BTCS Reports Q1 2024 Results
BTCS reported Q1 2024 financial results, highlighting a strong performance. The company achieved $0.4 million in revenue, a 24% YOY increase, with consistent 75% gross margins. Net income hit a record $12.3 million, attributed to a 48% rise in crypto asset value, resulting in an EPS of $0.78. Cash and crypto assets totaled $39.4 million, a 91% increase YOY. BTCS launched Ethereum block-building operations under the 'Builder+' brand, targeting significant market penetration. The company is also advancing its AI-enhanced blockchain data platform, ChainQ, expected to launch in H2 2024. BTCS remains committed to innovation and growth, focusing on blockchain solutions and market adaption.
- Q1 2024 revenue increased 24% YOY to $0.4 million.
- Net income reached a record $12.3 million, a 148% YOY increase.
- EPS for Q1 2024 was $0.78, marking a record high.
- Cash and crypto assets rose to $39.4 million, up 91% YOY.
- Gross margins remained strong at 75%.
- Launch of Ethereum block-building operations under the 'Builder+' brand.
- Development of AI-enhanced blockchain data platform ChainQ, expected in H2 2024.
- Slight pullback in crypto markets since March 31st could impact future earnings.
- Concentration in the Ethereum builder market dominated by three large organizations may pose competitive risks.
Insights
BTCS Inc.'s Q1 2024 financial results present a notable uptick in performance. The company's revenue for the quarter was
Net income of
The company's cash and crypto value at
In the short term, these numbers indicate strong financial health and effective management of crypto assets. Long-term, maintaining such growth will depend on the sustained performance of the crypto market and successful execution of new ventures like the Ethereum block-building operations and the ChainQ platform.
BTCS Inc.'s expansion into Ethereum block-building through the Builder+ brand shows a strategic move to tap into the lucrative blockchain infrastructure sector. By climbing the leaderboards for daily block production, BTCS aims to challenge the dominance of three large builder organizations that control around
The company's investment in R&D initiatives for blockchain infrastructure, alongside the development of the AI-enhanced blockchain data and analytics platform, ChainQ, highlights its commitment to innovation. ChainQ, slated for launch in the second half of 2024, promises to offer users unique insights into blockchain data with a user-friendly interface. This project could diversify BTCS's revenue streams and enhance its value proposition significantly.
For investors, these technological advancements suggest a forward-thinking approach and a potential for future growth. However, the success of these initiatives is contingent upon effective implementation and user adoption in a competitive market. The company's ability to innovate will be key to sustaining its market position amid evolving technologies.
Silver Spring, MD, May 15, 2024 (GLOBE NEWSWIRE) -- BTCS Inc. (Nasdaq: BTCS) (“BTCS” or the “Company”), a blockchain technology-focused company, announced its results for the three months ended March 31, 2024 (“Q1 2024”).
First Quarter 2024 Financial Highlights
- Revenue: Q1 2024 revenue of
$0.4 million increased18% from Q4 2023 and24% 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 a148% increase from Q1 2023 and13% 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 of March 31, 2024, marking a91% year-over-year increase.
Management Commentary
In the first quarter of 2024, BTCS achieved remarkable financial success, reporting a net income of
Ethereum Block Building Operations
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
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:
BTCS Inc. is a Nasdaq listed company operating in the blockchain technology sector since 2014 and is one of the only U.S. publicly traded companies with a primary focus on proof-of-stake blockchain infrastructure. Our core focus is on driving scalable growth through a diverse range of business streams leveraging and built on top of our core and proven blockchain infrastructure operations. BTCS secures and operates validator nodes on cutting-edge blockchain networks that power Web 3, earning native token rewards by staking our proof-of-stake crypto assets, with an emphasis on Ethereum. Our innovative “StakeSeeker” platform empowers crypto holders with an analytics-focused cryptocurrency dashboard. It also offers a non-custodial Staking-as-a-Service solution, enabling users to earn staking rewards, while BTCS earns a percentage of token holders’ rewards, creating the potential for scalable revenue with limited additional costs. We’ve also introduced “Builder+”, an Ethereum block builder. This technology leverages advanced algorithms to maximize profit through optimized block construction. Builder+ creates opportunities for new scalable revenue streams by being utilized by third-party nodes. 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 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 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 May 14, 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 March 31, 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
| March 31, 2024 | December 31, 2023 | |||||||
| (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 March 31, 2024 and December 31, 2023, respectively | 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 | ||||
BTCS Inc.
Statements of Operations
(Unaudited)
| For the Three Months Ended | ||||||||
| March 31, | ||||||||
| 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 | ||||||
BTCS Inc.
Statements of Cash Flows
(Unaudited)
| For the Three Months Ended | ||||||||
| March 31, | ||||||||
| 2024 | 2023 | |||||||
| Net Cash flows used from operating activities: | ||||||||
| 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 | ||||
FAQ
What were BTCS's Q1 2024 earnings per share?
How much did BTCS's revenue increase in Q1 2024?
What was BTCS's net income for Q1 2024?
How much are BTCS's cash and crypto assets valued at as of March 31, 2024?
What is BTCS's gross margin for Q1 2024?
What new initiative did BTCS launch in Q1 2024?
What is ChainQ and when is it expected to launch?
