BTCS Reports 2024 Q3 Results
Rhea-AI Summary
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.
Positive
- 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
Negative
- 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?
