of any Excess Payment made by any other Guarantor,
the ratio (expressed as a percentage) as of the date of such Excess Payment of (i) the amount by which the aggregate present fair
salable value of all of its assets and properties exceeds the amount of all debts and liabilities of such Guarantor (including
contingent, subordinated, unmatured, and unliquidated liabilities, but excluding the Obligations) of the Companies and the Guarantors
other than the maker of such Excess Payment; provided, however, that, for purposes of calculating the Contribution Shares of the
Guarantors in respect of any Excess Payment, any Guarantor that became a Guarantor subsequent to the date of any such Excess Payment
shall be deemed to have been a Guarantor on the date of such Excess Payment and the financial information for such Guarantor as
of the date such Guarantor became a Guarantor shall be utilized for such Guarantor in connection with such Excess Payment. This
Section 16 shall not be deemed to affect any right of subrogation, indemnity, reimbursement or contribution that any Guarantor
may have under law against any Company in respect of any payment of Obligations.

 

[rest
of page intentionally left blank; signature page follows]

 

    	13

    	 	 	 

    

 

IN
WITNESS WHEREOF, each Company and the Guarantors have executed this Guaranty as of the date first written above.

 

	BTCS
    INC., 	 
	a
Nevada corporation	 
	 	 	 
	By:	 	 
	Name:
	 	 
	Title:
    	 	 
	 	 	 
	BitcoinShop.us,
    LLC, 	 
	a
Maryland limited liability company	 
	 	 	 
	By:	 	 
	Name:
     	 	 
	Title:
    	 	 
	 	 	 
	BTCS
    Digital Manufacturing,	 
	a
    Nevada corporation	 
	 	 	 
	By:	 	 
	Name:
    	 	 
	Title:
    	 	 

 

SIGNATURE PAGE TO SUBSIDIARY
GUARANTY

 

    	 

    	 	 	 

    

 

EXHIBIT
A

Form
of Joinder

Joinder
to Guaranty

 

This
Joinder Agreement is made between the undersigned, [__________] a [__________], (the “New Subsidiary”) and Cavalry
Fund I, L.P., a Delaware limited partnership, as agent under that certain Subsidiary Guaranty dated as of _________ __,
2015 by and among BTCS, Inc., a Nevada corporation, BitcoinShop.us, LLC, a Maryland limited liability company, and BTCS
Digital Manufacturing, a Nevada corporation; together with each other person or entity that becomes a Guarantor thereunder after
the date and pursuant to the terms thereof, to and in favor of the Purchasers (as amended, restated, supplemented or otherwise
modified from time to time, the “Guaranty”). Capitalized terms herein and not otherwise defined herein shall have
the meanings assigned to such terms in the Guaranty.

 

1. The
New Subsidiary hereby acknowledges, agrees and confirms that, by its execution of this Agreement, the New Subsidiary will be deemed
to be a party to the Guaranty and a “Guarantor” for all purposes of the Guaranty, and shall have all of the obligations
of a Guarantor thereunder as if it had executed the Guaranty. The New Subsidiary hereby ratifies, as of the date hereof, and agrees
to be bound by, all of the terms, provisions and conditions applicable to the Guarantors contained in the Guaranty. Without limiting
the generality of the foregoing terms of this paragraph 1, the New Subsidiary hereby jointly and severally together with the other
Guarantors, guarantees to Purchasers and Agent, as provided in the Guaranty, the prompt payment and performance of the obligations
in full when due (whether at stated maturity, as a mandatory prepayment, by acceleration or otherwise) strictly in accordance
with the terms thereof.

 

2. The
New Subsidiary represents and warrants that the representations and warranties set forth in Section 6 of the Guaranty are, with
respect to the undersigned, true and correct as of the date hereof.

 

3. From
and after the date hereof, each reference to a Guarantor in the Guaranty shall be deemed to include the undersigned.

 

4. This
Agreement may be executed in multiple counterparts, each of which shall constitute an original but all of which when taken together
shall constitute one contract.

 

5. THIS
AGREEMENT SHALL BE SHALL BE GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW
OR CONFLICT OF LAW PROVISION OR RULE (WHETHER OF THE STATE OF NEW YORK OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE APPLICATION
OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF NEW YORK.

 

[Signature
page follows]

 

    	 

    	 	 	 

    

 

IN
WITNESS WHEREOF, the undersigned has executed this Joinder this ___ day of _________, 201_.

 

	 	 
	 	 

 

    	2THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION
OF ANY STATE AND HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
AND, ACCORDINGLY, MAY NOT BE TRANSFERRED UNLESS (I) SUCH SECURITIES HAVE BEEN REGISTERED FOR SALE PURSUANT TO THE SECURITIES ACT
OF 1933, AS AMENDED, (II) SUCH SECURITIES MAY BE SOLD PURSUANT TO RULE 144, OR (III) THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL
REASONABLY SATISFACTORY TO IT THAT SUCH TRANSFER MAY LAWFULLY BE MADE WITHOUT REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS
AMENDED.

 

BTCS
INC.

 

Advisor
Warrant

 

Expires
December 16, 2018

 

Number
of Shares: Up to 70,000

 

Date
of Issuance: December 16, 2015 (“Issuance Date”)

 

BTCS
INC., a Nevada corporation (the “Company”), hereby certifies that, for good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, Pickwick Capital Partners, LLC, the registered holder hereof or its
permitted assigns (the “Holder”), is entitled, subject to the terms set forth below, to purchase from the Company,
at the Exercise Price (as defined below) then in effect, upon exercise of this Warrant (including any Warrants issued in exchange,
transfer or replacement hereof, this “Warrant”), at any time or times on or after the date hereof (the “Exercisability
Date”), but not after 11:59 p.m., New York time, on the Expiration Date (as defined below) the number of shares, subject
to adjustment as provided herein, of fully paid, non-assessable shares of Common Stock (as defined below) set forth below in Section
1(b) (the “Warrant Securities”).

 

1.EXERCISE
OF WARRANT.

 

(a)Mechanics
of Exercise. Subject to the terms and conditions hereof, this Warrant may be exercised by the Holder on any day on or after
the Exercisability Date, in whole or in part, by (i) delivery of a written notice, in the form attached hereto as Exhibit A (the
“Exercise Notice”), of the Holder’s election to exercise this Warrant and (ii) (A) payment to the Company
by no later than two (2) Trading Days of an amount equal to the applicable Exercise Price in effect on the date of exercise multiplied
by the number of Warrant Securities as to which this Warrant is being exercised (the “Aggregate Exercise Price”)
in cash or by wire transfer of immediately available funds or (B) by delivery of the Exercise Notice to the Company specifying
that this Warrant is being exercised as a Cashless Exercise (as defined in Section 1(c)). The Holder shall not be required
to deliver the original Warrant in order to effect an exercise hereunder. Execution and delivery of the Exercise Notice with respect
to less than all of the Warrant Securities shall have the same effect as cancellation of the original Warrant and issuance of
a new Warrant evidencing the right to purchase the remaining number of Warrant Securities. On or before the first (1st)
Trading Day following the date on which the Company has received an Exercise Notice, the Company shall transmit by facsimile an
acknowledgment of confirmation of receipt of such Exercise Notice to the Holder and the Company’s transfer agent (the “Transfer
Agent”). On or before the third (3rd) Trading Day following the date on which the Company has received such
Exercise Notice (the “Share Delivery Date”), the Company shall, (X) provided that the Transfer Agent is participating
in The Depository Trust Company (“DTC”) Fast Automated Securities Transfer Program, upon the request of the
Holder, credit such aggregate number of Warrant Securities to which the Holder is entitled pursuant to such exercise to the Holder’s
or its designee’s balance account with DTC through its Deposit/Withdrawal At Custodian system, or (Y) if the Transfer Agent
is not participating in the DTC Fast Automated Securities Transfer Program, issue and dispatch by overnight courier to the address
as specified in the Exercise Notice, a certificate, registered in the Company’s share register in the name of the Holder
or its designee, for the number of shares of Common Stock to which the Holder is entitled pursuant to such exercise. Upon delivery
of the Exercise Notice, the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant
Securities with respect to which this Warrant has been exercised, irrespective of the date such Warrant Securities are credited
to the Holder’s DTC account or the date of delivery of the certificates evidencing such Warrant Securities, as the case
may be. If this Warrant is submitted in connection with any exercise pursuant to this Section 1(a) and the number of Warrant
Securities represented by this Warrant submitted for exercise is greater than the number of Warrant Securities being acquired
upon an exercise, then the Company shall as soon as practicable and in no event by no later than three (3) Business Days after
any exercise and at its own expense, issue a new Warrant (in accordance with Section 7(d)) representing the right to purchase
the number of Warrant Securities purchasable immediately prior to such exercise under this Warrant, less the number of Warrant
Securities with respect to which this Warrant is exercised. No fractional shares of Common Stock are to be issued upon the exercise
of this Warrant, but rather the number of shares of Common Stock to be issued shall be rounded up to the nearest whole number.
The Company shall pay any and all transfer taxes which may be payable with respect to the issuance and delivery of Warrant Securities
upon exercise of this Warrant.

 

    	 

     

    

 

(b)Exercise
Price. For purposes of this Warrant, “Exercise Price” means $0.30, subject to adjustment as provided herein.
The Warrant Securities means 70,000 shares of Common Stock.

 

(c)Cashless
Exercise. Notwithstanding anything contained herein to the contrary if a registration statement under the Securities Act providing
for the resale of the Common Stock underlying the Warrant is not then in effect then, at any time, the Holder may, in its sole
discretion, exercise this Warrant in whole or in part and, in lieu of making the cash payment otherwise contemplated to be made
to the Company upon such exercise in payment of the Aggregate Exercise Price, elect instead to receive upon such exercise the
“Net Number” of shares of Common Stock determined according to the following formula (a “Cashless
Exercise”):

 

Net
Number = (A x B) - (A x C)

B

 

For
purposes of the foregoing formula:

 

A
= the total number of shares with respect to which this Warrant is then being exercised.

 

B
= the arithmetic average of the Closing Sale Price of the shares of Common Stock for the Trading Day immediately preceding the
date of the Exercise Notice.

 

C
= the Exercise Price then in effect for the applicable Warrant Securities at the time of such exercise.

 

(d)Rule
144. For purposes of Rule 144(d) promulgated under the Securities Act, as in effect on the date hereof, assuming the Holder
is not an affiliate of the Company, it is intended that the Warrant Securities issued in a Cashless Exercise shall be deemed to
have been acquired by the Holder, and the holding period for the Warrant Securities shall be deemed to have commenced, on the
date this Warrant was originally issued.

 

(e)Disputes.
In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant Securities,
the Company shall promptly issue to the Holder the number of Warrant Securities that are not disputed.

 

(f)Registration
of Warrant. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the “Warrant
Register”), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered
Holder of record of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the
Holder, and for all other purposes, absent actual notice to the contrary.

 

(g)Registration
of Transfers. The Company shall register the transfer of any portion of this Warrant in the Warrant Register, upon surrender
of this Warrant, with the Form of Assignment attached hereto duly completed and signed, to the Transfer Agent or to the Company
at its address specified herein. Upon any such registration of transfer, a new warrant to purchase Common Stock, in substantially
the form of this Warrant (any such new warrant, a “New Warrant”), evidencing the portion of this Warrant so
transferred shall be issued to the transferee and a New Warrant evidencing the remaining portion of this Warrant not so transferred,
if any, shall be issued to the transferring Holder. The acceptance of the New Warrant by the transferee thereof shall be deemed
the acceptance by such transferee of all of the rights and obligations of a holder of a Warrant.

 

    	- 2 -

     

    

 

(h)Call
Provision. Subject to the provisions hereof, if, after the Issuance Date, (i) the Closing Sale Price for any five (5) of the
prior ten (10) Trading Days (the “Measurement Period,” which 5 consecutive Trading Day period shall not have
commenced until after the Exercisability Date) exceeds or equals 350% of the Exercise Price then in effect (subject to adjustment
for forward and reverse stock splits, recapitalizations, stock dividends and the like after the Exercisability Date) and (ii)
the Holder is not in possession of any information that constitutes, or might constitute, material non-public information which
was provided by the Company, then the Company may, within 1 Trading Day of the end of such Measurement Period, call for cancellation
of all or any portion of this Warrant for which a Exercise Notice has not yet been delivered (such right, a “Call”)
for consideration equal to $.001 per Warrant Share. To exercise this right, the Company must deliver to the Holder an irrevocable
written notice (a “Call Notice”), indicating therein the portion of unexercised portion of this Warrant to
which such notice applies. If the conditions set forth below for such Call are satisfied from the period from the date of the
Call Notice through and including the Call Date (as defined below), then any portion of this Warrant subject to such Call Notice
for which a Exercise Notice shall not have been received by the Call Date will be cancelled at 6:30 p.m. (New York City time)
on the tenth Trading Day after the date the Call Notice is received by the Holder (such date and time, the “Call Date”).
Any unexercised portion of this Warrant to which the Call Notice does not pertain will be unaffected by such Call Notice. In furtherance
thereof, the Company covenants and agrees that it will honor all Exercise Notices with respect to Warrant Securities subject to
a Call Notice that are tendered through 6:30 p.m. (New York City time) on the Call Date. The parties agree that any Exercise Notice
delivered following a Call Notice which calls less than all the Warrants shall first reduce to zero the number of Warrant Securities
subject to such Call Notice prior to reducing the remaining Warrant Securities available for purchase under this Warrant. For
example, if (A) this Warrant then permits the Holder to acquire 100 of the Warrant Securities, (B) a Call Notice pertains to of
the 75 Warrant Securities, and (C) prior to 6:30 p.m. (New York City time) on the Call Date the Holder tenders a Exercise Notice
in respect of 50 of the Warrant Securities, then (x) on the Call Date the right under this Warrant to acquire 25 of the Warrant
Securities will be automatically cancelled, (y) the Company, in the time and manner required under this Warrant, will have issued
and delivered to the Holder 50 of the Warrant Securities in respect of the exercises following receipt of the Call Notice, and
(z) the Holder may, until the Termination Date, exercise this Warrant for 25 of the Warrant Securities (subject to adjustment
as herein provided and subject to subsequent Call Notices). Subject again to the provisions of this Section 1(h), the Company
may deliver subsequent Call Notices for any portion of this Warrant for which the Holder shall not have delivered a Exercise Notice.
Notwithstanding anything to the contrary set forth in this Warrant, the Company may not deliver a Call Notice or require the cancellation
of this Warrant (and any such Call Notice shall be void), unless, from the beginning of the Measurement Period through the Call
Date, (1) the Company shall have honored in accordance with the terms of this Warrant all Exercise Notices delivered by 6:30 p.m.
(New York City time) on the Call Date, and (2) a registration statement shall be effective as to all Warrant Securities and the
prospectus thereunder available for use by the Holder for the resale of all such Warrant Securities, and (3) the Common Stock
shall be listed or quoted for trading on the Company’s Principal Market, and (4) there is a sufficient number of authorized
shares of Common Stock for issuance of the Warrant Securities, and (5) the issuance of the shares shall not cause a breach of
any provision of Section 1(h) herein.

 

2.ADJUSTMENT
OF EXERCISE PRICE AND NUMBER OF WARRANT SECURITIES. The Exercise Price and the number of Warrant Securities issuable upon
exercise of this Warrant, as applicable, shall be adjusted from time to time as follows:

 

(a)Adjustment
upon Subdivision or Combination of Common Stock. If the Company at any time on or after the Exercisability Date subdivides
(by any stock split, stock dividend, recapitalization, reorganization, scheme, arrangement or otherwise) its outstanding shares
of Common Stock into a greater number of shares, the Exercise Price in effect immediately prior to such subdivision will be proportionately
reduced and the number of Warrant Securities will be proportionately increased. If the Company at any time on or after the Exercisability
Date combines (by any stock split, stock dividend, recapitalization, reorganization, scheme, arrangement or otherwise) its outstanding
shares of Common Stock into a smaller number of shares, the Exercise Price in effect immediately prior to such combination will
be proportionately increased and the number of Warrant Securities will be proportionately decreased. Any adjustment under this
Section 2(a) shall become effective at the close of business on the date the subdivision or combination becomes effective.

 

    	- 3 -

     

    

 

(b)Issuance
of Additional Equity or Equity Linked Securities. For a period of four (4) months from the Issuance Date, other than in connection
with (i) full or partial consideration in connection with a strategic merger, acquisition, consolidation or purchase of substantially
all of the securities or assets of a corporation or other entity which holders of such securities or debt are not at any time
granted registration rights equal to or greater than those granted to the Subscribers, (ii) the Company’s issuance of securities
in connection with strategic license agreements and other partnering arrangements so long as such issuances are not primarily
for the purpose of raising capital and which holders of such securities or debt are not at any time granted registration rights
equal to or greater than those granted to the Subscribers, (iii) the Company’s issuance of Common Stock or the issuances
or grants of options to purchase Common Stock to employees, and directors, pursuant to plans that have been approved by a majority
of the stockholders and a majority of the independent members of the board of directors of the Company or in existence as such
plans are constituted on the Issuance Date, (iv) the Company’s issuance of securities upon the exercise or exchange of or
conversion of any securities exercisable or exchangeable for or convertible into shares of Common Stock issued and outstanding
on the Issuance Date on the terms in effect on the Issuance Date, (v) an issuance by the Company of securities resulting from
the exercise of warrants or conversion of the Shares, and (vi) any and all securities required to be assumed by the Company by
the terms thereof as a result of any of the foregoing even if issued by a predecessor acquired in connection with a business combination,
merger or share exchange (collectively, the foregoing (i) through (vi) are “Excepted Issuances”), if at any
time the Company shall issue any Common Stock or securities convertible into or exercisable for shares of Common Stock to any
person or entity (excluding issuances to service providers or consultants) at a price per share or conversion or exercise price
per share which shall be less than Exercise Price then in effect, (the “Lower Price Issuance”), then the Exercise
Price upon the first such issuance shall be reduced, concurrently with such issue or sale, to the price that is the product of:
(i) one hundred and twenty five percent (125%), and (ii) the issuance price of the Lower Price Issuance (provided that the Exercise
Price will not be adjusted to a price that is greater than the original Exercise Price on the Issuance Date). The provisions of
this Section 2(b) shall be limited to one adjustment for a Lower Price Issuance.

 

(c)Other
Events. If any event occurs of the type contemplated by the provisions of this Section 2 but not expressly provided
for by such provisions (including, without limitation, the granting of stock appreciation rights or phantom stock rights), then
the Company’s Board of Directors will make an appropriate adjustment in the Exercise Price and the number of Warrant Securities
so as to protect the rights of the Holder; provided that no such adjustment pursuant to this Section 2(c) will increase
the Exercise Price or decrease the number of Warrant Securities as otherwise determined pursuant to this Section 2.

 

3.RIGHTS
UPON DISTRIBUTION OF ASSETS.

 

(a)If
at any time or from time to time the holders of Common Stock of the Company (or any shares of stock or other securities at the
time receivable upon the exercise of this Warrant) shall have received or become entitled to receive, without payment therefor:

 

	 	(i)	Common
    Stock or any shares of stock or other securities which are at any time directly or indirectly convertible into or exchangeable
    for Common Stock, or any rights or options to subscribe for, purchase or otherwise acquire any of the foregoing by way of
    dividend or other distribution (other than a dividend or distribution covered in Section 2(a) above);
	 	 	 
	 	(ii)	any
    cash paid or payable otherwise than as a cash dividend; or
	 	 	 
	 	(iii)	Common
    Stock or additional stock or other securities or property (including cash) by way of spinoff, split-up, reclassification,
    combination of shares or similar corporate rearrangement (other than shares of Common Stock pursuant to Section 2(a)
    above),

 

then
and in each such case, the Holder hereof will, upon the exercise of this Warrant, be entitled to receive, in addition to the number
of shares of Common Stock receivable thereupon, and without payment of any additional consideration therefor, the amount of stock
and other securities and property (including cash in the cases referred to in clauses (ii) and (iii) above) which such Holder
would hold on the date of such exercise had such Holder been the holder of record of such Common Stock as of the date on which
holders of Common Stock received or became entitled to receive such shares or all other additional stock and other securities
and property.

 

    	- 4 -

     

    

 

(b)Upon
the occurrence of each adjustment pursuant to this Section 3, the Company at its expense will, at the written request of
the Holder, promptly compute such adjustment in accordance with the terms of this Warrant and prepare a certificate setting forth
such adjustment, including a statement of the adjusted number or type of Warrant Securities or other securities issuable upon
exercise of this Warrant (as applicable), describing the transactions giving rise to such adjustments and showing in detail the
facts upon which such adjustment is based. Upon written request, the Company will promptly deliver a copy of each such certificate
to the Holder and to the Company’s transfer agent.

 

4.FUNDAMENTAL
TRANSACTIONS. Upon the occurrence of a Fundamental Transaction, the Successor Entity shall assume this Warrant in accordance
with the provisions of this Section 4, including agreements to deliver to each holder of Warrants in exchange for such
Warrants a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this
Warrant, including, without limitation, an adjusted exercise price equal to the value for the shares of Common Stock reflected
by the terms of such Fundamental Transaction, and exercisable for a corresponding number of shares of capital stock or other securities
equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Warrant (without regard to any limitations
on the exercise of this Warrant) prior to such Fundamental Transaction, and satisfactory to the Holder. Upon the occurrence of
any Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of
such Fundamental Transaction, the provisions of this Warrant referring to the “Company” shall refer instead to the
Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company
under this Warrant with the same effect as if such Successor Entity had been named as the Company herein. In addition to and not
in substitution for any other rights hereunder, prior to the consummation of any Fundamental Transaction pursuant to which holders
of shares of Common Stock are entitled to receive securities or other assets with respect to or in exchange for shares of Common
Stock (a “Corporate Event”), the Company shall make appropriate provision to ensure that the Holder will thereafter
have the right to receive upon an exercise of this Warrant at any time after the consummation of the Fundamental Transaction but
prior to the Expiration Date, in lieu of the shares of the Common Stock (or other securities, cash, assets or other property)
purchasable upon the exercise of the Warrant prior to such Fundamental Transaction, such shares of stock, securities, cash, assets
or any other property whatsoever (including warrants or other purchase or subscription rights) which the Holder would have been
entitled to receive upon the happening of such Fundamental Transaction had the Warrant been exercised immediately prior to such
Fundamental Transaction (including, if the Warrant Securities underlying this Warrant include securities that are convertible
or exercisable, had such Warrant Securities been converted or exercised, as applicable, into shares of Common Stock). If holders
of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then
the Holder shall be given the same choice as to the consideration it receives upon any exercise of this Warrant following such
Fundamental Transaction. The provisions of this Section 4 shall apply similarly and equally to successive Fundamental Transactions
and Corporate Events and shall be applied without regard to any limitations on the exercise of this Warrant.

 

5.NON-CIRCUMVENTION.
The Company hereby covenants and agrees that the Company will not, by amendment of its Articles of Incorporation, Bylaws or through
any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities,
or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, and will
at all times in good faith comply with all the provisions of this Warrant and take all actions consistent with effectuating the
purposes of this Warrant. Without limiting the generality of the foregoing, the Company (i) shall not increase the par value of
any shares of Common Stock receivable upon the exercise of this Warrant above the Exercise Price then in effect, (ii) shall take
all such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and non-assessable
shares of Common Stock upon the exercise of this Warrant, and (iii) shall, so long as this Warrant is outstanding, take all action
necessary to reserve and keep available out of its authorized and unissued shares of Common Stock, solely for the purpose of effecting
the exercise of this Warrant, 100% of the number of shares of Common Stock issuable upon exercise of this Warrant then outstanding
(without regard to any limitations on exercise).

 

    	- 5 -

     

    

 

6.WARRANT
HOLDER NOT DEEMED A STOCKHOLDER. Except as otherwise specifically provided herein, the Holder, solely in such Person’s
capacity as a holder of this Warrant, shall not be entitled to vote or receive dividends or be deemed the holder of share capital
of the Company for any purpose, nor shall anything contained in this Warrant be construed to confer upon the Holder, solely in
such Person’s capacity as the Holder of this Warrant, any of the rights of a stockholder of the Company or any right to
vote, give or withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification of stock,
consolidation, merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise,
prior to the issuance to the Holder of the Warrant Securities which such Person is then entitled to receive upon the due exercise
of this Warrant. In addition, nothing contained in this Warrant shall be construed as imposing any liabilities on the Holder to
purchase any securities (upon exercise of this Warrant or otherwise) or as a stockholder of the Company, whether such liabilities
are asserted by the Company or by creditors of the Company.

 

7.REISSUANCE
OF WARRANTS.

 

(a)Transfer
of Warrant. Subject to Section 14 of this Warrant, if this Warrant is to be transferred, the Holder shall surrender
this Warrant to the Company and deliver the completed and executed Assignment Form, in the form attached hereto as Exhibit
B, whereupon the Company will forthwith issue and deliver upon the order of the Holder a new Warrant (in accordance with
Section 7(d)), registered as the Holder may request, representing the right to purchase the number of Warrant Securities
being transferred by the Holder and, if less then the total number of Warrant Securities then underlying this Warrant is being
transferred, a new Warrant (in accordance with Section 7(d)) to the Holder representing the right to purchase the number
of Warrant Securities not being transferred.

 

(b)Lost,
Stolen or Mutilated Warrant. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft,
destruction or mutilation of this Warrant, and, in the case of loss, theft or destruction, of any indemnification undertaking
by the Holder to the Company in customary form and, in the case of mutilation, upon surrender and cancellation of this Warrant,
the Company shall execute and deliver to the Holder a new Warrant (in accordance with Section 7(d)) representing the right
to purchase the Warrant Securities then underlying this Warrant.

 

(c)Exchangeable
for Multiple Warrants. This Warrant is exchangeable, upon the surrender hereof by the Holder at the principal office of the
Company, for a new Warrant or Warrants (in accordance with Section 7(d)) representing in the aggregate the right to purchase
the number of Warrant Securities then underlying this Warrant, and each such new Warrant will represent the right to purchase
such portion of such Warrant Securities as is designated by the Holder at the time of such surrender; provided, however, that
no Warrants for fractional shares of Common Stock shall be given. Notwithstanding anything to the contrary herein, in no event
shall the original Warrant be subdivided into more than three (3) separate Warrants and such new Warrants shall not be further
subdivided.

 

(d)Issuance
of New Warrants. Whenever the Company is required to issue a new Warrant pursuant to the terms of this Warrant, such new Warrant
(i) shall be of like tenor with this Warrant, (ii) shall represent, as indicated on the face of such new Warrant, the right to
purchase the Warrant Securities then underlying this Warrant (or in the case of a new Warrant being issued pursuant to Section
7(a) or Section 7(c), the Warrant Securities designated by the Holder which, when added to the number of shares of
Common Stock and/or other securities underlying the other new Warrants issued in connection with such issuance, does not exceed
the number of Warrant Securities then underlying this Warrant), (iii) shall have an issuance date, as indicated on the face of
such new Warrant which is the same as the Issuance Date, and (iv) shall have the same rights and conditions as this Warrant.

 

8.NOTICES.
Whenever notice is required to be given under this Warrant, unless otherwise provided herein, such notice shall be given as set
forth below:

 

If
to the Company:

 

BTCS
Inc.

1901
N Moore St, Suite 700

Arlington,
VA 22209

Attention:
Charles Allen

 

    	- 6 -

     

    

 

If
to the Holder:

 

Pickwick
Capital Partners, LLC

445
Hamilton Avenue

Suite
1102

White
Plains, NY 10601

 

9.
AMENDMENT AND WAIVER. This Warrant may be modified or amended or the provisions hereof waived with the written consent signed
by both (a) the Company and (b) the Holder of this Warrant.

 

10.GOVERNING
LAW. This Warrant shall be governed by and construed and enforced in accordance with, and all questions concerning the construction,
validity, interpretation and performance of this Warrant shall be governed by, the internal laws of the State of New York, without
giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions)
that would cause the application of the laws of any jurisdictions other than the State of New York.

 

11.CONSTRUCTION;
HEADINGS. This Warrant shall be deemed to be jointly drafted by the Company and the Holder and shall not be construed against
any person as the drafter hereof. The headings of this Warrant are for convenience of reference and shall not form part of, or
affect the interpretation of, this Warrant.

 

12.DISPUTE
RESOLUTION. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant
Securities, the Company shall submit the disputed determinations or arithmetic calculations via facsimile within two (2) Business
Days of receipt of the Exercise Notice giving rise to such dispute, as the case may be, to the Holder. If the Holder and the Company
are unable to agree upon such determination or calculation of the Exercise Price or the Warrant Securities within three Business
Days of such disputed determination or arithmetic calculation being submitted to the Holder, then the Company shall, within two
(2) Business Days submit via facsimile (a) the disputed determination of the Exercise Price to an independent, reputable investment
bank selected by the Company and approved by the Holder, which approval shall not be unreasonably withheld, or (b) the disputed
arithmetic calculation of the Warrant Securities to the Company’s independent, outside accountant. The Company shall cause
the investment bank or the accountant, as the case may be, to perform the determinations or calculations and notify the Company
and the Holder of the results no later than ten Business Days from the time it receives the disputed determinations or calculations.
The prevailing party in any dispute resolved pursuant to this Section 12 shall be entitled to the full amount of all reasonable
expenses, including all costs and fees paid or incurred in good faith, in relation to the resolution of such dispute. Such investment
bank’s or accountant’s determination or calculation, as the case may be, shall be binding upon all parties absent
demonstrable error.

 

13.REMEDIES,
OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The remedies provided in this Warrant shall be cumulative and in addition
to all other remedies available under this Warrant and the other Transactions Documents, as applicable, at law or in equity (including
a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the right of the Holder to pursue
actual damages for any failure by the Company to comply with the terms of this Warrant. The Company acknowledges that a breach
by it of its obligations hereunder may cause irreparable harm to the Holder and that the remedy at law for any such breach may
be inadequate. The Company therefore agrees that, in the event of any such breach or threatened breach, the Holder may be entitled,
in addition to all other available remedies, to an injunction restraining any breach, without the necessity of showing economic
loss and without any bond or other security being required. The issuance of Warrant Securities and certificates for such Warrant
Securities as contemplated hereby upon the exercise of this Warrant shall be made without charge to the Holder for any issuance
tax in respect thereof.

 

14.TRANSFER.
Subject to compliance with applicable laws, this Warrant may be offered for sale, sold, transferred or assigned without the consent
of the Company, provided that the Company is notified in writing within two business days following such transaction.

 

    	- 7 -

     

    

 

15.WARRANT
AGENT. The Company shall serve as warrant agent under this Warrant. Upon 30 days’ notice to the Holder, the Company
may appoint a new warrant agent. Any corporation into which the Company or any new warrant agent may be merged or any corporation
resulting from any consolidation to which the Company or any new warrant agent shall be a party or any corporation to which the
Company or any new warrant agent transfers substantially all of its corporate trust or stockholder services business shall be
a successor warrant agent under this Warrant without any further act. Any such successor warrant agent shall promptly cause notice
of its succession as warrant agent to be mailed (by first class mail, postage prepaid) to the Holder at the Holder’s last
address as shown on the Warrant Register.

 

16.SEVERABILITY.
If any provision of this Warrant shall be held to be invalid and unenforceable, such invalidity or unenforceability shall not
affect any other provision of this Warrant.

 

17.CERTAIN
DEFINITIONS. For purposes of this Warrant, the following terms shall have the following meanings:

 

(a)“Bloomberg”
means Bloomberg Financial Markets.

 

(b)“Business
Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized
or required by law to remain closed.

 

(c)
“Closing Bid Price” and “Closing Sale Price” means, for any security as of any date,
the last closing bid price and last closing trade price, respectively, for such security on the Principal Market, as reported
by Bloomberg, or, if the Principal Market begins to operate on an extended hours basis and does not designate the closing bid
price or the closing trade price, as the case may be, then the last bid price or the last trade price, respectively, of such security
prior to 4:00:00 p.m., New York time, as reported by Bloomberg, or, if the Principal Market is not the principal securities exchange
or trading market for such security, the last closing bid price or last trade price, respectively, of such security on the principal
securities exchange or trading market where such security is listed or traded as reported by Bloomberg, or if the foregoing do
not apply, the last closing bid price or last trade price, respectively, of such security in the over-the-counter market on the
electronic bulletin board for such security as reported by Bloomberg, or, if no closing bid price or last trade price, respectively,
is reported for such security by Bloomberg, the average of the bid prices, or the ask prices, respectively, of any market makers
for such security as reported in the “pink sheets” by the OTC Markets Group LLC. If the Closing Bid Price or the Closing
Sale Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Bid Price or the
Closing Sale Price, as the case may be, of such security on such date shall be the fair market value as mutually determined by
the Company and the Holder. All such determinations to be appropriately adjusted for any stock dividend, stock split, stock combination
or other similar transaction during the applicable calculation period.

 

(d)“Common
Stock” means (i) the Company’s shares of Common Stock, par value $0.001 per share, and (ii) any share capital
into which such Common Stock shall have been changed or any share capital resulting from a reclassification of such Common Stock.

 

(e)“Eligible
Market” means the Principal Market, The New York Stock Exchange, Inc., The NYSE MKT, The NASDAQ Global Market, The NASDAQ
Capital Market, the Over the Counter Bulletin Board, the OTCQX or the OTCQB.

 

(f)“Expiration
Date” means the December 16, 2018.

 

(g)“Fundamental
Transaction” means that (i) the Company or any of its Subsidiaries shall, directly or indirectly, in one or more related
transactions, (1) consolidate or merge with or into (whether or not the Company or any of its Subsidiaries is the surviving corporation)
any other person, or (2) sell, lease, license, assign, transfer, convey or otherwise dispose of all or substantially all of its
respective properties or assets to any other person, or (3) allow any other person to make a purchase, tender or exchange offer
that is accepted by the holders of more than 50% of the outstanding shares of Voting Stock of the Company (not including any shares
of Voting Stock of the Company held by the person or persons making or party to, or associated or affiliated with the persons
making or party to, such purchase, tender or exchange offer), or (4) consummate a stock or share purchase agreement or other business
combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with any other
person whereby such other person acquires more than 50% of the outstanding shares of Voting Stock of the Company (not including
any shares of Voting Stock of the Company held by the other person or other persons making or party to, or associated or affiliated
with the other persons making or party to, such stock or share purchase agreement or other business combination), or (5) (I) reorganize,
recapitalize or reclassify the Common Stock, (II) effect or consummate a stock combination, reverse stock split or other similar
transaction involving the Common Stock or (III) make any public announcement or disclosure with respect to any stock combination,
reverse stock split or other similar transaction involving the Common Stock (including, without limitation, any public announcement
or disclosure of (x) any potential, possible or actual stock combination, reverse stock split or other similar transaction involving
the Common Stock or (y) board or stockholder approval thereof, or the intention of the Company to seek board or stockholder approval
of any stock combination, reverse stock split or other similar transaction involving the Common Stock), or (ii) any “person”
or “group” (as these terms are used for purposes of Sections 13(d) and 14(d) of the Exchange Act and the rules and
regulations promulgated thereunder) is or shall become the “beneficial owner” (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of 50% of the aggregate ordinary voting power represented by issued and outstanding Voting
Stock of the Company.

 

    	- 8 -

     

    

 

(h)“Parent
Entity” of a Person means an entity that, directly or indirectly, controls the applicable Person and whose common stock
or equivalent equity security is quoted or listed on an Eligible Market, or, if there is more than one such Person or Parent Entity,
the Person or Parent Entity with the largest public market capitalization as of the date of consummation of the Fundamental Transaction.

 

(i)“Person”
means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization,
any other entity and a government or any department or agency thereof.

 

(j)“Principal
Market” means the principal securities exchange or securities market on which the Common Stock is then quoted or traded.

 

(k)“Subsidiary”
means any subsidiary of the Company including any direct or indirect subsidiary of the Company formed or acquired after the date
hereof.

 

(l)“Successor
Entity” means the Person (or, if so elected by the Holder, the Parent Entity) formed by, resulting from or surviving
any Fundamental Transaction or the Person (or, if so elected by the Holder, the Parent Entity) with which such Fundamental Transaction
shall have been entered into.

 

(m)“Trading
Day” means any day on which the Common Stock are traded on the Principal Market, or, if the Principal Market is not
the principal trading market for the Common Stock, then on the principal securities exchange or securities market on which the
Common Stock are then traded; provided that “Trading Day” shall not include any day on which the Common Stock
are scheduled to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock are suspended from
trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate in advance
the closing time of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New York time).

 

(n)“Voting
Stock” of a person means capital stock of such person of the class or classes pursuant to which the holders thereof
have the general voting power to elect, or the general power to appoint, at least a majority of the board of directors, managers,
trustees or other similar governing body of such person (irrespective of whether or not at the time capital stock of any other
class or classes shall have or might have voting power by reason of the happening of any contingency).

 

(o)“VWAP”
means, means, for any security as of any date, the dollar volume-weighted average price for such security on the Principal Market
(or, if the Principal Market is not the principal trading market for such security, then on the principal securities exchange
or securities market on which such security is then traded) during the period beginning at 9:30:01 a.m., New York time, and ending
at 4:00:00 p.m., New York time, as reported by Bloomberg through its “Volume at Price” function or, if the foregoing
does not apply, the dollar volume-weighted average price of such security in the over-the-counter market on the electronic bulletin
board for such security during the period beginning at 9:30:01 a.m., New York time, and ending at 4:00:00 p.m., New York time,
as reported by Bloomberg, or, if no dollar volume-weighted average price is reported for such security by Bloomberg for such hours,
the average of the highest closing bid price and the lowest closing ask price of any of the market makers for such security as
reported in the “pink sheets” by OTC Markets Group Inc. (formerly Pink Sheets LLC). If the VWAP cannot be calculated
for such security on such date on any of the foregoing bases, the VWAP of such security on such date shall be the fair market
value as mutually determined by the Company and such Holder. All such determinations shall be appropriately adjusted for any stock
dividend, stock split, stock combination or other similar transaction during such period.

 

[Signature
Page Follows]

 

    	- 9 -

     

    

 

IN
WITNESS WHEREOF, the Company has caused this Warrant to be duly executed as of the Issuance Date set out above.

 

BTCS
INC.

 

	By:		 
	Name:	Charles
    Allen	 
	Title:	CEO	 

 

    	- 10 -

     

    

 

EXHIBIT
A

 

EXERCISE
NOTICE

TO
BE EXECUTED BY THE REGISTERED HOLDER

TO
EXERCISE THIS WARRANT

 

BTCS
INC.

 

The
undersigned holder hereby exercises the right to purchase _________________ shares of Common Stock (the “Warrant Securities”)
of BTCS INC., a Nevada corporation (the “Company”), evidenced by the attached Warrant (the “Warrant”).
Capitalized terms used herein and not otherwise defined shall have the respective meanings set forth in the Warrant.

 

1.
Form of Exercise Price. The Holder intends that payment of the Exercise Price shall be made as:

 

____________
a “ Cash Exercise “ with respect to _________________ Warrant Securities; and/or

 

____________
a “ Cashless Exercise “ with respect to _______________ Warrant Securities.

 

2.
In the event that the holder has elected a Cash Exercise with respect to some or all of the Warrant Securities to be issued pursuant
hereto, the holder shall pay the Aggregate Exercise Price in the sum of $___________________ to the Company in accordance with
the terms of the Warrant.

 

3.
Delivery of Warrant Securities. The Company shall deliver to the holder __________ Warrant Securities in accordance with the terms
of the Warrant and, after delivery of such Warrant Securities, _____________ Warrant Securities remain subject to the Warrant.

 

Date:
_______________ __, ______

 

Name
of Registered Holder

 

	By:	 	 
	Name:	 	 
	Title:	 	 

 

    	- 11 -

     

    

 

ACKNOWLEDGMENT

 

The
Company hereby acknowledges this Exercise Notice and hereby directs the Company’s transfer agent to issue the above indicated
number of shares of Common Stock in accordance with the Transfer Agent Instructions dated [___ ____], 20[__] from the Company
and acknowledged and agreed to by the Company’s transfer agent.

 

BTCS
INC.

 

	By:	 	 
	Name:	 	 
	Title:	 	 

 

    	- 12 -

     

    

 

EXHIBIT
B

 

ASSIGNMENT
FORM

 

BTCS
INC.

 

(To
assign the foregoing Warrant, execute this form and supply required information. Do not use this form to purchase shares.)

 

FOR
VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby assigned to

 

	Name:	 	 
	 	(Please
    Print)	 
	 	 	 
	Address:
    	 	 
	 	(Please
    Print)	 

 

	Dated:	_______________
    __, ______	 
	Holder’s
    Signature:	 	 
	Holder’s
    Address:	 	 
	 	(Please
    Print)	 

 

NOTE:
The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant, without alteration
or enlargement or any change whatever. Officers of corporations and those acting in a fiduciary or other representative capacity
should file proper evidence of authority to assign the foregoing Warrant.

 

    	- 13 -

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