Silver Spring, MD, Feb. 01, 2024 (GLOBE NEWSWIRE) -- BTCS Inc. (NASDAQ:BTCS) ("BTCS" or the "Company"), a blockchain technology-focused company, is thrilled to introduce "Builder+", an innovative extension of our core Ethereum blockchain infrastructure operations, designed to provide scalable revenue growth leveraging our current Ethereum validator operations. "We've been heads down and quiet for the latter part of 2023, but we are now excited to share the developments we've been working on, such as Builder ...

BTCS Inc. is an early entrant in the crypto asset market and a publicly-traded U.S. company focused on blockchain infrastructure and staking. The Company specializes in operating validator nodes on various Delegated proof-of-stake ("DPoS") and proof-of-stake ("PoS") based blockchain networks and stakes the native crypto assets on the validator nodes it operates to earn rewards in connection with the validation of transactions occurring on those blockchain networks. Subject to available capital and the restr ...

Financial Performance - Total revenues for the three months ended June 30, 2023, were $385,753, a decrease of 25% compared to $514,349 for the same period in 2022[37] - Validator revenue (net of fees) for the six months ended June 30, 2023, was $697,261, down 35% from $1,077,364 in the same period of 2022[37] - The net loss for the three months ended June 30, 2023, was $1,018,453, compared to a net loss of $7,724,673 for the same period in 2022[37] - Operating expenses for the three months ended June 30, 2023, totaled $1,433,094, significantly reduced from $9,855,122 in the same period of 2022[37] - The company recorded impairment losses on crypto assets of approximately $784,602 for the three months ended June 30, 2023, compared to $8,894,797 in the same period of 2022[37] - The company reported a gross profit of $272,141 for the three months ended June 30, 2023, compared to $420,449 for the same period in 2022[37] - The company recorded impairment losses related to crypto assets of approximately $0.9 million during the six months ended June 30, 2023, compared to $12.2 million in the same period of 2022, indicating a significant reduction in losses year-over-year[74] Shareholder Equity and Stock Information - The weighted average number of common shares outstanding for the three months ended June 30, 2023, was 13,873,331, an increase from 12,644,719 in the same period of 2022[37] - The company’s total stockholders' equity as of June 30, 2023, was significantly impacted by accumulated deficits totaling $(141,330,213)[39] - The total stockholders' equity as of June 30, 2023, was $8,615,295, down from $9,331,163 as of December 31, 2022[115] - The Company sold a total of 651,172 shares of Common Stock under the ATM Agreement for gross proceeds of approximately $965,000 at an average selling price of $1.48 per share during the six months ended June 30, 2023[96] - The Company issued 59,223 shares of common stock to independent directors during the six months ended June 30, 2023[108] - The total number of warrants to purchase common stock decreased from 945,837 in 2022 to 712,500 in 2023, indicating a reduction in outstanding warrants[62] Cash and Liquidity - As of June 30, 2023, the Company had approximately $0.9 million in cash, down from $2.1 million as of December 31, 2022, reflecting a decrease in liquidity[72] - The company had approximately $0.3 million in excess of the FDIC insured limit as of June 30, 2023[44] - The company has approximately $0.3 million and $1.7 million in excess of the FDIC insured limit as of June 30, 2023, and December 31, 2022, respectively[44] Expenses and Cost Management - Validator expenses for the three months ended June 30, 2023, were $113,612, an increase of 21% from $93,900 in the same period of 2022[37] - Research and development expenses for the three months ended June 30, 2023, were $180,903, slightly down from $185,004 in the same period of 2022[37] - General and administrative expenses for the three months ended June 30, 2023, were $617,569, an increase of 21% from $512,051 in the same period of 2022[37] - Advertising and marketing expenses amounted to approximately $9,000 for the six months ended June 30, 2023, compared to $65,000 for the same period in 2022[126] Future Plans and Market Position - The company plans to expand its PoS operations to secure other disruptive blockchain protocols, which is critical for user base growth and success[42] - The company's future success is dependent on the growth of the crypto asset market and the adoption of blockchain technology[70] Risk Factors - The Company is subject to various risks, including the volatility of crypto asset prices and the evolving regulatory landscape for crypto assets, which may impact future performance[70] Stock Options and Warrants - The Company granted 20,000 stock options with a weighted average exercise price of $0.63 during the six months ended June 30, 2023[112] - The company’s total stock options and warrants outstanding decreased from 3,825,035 in 2022 to 3,478,899 in 2023[62] Dividends - The Company declared a non-recurring special dividend of $0.05 per share on January 5, 2022, with dividend distributions amounting to $635,000 during the six months ended June 30, 2022, but $0 during the same period in 2023[60] - The Company has not historically paid dividends on its Common Stock and does not expect to pay recurring dividends in the future[105] - The company will evaluate the appropriateness of potential future dividends as it continues to grow its operations[97] Accounting and Valuation - The Company accounts for its crypto assets as indefinite-lived intangible assets, assessed for impairment annually[133] - The company measures certain assets and liabilities at fair value, with Level 3 investments carried at an original cost of $100,000 as of June 30, 2023[90] - The company’s crypto assets are recorded at fair value upon receipt and are subject to impairment losses if their fair value falls below carrying value[49] - The fair value of warrant liabilities was recorded at $356,250 as of June 30, 2023, reflecting the Company's reclassification of these instruments from equity to liabilities[88] - The risk-free interest rate for the Company's warrant liabilities increased to 4.49% as of June 30, 2023, up from 3.99% as of December 31, 2022[105] - The expected volatility for the company's warrants was 144.6% as of June 30, 2023, down from 152.8% as of December 31, 2022[105]

Crypto assets held are included in the balance sheets as either current assets or other assets if they are staked and locked up for over one year. The Company's crypto assets are initially recorded at fair value upon receipt (or "carrying value"). The fair value of crypto assets is determined using the U.S. dollar spot price of the related crypto asset. On a quarterly basis, crypto assets are measured at carrying value, net of any impairment losses incurred since receipt. The Company will record impairment ...

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |----------------------|-------|-------|-------|-----------|---------|-------|-------------|-------|------------| | stock | - | - | - | 5,020,883 | - | - | (5,020,883) | - | - | | Fractional shares | | | | | | | | | | | adjusted for reverse | | | | | | | | | | | split | | | - | - | 14,477 | 15 | (15) | - | - | | Warrant exercise | - | - | - | - | 200,000 | 200 | 399,800 | - | 400,000 | | Stock-based | | | | | | | | | | | compensation | - | - | - ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Nevada 90-1096644 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, par value $0.001 BTCS The Nasdaq Stock Market (The Nasdaq Capital Market) Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 or ☐ ...

| --- | --- | --- | --- | |-------|-------|-------|-------| | | | | | | | | | | https://www.btcs.com 1 Safe Harbor The following presentation contains statements, estimates, forecasts, and projections regarding future performance and events, which constitute forward-looking statements. Those statements include statements regarding the intent and belief or current expectations of BTCS and its management team regarding our blockchain infrastructure operations business, planned continued expansions, market opp ...

Financial Performance - Total current assets increased to $5,948,264 in 2022 from $5,466,532 in 2021, representing an increase of 8.8%[17] - Validator revenue for the three months ended June 30, 2022, was $514,349, up 35.1% from $380,499 in the same period of 2021[19] - Gross profit for the six months ended June 30, 2022, was $845,595, compared to $378,778 in the same period of 2021, indicating a significant increase of 123.8%[19] - Total operating expenses for the three months ended June 30, 2022, were $9,855,122, up from $4,530,813 in the same period of 2021, reflecting an increase of 117.5%[19] - Net loss for the three months ended June 30, 2022, was $(7,724,673), compared to a net loss of $(4,842,073) in the same period of 2021, representing a deterioration of 59.5%[19] - For the six months ended June 30, 2022, the net loss was $13,465,416, compared to a net loss of $11,624,248 for the same period in 2021, reflecting an increase in losses of approximately 15.9%[28] - The company reported stock-based compensation of $1,782,802 for the six months ended June 30, 2022, compared to $9,226,702 for the same period in 2021, representing a decrease of approximately 80.7%[28] - The company reported a net loss and net cash used in operating activities for the reporting period ending June 30, 2022, but has sufficient cash and liquid Digital Assets to support operations for the next twelve months[110] Asset and Equity Changes - Total assets decreased to $11,457,687 in 2022 from $14,101,993 in 2021, a decline of 18.5%[17] - Total stockholders' equity as of June 30, 2022, was $10,390,713, down from $12,103,443 in 2021, a decrease of 14.1%[17] - As of June 30, 2022, total stockholders' equity was $10,390,713, down from $12,990,551 as of June 30, 2021, indicating a decrease of approximately 19.9%[24] - The weighted average number of common shares outstanding increased to 12,644,719 in 2022 from 5,667,229 in 2021, an increase of 123.3%[19] Digital Asset Impairments - Impairment loss on digital assets/currencies for the three months ended June 30, 2022, was $8,894,797, compared to $2,267,374 in the same period of 2021, an increase of 292.5%[19] - The company incurred an impairment loss on digital assets/currencies of $12,202,225 for the six months ended June 30, 2022, compared to an impairment loss of $3,569,138 for the same period in 2021, reflecting an increase of approximately 241.5%[28] - The company reported an impairment loss on digital assets of $8,894,797, a 292% increase from $2,267,374 in the same period last year[133] - Digital asset impairment losses for 2022 amounted to $12,202,225, compared to $3,569,138 in 2021[139] Cash and Financing Activities - The cash balance at the end of the period was $3,191,418, an increase of $1,790,551 from the beginning cash balance of $1,400,867[28] - The net cash provided by financing activities for the six months ended June 30, 2022, was $9,973,640, compared to $14,179,133 for the same period in 2021, indicating a decrease of approximately 29.0%[28] - The company had approximately $3.2 million in cash and $4.4 million in liquid digital assets as of August 8, 2022[148] - The company plans to continue raising proceeds from the sale of common stock to fund operations as needed, with $10.6 million raised from the ATM Agreement in the first half of 2022[150] Revenue Recognition and Operations - The company recognizes revenue through staking rewards, with revenue recognized when control of the promised goods or services is transferred to customers[43] - The company’s cost of revenue primarily consists of direct production costs related to validating transactions on the network, which may impact overall profitability[47] - The company has shifted its focus towards blockchain and digital currency ecosystems, with a specific emphasis on transaction verification services and validator nodes[31] - The Company operates validator nodes on various proof of stake-based blockchain networks, including Ethereum's Beacon Chain, Cosmos, and Cardano[123] Strategic Developments - The company is developing a Digital Asset Platform to aggregate users' Digital Asset portfolio holdings and is planning to integrate a proprietary Staking-as-a-Service feature[32] - The company is developing a proprietary Digital Asset Platform to enhance user experience and portfolio management[130] - A Staking-as-a-Service feature is being integrated into the Digital Asset Platform to allow users to earn annual percentage yield on staked assets[131] - The company anticipates that net loss will increase due to rising costs associated with the development of its digital asset platform[143] Stock and Compensation - The Company declared a non-recurring special dividend of $0.05 per share, resulting in total distributions of $635,000 for the six months ended June 30, 2022, compared to $0 in the same period of 2021[68] - The 2021 Equity Incentive Plan was approved, reserving 7,000,000 shares of Common Stock for issuance, reflecting an increase from the initial 2,000,000 shares[92] - The Company granted RSUs to executive officers with vesting terms based on achieving market capitalization thresholds of $100 million, $150 million, $200 million, and $400 million[96] - For the six months ended June 30, 2022, stock-based compensation expense totaled approximately $1.9 million, compared to $9 million for the same period in 2021[106] Market Performance - Total revenues for Q2 2022 were $514,349, a 35% increase from $380,499 in Q2 2021[133] - Validator revenue increased by $133,850, representing a 35% growth year-over-year[133] - Gross profit for Q2 2022 was $420,449, up 31% from $321,250 in Q2 2021[133] - Realized gains on the sale of Digital Assets were approximately $470,000 for the six months ended June 30, 2022, down from $3.1 million in the same period in 2021, indicating a decline in trading performance[50]

Financial Performance - Total assets increased to $20,475,520 in 2022 from $14,101,993 in 2021, representing a growth of approximately 45%[17] - Validator revenue surged to $563,015 in Q1 2022, up from $72,524 in Q1 2021, marking a year-over-year increase of 676%[20] - Gross profit for Q1 2022 was $425,146, compared to $57,528 in Q1 2021, reflecting a significant improvement in profitability[20] - Total operating expenses decreased to $2,252,696 in Q1 2022 from $7,976,014 in Q1 2021, a reduction of approximately 72%[20] - Net loss attributable to common stockholders narrowed to $(5,740,743) in Q1 2022 from $(11,620,571) in Q1 2021, indicating a 51% improvement[20] - The net loss for 2022 was $5,740,743, an improvement from a net loss of $6,782,175 in 2021, indicating a reduction of approximately 15.4%[29] - Net cash used in operating activities decreased to $1,055,243 in 2022 from $2,541,258 in 2021, reflecting a reduction of about 58.4%[29] - The company reported a significant impairment loss on digital assets of $3,307,428 in 2022, compared to $1,301,764 in 2021, representing an increase of approximately 154.1%[29] - The company reported an impairment loss on digital assets of approximately $3.31 million for Q1 2022[151] - Adjusted EBITDA for Q1 2022 was $(3.73) million, compared to $1.12 million in Q1 2021[145] Cash and Liquidity - Cash and cash equivalents increased to $2,245,062 in 2022 from $1,400,867 in 2021, a growth of approximately 60%[17] - Cash at the end of the period for 2022 was $2,245,062, down from $3,367,249 in 2021, a decrease of about 33.3%[29] - The company has not experienced any losses in cash accounts and believes it is not exposed to significant credit risk on cash[44] - The company has approximately $2.2 million in cash as of March 31, 2022, compared to $1.4 million at the end of 2021, indicating a growth of about 57.1%[43] - The net cash provided by financing activities in 2022 was $10,113,573, a decrease from $13,379,259 in 2021, representing a decline of about 24.5%[29] - Cash used in operating activities was $1.1 million for the three months ended March 31, 2022, a decrease from $2.5 million for the same period in 2021[161] - Cash provided by financing activities was $10.1 million during the three months ended March 31, 2022, compared to $13.4 million for the same period in 2021, primarily from proceeds of $10.5 million from the ATM Agreement[162] - The company believes that existing cash and liquid digital assets, along with funds available from the ATM Agreement, provide sufficient liquidity for at least the next twelve months[160] - The company has no long-term debt outstanding and no off-balance sheet arrangements as of March 31, 2022[163] Digital Assets and Investments - Staked digital assets/currencies rose significantly to $6,601,777 in 2022 from $623,754 in 2021, an increase of over 950%[17] - The company incurred $8,521,726 in the purchase of productive digital assets for validating in 2022, compared to $7,994,887 in 2021, reflecting an increase of approximately 6.6%[29] - The company holds a Digital Asset treasury comprised of 90 Bitcoins, focusing on non-productive assets[140] - The company sold a total of 2,268,742 shares of common stock under the ATM Agreement for gross proceeds of approximately $13.9 million at an average price of $6.12 per share[154] - Cash used in investing activities was $8.2 million for the three months ended March 31, 2022, compared to $8.0 million for the same period in 2021, primarily for the purchase of digital assets[161] Revenue and Growth Projections - Total revenues for Q1 2022 were $563,015, up by $490,491 compared to Q1 2021[147] - The company anticipates revenue guidance of $35 million for the next quarter, indicating a projected growth of approximately 16.67%[187] - New product launches are expected to contribute an additional $5 million in revenue over the next two quarters[187] - The company reported a total revenue of $30 million for the quarter, reflecting a year-over-year increase of 30%[187] User Growth and Market Expansion - The user base grew to 1.5 million active users, representing a 25% increase compared to the previous quarter[187] - Market expansion efforts are focused on entering two new regions, which are projected to add 10% to the overall user growth[187] - The company is exploring potential acquisition opportunities to enhance its market position and product offerings[187] - A strategic partnership is being developed with a leading tech firm to leverage synergies in product development[187] Operational Efficiency and Cost Management - Operational efficiency improvements are expected to reduce costs by 15% over the next fiscal year[187] - The company plans to increase its marketing budget by 20% to drive user acquisition and brand awareness[187] - The company approved a performance-based Annual Cash Incentive Plan for executives, with bonuses ranging from 48% to 107% of base salaries[119] Digital Asset Platform Development - The company plans to develop a Digital Asset Platform to aggregate user holdings and analyze performance, which will include a Staking-as-a-Service feature[34] - The company is developing a Digital Asset Platform to enhance user experience with features like portfolio monitoring and staking services[138][139] - The company plans to integrate a Staking-as-a-Service feature into its Digital Asset Platform, allowing users to earn annual percentage yields on staked assets[139] - The company has developed a Digital Asset Platform, with an open beta feature allowing users to evaluate their digital asset portfolios[122]

| --- | --- | --- | --- | |-------|-------------------------------------------------|-------|-------| | | | | | | | | | | | | Corporate Presentation BTCS Inc. (Nasdaq: BTCS) | | | | | March 16, 2022 | | | https://www.btcs.com 1 Safe Harbor The following presentation contains statements, estimates, forecasts and projections with respect to future performance and events, which constitute forward-looking statements. Those statements include statements regarding the intent and belief or current expectations of ...