Press Release: November 29, 2021
Bitcoin Well Announces Strategy for Highly Scalable Ecosystem of Products & Services with Q3 Financial Results
Edmonton, Alberta – November 29, 2021 – Bitcoin Well (the “Company” or “BTCW”), is pleased to announce our financial and operating results for the third quarter and nine months ended September 30, 2021, and to introduce our new three-pillar strategic growth plan. The interim Financial Statements and Notes, as well as Management’s Discussion and Analysis (“MD&A”) are available on our website and have been filed on SEDAR.
“Bitcoin Well increased revenue by 193% and gross profit by 22% in the first nine months of 2021. This growth is exciting however, I am even more inspired by the path we have set to expand our ecosystem of products and services. These new offerings within our core business pillars will increase customer value and complement our growing network of over 200 ATMs.” said Adam O’Brien, Founder and CEO of Bitcoin Well. “While our ATM network represents a base business for us today, our expanding technology, SaaS software development and online services offer new scalability across the business, as we seek to deliver innovative payment rails that set the stage for long-term growth and diversity across the organization. We continue to forge new paths, create new partnerships, expand on our capital markets presence and establish an ecosystem to expand our offerings to existing customers.”
Q3 and Nine Months Financial Overview
Revenue increased to $15.9 million in Q3 2021, and to $85.2 million for the nine-month period, which included a single over-the-counter (“OTC”) transaction that represented $22.0 million in revenue in Q2. While not expected to recur at that level, the recent success of our OTC business demonstrates the economies of scale and the Company’s ability to offer large-scale transactions to individuals as a significant component of our offerings.
Cash at the end of the quarter increased to $6.1 million from $4.1 million at year end 2020 - a 49% increase - and we had a working capital surplus of $5 thousand at September 30, 2021 compared to a working capital deficit of $2.9 million at December 31, 2020.
Operating expenses in Q3 2021 reflect the impact of hiring a larger corporate team and implementing organizational enhancements required to support our aggressive expansion plans (some of which are detailed below), which contributed to negative Adjusted EBITDA* of $2.0 million in the third quarter of 2021, and negative Adjusted EBITDA* of $2.0 million in the first nine months of the year.
These losses are expected as we set the stage for anticipated scalable growth, while benefitting from the economies of scale that our bolstered team brings. The investments made into our organization and processes have already started to come to fruition, as exemplified by the expanded RapidCash partnership announced on November 18, 2021, as well as doubling our in-person OTC presence across Canada as announced November 10, 2021.
Net loss totaled $3.9 million for the quarter ended September 30, 2021, primarily a result of the increased expenses for the expanded team and a $1.9 million non-cash, unrealized loss on the revaluation of cryptocurrency-based loans, which is an accounting requirement but does not have any impact on the Company’s ability to operate or grow the business.
*Non-IFRS measure. See Advisories – "Non-IFRS measures".
Introducing the Three Strategic Pillars of Bitcoin Well
At Bitcoin Well, our mission has been refined to reflect our commitment to thought leadership and customer security within the bitcoin industry. We have set out to shift the relationship that society has with money by offering an ecosystem of products and services that make bitcoin accessible and understood. Our ecosystem is comprised of three pillars, which we summarize below. A full outline of our three pillars and their anticipated contribution to the Company is included within our third quarter MD&A, available on our website, or on SEDAR.
Pillar #3 | Education
We build products and services that remove barriers to entry for new bitcoin consumers, which we believe will build trust with newcomers entering the space. Our most recent development is the Bitcoin Academy, a 6-module curriculum developed and distributed in partnership with PowerED™, by Athabasca University. In addition, we offer informative in-person consultations at our four OTC locations across Canada as well as free online training sessions for the community.
To read more about our financial highlights, Q3 and nine month strategic & operational overview as well as recent developments, please see the full press release, by clicking the link below.
