EDMONTON, Alberta, Aug. 15, 2022 (GLOBE NEWSWIRE) — Bitcoin Well Inc. (the “Company” or the “Bitcoin Well”) (TSXV: BTCW), announced today that it has conducted a thorough review of its financial forecast for 2022 and 2023. Management believes it is critical to ensure that the business is able to be self-financed and have implemented the necessary measures to reduce expenses accordingly.
“I think this is the start of a new era for the public markets,” said Adam O’Brien, founder and CEO of Bitcoin Well. “A transition from rewarding growth at all costs and relying on regular funding to rewarding sustainable businesses with a growth-oriented team and strategy. I’m happy to show our investors that Bitcoin Well can thrive in that environment, as we did in the early days of the business.”
To read more in-depth about Adam’s thoughts on the market’s transition, see his blog post here.
Going forward in 2022, we expect moderate monthly growth in our personal services and have significantly reduced costs to a manageable level within this conservative forecast to improve our adjusted EBITDA. Our forecasts are not dependent on any significant revenue growth in our online products, so any growth in our online products will be an upside to our forecast. Overall, revenues are expected to remain strong in 2022, with a significant improvement to the bottom line due to the re-evaluation and measures taken to reduce expenses.
In the second quarter of 2022, we began to streamline operations and strengthen our business to be self-sufficient. To date in 2022, we have implemented the following cost savings:
- 65% reduction in headcount compared to the end of 2021, which will reduce our salaries and wages and general and administrative expenses, which were our largest expenses
- reduction in salary costs for all managers and senior team members, with the largest reduction to our founder and CEO, Adam O’Brien.
- elimination of all non-discretionary costs
- reduction in the size of the board from seven to four people and an expected reduction of 75% in annual management costs
- Joining Adam O’Brien and Dave Bradley on the board at the AGM in June are:
- Mitchell Demeter – distributed the world’s first Bitcoin ATM in 2013 with his first venture “Bitcoiniacs”. He was subsequently named president of Netcoins Inc., an online cryptocurrency brokerage in Canada wholly owned by BIGG Digital Assets (CSE: BIGG). Mitchell has a range of experience in blockchain, exchanges and cryptocurrencies, and he serves on the boards of directors of BIGG and Neptune Digital Assets (TSX: NDA).
- Terry Rhode – former Vice President of Corporate Development and Chairman of the Rosenau Group of Companies. Before Rosenau, Terry was a management consultant and advised various companies on ways to make operations more efficient. Terry is a significant investor in Bitcoin Well common stock and recently added to his investment in the company by way of a $5 million convertible bond.
- Joining Adam O’Brien and Dave Bradley on the board at the AGM in June are:
The organization-wide cost-saving actions that we implemented in the second quarter of 2022 are expected to start generating tangible financial improvements immediately, which will be reflected in our financial results for the third quarter of 2022. We have set a medium-term goal for our monthly cash flow to be neutral, with revenues equaling expenses and growing from that point.
Making sound financial decisions today will give us the flexibility to look for consolidation opportunities in the future. We will continue to execute our strategy of enabling users to buy, sell and spend bitcoin in the fastest and safest way. We will continue to grow the company while making sound financial decisions to weather the current economic storm and continue our organic growth plans that will help future-proof cash and generate long-term shareholder value.
Grant of stock options
As part of the cost-saving measures mentioned above, the Company has granted share options (“Options”) in lieu of salary to certain officers to purchase up to a total of 3,379,130 ordinary shares (“Common Shares”) in the Company. The options will be granted at an exercise price of $0.07 per ordinary share. Half of the options will vest on the first anniversary of the grant date and half will vest in quarterly installments during the second year. The options will expire after five years from 12 August 2022. The allocation of options was made in accordance with the company’s existing stock option plan and the guidelines of the TSX Venture Exchange.
About Bitcoin Well
Bitcoin Well offers convenient, secure and reliable ways to buy, sell and spend bitcoin. Bitcoin Well is on a mission to enable independence by providing an ecosystem of products and services that give users practical control over their bitcoin. This ecosystem will future-proof money by including financial offerings (both in-person and online) and educational resources designed with the needs of both customers and the industry in mind.
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Bitcoin Well Contact Information
To book a virtual meeting with Founder and CEO Adam O’Brien, please use the following link:
For additional investor and media information, please contact:
Tel: 1 888 711 3866
[email protected]
Neither the TSX Venture Exchange nor the Regulatory Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-looking information:
Certain statements in this press release may constitute forward-looking information. Forward-looking information is often, but not always, identified by the use of words such as “anticipate”, “plan”, “estimate”, “expect”, “may”, “will”, “intend”, “should”, or the negatives thereof and similar expressions. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to deviate significantly from those expected in such forward-looking information.
The actual results of Bitcoin Well may differ materially from those anticipated in this forward-looking information as a result of regulatory decisions, competitive factors in the industries in which Bitcoin Well operates, prevailing economic conditions and other factors, many of which are beyond the control of Bitcoin Well.
Bitcoin Well believes that the expectations reflected in the forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct, and such forward-looking information should not be unduly relied upon.
All forward-looking information in this press release represents Bitcoin Well’s expectations as of the date hereof and may change after such date. Bitcoin Well disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable securities laws.
For more information, see the cautionary note regarding forward-looking information contained in Bitcoin Wells’ Quarterly Management’s Discussion and Analysis.
