Blockchain Operations - BTCS's Ethereum block-building operations under the Builder+ brand launched in 2024, focusing on maximizing transaction value and gas fee revenue [20][21] - Builder+ aims to expand to other blockchain networks, aligning with BTCS's long-term diversification strategy [22] - The company discontinued its StakeSeeker platform on December 27, 2024, to concentrate resources on Builder+ and validator node operations [32] - BTCS charges a Validator Fee, calculated as a percentage of crypto asset rewards earned, creating scalable revenue opportunities [28] - BTCS aims to grow revenue and margins by scaling Ethereum block-building under Builder+ and expanding NodeOps, focusing on enhancing technology, increasing order flow, and gaining control over block space [71][74] - BTCS is focused on increasing Builder+ order flow through strategic partnerships and network integrations to enhance profitability [73] - BTCS's strategic initiatives are designed to position it as a leader in blockchain infrastructure, leveraging its Builder+ operations and validator expertise [75] Asset Management and Security - As of December 31, 2024, 98% of BTCS's crypto assets were held in cold storage wallets, ensuring maximum protection against breaches [33] - The company prioritizes the secure custody of its crypto assets, maintaining less than 0.1% on exchanges at any time [33] - The Company has determined that if over 40% of its assets are considered securities, it may be classified as a 1940 Act company, which could adversely affect its operations [56] - The company targets maintaining over 60% of its total assets in Ethereum to avoid classification as an investment company under the 1940 Act [54] Technology and Innovation - ChainQ, an AI-powered blockchain data and analytics platform, is currently in beta, enhancing transparency in the blockchain ecosystem [31] - The Company is committed to enhancing its technology stack to optimize efficiency and scalability, which is essential for maintaining a competitive edge in the blockchain industry [72] - The Company relies on proprietary technology and intellectual property critical to its blockchain operations, protected through various legal measures [64][65] Market Environment - The blockchain and cryptocurrency industry is maturing, with increased institutional participation and regulatory scrutiny shaping its trajectory [42] - The competitive landscape includes significant challenges from established cryptocurrency exchanges and specialized crypto asset companies, which have greater financial resources and brand recognition [60][62] - The regulatory landscape for crypto assets is rapidly evolving, which may materially affect the Company's operations and financial performance [58] Workforce and Structure - As of December 31, 2024, BTCS had seven full-time employees, emphasizing a remote-first work environment to attract a larger talent pool [66] - As of March 17, 2025, the total common shares diluted amount to 23,530,049, with 20,087,981 common stock issued and outstanding [78]
BTCS(BTCS) - 2024 Q4 - Annual Report