BTCS Reports Q1 2024 Results
May 15 2024 - 9:00AM
BTCS Inc. (Nasdaq: BTCS) (“BTCS” or the “Company”), a blockchain
technology-focused company, announced its results for the three
months ended March 31, 2024 (“Q1 2024”).
First Quarter 2024 Financial
Highlights
- Revenue: Q1 2024
revenue of $0.4 million increased 18% from Q4 2023 and 24% from Q1
2023.
- Gross Margin: 75%
gross margins remain consistent for Q1 2024.
- Net Income: $12.3
million, or $0.78 per share, in Q1 2024 represents a record quarter
for BTCS’s performance. Q1 2024 net income is a 148% increase from
Q1 2023 and 13% from the previous quarter in Q4 2023. These records
results are attributed primarily to the increase in fair market
value of crypto assets held impacted by the continued rally of
crypto markets throughout Q1 2024.
- Cash & Crypto
Value: $39.4 million as of March 31, 2024, marking a 91%
year-over-year increase.
Management Commentary
In the first quarter of 2024, BTCS achieved
remarkable financial success, reporting a net income of $12.3
million and earnings per share of $0.78. These figures mark new
record highs for our quarterly results. Our impressive performance
was fuelled by a 48% increase in the fair market value of our
crypto assets throughout the quarter, as the crypto markets
continued their upswing that began in late 2023. Additionally, our
revenue from staking rewards, a core component of our blockchain
infrastructure operations, increased in line with the market’s
positive trajectory. While the crypto markets have experienced a
slight pullback since March 31st, we remain optimistic about the
direction of the market and our ability to strengthen our
revenue-generating prospects in 2024.
Ethereum Block Building Operations
This quarter, we launched our Ethereum
block-building operations under the "Builder+" brand. We have made
significant progress in establishing a strong presence in the
Ethereum builder market, climbing the leaderboards for daily block
production. Our strategic focus is to penetrate the concentrated
market dominated by three large builder organizations that
collectively account for approximately 85% of daily blocks
proposed. Our strategy aims to optimize the value we derive from
our block-building operations by maximizing gas fees earned through
increased block production while minimizing validator payments
required to secure block space.
Research & Development Initiatives
We continue to invest in research and
development initiatives to enhance our blockchain infrastructure
operations and support our Builder+ objectives. In addition, we are
advancing the development of our AI-enhanced blockchain data and
analytics platform, “ChainQ,” which we anticipate launching in the
second half of 2024. ChainQ is expected to provide users with
unique insights into blockchain data with a user-friendly
interface.
Commitment to Innovation and Growth
BTCS remains steadfast in its commitment to
investing in innovations that drive growth and enhance the value we
deliver to our shareholders. Our continued focus on pioneering
blockchain solutions positions us well to capitalize on the
evolving market dynamics and the rising adoption of crypto assets.
We believe our strategic initiatives and unwavering dedication to
innovation will further solidify our market position and deliver
exceptional value in the upcoming quarters.
About BTCS:
BTCS Inc. is a Nasdaq listed company operating
in the blockchain technology sector since 2014 and is one of the
only U.S. publicly traded companies with a primary focus on
proof-of-stake blockchain infrastructure. Our core focus is on
driving scalable growth through a diverse range of business streams
leveraging and built on top of our core and proven blockchain
infrastructure operations. BTCS secures and operates validator
nodes on cutting-edge blockchain networks that power Web 3, earning
native token rewards by staking our proof-of-stake crypto assets,
with an emphasis on Ethereum. Our innovative “StakeSeeker” platform
empowers crypto holders with an analytics-focused cryptocurrency
dashboard. It also offers a non-custodial Staking-as-a-Service
solution, enabling users to earn staking rewards, while BTCS earns
a percentage of token holders’ rewards, creating the potential for
scalable revenue with limited additional costs. We’ve also
introduced “Builder+”, an Ethereum block builder. This technology
leverages advanced algorithms to maximize profit through optimized
block construction. Builder+ creates opportunities for new scalable
revenue streams by being utilized by third-party nodes. For more
information visit: www.btcs.com.
Forward-Looking Statements:
Certain statements in this press release,
constitute “forward-looking statements” within the meaning of the
federal securities laws including statements regarding optimism
about the direction of the crypto market and our ability to
strengthen our revenue-generating prospects in 2024, anticipated
launch of ChainQ, solidifying our market position and delivering
exception value in the upcoming quarters. Words such as “may,”
“might,” “will,” “should,” “believe,” “expect,” “anticipate,”
“estimate,” “continue,” “predict,” “forecast,” “project,” “plan,”
“intend” or similar expressions, or statements regarding intent,
belief, or current expectations, are forward-looking statements.
While the Company believes these forward-looking statements are
reasonable, undue reliance should not be placed on any such
forward-looking statements, which are based on information
available to us on the date of this release. These forward-looking
statements are based upon assumptions and are subject to various
risks and uncertainties, including without limitation regulatory
issues, unexpected issues with Builder+, unexpected issues with
ChainQ, and the reluctance of validators to try or utilize our
Builder+ product, as well as risks set forth in the Company’s
filings with the Securities and Exchange Commission including its
Form 10-K for the year ended December 31, 2023 which was filed on
March 21 , 2024. Thus, actual results could be materially
different. The Company expressly disclaims any obligation to update
or alter statements, whether as a result of new information, future
events or otherwise, except as required by law.
Investor Relations:ir@btcs.com
Financials
The tables below are derived from the Company’s
financial statements included in its Form 10-Q filed on May 14,
2024, with the Securities and Exchange Commission. Please refer to
the Form 10-Q for complete financial statements and further
information regarding the Company’s results of operations and
financial condition relating to the fiscal quarter ended March 31,
2024 and 2023. Please also refer to the Company’s Form 10-K for a
discussion of risk factors applicable to the Company and its
business.
BTCS Inc.Balance
Sheets
|
|
March 31, 2024 |
|
|
December 31, 2023 |
|
|
|
|
(Unaudited) |
|
|
|
|
|
Assets: |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
670,594 |
|
|
$ |
1,458,327 |
|
Stablecoins |
|
|
14,797 |
|
|
|
21,044 |
|
Crypto assets |
|
|
721,659 |
|
|
|
302,783 |
|
Staked crypto assets |
|
|
37,999,116 |
|
|
|
24,900,146 |
|
Prepaid expenses |
|
|
31,620 |
|
|
|
62,461 |
|
Receivable for capital shares
sold |
|
|
- |
|
|
|
291,440 |
|
Total current assets |
|
|
39,437,786 |
|
|
|
27,036,201 |
|
|
|
|
|
|
|
|
|
|
Other assets: |
|
|
|
|
|
|
|
|
Investments, at value (Cost
$100,000) |
|
|
100,000 |
|
|
|
100,000 |
|
Property and equipment,
net |
|
|
8,995 |
|
|
|
10,490 |
|
Total other assets |
|
|
108,995 |
|
|
|
110,490 |
|
|
|
|
|
|
|
|
|
|
Total
Assets |
|
$ |
39,546,781 |
|
|
$ |
27,146,691 |
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders’ Equity: |
|
|
|
|
|
|
|
|
Accounts payable and accrued
expenses |
|
$ |
26,193 |
|
|
$ |
55,058 |
|
Accrued compensation |
|
|
6,419 |
|
|
|
712,092 |
|
Warrant liabilities |
|
|
213,750 |
|
|
|
213,750 |
|
Total current liabilities |
|
|
246,362 |
|
|
|
980,900 |
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
Preferred stock: 20,000,000
shares authorized at $0.001 par value: |
|
|
- |
|
|
|
- |
|
Series V preferred stock:
14,567,829 and 14,567,829 shares issued and outstanding at March
31, 2024 and December 31, 2023, respectively |
|
|
2,563,938 |
|
|
|
2,563,938 |
|
|
|
|
|
|
|
|
|
|
Common stock, 975,000,000
shares authorized at $0.001 par value, 15,705,415 and 15,320,281
shares issued and outstanding at March 31, 2024 and December 31,
2023, respectively |
|
|
15,707 |
|
|
|
15,322 |
|
Additional paid in
capital |
|
|
163,141,291 |
|
|
|
162,263,634 |
|
Accumulated deficit |
|
|
(126,420,517 |
) |
|
|
(138,677,103 |
) |
Total stockholders’
equity |
|
|
39,300,419 |
|
|
|
26,165,791 |
|
|
|
|
|
|
|
|
|
|
Total Liabilities and
Stockholders’ Equity |
|
$ |
39,546,781 |
|
|
$ |
27,146,691 |
|
BTCS Inc.Statements of
Operations(Unaudited)
|
|
For the Three Months Ended |
|
|
|
March 31, |
|
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
Blockchain infrastructure revenues (net of fees) |
|
$ |
385,773 |
|
|
$ |
311,508 |
|
Total revenues |
|
|
385,773 |
|
|
|
311,508 |
|
|
|
|
|
|
|
|
|
|
Cost of revenues |
|
|
|
|
|
|
|
|
Blockchain infrastructure costs |
|
|
95,012 |
|
|
|
82,014 |
|
Gross profit |
|
|
290,761 |
|
|
|
229,494 |
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
General and administrative |
|
$ |
487,599 |
|
|
$ |
609,829 |
|
Research and development |
|
|
146,549 |
|
|
|
201,625 |
|
Compensation and related expenses |
|
|
455,779 |
|
|
|
462,090 |
|
Marketing |
|
|
57,602 |
|
|
|
6,243 |
|
Realized (gains) losses on crypto asset transactions |
|
|
(10,687 |
) |
|
|
(7,554 |
) |
Total operating expenses |
|
$ |
1,136,842 |
|
|
$ |
1,272,233 |
|
|
|
|
|
|
|
|
|
|
Other income (expenses): |
|
|
|
|
|
|
|
|
Change in unrealized appreciation (depreciation) on crypto
assets |
|
|
13,102,667 |
|
|
|
6,293,207 |
|
Change in fair value of warrant liabilities |
|
|
- |
|
|
|
(285,000 |
) |
Total other income (expenses) |
|
|
13,102,667 |
|
|
|
6,008,207 |
|
|
|
|
|
|
|
|
|
|
Net
income |
|
$ |
12,256,586 |
|
|
$ |
4,965,468 |
|
|
|
|
|
|
|
|
|
|
Basic net income (loss) per
share attributable to common stockholders |
|
$ |
0.78 |
|
|
$ |
0.36 |
|
Diluted net income (loss) per
share attributable to common stockholders |
|
$ |
0.63 |
|
|
$ |
0.29 |
|
Basic weighted average number
of common shares outstanding |
|
|
15,691,677 |
|
|
|
13,673,126 |
|
Diluted weighted average
number of common shares outstanding |
|
|
19,410,550 |
|
|
|
17,187,025 |
|
BTCS Inc.Statements of
Cash Flows(Unaudited)
|
|
For the Three Months Ended |
|
|
|
March 31, |
|
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
Net Cash flows used
from operating activities: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
12,256,586 |
|
|
$ |
4,965,468 |
|
Adjustments to reconcile net
income to net cash used in operating activities: |
|
|
|
|
|
|
|
|
Depreciation expense |
|
|
1,495 |
|
|
|
1,153 |
|
Stock-based compensation |
|
|
878,042 |
|
|
|
531,617 |
|
Blockchain infrastructure revenue |
|
|
(385,773 |
) |
|
|
(311,508 |
) |
Change in fair value of warrant liabilities |
|
|
- |
|
|
|
285,000 |
|
Realized gains on crypto assets transactions |
|
|
(10,687 |
) |
|
|
(7,554 |
) |
Change in unrealized (appreciation) depreciation on crypto
assets |
|
|
(13,102,667 |
) |
|
|
(6,293,207 |
) |
Changes in operating assets
and liabilities: |
|
|
|
|
|
|
|
|
Stablecoins |
|
|
6,247 |
|
|
|
- |
|
Prepaid expenses and other current assets |
|
|
30,841 |
|
|
|
30,278 |
|
Receivable for capital shares sold |
|
|
291,440 |
|
|
|
- |
|
Accounts payable and accrued expenses |
|
|
(28,865 |
) |
|
|
(34,773 |
) |
Accrued compensation |
|
|
(705,673 |
) |
|
|
(292,506 |
) |
Net cash used in operating
activities |
|
|
(769,014 |
) |
|
|
(1,126,032 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
Purchase of productive crypto assets for validating |
|
|
(18,719 |
) |
|
|
(134,019 |
) |
Sale of productive crypto assets |
|
|
- |
|
|
|
47,543 |
|
Net cash provided by (used in)
investing activities |
|
|
(18,719 |
) |
|
|
(86,476 |
) |
|
|
|
|
|
|
|
|
|
Cash flow from
financing activities: |
|
|
|
|
|
|
|
|
Net proceeds from issuance common stock/ At-the-market
offering |
|
|
- |
|
|
|
508,783 |
|
Net cash provided by financing
activities |
|
|
- |
|
|
|
508,783 |
|
|
|
|
|
|
|
|
|
|
Net (decrease)/increase in
cash |
|
|
(787,733 |
) |
|
|
(703,725 |
) |
Cash, beginning of period |
|
|
1,458,327 |
|
|
|
2,146,783 |
|
Cash, end of period |
|
$ |
670,594 |
|
|
$ |
1,443,058 |
|
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