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