BTCS Inc. (Nasdaq: BTCS) (“BTCS” or the “Company”), a blockchain
technology-focused company, announced its results for the third
quarter ending September 30, 2023 (“Q3 2023”).
Third Quarter 2023 Financial
HighlightsQ3 2023 revenue decreased 18% from Q2 2023 and
8% from Q3 2022 as a result of depressed crypto asset prices,
particularly impacting Ethereum (ETH) and Cosmos (ATOM), our two
highest earning staked tokens.
Gross margins improved slightly to 74% for Q3
2023 compared to 71% for Q2 2023, with gross margins of 72% for the
first nine months of 2023.
Net loss for Q3 2023 decreased to $0.6 million
($0.04 per share) compared to $1.0 million ($0.07 per share) for Q2
2023 and $1.0 million ($0.08 per share) for Q3 2022.
Net loss for the nine months ended September 30,
2023 (“2023 Period”) decreased 79% to $3.1 million ($0.22 per
share) compared to $14.5 million ($1.15 per share) for the nine
months ended September 30, 2022 (“2022 Period”). Net losses during
the 2022 Period were largely driven by $12.3 million non-cash
crypto asset impairment losses, compared to only $1.3 million
impairment charges in the 2023 Period.
As of September 30, 2023, the Company had $0.8
million in cash and cash equivalents.
The fair market value of our crypto assets
increased 11% YoY to $16.5 million in Q3 2023.
Management Commentary
Business Update
Strengthening Our Staking InfrastructureDuring
Q3 2023, one of our primary areas of focus continued to be the
enhancement of our staking infrastructure operations. We are
pleased to report significant progress in this regard as we took a
strategic step in transitioning all node maintenance, including
monitoring, upgrades, and support, in-house. This transition marks
a pivotal milestone in our journey, as it empowers us to have
greater control and agility in managing our staking
infrastructure.
Our in-house staking infrastructure operations
provide us with increased flexibility to address technical needs,
swiftly adapt to evolving blockchain network requirements, and
potentially generate additional revenue streams. This transition
has solidified our commitment to achieving operational excellence
and sustainability in the dynamic blockchain industry. Further, as
a result, we have reduced our reliance on third-party partners and
associated fees, resulting in cost savings.
Advancements in our Development Efforts:We have
continued to dedicate resources to the development and improvement
of StakeSeeker, our proprietary crypto asset platform. In response
to valuable feedback from our users, we continued to make
improvements to StakeSeeker which were geared towards providing
users with more accurate and insightful dashboards and reporting,
ensuring that our platform remains a trusted resource for stakers
seeking comprehensive analytics and support.
In addition to our core staking infrastructure
operations and StakeSeeker, we are actively diversifying our
development efforts. Leveraging our deep-rooted expertise in
blockchain technology, we have begun exploring new opportunities
and initiatives aimed at meeting the rapidly expanding technical
and information needs within blockchain networks. These new
initiatives reflect our commitment to staying at the forefront of
blockchain innovation and look to develop and contribute to
emerging technologies that align with our core competencies and
industry trends.
As we look forward to the remainder of the year
and beyond, we are excited about the prospects future developments
hold for BTCS. The continued evolution of StakeSeeker, and our
diversification efforts underscore our dedication to growth,
innovation, and value creation for our stakeholders.
We appreciate your ongoing support and trust in
our vision as we navigate the dynamic landscape of the blockchain
industry.
Industry Commentary
The recent actions taken by the SEC against
Coinbase and Binance have had a significant impact on our industry.
While the SEC has classified several alt tokens as securities, it
is essential to note that Ethereum and Bitcoin were not included in
this list, and it is crucial to remember that the SEC’s
classification may not necessarily align with court decisions.
With regard to accounting practices, the
upcoming FASB guidelines on fair market value accounting promise to
bring greater transparency to our financial statements. This change
will offer our shareholders and the investing public a clear
understanding of our financial position representative of the
economic reality of our business, particularly concerning our
crypto assets which are carried on our balance sheet at the lowest
market price since acquisition (i.e. impaired cost), regardless of
what current market prices are.
Finally, we wish to highlight the current
uptrend in the crypto market, with Bitcoin and Ethereum recently
reaching 52-week highs. This positive sentiment bodes well for our
sector, and we remain optimistic about the potential for this trend
to continue, which should beneficially impact our revenue.
Moving forward, we maintain a positive outlook
on both the future of the crypto industry and BTCS. We are highly
motivated to spearhead innovations that foster the wider adoption
and acceptance of blockchain technologies, bringing value to our
shareholders. With our unwavering commitment and focused approach,
we aspire to uphold our position as industry leaders in this
ever-evolving landscape.
About BTCS:BTCS Inc. is a
Nasdaq listed company operating in the blockchain technology space
since 2014 and is one of the first U.S. publicly traded companies
with a primary focus on blockchain infrastructure and staking. BTCS
secures and operates validator nodes on disruptive next-generation
blockchain networks that power Web 3, earning native token rewards
by staking our proof-of-stake crypto assets. “StakeSeeker” is BTCS’
newly introduced proprietary Cryptocurrency Dashboard and
Staking-as-a-Service platform, developed to empower users to better
understand and grow their crypto holdings with innovative portfolio
analytics and a non-custodial process to earn staking rewards on
crypto asset holdings. Users can easily link and monitor their
cryptocurrency portfolios across exchanges, wallets, validator
nodes, and other sources; and have access to a suite of data
analytic tools such as performance and reward tracking.
StakeSeeker’s Staking Hub allows users to earn rewards by directly
participating in network consensus mechanisms by staking and
delegating their cryptocurrencies to company-operated validator
nodes for a growing number of supported blockchains. As a
non-custodial validator operator, BTCS receives a percentage of
token holders staking rewards generated as a validator node fee,
creating the potential opportunity for a highly scalable business
with limited additional costs. 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 the growth
of our StakeSeeker use base, our beliefs regarding the
transformational potential of blockchain technologies, the
potential and opportunities within the cryptocurrency market, our
growth, developing new inns built on our core expertise, leveraging
our knowledge and expertise, and the optimism regarding delivering
shareholder value. 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 current estimates and assumptions and are subject to various
risks and uncertainties, including without limitation regulatory
issues unexpected issues with our proprietary Digital Asset
Analytic and Staking-as-a-Service Platform: StakeSeeker, regulatory
issues, unexpected issues with our Staking-as-a-Service Platform
and the reluctance of users to try or accept our 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, 2022 which was filed on March 31, 2023. 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 9,
2023 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, 2023 and 2022. 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, 2023 |
|
|
December 31, 2022 |
|
|
|
(Unaudited) |
|
|
|
|
Assets: |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
753,233 |
|
|
$ |
2,146,783 |
|
Stablecoins |
|
|
29,794 |
|
|
|
- |
|
Crypto assets |
|
|
101,387 |
|
|
|
982 |
|
Staked crypto assets |
|
|
7,811,809 |
|
|
|
1,826,307 |
|
Investments, at value (Cost
$100,000) |
|
|
100,000 |
|
|
|
100,000 |
|
Prepaid expense |
|
|
107,429 |
|
|
|
123,727 |
|
Total current assets |
|
|
8,903,652 |
|
|
|
4,197,799 |
|
|
|
|
|
|
|
|
|
|
Other assets: |
|
|
|
|
|
|
|
|
Property and equipment,
net |
|
|
12,001 |
|
|
|
11,152 |
|
Staked crypto assets - long
term |
|
|
- |
|
|
|
5,708,624 |
|
Total other assets |
|
|
12,001 |
|
|
|
5,719,776 |
|
|
|
|
|
|
|
|
|
|
Total
Assets |
|
$ |
8,915,653 |
|
|
$ |
9,917,575 |
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders’ Equity: |
|
|
|
|
|
|
|
|
Accounts payable and accrued
expense |
|
$ |
92,659 |
|
|
$ |
76,727 |
|
Accrued compensation |
|
|
321,144 |
|
|
|
295,935 |
|
Warrant liabilities |
|
|
71,250 |
|
|
|
213,750 |
|
Total current liabilities |
|
|
485,053 |
|
|
|
586,412 |
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
Preferred stock: 20,000,000
shares authorized at $0.001 par value: |
|
|
- |
|
|
|
- |
|
Series V Preferred stock:
14,542,803 and 0 shares issued and outstanding at September 30,
2023 and December 31, 2022, respectively |
|
|
2,559,533 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Common stock, 97,500,000
shares authorized at $0.001 par value, 14,373,186 and 13,107,149
shares issued and outstanding at September 30, 2023 and December
31, 2022, respectively |
|
|
14,374 |
|
|
|
13,108 |
|
Additional paid in
capital |
|
|
160,410,794 |
|
|
|
160,800,263 |
|
Accumulated deficit |
|
|
(154,554,101 |
) |
|
|
(151,482,208 |
) |
Total stockholders’
equity |
|
|
8,430,600 |
|
|
|
9,331,163 |
|
|
|
|
|
|
|
|
|
|
Total Liabilities and
Stockholders’ Equity |
|
$ |
8,915,653 |
|
|
$ |
9,917,575 |
|
BTCS Inc.Statements of
Operations(Unaudited)
|
|
For the Three Months Ended |
|
|
For the Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Validator revenue (net of fees) |
|
$ |
316,242 |
|
|
$ |
344,196 |
|
|
$ |
1,013,503 |
|
|
$ |
1,421,560 |
|
Total revenues |
|
|
316,242 |
|
|
|
344,196 |
|
|
|
1,013,503 |
|
|
|
1,421,560 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Validator expenses |
|
|
83,100 |
|
|
|
82,203 |
|
|
|
278,726 |
|
|
|
313,972 |
|
Gross profit |
|
|
233,142 |
|
|
|
261,993 |
|
|
|
734,777 |
|
|
|
1,107,588 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative |
|
$ |
283,239 |
|
|
$ |
432,956 |
|
|
$ |
1,510,637 |
|
|
$ |
1,595,296 |
|
Research and development |
|
|
148,525 |
|
|
|
126,857 |
|
|
|
531,053 |
|
|
|
448,579 |
|
Compensation and related expenses |
|
|
409,960 |
|
|
|
669,792 |
|
|
|
1,450,546 |
|
|
|
2,731,713 |
|
Marketing |
|
|
2,155 |
|
|
|
8,765 |
|
|
|
11,121 |
|
|
|
74,249 |
|
Impairment loss on crypto assets |
|
|
372,441 |
|
|
|
145,247 |
|
|
|
1,251,950 |
|
|
|
12,347,472 |
|
Realized gains on crypto asset transactions |
|
|
(58,107 |
) |
|
|
(20,126 |
) |
|
|
(806,137 |
) |
|
|
(489,682 |
) |
Total operating expenses |
|
|
1,158,213 |
|
|
|
1,363,491 |
|
|
|
3,949,170 |
|
|
|
16,707,627 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expenses): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in fair value of warrant liabilities |
|
|
285,000 |
|
|
|
71,250 |
|
|
|
142,500 |
|
|
|
1,140,000 |
|
Distributions to warrant holders |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(35,625 |
) |
Total other income (expenses) |
|
|
285,000 |
|
|
|
71,250 |
|
|
|
142,500 |
|
|
|
1,104,375 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(640,071 |
) |
|
$ |
(1,030,248 |
) |
|
$ |
(3,071,893 |
) |
|
$ |
(14,495,664 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to common stockholders, basic and
diluted |
|
$ |
(0.04 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.22 |
) |
|
$ |
(1.15 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding, basic and
diluted |
|
|
14,317,750 |
|
|
|
12,952,645 |
|
|
|
13,957,097 |
|
|
|
12,616,805 |
|
BTCS Inc.Statements of
Cash Flows(Unaudited)
|
|
For the Nine Months Ended |
|
|
|
September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
Net Cash flows used
from operating activities: |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(3,071,893 |
) |
|
$ |
(14,495,664 |
) |
Adjustments to reconcile net
loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
Depreciation expense |
|
|
3,521 |
|
|
|
2,862 |
|
Stock-based compensation |
|
|
1,057,512 |
|
|
|
2,233,608 |
|
Validator revenue |
|
|
(1,013,503 |
) |
|
|
(1,421,560 |
) |
Blockchain network fees (non-cash) |
|
|
- |
|
|
|
1,321 |
|
Change in fair value of warrant liabilities |
|
|
(142,500 |
) |
|
|
(1,140,000 |
) |
Sale of non-productive crypto assets |
|
|
- |
|
|
|
2,547,322 |
|
Realized gain on crypto assets transactions |
|
|
(806,137 |
) |
|
|
(489,682 |
) |
Impairment loss on crypto assets |
|
|
1,251,950 |
|
|
|
12,347,472 |
|
Changes in operating assets
and liabilities: |
|
|
|
|
|
|
|
|
Stablecoins |
|
|
(29,794 |
) |
|
|
- |
|
Prepaid expenses and other current assets |
|
|
16,298 |
|
|
|
117,473 |
|
Accounts payable and accrued expenses |
|
|
15,932 |
|
|
|
(37,842 |
) |
Accrued compensation |
|
|
25,209 |
|
|
|
205,237 |
|
Net cash used in operating
activities |
|
|
(2,693,405 |
) |
|
|
(129,453 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
Purchase of productive crypto assets for validating |
|
|
(1,804,482 |
) |
|
|
(9,274,055 |
) |
Sale of productive crypto assets |
|
|
1,994,890 |
|
|
|
432,716 |
|
Purchase of property and equipment |
|
|
(5,276 |
) |
|
|
(5,408 |
) |
Sale of property and equipment |
|
|
905 |
|
|
|
- |
|
Net cash provided by (used in)
investing activities |
|
|
186,037 |
|
|
|
(8,846,747 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
Dividend distributions |
|
|
- |
|
|
|
(630,801 |
) |
Net proceeds from issuance common stock/ At-the-market
offering |
|
|
1,113,818 |
|
|
|
11,095,132 |
|
Net cash provided by financing
activities |
|
|
1,113,818 |
|
|
|
10,464,331 |
|
|
|
|
|
|
|
|
|
|
Net (decrease)/increase in
cash |
|
|
(1,393,550 |
) |
|
|
1,488,131 |
|
Cash, beginning of period |
|
|
2,146,783 |
|
|
|
1,400,867 |
|
Cash, end of period |
|
$ |
753,233 |
|
|
$ |
2,888,998 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure of non-cash financing and investing
activities: |
|
|
|
|
|
|
|
|
Series V Preferred Stock Distribution |
|
$ |
2,559,533 |
|
|
$ |
- |
|
Grafico Azioni BTCS (NASDAQ:BTCS)
Storico
Da Apr 2024 a Mag 2024
Grafico Azioni BTCS (NASDAQ:BTCS)
Storico
Da Mag 2023 a Mag 2024