EDMONTON, Alberta, Nov. 4, 2022 (GLOBE NEWSWIRE) — Bitcoin Well Inc. (the “Company” or the “Bitcoin Well”) (TSX.V: BTCW) (OTCQB:BCNWF), has released its financial and operating results for the third quarter ended September 30, 2022. The Interim Financial Statements and Management’s Discussion and Analysis (“MD&A ”) is available on our investor website (bitcoinwell.com/investors) and is filed on SEDAR.
In the third quarter ended September 30, 2022, we recorded our best gross profit in a single quarter since Q1 2021. Gross profit was $1.2 million, an increase of $0.4 million compared to the third quarter of 2021 (+58%) and an increase of $0.1 million compared to Q2 2022 (+11%). This is a direct result of the internal emphasis and focus on improved margin at our Bitcoin ATMs and our Bitcoin branches.
We have previously announced that we will aggressively cut costs and expenses while still focusing on growth. As a result, we have seen a $1.1 million (31% improvement) decrease in operating expenses compared to Q2 2022. This contributed to a $0.9 million (+55%) increase in Adjusted EBITDA compared to Q2 2022 .quarter 2022 and also represents an improvement of $1.3 million (+64%) over the same period last year. We will continue to streamline operations to further reduce operating costs, while maintaining a growth-focused strategy.
“Our ability to increase margin while reducing costs in one of the most tumultuous bear markets our industry has ever seen is a tremendous achievement,” said Adam O’Brien, founder and CEO of Bitcoin Well, “that speaks volumes resilience and our team is passionate about our mission to future-proof money. We are committed to continuing to strive to become a sustainable, profitable organization.”
Economic overview
| For the three months ended, |
For the nine months ended, |
|||||||||||
| September 30, 2022 |
September 30, 2021 |
September 30, 2022 |
September 30 2021 |
|||||||||
| Revenue ($000s) | $ | 14,354 | $ | 15,943 | $ | 48,469 | $ | 85.201 | ||||
| Gross Profit ($000s) | $ | 1,178 | $ | 745 | $ | 3.208 | $ | 4.204 | ||||
| Adjusted EBITDA1 ($000s) | $ | (714 | ) | $ | (2003 | ) | $ | (4350 | ) | $ | (2020 | ) |
| Net Loss ($000s) | $ | (983 | ) | $ | (3,897 | ) | $ | (4.140 | ) | $ | (8.231 | ) |
| Total ATMs | 257 | 185 | 257 | 185 | ||||||||
1 See non-IFRS measures.
Results for the third quarter of 2022
- Gross profit in the third quarter of 2022 was $1.1 million (+58%) compared to the same period last year. Gross profit margin increased by 76% in the same period.
- Revenue in the first nine months ending 2021 included single-person transactions totaling $22 million, which were not expected to recur. Normalized for this, adjusted income in the third quarter and first nine months of 2022 was $14.3 million (+4%) and $48.4 million (-23%), respectively.
- Adjusted EBITDA in the third quarter improved by $1.3 million (+64%) compared to the same period last year. At the end of Q2 2022, the company streamlined operations and implemented cost-cutting decisions. We expect this to continue, resulting in improved adjusted EBITDA.
Recent business developments
- Our web portal (available at www.bitcoinwell.com/signup) continues to be the main focus of our product ecosystem. In Q3, we improved the e-Transfer payment rail to be the fastest and most secure way to buy bitcoin in Canada. This is indicated by transactions completed as fast as 105 seconds (from e-transfer to blockchain) in a non-custodial environment. We believe we can further improve this metric, making these transactions almost instantaneous in the future.
- The e-transfer payment rail was developed alongside our existing payment rail, Visa Debit, which is not offered anywhere else in Canada.
- As a reminder, the Bitcoin Well non-custodial ecosystem currently includes:
- Buy bitcoin instantly online and in person.
- Pay household bills with bitcoin and other cryptocurrencies
- Pay credit cards with bitcoin and other cryptocurrencies
- Buy gift cards to most major retailers with bitcoin and other cryptocurrencies instantly
- Sell bitcoin and other cryptocurrencies and receive $CAD online and in person
- Added 9 Bitcoin ATMs (+4%) to our operating fleet in Q3 2022. We now have 257 ATMs operating across Canada. This includes 84 ATMs under our partner program, which allows us to scale ATM numbers faster and add increased revenue potential with minimal capital expenditure.
- So far in Q4 we have signed one new ATM partner and have seen the expansion of three of our existing partners.
- In the fourth quarter, we plan to grow our ATM network by ~7%, over and above the expected growth of partner ATMs.
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 income (loss)
| For the three months ended, |
For the nine months ended, |
|||||||||||
| $000s | September 30, 2022 |
September 30, 2021 |
September 30, 2022 |
September 30, 2021 |
||||||||
| Net Income (Loss) | $ | (983 | ) | $ | (3,897 | ) | $ | (4.140 | ) | $ | (8,231 | ) |
| Listing cost | – | – | – | 1,477 | ||||||||
| Business acquisitions and QT transaction costs | 8 | 303 | 8 | 867 | ||||||||
| Depreciation and accretion | 403 | 262 | 1,798 | 804 | ||||||||
| Fair value change – cryptocurrency | 223 | 1,846 | (4692 | ) | 3,783 | |||||||
| Restructuring | (120 | ) | – | 3,188 | – | |||||||
| Recovery of income tax | (302 | ) | (791 | ) | (595 | ) | (1269 | ) | ||||
| Share-based compensation | 93 | 290 | 204 | 572 | ||||||||
| Profit on debt arrangement | (36 | ) | (9 | ) | (123 | ) | (15 | ) | ||||
| Other | – | (7 | ) | 2 | (8 | ) | ||||||
| Adjusted EBITDA | $ | (714 | ) | $ | (2003 | ) | $ | (4350 | ) | $ | (2020 | ) |
This press release should be read in conjunction with the full disclosure documents. Bitcoin Well Unrevised Condensed Consolidated Interim Financial Statements and Management’s Discussion and Analysis for the three months ended September 30, 2022 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 business unit drives cash flow to help fund this mission.
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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 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 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.
