EDMONTON, Alberta, May 02, 2023 (GLOBE NEWSWIRE) — Bitcoin Well Inc. (“Bitcoin Well” or “Company“) (TSXV:BTCW; OTCQB:BCNWF), the non-custodial fintech business that future-proofs money by making bitcoin useful to ordinary people, today announced financial and operating results for the first quarter ended March 31, 2023. The company also announced new features on its online portal, including the ability to pay credit cards, taxes and other household bills directly with bitcoin, as well as buy gift cards from hundreds of popular retailers with bitcoin.
Important highlights
- Gross profit of $1.1 million (Q1 2022 – $1 million) with a gross margin improvement to 9%.
- The increased gross margin is the result of a changed product mix, with more ATM sales with higher margins in Q1 2023 compared to previous periods. Bitcoin Well continued to see strong ATM volumes throughout the quarter, with a company record number of ATM transactions in March 2023.
- Bitcoin Well recorded adjusted EBITDA of negative $0.22 million (Q1 2022 – negative $1.5 million).
- Changes in the unrealized value of our cryptocurrency loans and digital assets may result in significant fluctuations in net income that are not indicative of the underlying operational performance of the business. We present adjusted EBITDA to exclude the variation caused by revaluations and other items that are not expected to recur in normal operations.
- About 3,800 unique users in the web portal (Q4 2022 – 2,500), an improvement of 52%.
- Associated Online’s monthly revenue exceeded $369,000 (Q4 2022 – $190,000), maintaining continued growth in the product since its launch in Q4 2022.
- Canadians can now also buy gift cards and pay credit cards, taxes and household bills with bitcoin through the online portal at bitcoinwell.com/app
Economic overview
| For the three months ended, | ||||
| March 31, 2023 |
March 31, 2022 |
% | ||
| ($000s) | ($000s) | Change | ||
| Income | $12,417 | $13,529 | (8 | % |
| Gross profit | $1,086 | $965 | 1. 3 | % |
| Adjusted EBITDA1 | $(217) | $(1494) | 85 | % |
| Total extensive loss | $(1006) | $(2184) | 54 | % |
1 See non-IFRS measures.
The company’s revenue for Q1 2023 fell to $12.4 million compared to $13.5 million in Q1 2022. Despite the decline in revenue, gross profit increased to $1.1 million in Q1 2023, compared to 0 .9 million dollars in the same period of the previous year, an improvement of 1. 3%. Adjusted EBITDA improved to negative $0.2 million in Q1 2023 compared to negative $1.5 million in the prior year, an improvement of 71%.
In particular, the company achieved a gross margin of 9% in the first quarter of 2023 compared to a gross margin of 7% in the first quarter of 2022, as a result of a relative increase in ATM sales with higher margins in the quarter.
“We have worked hard to maintain consistency across our existing cash-flow generating business units, such as ATMs and OTC (Bitcoin Well Infinite), despite the volatile crypto markets, while still achieving strong growth in the online portal in terms of users and revenue. This is reflected in our Q1 2023 results and we are committed to continuing this positive trend.We are also excited to see the impact of our planned expansion into the US, announced March 28, 2023to our existing cash-flowing units in the coming periods,” said Luke Thibodeau, Chief Financial Officer.
Product advancement
Bitcoin Well has successfully integrated the ability for users in Canada, USA, India, EU and other countries around the world to purchase gift cards for popular retailers including Amazon, Uber, Air Canada and more using bitcoin or other cryptocurrencies in the online portal. This is done through a partnership where Bitcoin Well will receive a portion of the margin earned on each transaction.
“The ability to use bitcoin to buy gift cards is an important part of bitcoin’s usability. We are a long way from merchants accepting bitcoin natively, and this helps bridge the gap and make bitcoin more usable in the meantime,” says Adam O’Brien , CEO of the company. “This additional functionality cements us as a leader in giving people the convenience of modern banking (easy ways to spend money) with the benefits of bitcoin (self-storage).”
Also released this month, Canadian users at bitcoinwell.com/app can now pay household bills, taxes and credit cards with bitcoin.
Effective immediately, any payee who accepts payment through the Canadian Bill Payment Network can be paid with bitcoin through the Bitcoin Well Online Portal.
“Bitcoin Well Online Portal has the most functionality in the country!” Adam O’Brien continued. “With our bill payments and gift card functionality, bitcoin just became much more useful.”
Other updates
Finally, on May 1, 2023, the Company accepted amendments to the convertible note issued on February 23, 2022. Amendments include an adjustment to the conversion price, which is now $0.25 (from $0.30), an amended interest rate of Prime + 6.2 % (previously 10% per annum), and a change in the term of the loan, which now extends to five (5) years from the date of issue (previously three (3) years from the date of issue). These changes are subject to regulatory approval.
Non-IFRS measures
The Company uses certain terms in this press release and within the MD&A, such as ‘Adjusted EBITDA’, which do not have a standardized or prescribed meaning under International Financial Reporting Standards (IFRS), and accordingly these measurements may not be comparable to the calculation of similar measures used by other companies. See the table below for a reconciliation of each non-IFRS measure to its closest IFRS measure, or see the “Non-GAAP Measures” and “Selected Financial Information” sections of the MD&A for the applicable definitions, calculations, rationale for use and reconciliations to the most directly comparable measure under IFRS. Non-IFRS measures are provided as supplementary information where readers may wish to assess the company’s performance, but should not be relied upon for comparison or investment purposes.
Reconciliation of adjusted EBITDA to net loss
| For the past three months: | 31 March 2023 | 31 March 2022 | ||
| $000s | $000s | |||
| Net loss | $ (3523) | $(2,061) | ||
| Fair value change – crypto loans (1) | 3,441 | (138) | ||
| Realized gain on digital assets, net after tax | (406) | – | ||
| Recovery of income tax | (667) | (577) | ||
| Interest | 408 | 176 | ||
| Depreciation and accretion | 385 | 681 | ||
| Share-based compensation | 81 | 73 | ||
| Profit on debt arrangement | 4 | (28) | ||
| Other | 60 | 2 | ||
| Financing Fees | – | 262 | ||
| Bad debt expense | – | 94 | ||
| Business acquisitions and QT transaction costs | – | 24 | ||
| Adjusted EBITDA | $ (217) | $ (1494) | ||
(1) Non-cash, change in fair value on revaluation of cryptocurrency loans that is more than offset by a revaluation loss on digital assets recorded in other comprehensive income.
This press release should be read in conjunction with the full disclosure documents. Bitcoin Well’s consolidated financial statements and management’s discussion and analysis for the three months ended March 31, 2023 will be available on the Bitcoin Well website (www.bitcoinwell.com), via SEDAR (www.sedar.com) or can be ordered from the company.
About Bitcoin Well
Bitcoin Well deals in future-proof money. We do this by making bitcoin useful to ordinary people to give them the convenience of modern banking and the benefits of bitcoin. Our existing Bitcoin ATM and Personal Services business unit drives cash flow to help fund this mission.
Join us this year the investor community and follow us further Nostr, LinkedIn, Twitter and YouTube to keep you updated with our business.
Bitcoin Well Contact Information
To book a virtual meeting with our 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 guarantee can be given that these expectations will prove to be accurate and such forward-looking information should not be unduly relied upon.
All forward-looking information in this news release represents Bitcoin Well’s expectations as of the date hereof and is subject to 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.
An image accompanying this announcement is available at
