BTCW:CC - Bitcoin Well Reports 2023 Q4 and Year End Financial Results
(TheNewswire)
Edmonton, Alberta – April 24, 2024– TheNewswire – Bitcoin Well Inc. (“ BitcoinWell ” or the “ Company ”)( TSXV: BTCW; OTCQB:BCNWF ), the non-custodial bitcoin business on amission to enable independence, today announced financial andoperating results for the fourth quarter and year ended December 31,2023.
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Gross profit
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$1.4 million for the 3-months ended December 31, 2023(Q4 2022: $1.2 million, +17%)
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$4.8 million for the fiscal year ended December 31,2023 (fiscal year 2022: $4.4 million, +9%)
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Adjusted EBITDA
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Positive $0.2million for the 3-months ended December 31, 2023 (Q4 2022: negative$0.2 million, an improvement of 202%)
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Negative $0.4 million for the fiscal year endedDecember 31, 2023 (2022: negative $3.4 million, an improvement of87%)
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Adjusted cash flow
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Negative $0.1 million for the 3-months ended December31, 2023 (Q4 2022: negative $0.6 million, an improvement of78%)
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Negative $2.1 million for the fiscal year endedDecember 31, 2023 (2022: negative $4.9 million, an improvement of58%)
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Bitcoin Portal
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Over 11,000 unique user signups as of December 31,2023
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Over 16,000 unique signups as of April 15,2024.
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Bitcoin Portal Revenues exceeded $5.4 million for the3-months ended December 31, 2023 (Q3 2023: $3.4 million, improvementof 58%)
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Bitcoin Portal Revenues are expected to exceed $8.5million in Q1 2024 (improvement of 57% over Q4, 2023)
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Subsequent to year-end, in March 2024, completed anoversubscribed private placement of an aggregate of 13,352,797 unitsof the Company at a price of $0.175 per unit for aggregate grossproceeds of over $2.3 million.
| For the three months ended, |
| For the year ended, |
| Dec 31, 2023 |
| Dec 31, 2022 |
| Dec 31, 2023 |
| Dec 31, 2022 |
| Revenue |
| $ 13,590,048 |
| $ 18,262,082 |
| $ 54,531,838 |
| $ 66,731,242 |
| Gross Profit |
| 1,427,803 |
| 1,215,897 |
| 4,826,169 |
| 4,424,226 |
| Adjusted EBITDA (1) |
| 177,360 |
| (173,201) |
| (440,794) |
| (3,416,889) |
| Adjusted cash flow (1) |
| (138,489) |
| (622,957) |
| (2,102,581) |
| (4,948,835) |
| Total comprehensive loss |
| (1,264,707) |
| (3,268,948) |
| (5,303,177) |
| (11,661,337) |
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(1) SeeNon-IFRS Measures.
“We are pleased to have made more gross profit, onless revenue and fewer expenses,” said Adam O’Brien, Founder &CEO of Bitcoin Well. “Not only did we achieve positive adjustedEBITDA, our cash flow is heading in the right direction and I amconfident we will see positive adjusted cash flow in 2024.
We also continued to seesignificant growth on our Online Bitcoin Portal which has now exceeded16,000 unique signups. We anticipate revenue growth from the BitcoinPortal will continue to accelerate in 2024.
At the same time, wehave managed to increase our Bitcoin ATM gross margins and lowercosts. With the release of Cash Vouchers earlier this month we arestarting to see the rewards the Bitcoin Well ecosystem can deliver.”
Overall revenue in the fourth quarter of 2023 was $13.6million, compared to $18.3 million in Q4 2022 (-26%). The decrease of$4.7 million was driven by a decline in Bitcoin Well Infinite (OTC)volumes, as the Company transitioned these services into the OnlineBitcoin Portal during fiscal 2023, as well as a strategic decision tocharge a higher fee at the ATM which resulted in less revenue permachine, but with a higher gross profit margin and less expenses.
Total operational expenses (excluding financing fees,depreciation and accretion) improved to $1.2 million in Q4 2023(compared to $1.4 million during the same period in 2022) due to costcontainment in areas across the business, including a reduction in thenumber of full time employees.
Adjusted EBITDA was positive $0.2 millionin Q4 2023, reflecting a $0.4 million improvement over Q4 2022. Theimproved Adjusted EBITDA was due to the higher gross profit and loweroperating expenses as discussed above.
The Company confirms that further to the Company’spress release dated February 29, 2024, the Company has issued 571,428common shares of the Company at a deemed priceof $0.105 per share to an arm’s length party as payment for pastservices rendered to the Company. Bitcoin Well also confirms thatfurther to the Company’s press release dated November 14, 2023, theCompany has issued 1,333,333 common shares of the Company at a deemed price of $0.03 per share to an arm’s lengthparty as payment for past services rendered to the Company.
The Common Shares issued are subject to a hold periodof four months and one day pursuant to TSX Venture Exchange policiesand applicable securities laws.
The Company uses certain terms in this news release,such as ‘Adjusted EBITDA’ and ‘Adjusted cash flow’, which donot have a standardized or prescribed meaning under InternationalFinancial Reporting Standards (IFRS), and accordingly, thesemeasurements may not be comparable with the calculation of similarmeasurements used by other companies.
See the table below for a reconciliation of eachnon-IFRS measure to its nearest IFRS measure or refer to the"Non-GAAP Measures” and “Selected Financial Information”sections in the Company’s Management Discussion & Analysis forthe period ended December 31, 2023 (“MD&A”) for applicabledefinitions, calculations, rationale for use and reconciliations tothe most directly comparable measure under IFRS. Non-IFRS measures areprovided as supplementary information by which readers may wish toconsider the Company's performance, but should not be relied upon forcomparative or investment purposes.
Reconciliation ofAdjusted EBITDA & Adjusted cash flow to net loss
| Three months ended |
| Year ended |
| Dec 31, 2023 |
| Dec 31, 2022 |
| Dec 31, 2023 |
| Dec 31, 2022 |
| Net loss |
| $ |
| (5,204,590) |
| $ |
| (1,851,949) |
| $ |
| (12,024,324) |
| $ |
| (5,991,501) |
| Financing fees |
| 683,513 |
| 449,756 |
| 2,285,183 |
| 1,531,946 |
| Depreciation and accretion |
| 297,084 |
| 361,547 |
| 1,416,882 |
| 2,159,814 |
| Fair value change – crypto loans (1) |
| 4,328,718 |
| (1,215,750) |
| 7,421,089 |
| (5,954,260) |
| Impairment |
| - |
| (24,423) |
| - |
| 3,163,599 |
| Fair value change – investments |
| 337,635 |
| 585,066 |
| 337,635 |
| 585,066 |
| Share based compensation |
| (19,633) |
| 110,203 |
| 483,430 |
| 313,889 |
| Loss on disposal of fixed assets |
| - |
| - |
| 7,991 |
| - |
| Foreign exchange (gain) loss |
| (8,568) |
| (1,750) |
| 9,846 |
| - |
| Loss (gain) on debt settlement |
| 10,779 |
| 4,305 |
| 14,703 |
| (118,993) |
| Fair value change – crypto inventory |
| - |
| 12,106 |
| (12,401) |
| 58,703 |
| Realized gain on digital assets |
| (247,578) |
| - |
| (622,535) |
| - |
| Business acquisition costs |
| - |
| 24,367 |
| - |
| 56,681 |
| Income tax expense |
| - |
| 1,373,321 |
| 241,707 |
| 778,167 |
| Adjusted EBITDA |
| $ |
| 177,360 |
| $ |
| (173,201) |
| $ |
| (440,794) |
| $ |
| (3,416,889) |
| Less: financing fees |
| (683,513) |
| (449,756) |
| (2,285,183) |
| (1,531,946) |
| Add: non-cash interest items (2) |
| 367,664 |
| - |
| 623,396 |
| - |
| Adjusted cash flow |
| $ |
| (138,489) |
| $ |
| (622,957) |
| $ |
| (2,102,581) |
| $ |
| (4,948,835) |
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(1) Non-cash, fair value change on the revaluation of cryptocurrencyloans, which are offset by a revaluation gain on digital assetsrecorded in Other Comprehensive Income.
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(2) Non-cashinterest items include the amortization of prepaid interest oncryptocurrency loans that were funded in conjunction with an equityfinancing as well as non-cash interest on the line of credit where theaccrued interest is added to the principal balance of theloan.
This news release should be read in concertw ith the full disclosure documents. The BitcoinWell consolidated financial statements and MD&A for the year ended December 31, 2023 will be available on theBitcoin Well website ( www.bitcoinwell.com ), via SEDAR+ ( www.sedarplus.ca ) or can be requested from the Company.
About Bitcoin Well
Bitcoin Well is on a mission to enable independence. Wedo this making bitcoin useful to everyday people to give them theconvenience of modern banking and the benefits of bitcoin. We like tothink of it as future-proofing money. Our existing Bitcoin ATM andOnline Bitcoin Portal business units drive cash flow to help fund thismission.
Join our investor community and follow us on Nostr , , and tokeep up to date with our business.
Bitcoin Well contact information
To book a virtual meeting with our Founder & CEOAdam O’Brien please use the following link: https://bitcoinwell.com/meet-adam
For additional investor & media information, pleasecontact:
Adam O’Brien
Tel: 1 888 711 3866
Neither TSXVenture Exchange nor its Regulation Services Provider (as that term isdefined in policies of the TSX Venture Exchange) acceptsresponsibility for the adequacy or accuracy of thisrelease .
Forward-lookinginformation
Certain statements contained in thisnews release may constitute forward-looking information.Forward-looking information is often, but not always, identified bythe use of words such as "anticipate", "plan","estimate", "expect", "may","will", "intend", "should", or thenegative thereof and similar expressions.
All statements herein other thanstatements of historical fact constitute forward-looking informationincluding, but not limited to statements in respect of: theCompany’s cash flow improving; the Company achieving positiveadjusted cash flow in 2024; revenue growth from the Bitcoin WellPortal in 2024; delivery of rewards from the Bitcoin Well ecosystem;Bitcoin Well’s business plans, strategy and outlook.
Forward-looking information involvesknown and unknown risks, uncertainties and other factors that maycause actual results or events to differ materially from thoseanticipated in such forward-looking information, including, but notlimited to the following: economic and financial conditions,volatility in the capital or credit markets; the level of demand andfinancial performance of the cryptocurrency and digital assetindustry, the occurrence of force majeure events; the extent to whichthe Company is successful on gaining new long-term users or retainingexisting users; developments and changes in laws and regulations,disruptions to the Company’s technology network; inability to obtainfinancing; competitive factors; and such other factors as discussed inthe “Risk Factors” section of the Company’s MD&A for theyear ended December 31, 2023. Bitcoin Well actual results could differmaterially from those anticipated in this forward-looking informationas a result of the foregoing risk factors and other factors, many ofwhich are beyond the control of Bitcoin Well.
Bitcoin Well believes that theexpectations reflected in the forward-looking information arereasonable, but no assurance can be given that these expectations willprove to be correct and suchforward-looking information should not be unduly relied upon. Any forward-looking informationcontained in this news release represents Bitcoin Well expectations asof the date hereof, and is subject to change after such date. BitcoinWell disclaims any intention or obligation to update or revise anyforward-looking information whether as a result of new information,future events or otherwise, except as required by applicablesecurities legislation.
For more information, see theCautionary Note Regarding Forward Looking Information found in theBitcoin Well Management Discussion and Analysis.
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