BTCS Reports Q2 2024 Results
Silver Spring, MD, Aug. 20, 2024 (GLOBE NEWSWIRE) — BTCS Inc. (Nasdaq: BTCS) (“BTCS” or the “Company”), a blockchain technology-focused company, announced its results for the second quarter ended June 30, 2024 (“Q2 2024”).
Second Quarter 2024 Financial Highlights
- Revenue (3 Months): Q2 2024 revenue reached $0.6 million, representing a 24% increase from Q1 2024 and a 45% increase from Q2 2023.
- Revenue (6 Months): Revenue for the first half of 2024 surpassed $1.0 million, representing a 45% increase from the first half of 2023.
- Gross Margin: Gross margin declined to 70% for Q2 2024, with 67% gross margin for the first half of 2024 compared to 72% gross margin for the first half of 2023.
- Net Loss (3 Months): Net loss for Q2 2024 was $6.7 million ($0.43 per share), compared to a net income of $12.3 million ($0.78 per share) in Q1 2024 and a net loss of $1.2 million ($0.08 per share) in Q2 2023.
- Net Income (6 Months): Net income for the six months ended June 30, 2024, was $5.5 million ($0.35 per share), reflecting a strong first half of the year and a 46% increase year over year.
- Cash & Crypto Value: The Company held $33.5 million in cash and crypto assets as of June 30, 2024, marking a 65% increase year over year, despite a 15% decrease from March 31, 2024.
Management Commentary
In the first half of 2024, BTCS has maintained a robust financial standing, reporting net income of over $5.5 million and holding $33.0 million in crypto assets, of which $27.2 million was in Ethereum. Our Net Income and Net Loss were primarily driven by the increase and decrease, respectively, in the fair market value of the Company’s crypto assets during the periods reported above. Despite a 15% decline in asset value amid Q2’s crypto market pullback, our strategic blockchain infrastructure initiatives have fortified our position, enabling us to navigate the market turbulence effectively with stable operations.
Our Ethereum block building operations, under the Builder+ initiative, have achieved significant milestones. We have climbed the Ethereum builder market leaderboards and now consistently produce blocks, reinforcing our presence in the sector. Our strategy focuses on maximizing gas fee revenues by increasing block purchases and optimizing the costs associated with block space acquisition. This approach has successfully halved the average margin on blocks produced by over 50% in Q2.
July marked the beta launch of ChainQ, our proprietary AI-driven blockchain analytics platform, aimed at transforming the analysis and understanding of blockchain data. We are actively gathering user feedback to refine ChainQ’s functionalities while advancing our research and development to incorporate additional features and support for additional blockchain networks. Initially supporting Cosmos (ATOM), ChainQ’s design paves the way for integration with larger, simpler blockchain networks such as bitcoin, enhancing its potential market reach. Our ongoing developments and future expansions are set to enhance the visibility and adoption of ChainQ, boosting user engagement. Visit www.chainq.com to learn more about ChainQ’s evolving functionalities.
As we continue to manage through periods of crypto market volatility and shifting economic and political conditions, our commitment remains unwavering in ensuring the security of our blockchain infrastructure and in the continuous development of ChainQ and the Builder+ operations. We are optimistic about BTCS’s prospects and, confident in our ability to drive sustained stakeholder value as we adapt and grow in the rapidly evolving blockchain landscape.
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. We focus on driving scalable growth through our diverse business streams that leverage our core blockchain infrastructure operations, which include staking and operating validator nodes on various proof-of-stake networks, such as Ethereum. Built atop our blockchain infrastructure operations are: ChainQ, our AI-powered blockchain analytics platform, which provides a simple way for crypto holders to access otherwise hard-to-obtain data; StakeSeeker, offering an analytics-focused cryptocurrency dashboard and Staking-as-a-Service solution, and Builder+, an Ethereum block builder optimizing profit through block construction. 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 our ability to drive sustained stakeholder value as we adapt and grow. 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 August 19, 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 June 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
| June 30, | December 31, | |||||||
| 2024 | 2023 | |||||||
| (Unaudited) | ||||||||
| Assets: | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 536,682 | $ | 1,458,327 | ||||
| Stablecoins | 14,797 | 21,044 | ||||||
| Crypto assets | 973,413 | 302,783 | ||||||
| Staked crypto assets | 32,010,175 | 24,900,146 | ||||||
| Prepaid expenses | 180,919 | 62,461 | ||||||
| Receivable for capital shares sold | – | 291,440 | ||||||
| Total current assets | 33,715,986 | 27,036,201 | ||||||
| Other assets: | ||||||||
| Investments, at value (Cost $100,000) | 100,000 | 100,000 | ||||||
| Property and equipment, net | 7,500 | 10,490 | ||||||
| Total other assets | 107,500 | 110,490 | ||||||
| Total Assets | $ | 33,823,486 | $ | 27,146,691 | ||||
| Liabilities and Stockholders’ Equity: | ||||||||
| Accounts payable and accrued expenses | $ | 130,850 | $ | 55,058 | ||||
| Accrued compensation | 508,489 | 712,092 | ||||||
| Warrant liabilities | 71,250 | 213,750 | ||||||
| Total current liabilities | 710,589 | 980,900 | ||||||
| Stockholders’ equity: | ||||||||
| Preferred stock: 20,000,000 shares authorized at $0.001 par value: | – | – | ||||||
| Series V preferred stock: 14,567,829 and 14,567,829 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively | 2,563,938 | 2,563,938 | ||||||
| Common stock, 975,000,000 shares authorized at $0.001 par value, 15,895,027 and 15,320,281 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively | 15,895 | 15,322 | ||||||
| Additional paid in capital | 163,681,450 | 162,263,634 | ||||||
| Accumulated deficit | (133,148,386 | ) | (138,677,103 | ) | ||||
| Total stockholders’ equity | 33,112,897 | 26,165,791 | ||||||
| Total Liabilities and Stockholders’ Equity | $ | 33,823,486 | $ | 27,146,691 | ||||
BTCS Inc.
Statements of Operations
(Unaudited)
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenues | ||||||||||||||||
| Blockchain infrastructure revenues (net of fees) | $ | 561,192 | $ | 385,753 | $ | 1,012,578 | $ | 697,261 | ||||||||
| Total revenues | 561,192 | 385,753 | 1,012,578 | 697,261 | ||||||||||||
| Cost of revenues | ||||||||||||||||
| Blockchain infrastructure costs | 168,848 | 113,612 | 329,473 | 195,626 | ||||||||||||
| Gross profit | 392,344 | 272,141 | 683,105 | 501,635 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| General and administrative | $ | 538,956 | $ | 617,569 | $ | 1,026,555 | $ | 1,227,398 | ||||||||
| Research and development | 163,777 | 180,903 | 310,326 | 382,528 | ||||||||||||
| Compensation and related expenses | 875,491 | 578,496 | 1,331,270 | 1,040,586 | ||||||||||||
| Marketing | 28,477 | 2,723 | 86,079 | 8,966 | ||||||||||||
| Realized (gains) losses on crypto asset transactions | (287,327 | ) | 568,031 | (298,014 | ) | 560,477 | ||||||||||
| Total operating expenses | 1,319,374 | 1,947,722 | 2,456,216 | 3,219,955 | ||||||||||||
| Other income (expenses): | ||||||||||||||||
| Change in unrealized appreciation (depreciation) on crypto assets | (5,943,339 | ) | 355,033 | 7,159,328 | 6,648,240 | |||||||||||
| Change in fair value of warrant liabilities | 142,500 | 142,500 | 142,500 | (142,500 | ) | |||||||||||
| Total other income (expenses) | (5,800,839 | ) | 497,533 | 7,301,828 | 6,505,740 | |||||||||||
| Net income (loss) | $ | (6,727,869 | ) | $ | (1,178,048 | ) | $ | 5,528,717 | $ | 3,787,420 | ||||||
| Basic net income (loss) per share attributable to common stockholders | $ | (0.43 | ) | $ | (0.08 | ) | $ | 0.35 | $ | 0.27 | ||||||
| Diluted net income (loss) per share attributable to common stockholders | $ | (0.43 | ) | $ | (0.08 | ) | $ | 0.28 | $ | 0.22 | ||||||
| Basic weighted average number of common shares outstanding | 15,758,157 | 13,873,331 | 15,724,917 | 13,773,782 | ||||||||||||
| Diluted weighted average number of common shares outstanding, basic and diluted | 15,758,157 | 13,873,331 | 19,447,348 | 17,263,427 | ||||||||||||
BTCS Inc.
Statements of Cash Flows
(Unaudited)
| For the Six Months Ended | |||||||||||||||
| June 30, | |||||||||||||||
| 2024 | 2023 | ||||||||||||||
| Net Cash flows used from operating activities: | |||||||||||||||
| Net income | $ | 5,528,717 | $ | 3,787,420 | |||||||||||
| Adjustments to reconcile net income to net cash used in operating activities: | |||||||||||||||
| Depreciation expense | 2,990 | 2,318 | |||||||||||||
| Stock-based compensation | 1,178,084 | 789,453 | |||||||||||||
| Blockchain infrastructure revenue | (1,012,578 | ) | (697,261 | ) | |||||||||||
| Builder payments (non-cash) | 158,112 | – | |||||||||||||
| Change in fair value of warrant liabilities | (142,500 | ) | 142,500 | ||||||||||||
| Realized gains on crypto assets transactions | (298,014 | ) | 560,477 | ||||||||||||
| Change in unrealized (appreciation) depreciation on crypto assets | (7,159,328 | ) | (6,648,240 | ) | |||||||||||
| Changes in operating assets and liabilities: | |||||||||||||||
| Stablecoins | 6,247 | – | |||||||||||||
| Prepaid expenses and other current assets | (118,458 | ) | (51,668 | ) | |||||||||||
| Receivable for capital shares sold | 291,440 | – | |||||||||||||
| Accounts payable and accrued expenses | 75,792 | 111,417 | |||||||||||||
| Accrued compensation | (203,603 | ) | (41,940 | ) | |||||||||||
| Net cash used in operating activities | (1,693,099 | ) | (2,045,524 | ) | |||||||||||
| Cash flows from investing activities: | |||||||||||||||
| Purchase of productive crypto assets for validating | (19,212 | ) | (1,804,213 | ) | |||||||||||
| Sale of productive crypto assets | 550,361 | 1,719,871 | |||||||||||||
| Net cash provided by (used in) investing activities | 531,149 | (84,342 | ) | ||||||||||||
| Cash flow from financing activities: | |||||||||||||||
| Net proceeds from issuance common stock/ At-the-market offering | 240,305 | 926,501 | |||||||||||||
| Net cash provided by financing activities | 240,305 | 926,501 | |||||||||||||
| Net (decrease)/increase in cash | (921,645 | ) | (1,203,365 | ) | |||||||||||
| Cash, beginning of period | 1,458,327 | 2,146,783 | |||||||||||||
| Cash, end of period | $ | 536,682 | $ | 943,418 | |||||||||||
| Supplemental disclosure of non-cash financing and investing activities: | |||||||||||||||
| Series V Preferred Stock Distribution | $ | – | $ | 2,559,533 | |||||||||||
