First Quarter 2023 Financial Highlights
Q1 2023 revenue improved 15% over Q4 2022 to
74% gross margins for the three months ended
Our net loss for the three months ended
As of
The fair value of our crypto assets increased 53% during Q1 2023 to
The fair value of our crypto assets together with our cash equates to approximately
Management Commentary
Business Update
BTCS has continued to make strides in the first quarter of 2023 by building on the momentum of its StakeSeeker platform's successful beta launch in January. The Company’s innovative StakeSeeker platform, a comprehensive crypto dashboard and education center for crypto asset holders, allows users to learn how to earn crypto rewards by staking through its non-custodial Stake Hub and evaluate their crypto portfolios across exchanges and wallets in a single analytics platform. BTCS has continued to expand the platform’s features and functionality, with a particular focus on integrating new blockchain networks and improving user experience. We remain committed to growing StakeSeeker users and building a strong delegator base on our validator nodes, providing an attractive non-custodial staking option for crypto asset holders.
Impact of Shanghai Upgrade
The recent successful
The
Industry Commentary
As we reflect on the first quarter of 2023, there are many indicators that support a positive outlook on the crypto market and our business model. The crypto industry has witnessed remarkable price increases since the lows experienced in 2022, with Ethereum standing out as one of the most notable success stories, having increased as much as 132% during
BTCS acknowledges the recent challenges faced by some financial institutions catering to the crypto space, such as the failures of
Furthermore, recent incidents such as the collapse of FTX and regulatory actions against Kraken by the
Our flagship StakeSeeker platform sets us apart from others in the staking market. Unlike custodial staking models employed by crypto exchanges, our non-custodial staking-as-a-service solution enables users to maintain control over their crypto assets while directly participating in the network's consensus mechanism. This approach ensures greater security and eliminates the need to entrust third parties with valuable crypto assets. We believe that non-custodial staking is the future of the industry, and we are proud to offer this innovative solution to the crypto community.
BTCS understands that blockchain technologies are still in the early stages of their evolution, and we are committed to being at the forefront of this ongoing transformation. We invest significant time and resources in educating the public about emerging blockchain technologies, the benefits of self-custody of crypto assets, and the importance of secure staking practices. Our goal is to drive awareness and adoption of blockchains across various sectors, both public and private.
As we look ahead, BTCS remains optimistic about the future of the crypto industry. We are excited to continue driving new innovations that strengthen long-term shareholder value while contributing to the broader adoption and acceptance of blockchain technologies. We firmly believe in the transformative potential of cryptocurrencies and are dedicated to positioning ourselves as leaders in this dynamic landscape.
About BTCS:
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 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, and the reluctance of users to try or accept our product, as well as risks set forth in the Company’s filings with the
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
Balance Sheets
2023 | 2022 | ||||||
(Unaudited) | |||||||
Assets: | |||||||
Current assets: | |||||||
Cash | 1,443,058 | $ | 2,146,783 | ||||
Crypto assets/currencies | 1,066 | 982 | |||||
Investments, at value (Cost | 100,000 | 100,000 | |||||
Staked crypto assets/currencies | 7,854,755 | 1,826,307 | |||||
Prepaid expense | 93,449 | 123,727 | |||||
Total current assets | 9,492,328 | 4,197,799 | |||||
Other assets: | |||||||
Property and equipment, net | 9,999 | 11,152 | |||||
Staked crypto assets/currencies - long term | - | 5,708,624 | |||||
Total other assets | 9,999 | 5,719,776 | |||||
Total Assets | $ | 9,502,327 | $ | 9,917,575 | |||
Liabilities and Stockholders' Equity: | |||||||
Accounts payable and accrued expense | $ | 41,954 | $ | 76,727 | |||
Accrued compensation | 3,429 | 295,935 | |||||
Warrant liabilities | 498,750 | 213,750 | |||||
Total current liabilities | 544,133 | 586,412 | |||||
Stockholders' equity: | |||||||
Common stock, 97,500,000 shares authorized at | 13,800 | 13,108 | |||||
Additional paid in capital | 161,839,971 | 160,800,263 | |||||
Accumulated deficit | (152,895,577 | ) | (151,482,208 | ) | |||
Total stockholders' equity | 8,958,194 | 9,331,163 | |||||
Total Liabilities and Stockholders' Equity | $ | 9,502,327 | $ | 9,917,575 |
Statements of Operations
(Unaudited)
For the Three Months Ended | |||||||
2023 | 2022 | ||||||
Revenues | |||||||
Validator revenue (net of fees) | $ | 311,508 | $ | 563,015 | |||
Total revenues | 311,508 | 563,015 | |||||
Cost of revenues | |||||||
Validator expense | 82,014 | 137,869 | |||||
Gross profit | 229,494 | 425,146 | |||||
Operating expenses: | |||||||
General and administrative | $ | 609,829 | $ | 650,289 | |||
Research and development | 201,625 | 136,718 | |||||
Compensation and related expenses | 462,090 | 1,423,896 | |||||
Marketing | 6,243 | 41,793 | |||||
Impairment loss on crypto assets/currencies | 94,907 | 3,307,428 | |||||
Realized gains on crypto asset/currency transactions | (16,831 | ) | (71,110 | ) | |||
Total operating expenses | 1,357,863 | 5,489,014 | |||||
Other income (expenses): | |||||||
Change in fair value of warrant liabilities | (285,000 | ) | (641,250 | ) | |||
Distributions to warrant holders | - | (35,625 | ) | ||||
Total other income (expenses) | (285,000 | ) | (676,875 | ) | |||
Net loss | $ | (1,413,369 | ) | $ | (5,740,743 | ) | |
Net loss per share attributable to common stockholders, basic and diluted | $ | (0.10 | ) | $ | (0.47 | ) | |
Weighted average number of common shares outstanding, basic and diluted | 13,673,126 | 12,245,278 |
Statements of Cash Flows
(Unaudited)
For the Three Months Ended | |||||||
2023 | 2022 | ||||||
Net loss | $ | (1,413,369 | ) | $ | (5,740,743 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Depreciation expense | 1,153 | 797 | |||||
Stock-based compensation | 531,617 | 1,289,274 | |||||
Validator revenue | (311,508 | ) | (563,015 | ) | |||
Blockchain network fees (non-cash) | - | 1,321 | |||||
Change in fair value of warrant liabilities | 285,000 | 641,250 | |||||
Realized gain on crypto assets/currencies transactions | (16,831 | ) | (71,110 | ) | |||
Impairment loss on crypto assets/currencies | 94,907 | 3,307,428 | |||||
Changes in operating assets and liabilities: | - | ||||||
Prepaid expenses and other current assets | 30,278 | 9,382 | |||||
Accounts payable and accrued expenses | (34,773 | ) | (36,329 | ) | |||
Accrued compensation | (292,506 | ) | (4,125 | ) | |||
Capital shares payable | - | 75,002 | |||||
Dividends payable - distributions to warrant holders | - | 35,625 | |||||
Net cash used in operating activities | (1,126,032 | ) | (1,055,243 | ) | |||
Net cash used in investing activities: | |||||||
Purchase of productive crypto assets/currencies for validating | (134,019 | ) | (8,521,726 | ) | |||
Sale of productive crypto assets/currencies | 47,543 | 310,149 | |||||
Purchase of investments | - | - | |||||
Purchase of property and equipment | - | (2,558 | ) | ||||
Net cash used in investing activities | (86,476 | ) | (8,214,135 | ) | |||
Net cash provided by financing activities: | |||||||
Dividend distributions | - | (400,194 | ) | ||||
Net proceeds from issuance common stock/ At-the-market offering | 508,783 | 10,513,767 | |||||
Net cash provided by financing activities | 508,783 | 10,113,573 | |||||
Net increase in cash | (703,725 | ) | 844,195 | ||||
Cash, beginning of period | 2,146,783 | 1,400,867 | |||||
Cash, end of period | $ | 1,443,058 | $ | 2,245,062 | |||
Supplemental disclosure of non-cash financing and investing activities: | |||||||
Dividends payable | $ | - | $ | 230,606 |
Source:
2023 GlobeNewswire, Inc., source