Bitcoin Well Provides an Update on its Outlook for 2022 and Announces Grant of Stock Options
August 15 2022 - 8:30AM
Bitcoin Well Inc. (the “Company” or “Bitcoin
Well”) (TSXV: BTCW), today announced that it has undertaken a
thorough review of its financial forecast for 2022 and 2023.
Management feels it is crucial to ensure the business is capable of
being self-funded and has taken the necessary actions to reduce
expenses accordingly.
“I believe this is the start of a new era for
the public markets,” said Adam O’Brien, Founder & CEO of
Bitcoin Well. “A transition from rewarding growth at all costs and
being reliant on regular financings to rewarding sustainable
businesses with a growth oriented team and strategy. I am excited
to show our investors that Bitcoin Well can thrive in that
environment, as we did in the early days of the business.”
To read more in depth about Adam’s thoughts on
the market’s transition, view his blog post here.
Going forward in 2022, we are anticipating
moderate monthly growth in our in-person services and have
significantly reduced expenses to a manageable level within this
conservative forecast to improve our Adjusted EBITDA. Our forecasts
do not rely on any material revenue growth in our online products,
so all growth in our online products would be an upside to our
forecast. Overall, revenues are expected to remain strong in 2022
with the bottom line significantly improving due to the
re-evaluation and actions taken towards lowering expenses.
In the second quarter of 2022, we began to
streamline operations and fortify our business to be
self-sufficient. To date in 2022, we have put into effect the
following cost savings:
- 65% reduction of employees compared
to year-end 2021 which will significantly lower our salary and
wages and general and administrative expenses, which were our
largest expenses
- reduction in salary costs for all
executive and senior team members, with the largest reduction being
to our Founder & Chief Executive Officer, Adam O’Brien.
- elimination of all
non-discretionary costs
- reduction in the size of the Board
of Directors from seven to four people and an expected 75%
reduction in annual governance costs
- Joining Adam O’Brien and Dave
Bradley on the Board of Directors at the AGM in June are:
- Mitchell Demeter - deployed the
world’s first Bitcoin ATM in 2013 with his first venture
“Bitcoiniacs”. He was then appointed as President of Netcoins Inc.,
a Canada online cryptocurrency brokerage wholly owned by BIGG
Digital Assets (CSE:BIGG). Mitchell has a range of experience in
blockchain, exchanges and cryptocurrencies, and he serves on the
Board of BIGG and Neptune Digital Assets (TSX: NDA).
- Terry Rhode - previously Vice
President of Corporate Development and Chairman of the Board of the
Rosenau group of companies. Prior to Rosenau, Terry was a
management consultant and advised various businesses on ways to
streamline their operations. Terry is a significant investor in
Bitcoin Well common shares and recently added to his investments in
the company by way of a convertible debenture for $5 million.
The organization-wide cost saving actions that
we undertook in the second quarter of 2022 are expected to begin
generating tangible financial improvements immediately, which will
be evidenced in our third quarter 2022 financial results. We have
set a medium term goal to have our monthly cash flow be neutral,
with revenues equaling expenses, and growing from that point
on.
Making prudent financial decisions today will
give us the flexibility to look for consolidation opportunities in
the future. We will continue to execute our strategy of enabling
users to buy, sell and use bitcoin in the fastest and safest way
possible. We will continue to grow the Company while making
sensible financial decisions to weather the current economic storm
and continue our organic growth plans that will help future-proof
money and generate long-term shareholder value.
Grant of Stock Options
As part of the cost saving measures mentioned
above, the Company has granted stock options (“Options”) in lieu of
salary for certain officers to purchase up to a total of 3,379,130
common shares (“Common Shares”) of the Company. The Options will be
granted at an exercise price of $0.07 per Common Share. One half of
the options will vest on the first anniversary of the date of grant
and one half will vest in quarterly installments over the second
year. The Options will expire after five years from August 12,
2022. The grant of Options was made in accordance with the
Company’s existing stock option plan and the policies of the TSX
Venture Exchange.
About Bitcoin Well Bitcoin Well
offers convenient, secure and reliable ways to buy, sell and use
bitcoin. Bitcoin Well is on a mission to enable independence by
offering an ecosystem of products and services that give users the
convenient control of their bitcoin. This ecosystem will
future-proof money by including self custodial financial offerings
(both in-person and online) and educational resources designed with
the needs of both the customers, and the industry, in mind.
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date with our business. For OTC location information visit
bitcoinwell.com/locations.
Bitcoin Well Contact Information To book a
virtual meeting with Founder & CEO Adam O’Brien please use the
following link: https://calendly.com/adamobitcoin/meet-adam
For additional investor & media information, please
contact:Tel: 1 888 711 3866ir@bitcoinwell.com
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
Forward-Looking Information:Certain statements
contained in this news release may constitute forward-looking
information. Forward-looking information is often, but not always,
identified by the use of words such as "anticipate", "plan",
"estimate", "expect", "may", "will", "intend", "should", or the
negative thereof and similar expressions. Forward-looking
information involves known and unknown risks, uncertainties and
other factors that may cause actual results or events to differ
materially from those anticipated in such forward-looking
information.
Bitcoin Well actual results could differ materially from those
anticipated in this forward-looking information as a result of
regulatory decisions, competitive factors in the industries in
which Bitcoin Well operates, prevailing economic conditions, and
other factors, many of which are beyond the control of Bitcoin
Well.
Bitcoin Well believes that the expectations reflected in the
forward-looking information are reasonable, but no assurance can be
given that these expectations will prove to be correct and such
forward-looking information should not be unduly relied upon.
Any forward-looking information contained in this news release
represents Bitcoin Well expectations as of the date hereof, and is
subject to change after such date. Bitcoin Well disclaims any
intention or obligation to update or revise any forward-looking
information whether as a result of new information, future events
or otherwise, except as required by applicable securities
legislation.
For more information, see the Cautionary Note
Regarding Forward Looking Information found in the Bitcoin Well
quarterly Management Discussion and Analysis.
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