2023 File Web Earnings of $7.8m or $0.55 per share
Silver Spring, MD, March 22, 2024 (GLOBE NEWSWIRE) — BTCS Inc. (Nasdaq: BTCS) (“BTCS” or the “Firm”), a blockchain technology-focused firm, introduced its outcomes for the fiscal yr ended December 31, 2023 (“2023”).
2023 Monetary Highlights & 2024 Preliminary Insights
- Income: $1.3 million in 2023 income, down 20% from $1.7 million in 2022. The lower was primarily pushed by decrease crypto costs in early 2022. Income for the fourth quarter of 2023 elevated 20% year-over-year, benefiting from a surge in crypto market costs in December 2023.
- Gross Margin: 73% gross margins in 2023, down barely from 75% in 2022.
- Web Earnings: $7.8 million or $0.55 per share in 2023, in stark distinction to a internet lack of $15.9 million or -$1.25 per share in 2022. This important enchancment is attributed to monetary reporting adjustments ensuing from the adoption of latest accounting requirements as described herein.
- 2023 Money & Crypto Worth: $26.7 million as of December 31, 2023, marking a 82% year-over-year enhance.
- Present Money & Crypto Worth: $36.5 million or roughly $2.33 as of March 19, 2024. The continued rally in crypto costs via early 2024 has additional elevated the worth of our crypto belongings.
Administration Commentary
In 2023, our strategic initiatives delivered robust outcomes, culminating in important momentum as we moved into 2024. The honest market worth of our cryptocurrency belongings noticed a outstanding doubling over the previous yr, with a further enhance of 42% to $35.7 million by March 19, 2024. This development not solely demonstrates our adeptness at navigating the risky cryptocurrency market but in addition units the stage for enhanced income prospects in 2024, bolstering our monetary power and future development.
StakeSeeker: In January 2023 we launched StakeSeeker (beta), our crypto analytics and non-custodial staking-as-a-service platform. Our technique goals to extend our fee-based income from rewards earned on belongings delegated to our nodes. Furthermore, we’re exploring the introduction of Ethereum non-custodial staking to StakeSeeker in 2024, aiming to diversify and scale our income streams additional.
Builder+: In February 2024, we launched “Builder+”, our progressive Ethereum block builder. Using subtle algorithms, Builder+ optimizes block development for on-chain validation, designed to reinforce validator earnings and compete in a marketplace for transaction gasoline charges. Builder+ represents an extension of our core Ethereum blockchain infrastructure operations, geared toward driving scalable income development.
ChainQ: Recognizing the demand for accessible on-chain knowledge, we introduced the event of “ChainQ”, an AI-enhanced blockchain knowledge and analytics platform which we plan to launch in 2024. Via complete indexing of public blockchain knowledge from our Blockchain Infrastructure operations, ChainQ is meant to supply an intuitive and easy-to-use platform for accessing on-chain info. We proceed to dedicate efforts in the direction of the analysis and growth of ChainQ.
Blockchain Infrastructure: Effectivity enhancement in our blockchain infrastructure operations was a key focus in 2023. By bringing the complete monitoring and upkeep of our validator nodes in-house, we’ve lowered our dependency on exterior service suppliers, thereby chopping prices and paving the best way for brand new value-added initiatives comparable to Builder+ and ChainQ.
At BTCS, we firmly consider within the transformative potential of blockchain applied sciences, and we’re devoted to being on the forefront of its development. Our perception in blockchain’s revolutionary influence is steadfast, and we’re advocates for its expanded adoption in each the private and non-private spheres. We’re full of optimism for what the long run holds and are desperate to spearhead improvements that bolster the worth we ship to our shareholders.
Business Highlights
Bitcoin and probably Ethereum ETFs Impression on Market Dynamics
In 2023, the crypto trade skilled a pivotal second with the SEC’s long-awaited approval of Bitcoin (BTC) Change-Traded Funds (ETFs), marking a major step in the direction of mixing digital currencies with mainstream monetary mechanisms. This growth, alongside the anticipation for Ethereum (ETH) ETFs in 2024, has ignited a bullish momentum throughout the cryptocurrency markets, showcasing a strong wave of optimism amongst buyers. These ETFs function essential bridges, connecting the standard monetary world with the crypto ecosystem, thereby facilitating a smoother entry for typical buyers into crypto belongings.
The constructive nature of Bitcoin ETF approvals have uplifted the broader crypto market and spurred a wave of innovation and funding in different Layer 1 and Layer 2 protocols. This domino impact is catalyzing development all through the blockchain house, because the inflow of conventional funding encourages the event of latest applied sciences and options. The crypto ecosystem stands on the brink of accelerated growth, promising an period of heightened accessibility, innovation, and alternative, pushed by the symbiotic relationship between cryptocurrencies and conventional monetary markets.
Ethereum’s Evolution: Community Upgrades Fuelling Future Adoption
The Ethereum community efficiently accomplished main and transformative improve on March 13 with the “Dencun Hardfork”. The improve ought to enhance community performance and bolster the effectivity of Layer-2 blockchain infrastructures, significantly by enhancing knowledge storage capabilities. Such enhancements are anticipated to facilitate a extra streamlined and cost-effective surroundings for dealing with layer-2 transaction charges, signifying a leap ahead in Ethereum’s technological evolution.
Furthermore, Ethereum’s ecosystem is demonstrating outstanding development and safety via its staking mechanism, with a present staking ratio of 26%. This interprets into 31.4 million ETH staked out of all eligible tokens, underscoring a strong validator market. The energetic participation of the neighborhood in staking not solely underscores their dedication to the community’s safety and decentralization but in addition highlights the thriving nature of Ethereum’s validator market. This engagement is pivotal in bolstering the community’s safety and fostering a extra decentralized ecosystem.
Moreover, Ethereum is experiencing a noteworthy part of deflation, additional testomony to its evolving financial mannequin and its implications for worth creation inside the community. This deflationary development is indicative of a maturing ecosystem that’s not solely attracting funding and participation however can also be setting a precedent for sustainable development and adoption within the broader blockchain neighborhood. These developments collectively sign Ethereum’s continued growth and its position in driving innovation, adoption, and worth creation within the digital asset house.
Adoption of Accounting Requirements Replace (ASU) No. 2023-08 Impression:
The early adoption of ASU No. 2023-08 caused a elementary shift in how we account for our crypto belongings on our monetary statements, permitting us to now acknowledge them at their honest market worth in comparison with beforehand recording them at their lowest post-acquisition value. This alteration allows the inclusion of unrealized positive factors or losses on crypto belongings immediately in our monetary outcomes, providing a extra correct illustration of our operational well being.
We consider that the required adjustments in monetary reporting stemming from the brand new accounting steering higher replicate the financial realities of the Firm’s enterprise mannequin and the worth of the crypto belongings held, enhancing the transparency and accuracy of the monetary statements.
About BTCS:
BTCS Inc. is a Nasdaq listed firm working within the blockchain know-how sector since 2014 and is among the solely U.S. publicly traded corporations with a main concentrate on proof-of-stake blockchain infrastructure. Our core focus is on driving scalable development via a various vary of enterprise streams leveraging and constructed on high of our core and confirmed blockchain infrastructure operations. BTCS secures and operates validator nodes on cutting-edge blockchain networks that energy Net 3, incomes native token rewards by staking our proof-of-stake crypto belongings, with an emphasis on Ethereum. Our progressive “StakeSeeker” platform empowers crypto holders with an analytics-focused cryptocurrency dashboard. It additionally presents a non-custodial Staking-as-a-Service resolution, enabling customers to earn staking rewards, whereas BTCS earns a proportion of token holders’ rewards, creating the potential for scalable income with restricted extra prices. We’ve additionally launched “Builder+”, an Ethereum block builder. This know-how leverages superior algorithms to maximise revenue via optimized block development. Builder+ creates alternatives for brand new scalable income streams by being utilized by third-party nodes. For extra info go to: www.btcs.com.
Ahead-Trying Statements:
Sure statements on this press launch, represent “forward-looking statements” inside the which means of the federal securities legal guidelines together with statements concerning enhanced income prospects in 2024, bolstering our monetary power and future development, aiming to diversify and sale our income streams additional and driving scalable income development, optimism for driving shareholder worth, expectations for the technological evolution of Ethereum and its worth creation. Phrases comparable to “could,” “would possibly,” “will,” “ought to,” “consider,” “anticipate,” “anticipate,” “estimate,” “proceed,” “predict,” “forecast,” “mission,” “plan,” “intend” or related expressions, or statements concerning intent, perception, or present expectations, are forward-looking statements. Whereas the Firm believes these forward-looking statements are cheap, undue reliance shouldn’t be positioned on any such forward-looking statements, that are based mostly on info obtainable to us on the date of this launch. These forward-looking statements are based mostly upon assumptions and are topic to varied dangers and uncertainties, together with with out limitation regulatory points, surprising points with Builder+, surprising points with our product providing, and the reluctance of validators to attempt or make the most of our Builder+ product, in addition to dangers set forth within the Firm’s filings with the Securities and Change Fee together with its Type 10-Okay for the yr ended December 31, 2023 which was filed on March 21 , 2024. Thus, precise outcomes could possibly be materially completely different. The Firm expressly disclaims any obligation to replace or alter statements, whether or not on account of new info, future occasions or in any other case, besides as required by regulation.
Investor Relations:
ir@btcs.com
Financials
The tables under are derived from the Firm’s monetary statements included in its Type 10-Okay filed on March 21, 2024, with the Securities and Change Fee. Please seek advice from the Type 10-Okay for full monetary statements and additional info concerning the Firm’s outcomes of operations and monetary situation regarding the fiscal quarter and monetary yr ended December 31, 2023 and 2022. The Firm’s Type 10-Okay additionally features a dialogue of threat elements relevant to the Firm and its enterprise.
BTCS Inc.
Steadiness Sheets
| December 31, | December 31, | |||||||
| 2023 | 2022 | |||||||
| Belongings: | ||||||||
| Present belongings: | ||||||||
| Money and money equivalents | $ | 1,458,327 | $ | 2,146,783 | ||||
| Stablecoins | 21,044 | – | ||||||
| Crypto belongings | 302,783 | 982 | ||||||
| Staked crypto belongings | 24,900,146 | 1,826,307 | ||||||
| Pay as you go bills | 62,461 | 123,727 | ||||||
| Receivable for capital shares offered | 291,440 | – | ||||||
| Whole present belongings | 27,036,201 | 4,097,799 | ||||||
| Different belongings: | ||||||||
| Investments, at worth (Price $100,000) | 100,000 | 100,000 | ||||||
| Property and tools, internet | 10,490 | 11,152 | ||||||
| Staked crypto belongings – long run | – | 5,708,624 | ||||||
| Whole different belongings | 110,490 | 5,819,776 | ||||||
| Whole Belongings | $ | 27,146,691 | $ | 9,917,575 | ||||
| Liabilities and Stockholders’ Fairness: | ||||||||
| Accounts payable and accrued bills | $ | 55,058 | $ | 76,727 | ||||
| Accrued compensation | 712,092 | 295,935 | ||||||
| Warrant liabilities | 213,750 | 213,750 | ||||||
| Whole present liabilities | 980,900 | 586,412 | ||||||
| Stockholders’ fairness: | ||||||||
| Most popular inventory: 20,000,000 shares licensed at $0.001 par worth: | – | – | ||||||
| Collection V most well-liked inventory: 14,567,829 and 0 shares issued and excellent at December 31, 2023 and 2022, respectively | 2,563,938 | – | ||||||
| Widespread inventory, 975,000,000 shares licensed at $0.001 par worth, 15,320,281 and 13,107,149 shares issued and excellent at December 31, 2023 and 2022, respectively | 15,322 | 13,108 | ||||||
| Further paid in capital | 162,263,634 | 160,800,263 | ||||||
| Gathered deficit | (138,677,103 | ) | (151,482,208 | ) | ||||
| Whole stockholders’ fairness | 26,165,791 | 9,331,163 | ||||||
| Whole Liabilities and Stockholders’ Fairness | $ | 27,146,691 | $ | 9,917,575 | ||||
BTCS Inc.
Statements of Operations
| For the 12 months Ended | ||||||||
| December 31, | ||||||||
| 2023 | 2022 | |||||||
| Revenues | ||||||||
| Validator income (internet of charges) | $ | 1,339,628 | $ | 1,692,454 | ||||
| Whole revenues | 1,339,628 | 1,692,454 | ||||||
| Price of revenues | ||||||||
| Validator bills | 359,778 | 426,440 | ||||||
| Gross revenue | 979,850 | 1,266,014 | ||||||
| Working bills: | ||||||||
| Normal and administrative | $ | 1,863,916 | $ | 1,916,193 | ||||
| Analysis and growth | 687,288 | 611,758 | ||||||
| Compensation and associated bills | 2,129,144 | 3,313,638 | ||||||
| Advertising | 12,153 | 78,171 | ||||||
| Impairment loss on crypto belongings | – | 13,348,874 | ||||||
| Realized (positive factors) losses on crypto asset transactions | 604,269 | (506,757 | ) | |||||
| Whole working bills | 5,296,770 | 18,761,877 | ||||||
| Different earnings (bills): | ||||||||
| Change in unrealized appreciation (depreciation) on crypto belongings | 12,135,648 | – | ||||||
| Change in honest worth of warrant liabilities | – | 1,638,750 | ||||||
| Distributions to warrant holders | – | (35,625 | ) | |||||
| Whole different earnings (bills) | 12,135,648 | 1,603,125 | ||||||
| Web earnings (loss) | $ | 7,818,728 | $ | (15,892,738 | ) | |||
| Web earnings (loss) per share attributable to frequent stockholders, fundamental and diluted | $ | 0.55 | $ | (1.25 | ) | |||
| Weighted common variety of frequent shares excellent, fundamental and diluted | 14,092,233 | 12,732,914 | ||||||
BTCS Inc.
Statements of Money Flows
| For the 12 months Ended | ||||||||
| December 31, | ||||||||
| 2023 | 2022 | |||||||
| Web Money flows used from working actions: | ||||||||
| Web earnings (loss) | $ | 7,818,728 | $ | (15,892,738 | ) | |||
| Changes to reconcile internet loss to internet money utilized in working actions: | ||||||||
| Depreciation expense | 5,033 | 4,039 | ||||||
| Inventory-based compensation | 1,341,729 | 2,625,270 | ||||||
| Validator income | (1,339,628 | ) | (1,692,454 | ) | ||||
| Blockchain community charges (non-cash) | – | 1,321 | ||||||
| Change in honest worth of warrant liabilities | – | (1,638,750 | ) | |||||
| Sale of non-productive crypto belongings | – | 2,547,325 | ||||||
| Realized achieve on crypto belongings transactions | 604,269 | (506,757 | ) | |||||
| Change in unrealized (appreciation) depreciation on crypto belongings | (12,135,648 | ) | – | |||||
| Impairment loss on crypto belongings | – | 13,348,874 | ||||||
| Adjustments in working belongings and liabilities: | ||||||||
| Stablecoins | (21,044 | ) | – | |||||
| Pay as you go bills and different present belongings | 61,266 | 200,824 | ||||||
| Receivable for capital shares offered | (291,440 | ) | – | |||||
| Accounts payable and accrued bills | (21,669 | ) | (62,332 | ) | ||||
| Accrued compensation | 416,157 | 288,601 | ||||||
| Web money utilized in working actions | (3,562,247 | ) | (776,777 | ) | ||||
| Money flows from investing actions: | ||||||||
| Buy of productive crypto belongings for validating | (1,804,482 | ) | (9,453,024 | ) | ||||
| Sale of productive crypto belongings | 1,994,851 | 585,595 | ||||||
| Buy of investments | – | (100,000 | ) | |||||
| Buy of property and tools | (5,276 | ) | (5,408 | ) | ||||
| Sale of property and tools | 904 | – | ||||||
| Web money offered by (utilized in) investing actions | 185,997 | (8,972,837 | ) | |||||
| Money movement from financing actions: | ||||||||
| Dividend distributions | – | (630,801 | ) | |||||
| Web proceeds from issuance frequent inventory/ At-the-market providing | 2,687,794 | 11,126,331 | ||||||
| Web money offered by financing actions | 2,687,794 | 10,495,530 | ||||||
| Web (lower)/enhance in money | (688,456 | ) | 745,916 | |||||
| Money, starting of interval | 2,146,783 | 1,400,867 | ||||||
| Money, finish of interval | $ | 1,458,327 | $ | 2,146,783 | ||||
| Supplemental disclosure of non-cash financing and investing actions: | ||||||||
| Collection V Most popular Inventory Distribution | $ | 2,559,533 | $ | – | ||||
