BTCW:CC - Bitcoin Well Reports Q1 2024 Financial Results
(TheNewswire)
Edmonton, Alberta – May 22, 2024– TheNewswire – Bitcoin Well Inc. (“ Bitcoin Well ” or the “ Company ”) ( TSXV: BTCW; OTCQB: BCNWF ), the non-custodial bitcoin business on a mission to enableindependence, today announced financial and operating results for thefirst quarter ended March 31, 2024.
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Revenue: $16.2 million for the 3-months ended March 31,2024 (Q1 2023: $12.4 million, +30% YoY)
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Gross profit: $1.2 million for the 3-months ended March31, 2024 (Q1 2023: $1.1 million, +11% YoY)
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Adjusted EBITDA: Negative $0.03 million for the3-months ended March 31, 2024 (Q1 2023: negative $0.2 million, animprovement of 88% YoY)
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Adjusted Cash Flow: Negative $0.3 million for the3-months ended March 31, 2024 (Q1 2023: negative $0.6 million, animprovement of 59% YoY)
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Bitcoin Portal Growth
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Revenues were $9.7 million for the 3-months ended March31, 2024
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Q4 2023: $5.4 million +80% QoQ
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Q1 2023: $0.9 million + 1,078% YoY
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Approximately 15,000 unique user signups as of March31, 2024
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Bitcoin Portal Growth
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Revenues in April were approximately $4.5 million(+136% increase compared to January 2024)
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Approximately 17,850 unique user signups as of May 21,2024
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Financial overview
| For the three months ended, |
| Mar 31, 2024 |
| Mar 31, 2023 |
| Revenue |
| $ 16,181,120 |
| $ 12,416,760 |
| Gross Profit |
| 1,207,426 |
| 1,085,754 |
| Adjusted EBITDA (1) |
| (25,465) |
| (215,105) |
| Adjusted cash flow (1) |
| (271,036) |
| (664,907) |
| Total comprehensive loss |
| (1,541,738) |
| (1,006,079) |
1) See Non-IFRS Measures.
Overall revenue in the first quarter of 2024 was $16.2million, compared to $12.4 million in Q1 2023 (+30%), driven byhigher transaction volumes on the Online Bitcoin Portal in Q1 2024,which grew to $9.7 million from $5.3 million in Q4 2023 and $0.9million in Q1 2023. Due to the higher revenue, gross profit alsoimproved to $1.2 million in Q1 2024 from $1.1 million last year(+11%).
“We are very pleased with the significant rate ofgrowth we are experiencing with our Online Bitcoin Portal, which hasnow exceeded 17,850 unique signups,” said Adam O’Brien, Founder& CEO of Bitcoin Well. ”We anticipate revenue growth from theBitcoin Portal will continue to accelerate in 2024, which shouldgenerate more gross profit, and ultimately, positive recurring cashflow for our business“.
Total operational expenses (excluding depreciation,accretion and financing fees) improved to $1.2 million in Q1 2024 from$1.3 million last year due to cost containment in areas across thebusiness. The decrease was partially offset by higher marketing andadvertising expenses as the Company launched several new marketinginitiatives in Q1 2024 to promote the Online Bitcoin Portal.
Adjusted EBITDA was basically neutral in Q1 2024(negative $25 thousand), reflecting a $0.2 million improvement over Q12023 adjusted EBITDA of negative $0.2 million. The improved AdjustedEBITDA was due to the higher gross profit and lower operating expensesas discussed above.
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-IFRS Financial Measures” section in the Company’sManagement Discussion & Analysis for the period ended March 31,2024 (“MD&A”) for applicable definitions, calculations,rationale for use and reconciliations to the most directly comparablemeasure under IFRS. Non-IFRS measures are provided as supplementaryinformation by which readers may wish to consider the Company'sperformance, but should not be relied upon for comparative orinvestment purposes.
Reconciliation of net loss to AdjustedEBITDA & Adjusted cash flow
| Three months ended |
| Mar 31, 2024 |
| Mar 31, 2023 |
| Net loss |
| $ |
| (8,124,693) |
| $ |
| (3,523,368) |
| Financing fees |
| 644,147 |
| 449,802 |
| Depreciation and accretion |
| 262,453 |
| 385,133 |
| Fair value change – crypto loans (1) |
| 7,876,112 |
| 3,453,925 |
| Share based compensation |
| 67,583 |
| 80,680 |
| Foreign exchange loss |
| 121,512 |
| 19,130 |
| (Gain) loss on debt settlement |
| (20,000) |
| 5,177 |
| Fair value change – crypto inventory |
| - |
| (12,955) |
| Realized gain on digital assets |
| (852,579) |
| (405,502) |
| Income tax recovery |
| - |
| (667,127) |
| Adjusted EBITDA |
| $ |
| (25,465) |
| $ |
| (215,105) |
| Less: financing fees |
| (644,147) |
| (449,802) |
| Add: non-cash interest items (2) |
| 398,576 |
| - |
| Adjusted Cash Flow |
| $ |
| (271,036) |
| $ |
| (664,907) |
1) Non-cash, fair value change onthe revaluation of cryptocurrency loans, which are offset by arevaluation gain on digital assets recorded in Other ComprehensiveIncome.
2) Non-cash interest itemsinclude the amortization of prepaid interest on cryptocurrency loansthat were funded in conjunction with an equity financing as well asnon-cash interest on the line of credit where the accrued interest isadded to the principal balance of the loan.
This news release should be read in concertw ith the full disclosure documents. The BitcoinWell condensed consolidated interim financial statements and MD&Afor the three months ended March 31, 2024 and 2023 will be availableon the Bitcoin 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 by 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; revenue growth from the OnlineBitcoin Portal in 2024; and Bitcoin Well’s business plans, strategyand 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 coulddiffer materially from those anticipated in this forward-lookinginformation as a result of the foregoing risk factors and otherfactors, many of which 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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