BTCS Issues Shareholder Letter Reflecting on 2024 and Outlook for 2025

Rhea-AI Summary

BTCS Inc. (Nasdaq: BTCS) released a shareholder letter highlighting its 2024 achievements and 2025 outlook. The company surpassed its 2024 revenue performance target of $3,712,500, marking a 177% increase from 2023. For 2025, BTCS has set new revenue targets: a threshold of $4 million, target of $8 million, and cutoff of $20 million.

The letter emphasizes BTCS's pioneering role in crypto, including being the first public company to mine Bitcoin in 2014 and offer a digital asset treasury in 2017. The company has now pivoted to focus on Ethereum infrastructure, specifically block-building and validation operations launched in early 2024. This new strategy offers growth potential without intensive capital expenditures, unlike traditional Bitcoin mining.

BTCS aims to become the leading Ethereum blockchain infrastructure company and is currently the only pure-play, publicly traded company with this focus.

Positive

• Revenue exceeded $3,712,500 in 2024, growing 177% from 2023
• Successfully launched Ethereum block-building operations in early 2024
• Business model requires lower capital expenditure compared to traditional crypto mining
• First-mover advantage as the only public pure-play Ethereum infrastructure company

Negative

• Historical challenges including 72% Bitcoin price drop in 2015 that affected operations
• Previous failed attempts at early crypto initiatives due to timing and scale

Insights

Financial Analyst

The surpassing of $3,712,500 in revenue for 2024 represents a substantial 177% year-over-year growth, marking a critical milestone for BTCS. The company's strategic pivot to Ethereum block-building operations demonstrates a sophisticated evolution from its Bitcoin mining roots. The 2025 revenue targets are particularly noteworthy, with a base threshold of $4M, target of $8M and stretch goal of $20M. This performance-based executive compensation structure signals strong alignment with shareholder interests. The shift from capital-intensive Bitcoin mining to Ethereum infrastructure positions BTCS uniquely in the market, potentially offering better margins and scalability without the burden of heavy equipment investments. The company's first-mover advantage in public markets for Ethereum block-building could create significant barriers to entry for competitors.

Blockchain Technology Expert

BTCS's transition to Ethereum block-building and validation represents a strategically sound pivot in the blockchain infrastructure space. Unlike Bitcoin mining's hardware-dependent model, Ethereum's proof-of-stake system offers superior scalability with lower capital requirements. The vertical integration of block-building with validation services positions BTCS to capture multiple revenue streams within the Ethereum ecosystem. This approach is particularly timely given Ethereum's growing institutional adoption and the increasing importance of efficient block-building in the network. The company's early entry into this niche, combined with its public market status, provides a unique value proposition for investors seeking pure-play exposure to Ethereum's infrastructure layer.

2024 revenue surpassed the predefined performance milestone of $3,712,500 

Silver Spring, MD, Jan. 07, 2025 (GLOBE NEWSWIRE) -- BTCS Inc. (Nasdaq: BTCS) (“BTCS” or the “Company”), a leader in blockchain infrastructure and technology, issued a letter to its shareholders describing the Company’s recent achievements and goals for 2025, including surpassing its predefined revenue performance target of $3,712,500. Further, the Company unveiled its refreshed investor presentation and a revamped website, accessible at www.btcs.com. These developments align with the Company’s strategy to effectively communicate its business model and growth opportunities.

The letter from Charles Allen, CEO of BTCS, is reprinted below in its entirety.

Dear Shareholders,

As we move forward into 2025, I am excited to reflect on the significant progress BTCS has made and to share our vision for the future. The past year has been a pivotal one for us. We have been diligently heads down focused on building the business, expanding our team with talented new employees, and navigating through rigorous inquiries from the SEC—challenges that now seem to be behind us.

Reflecting on our journey, it’s essential to recall our early recognition of the crypto market’s potential. In 2014, I identified growth opportunities in Bitcoin mining, and by year-end, BTCS became the first public company to mine Bitcoin. However, being ahead of the curve came with its challenges. In 2015, a steep 72% drop in Bitcoin’s price tested our resilience, and our operations could not withstand the downturn. By 2017, early investors in BTCS backed what would become major players in the market, specifically Riot Platforms and Marathon Holdings. Notably, I played a significant role in Marathon’s early days, when they had a mere $10 million market capitalization, providing them with a turnkey business model in connection with a merger that didn’t come to fruition. We were also the first public company to offer a digital asset treasury in 2017, three years before the likes of MicroStrategy entered the crypto market; though we were too early and too small to get noticed. However, our crypto treasury strategy laid the foundation for our current operations. For over a decade, I have sought the next regulatory-compliant, transformative opportunity in the crypto market that aligns with public market standards. This quest has finally culminated in the launch of our block-building operations in early 2024. I firmly believe that Ethereum infrastructure—focused on block-building and validation—presents the most compelling growth opportunity I’ve ever witnessed in the crypto space, surpassing even the early days of Bitcoin mining in 2017. Unlike traditional bitcoin mining operations that require substantial capital investments in hardware with depreciating value, our approach to vertically integrated Ethereum block-building and validation offers exceptional revenue growth potential without high capital constraints. We effectively offer the best of both worlds: direct Ethereum exposure, akin to MicroStrategy, and the growth potential of a 2017-era Bitcoin miner—all without the burden of intensive capital expenditures. Going forward we aim to be the leading Ethereum blockchain infrastructure company and are currently the only pure-play, publicly traded company focused on this strategy.

These are not pie-in-the-sky over-optimistic comments that many are accustomed to hearing from CEOs; they are backed by numbers. While I’ll need to wait for the audit completion to disclose our full-year 2024 revenue, I am proud to share that our unaudited revenue for 2024 surpassed the predefined performance milestone of $3,712,500 over a 177% gain from 2023. This achievement was a key factor in determining 2024 executive performance-based bonuses. Our executive compensation program for 2025 is once again fully performance-based, focusing on measurable outcomes to align leadership incentives with long-term shareholder value. For 2025, the compensation committee has yet again set ambitious targets with a clear progression: a revenue threshold of $4 million, a target of $8 million, and a cutoff of $20 million. You can read more details in the 8-K filed on January 2, 2025. While we cannot provide assurances or guarantees of future performance, our team’s goal is to exceed the $20 million cutoff, striving for the benefit of our shareholders and to further align with the company’s broader strategic objectives of driving sustainable growth and value creation.

Just as we led the charge in 2014 by becoming the first public company to mine Bitcoin, we are now pioneering Ethereum infrastructure and block-building in the public markets, making us the first and only public company with this focus. As we look to 2025 and beyond, our commitment to innovation, strategic growth, and shareholder value remains unwavering. While we were heads down and quiet for much of 2023 and 2024, we were laying the groundwork for the future. We are excited to share more over the coming weeks and months so stay tuned. Furthermore, the Company and I plan to be more active on social media, recognizing that most of our shareholders utilize platforms they’re more accustomed to instead of our SEC filings. Please follow our official X accounts: @Charles_BTCS and @Nasdaq_BTCS.

Lastly, a friendly reminder to our February 6, 2023, call to action press release: did you know that in 2023, Charles Schwab made $419 million loaning retail holders’ shares to short sellers to bet against them? If you care about our stock price as I do, please do your part and stop your broker from lending your shares to short sellers who bet against us. You can do this by moving your shares to a cash account instead of a margin account. I wonder what would happen if our 30k+ shareholders all moved their shares to cash accounts on the same day?

Thank you for your continued support and trust in BTCS.

Sincerely,

Charles Allen
CEO, BTCS Inc.

About BTCS:

BTCS Inc. (Nasdaq: BTCS) is a U.S.-based blockchain infrastructure technology company currently focused on driving scalable revenue growth through its blockchain infrastructure operations. BTCS has honed its expertise in blockchain network operations, particularly in block building and validator node management. Its branded block-building operation, Builder+, leverages advanced algorithms to optimize block construction for on-chain validation, thus maximizing gas fee revenues. BTCS also supports other blockchain networks by operating validator nodes and staking its crypto assets across multiple proof-of-stake networks, allowing crypto holders to delegate assets to BTCS-managed nodes. In addition, the Company has developed ChainQ, an AI-powered blockchain data analytics platform, which enhances user access and engagement within the blockchain ecosystem. Committed to innovation and adaptability, BTCS is strategically positioned to expand its blockchain operations and infrastructure beyond Ethereum as the ecosystem evolves. Explore how BTCS is revolutionizing blockchain infrastructure in the public markets by visiting www.btcs.com.

Forward-Looking Statements:

Certain statements in this shareholder letter constitute “forward-looking statements” within the meaning of the federal securities laws, including statements regarding SEC inquiries/investigation being behind us, growth opportunities, belief regarding the Ethereum infrastructure presenting the most compelling growth opportunity, and exceptional revenue growth potential. 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 the SEC seeking further information about our business, regulatory issues, the new administration’s failure to favor the crypto landscape as much as expected, unexpected issues with Builder+, and unexpected issues with ChainQ, as well as risks set forth in BTCS’ filings with the Securities and Exchange Commission including its Form 10-K for the year ended December 31, 2023. Thus, actual results could be materially different. BTCS expressly disclaims any obligation to update or alter statements, whether as a result of new information, future events, or otherwise, except as required by law.

Investor Relations:
Charles Allen – CEO
X (formerly Twitter): @Charles_BTCS
Email: ir@btcs.com

FAQ

What was BTCS's revenue performance in 2024?

BTCS surpassed its predefined revenue performance target of $3,712,500 in 2024, achieving a 177% increase from 2023.

What are BTCS's revenue targets for 2025?

BTCS has set three revenue targets for 2025: a threshold of $4 million, a target of $8 million, and a cutoff of $20 million.

How is BTCS's new Ethereum infrastructure business different from Bitcoin mining?

BTCS's Ethereum block-building and validation operations require less capital investment compared to traditional Bitcoin mining, which needs substantial hardware investments with depreciating value.

When did BTCS launch its Ethereum block-building operations?

BTCS launched its Ethereum block-building operations in early 2024.

What makes BTCS unique in the public markets?

BTCS is currently the only pure-play, publicly traded company focused on Ethereum blockchain infrastructure and block-building operations.