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 ofMarch 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
Ethereum Block
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:
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
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
Balance Sheets
(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 | ||||||
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 | - | - | ||||||
Series V preferred stock: 14,567,829 and 14,567,829 shares issued and outstanding at | 2,563,938 | 2,563,938 | ||||||
Common stock, 975,000,000 shares authorized at | 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 |
Statements of Operations
(Unaudited)
For the Three Months Ended | ||||||||
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 |
Statements of Cash Flows
(Unaudited)
For the Three Months Ended | ||||||||
2024 | 2023 | |||||||
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 |
Source:
2024 GlobeNewswire, Inc., source