BTCS Reports 2024 Q3 Results
BTCS Inc. reported Q3 2024 financial results with significant revenue growth. Revenue reached $0.7 million in Q3 2024, up 32% from Q2 2024 and 134% from Q3 2023. Year-to-date revenue exceeded $1.7 million, a 73% increase from 2023. However, gross margins decreased to 50% from 72% due to increased Builder+ operational expenses. The company reported a Q3 net loss of $9.0 million, primarily due to cryptocurrency value decrease. Cash and cryptocurrency holdings stood at $26.0 million as of September 30, 2024, showing a 51% year-over-year increase, and further increased to $33.0 million by November 12, 2024.
BTCS Inc. ha riportato i risultati finanziari del terzo trimestre 2024 con una significativa crescita dei ricavi. I ricavi hanno raggiunto 0,7 milioni di dollari nel terzo trimestre del 2024, con un aumento del 32% rispetto al secondo trimestre 2024 e del 134% rispetto al terzo trimestre 2023. I ricavi da inizio anno hanno superato 1,7 milioni di dollari, con un incremento del 73% rispetto al 2023. Tuttavia, i margini lordi sono diminuiti al 50% rispetto al 72% a causa dell'aumento delle spese operative di Builder+. L'azienda ha riportato una perdita netta di 9,0 milioni di dollari nel terzo trimestre, principalmente a causa della diminuzione del valore delle criptovalute. Le disponibilità liquide e le partecipazioni in criptovalute ammontavano a 26,0 milioni di dollari al 30 settembre 2024, mostrando un aumento del 51% rispetto all'anno precedente, e sono salite ulteriormente a 33,0 milioni di dollari entro il 12 novembre 2024.
BTCS Inc. reportó resultados financieros del tercer trimestre de 2024 con un crecimiento significativo en los ingresos. Los ingresos alcanzaron 0,7 millones de dólares en el tercer trimestre de 2024, un aumento del 32% en comparación con el segundo trimestre de 2024 y del 134% en comparación con el tercer trimestre de 2023. Los ingresos hasta la fecha superaron 1,7 millones de dólares, un aumento del 73% en comparación con 2023. Sin embargo, los márgenes brutos disminuyeron al 50% desde el 72% debido al incremento de gastos operativos de Builder+. La compañía reportó una pérdida neta de 9,0 millones de dólares en el tercer trimestre, principalmente debido a la disminución del valor de las criptomonedas. Las reservas de efectivo y criptomonedas ascendían a 26,0 millones de dólares al 30 de septiembre de 2024, mostrando un aumento del 51% interanual, y aumentaron aún más a 33,0 millones de dólares para el 12 de noviembre de 2024.
BTCS Inc.는 2024년 3분기 재무 결과를 발표하며 상당한 수익 성장을 보였습니다. 2024년 3분기 수익은 70만 달러에 도달했으며, 이는 2024년 2분기 대비 32%, 2023년 3분기 대비 134% 증가한 수치입니다. 연초부터의 수익은 170만 달러를 초과하여 2023년 대비 73% 증가했습니다. 그러나 총 매출 총이익률은 Builder+의 운영 비용 증가로 인해 72%에서 50%로 감소했습니다. 회사는 3분기에 900만 달러의 순손실을 보고했으며, 이는 주로 암호화폐 가치 하락 때문입니다. 현금 및 암호화폐 보유액은 2024년 9월 30일 기준으로 2600만 달러에 이르러 전년 대비 51% 증가했으며, 2024년 11월 12일에는 3300만 달러로 더 증가했습니다.
BTCS Inc. a annoncé des résultats financiers pour le troisième trimestre de 2024, avec une croissance significative des revenus. Les revenus ont atteint 0,7 million de dollars au troisième trimestre 2024, en hausse de 32 % par rapport au deuxième trimestre 2024 et de 134 % par rapport au troisième trimestre 2023. Les revenus depuis le début de l'année ont dépassé 1,7 million de dollars, soit une augmentation de 73 % par rapport à 2023. Cependant, les marges brutes ont diminué à 50 % contre 72 % en raison de l'augmentation des frais d'exploitation de Builder+. L'entreprise a signalé une perte nette de 9,0 millions de dollars pour le troisième trimestre, principalement en raison de la baisse de la valeur des cryptomonnaies. Les liquidités et les avoirs en cryptomonnaies se chiffraient à 26,0 millions de dollars au 30 septembre 2024, affichant une augmentation de 51 % par rapport à l'année précédente, et ont encore augmenté à 33,0 millions de dollars d'ici le 12 novembre 2024.
BTCS Inc. hat die Finanzzahlen für das 3. Quartal 2024 bekannt gegeben, mit einem signifikanten Umsatzwachstum. Der Umsatz erreichte 0,7 Millionen Dollar im 3. Quartal 2024, was einem Anstieg von 32% im Vergleich zum 2. Quartal 2024 und 134% im Vergleich zum 3. Quartal 2023 entspricht. Der Umsatz von Jahresbeginn überstieg 1,7 Millionen Dollar, was einem Anstieg von 73% im Vergleich zu 2023 entspricht. Allerdings sanken die Bruttomargen auf 50% von 72%, aufgrund gestiegener Betriebskosten von Builder+. Das Unternehmen berichtete für das 3. Quartal einen Nettoverlust von 9,0 Millionen Dollar, hauptsächlich aufgrund eines Rückgangs des Wertes von Kryptowährungen. Die Barbestände und Kryptowährungsbestände beliefen sich zum 30. September 2024 auf 26,0 Millionen Dollar, was einem Anstieg von 51% im Jahresvergleich entspricht, und bis zum 12. November 2024 stiegen sie weiter auf 33,0 Millionen Dollar.
- Revenue increased 134% year-over-year to $0.7 million in Q3 2024
- Year-to-date revenue grew 73% to $1.7 million
- Cash and cryptocurrency holdings increased 51% year-over-year to $26.0 million
- Assets further increased 27% to $33.0 million by November 12, 2024
- Gross margins declined from 72% to 50% due to increased operational expenses
- Q3 2024 net loss widened to $9.0 million from $3.3 million in Q3 2023
- Year-to-date net loss of $3.5 million compared to net income of $0.5 million in 2023
Insights
BTCS's Q3 2024 results present a mixed financial picture. The 134% year-over-year revenue growth to
The substantial net loss of
The Builder+ platform's success in maximizing gas fee revenue through optimized block construction represents a significant technical achievement in the Ethereum ecosystem. This positions BTCS strategically in the profitable MEV (Maximal Extractable Value) space, a growing segment of blockchain infrastructure.
The platform's ability to drive consistent quarter-over-quarter revenue growth indicates strong technical execution and market positioning. However, the company's heavy exposure to cryptocurrency price volatility, as evidenced by the impact on net losses, suggests a need for better hedging strategies or revenue diversification beyond pure crypto assets.
Silver Spring, MD, Nov. 14, 2024 (GLOBE NEWSWIRE) -- BTCS Inc. (Nasdaq: BTCS) (“BTCS” or the “Company”), a blockchain technology-focused company, announced its results for the third quarter ended September 30, 2024 (“Q3 2024”).
Third Quarter 2024 Financial Highlights
- Quarterly Revenue: Revenue for Q3 2024 was
$0.7 million , reflecting a strong32% increase from Q2 2024 and a significant134% rise from Q3 2023. - Year-to-Date Revenue: For the nine months ended September 30, 2024, revenue exceeded
$1.7 million , a robust73% increase compared to the same period in 2023. - Gross Margin: Gross margins for the nine months ended September 30, 2024, stood at
50% , down from72% in the comparable 2023 period, primarily due to increased operational expenses related to our Builder+ operations that have driven revenue growth. - Quarterly Net Loss: Net loss for Q3 2024 was
$9.0 million , or$0.56 per share, compared to a net loss of$3.3 million , or$0.23 per share, in Q3 2023, primarily driven by the decrease in the value of our cryptocurrency assets. - Year-to-Date Net Income/Loss: For the nine months ended September 30, 2024, BTCS reported a net loss of
$3.5 million , or$0.22 per share, compared to net income of$0.5 million , or$0.04 per share, for the same period in 2023. - Cash & Cryptocurrency Holdings: BTCS held
$26.0 million in cash and cryptocurrency assets as of September 30, 2024, representing a51% year-over-year increase. As of November 12, 2024, our cash and crypto assets have increased by27% to$33.0 million .
Management Commentary
We are pleased to report another quarter of strong growth, highlighted by the continued expansion and success of our Builder+ operations. Builder+ has rapidly become a cornerstone of BTCS’s revenue generation strategy, driving a double digit quarter-over-quarter increases in revenue through efficient and scalable block-building activities within the Ethereum ecosystem. By leveraging advanced algorithms and optimizing block construction, Builder+ enables us to maximize gas fee revenue. We are confident that the innovative foundation we've laid through Builder+ positions BTCS at the forefront of Ethereum’s evolving landscape.
In addition to our internal advancements, the broader regulatory and market landscape appears to be become more favourable for the blockchain industry. With the recent U.S. Presidential Election ushering in a more crypto-friendly administration, led by President Trump, we are optimistic about the potential for a supportive regulatory environment that fosters innovation and growth in blockchain technology. This positive shift aligns with our strategic goals and will likely open new opportunities for blockchain infrastructure expansion, both on Ethereum and beyond.
Our long-term vision is to drive both innovation and an accelerating growth trajectory, driving increased value for our shareholders..
About BTCS:
BTCS Inc. (Nasdaq: BTCS) is a U.S.-based blockchain infrastructure technology company currently focused on driving scalable revenue growth through its Ethereum blockchain infrastructure operations. BTCS has honed its expertise in Ethereum 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, and StakeSeeker, a portfolio monitoring tool, both of which enhance 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. For more information visit: www.btcs.com.
Forward-Looking Statements:
Certain statements in this press release constitute “forward-looking statements” within the meaning of the federal securities laws, including statements regarding maximizing gas fee revenue, potential for blockchain technology, and opportunities for blockchain infrastructure expansion. 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, the new administration’s failure to favor crypto landscape as much as expected, 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 Securities and Exchange Commission including its Form 10-K for the year ended December 31, 2023 which was filed on March 21, 2024. Thus, actual results could be materially different. The Company 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:
ir@btcs.com
Financials
The tables below are derived from the Company’s financial statements included in its Form 10-Q filed on November 13, 2024, with the Securities and Exchange Commission. Please refer to the Form 10-Q for complete financial statements and further information regarding the Company’s results of operations and financial condition relating to the fiscal quarter ended September 30, 2024 and 2023. Please also refer to the Company’s Form 10-K for a discussion of risk factors applicable to the Company and its business.
BTCS Inc.
Balance Sheets
| September 30, | December 31, | |||||||
| 2024 | 2023 | |||||||
| (Unaudited) | ||||||||
| Assets: | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 254,466 | $ | 1,458,327 | ||||
| Stablecoins | 40,397 | 21,044 | ||||||
| Crypto assets | 430,483 | 302,783 | ||||||
| Staked crypto assets | 25,317,039 | 24,900,146 | ||||||
| Prepaid compensation | 288,309 | - | ||||||
| Prepaid expenses | 96,439 | 62,461 | ||||||
| Receivable for capital shares sold | - | 291,440 | ||||||
| Total current assets | 26,427,133 | 27,036,201 | ||||||
| Other assets: | ||||||||
| Investments, at value (Cost | 100,000 | 100,000 | ||||||
| Property and equipment, net | 6,015 | 10,490 | ||||||
| Total other assets | 106,015 | 110,490 | ||||||
| Total Assets | $ | 26,533,148 | $ | 27,146,691 | ||||
| Liabilities and Stockholders’ Equity: | ||||||||
| Accounts payable and accrued expenses | $ | 266,827 | $ | 55,058 | ||||
| Accrued compensation | 1,052,647 | 712,092 | ||||||
| Warrant liabilities | 17,813 | 213,750 | ||||||
| Total current liabilities | 1,337,287 | 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 September 30, 2024 and December 31, 2023, respectively | 2,563,938 | 2,563,938 | ||||||
| Common stock, 975,000,000 shares authorized at | 16,555 | 15,322 | ||||||
| Additional paid-in capital | 164,803,541 | 162,263,634 | ||||||
| Accumulated deficit | (142,188,173 | ) | (138,677,103 | ) | ||||
| Total stockholders’ equity | 25,195,861 | 26,165,791 | ||||||
| Total Liabilities and Stockholders’ Equity | $ | 26,533,148 | $ | 27,146,691 | ||||
BTCS Inc.
Statements of Operations
(Unaudited)
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Blockchain infrastructure revenues (net of fees) | $ | 739,157 | $ | 316,242 | $ | 1,751,735 | $ | 1,013,503 | |||||||||||||||
| Total revenues | 739,157 | 316,242 | 1,751,735 | 1,013,503 | |||||||||||||||||||
| Cost of revenues | |||||||||||||||||||||||
| Blockchain infrastructure costs | 543,308 | 83,100 | 872,781 | 278,726 | |||||||||||||||||||
| Gross profit | 195,849 | 233,142 | 878,954 | 734,777 | |||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| General and administrative | $ | 586,926 | $ | 283,239 | 1,613,481 | $ | 1,510,637 | ||||||||||||||||
| Research and development | 213,332 | 148,525 | 523,658 | 531,053 | |||||||||||||||||||
| Compensation and related expenses | 942,860 | 409,960 | 2,274,130 | 1,450,546 | |||||||||||||||||||
| Marketing | 55,611 | 2,155 | 141,690 | 11,121 | |||||||||||||||||||
| Realized (gains) losses on crypto asset transactions | 121,964 | 43,791 | (176,050 | ) | 604,270 | ||||||||||||||||||
| Total operating expenses | 1,920,693 | 887,670 | 4,376,909 | 4,107,627 | |||||||||||||||||||
| Other income (expenses): | |||||||||||||||||||||||
| Change in unrealized appreciation (depreciation) on crypto assets | (7,396,380 | ) | (2,914,029 | ) | (237,052 | ) | 3,734,213 | ||||||||||||||||
| Change in fair value of warrant liabilities | 53,437 | 285,000 | 195,937 | 142,500 | |||||||||||||||||||
| Other income | 28,000 | - | 28,000 | - | |||||||||||||||||||
| Total other income (expenses) | (7,314,943 | ) | (2,629,029 | ) | (13,115 | ) | 3,876,713 | ||||||||||||||||
| Net income (loss) | $ | (9,039,787 | ) | $ | (3,283,557 | ) | $ | (3,511,070 | ) | $ | 503,863 | ||||||||||||
| Basic net income (loss) per share attributable to common stockholders | $ | (0.56 | ) | $ | (0.23 | ) | $ | (0.22 | ) | $ | 0.04 | ||||||||||||
| Diluted net income (loss) per share attributable to common stockholders | $ | (0.56 | ) | $ | (0.23 | ) | $ | (0.22 | ) | $ | 0.03 | ||||||||||||
| Basic weighted average number of common shares outstanding | 16,158,032 | 14,317,750 | 15,870,343 | 13,957,097 | |||||||||||||||||||
| Diluted weighted average number of common shares outstanding, basic and diluted | 16,158,032 | 14,317,750 | 15,870,343 | 17,437,809 | |||||||||||||||||||
BTCS Inc.
Statements of Cash Flows
(Unaudited)
| For the Nine Months Ended | |||||||||||||
| September 30, | |||||||||||||
| 2024 | 2023 | ||||||||||||
| Net Cash flows used from operating activities: | |||||||||||||
| Net income (loss) | $ | (3,511,070 | ) | $ | 503,863 | ||||||||
| Adjustments to reconcile net income to net cash used in operating activities: | |||||||||||||
| Depreciation expense | 4,475 | 3,521 | |||||||||||
| Stock-based compensation | 1,887,800 | 1,057,512 | |||||||||||
| Blockchain infrastructure revenue | (1,751,735 | ) | (1,013,503 | ) | |||||||||
| Builder payments (non-cash) | 615,035 | - | |||||||||||
| Change in fair value of warrant liabilities | (195,937 | ) | (142,500 | ) | |||||||||
| Realized (gains) losses on crypto assets transactions | (176,050 | ) | 604,270 | ||||||||||
| Change in unrealized (appreciation) depreciation on crypto assets | 237,052 | (3,734,213 | ) | ||||||||||
| Changes in operating assets and liabilities: | |||||||||||||
| Stablecoins | (19,353 | ) | (29,794 | ) | |||||||||
| Prepaid expenses and other current assets | (322,287 | ) | 16,298 | ||||||||||
| Receivable for capital shares sold | 291,440 | ||||||||||||
| Accounts payable and accrued expenses | 211,769 | 15,932 | |||||||||||
| Accrued compensation | 340,555 | 25,209 | |||||||||||
| Net cash used in operating activities | (2,388,306 | ) | (2,693,405 | ) | |||||||||
| Cash flows from investing activities: | |||||||||||||
| Purchase of productive crypto assets for validating | (31,300 | ) | (1,804,482 | ) | |||||||||
| Sale of productive crypto assets | 562,405 | 1,994,890 | |||||||||||
| Purchase of property and equipment | - | (5,276 | ) | ||||||||||
| Sale of property and equipment | - | 905 | |||||||||||
| Net cash provided by (used in) investing activities | 531,105 | 186,037 | |||||||||||
| Cash flow from financing activities: | |||||||||||||
| Net proceeds from issuance common stock/ At-the-market offering | 653,340 | 1,113,818 | |||||||||||
| Net cash provided by financing activities | 653,340 | 1,113,818 | |||||||||||
| Net (decrease)/increase in cash | (1,203,861 | ) | (1,393,550 | ) | |||||||||
| Cash, beginning of period | 1,458,327 | 2,146,783 | |||||||||||
| Cash, end of period | $ | 254,466 | $ | 753,233 | |||||||||
| Supplemental disclosure of non-cash financing and investing activities: | |||||||||||||
| Series V Preferred Stock Distribution | $ | - | $ | 2,559,533 | |||||||||
FAQ
What was BTCS's revenue growth in Q3 2024?
How much did BTCS's gross margins decline in 2024?
What was BTCS's net loss in Q3 2024?
How much were BTCS's cash and cryptocurrency holdings as of November 12, 2024?
