Key highlights
Revenue of $30.1 million for the 3-months ended December 31, 2024 (Q4 2023: $13.6 million, +121%); and $90.5 million for the year ended December 31, 2024 (2023: $54.5 million, +66%)
Unique registrations grew by more than 5,000 in Q4 to a total of over 32,000 as of December 31, 2024 (representing growth of 28% from September 30, 2024 and 191% from December 31, 2023).
Financial overview
| | For the three months ended, | | For the year ended, |
| | Dec 31, 2024 | | Dec 31, 2023 | | Dec 31, 2024 | | Dec 31, 2023 |
Revenue | | $ 30,059,063 | | $ 13,590,048 | | $ 90,513,400 | | $ 54,531,838 |
Gross Profit | | 1,220,390 | | 1,427,803 | | 3,970,608 | | 4,826,169 |
Adjusted EBITDA (1) | | 25,673 | | 177,360 | | (1,655,890) | | (440,794) |
Adjusted Cash Flow (1) | | (154,672) | | (138,489) | | (2,598,072) | | (2,102,581) |
Total comprehensive loss | | (2,477,571) | | (1,264,707) | | (7,110,154) | | (5,303,177) |
(1) See Non-IFRS Measures.
The Company's overall revenue in the fourth quarter of 2024 showed a substantial 121% increase, reaching $30.1 million compared to $13.6 million in Q4 2023. This growth was primarily driven by increased transaction volumes on the Bitcoin Portal, including from Bitcoin Well Infinite - which provides large bitcoin transactions to high net worth individuals.
The Company also debuted Bitcoin Well Infinite in the USA through a strategic partnership in Q4. Volume in the USA through the first couple months exceeded $3,000,000 and is expected to grow in Q1 2025. Both the Bitcoin Portal and Bitcoin Well Infinite have a lower gross profit margin than the Bitcoin ATMs, but are more scalable and cost less to expand making them the optimal growth business unit.
"I am happy to report these revenue numbers!" said Bitcoin Well Founder and CEO Adam O'Brien, "I am more certain of the Bitcoin Portal's product-market fit than ever before. The addition of Bitcoin Well Infinite offering large bitcoin transactions directly to self custody looks like a recipe for success and we are excited to continue growing this service line. I'm confident our increased scale will outpace the costs of growth soon."
Gross profit decreased to $1.2 million in Q4 2024 from $1.4 million last year due to a lower overall gross margin. This was primarily caused by a shift in sales mix, with lower margin online transactions now representing a larger share compared to high margin Bitcoin ATM sales. The Company views this shift as a necessary step in the successful transition to a highly scalable online bitcoin platform.
During Q4 2024, the Company's online segment's gross margin increased to 1.7%, from 1.3% in Q4 2023, +30% improvement
Additional information
This news release should be read in concert with the full disclosure documents. The Bitcoin W ell consolidated financial statements and Management Discussion & Analysis for the years ended December 31, 2024 and 2023 ("MD&A") will be available on the Bitcoin Well website ( www.bitcoinwell.com ), via SEDAR+ ( www.sedarplus.ca ) or can be requested from the Company.
Non-IFRS measures
The Company uses certain terms in this news release, such as ‘Adjusted EBITDA' and ‘Adjusted Cash Flow', which do not have a standardized or prescribed meaning under International Financial Reporting Standards (IFRS), and accordingly, these measurements may not be comparable with the calculation of similar measurements used by other companies.
Please refer to the "Non-IFRS Financial Measures" section in the Company's MD&A for applicable definitions, calculations, and rationale for use. Non-IFRS measures are provided as supplementary information by which readers may wish to consider the Company's performance, but should not be relied upon for comparative or investment purposes.
See the table below for a reconciliation of each non-IFRS measure to its nearest IFRS measure:
| | Three months ended | | Year ended |
| | Dec 31, 2024 | | Dec 31, 2023 | | Dec 31, 2024 | | Dec 31, 2023 |
| | | | | | | | |
Net loss | $ | (9,828,152) | $ | (5,204,590) | $ | (17,777,117) | $ | (12,024,324) |
Financing fees | | 612,264 | | 683,513 | | 2,567,439 | | 2,285,183 |
Depreciation and accretion | | 97,127 | | 297,084 | | 651,902 | | 1,416,882 |
Fair value change - crypto loans (1) | | 8,100,878 | | 4,328,718 | | 13,974,453 | | 7,421,089 |
Fair value change - investments | | - | | 337,635 | | - | | 337,635 |
Share based compensation | | 142,024 | | (19,633) | | 467,952 | | 483,430 |
Foreign exchange loss (gain) | | 492,913 | | (8,568) | | 599,760 | | 9,846 |
Loss (gain) on debt settlement | | 937 | | 10,779 | | (19,063) | | 14,703 |
Loss (gain) on disposal of equipment | | 609 | | - | | (481) | | 7,991 |
Fair value change - crypto inventory (1) | | (488,006) | | - | | (784,679) | | (12,401) |
Fair value change - convertible debt | | 1,194,636 | | - | | 1,194,636 | | - |
Realized gain on digital assets (1) | | (299,557) | | (247,578) | | (2,530,692) | | (622,535) |
Income tax expense | | - | | - | | - | | 241,707 |
Adjusted EBITDA | $ | 25,673 | $ | 177,360 | $ | (1,655,890) | $ | (440,794) |
| | | | | | | | |
Less: financing fees | | (612,264) | | (683,513) | | (2,567,439) | | (2,285,183) |
Add: non-cash interest items (2) | | 431,919 | | 367,664 | | 1,625,257 | | 623,396 |
Adjusted Cash Flow | $ | (154,672) | $ | (138,489) | $ | (2,598,072) | $ | (2,102,581) |
(1) Non-cash, fair value change on the revaluation of cryptocurrency loans is largely offset by revaluation changes in inventory and gains (losses) on digital assets, which are recorded in both income (if realized) and other comprehensive Income (if unrealized).
(2) Non-cash interest items include interest on cryptocurrency loans that were settled in common shares or are intended to be settled in common shares as well as non-cash interest on the line of credit where the accrued interest is added to the principal balance of the loan.
About Bitcoin Well
Bitcoin Well is on a mission to enable independence. We do this by making bitcoin useful to everyday people to give them the convenience of modern banking and the benefits of bitcoin. We like to think of it as future-proofing money. Our existing Bitcoin ATM and Online Bitcoin Portal business units drive cash flow to help fund this mission.
Join our investor community and follow us on Nostr , , and to keep up to date with our business.
Bitcoin Well contact information
To book a virtual meeting with our Founder & CEO Adam O'Brien please use the following link: https://bitcoinwell.com/meet-adam
For additional investor & media information, please contact:
Adam O'Brien
Tel: 1 888 711 3866
ir@bitcoinwell.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release .
Forward-looking information
Certain statements contained in this news 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 negative thereof and similar expressions. All statements herein other than statements of historical fact constitute forward-looking information including, but not limited to statements in respect of: revenue growth from the Bitcoin Portal in 2025; improving gross margins from the Online Segment; and Bitcoin Well's business plans, strategy and outlook.
Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information, including, but not limited to the following: economic and financial conditions, volatility in the capital or credit markets; the level of demand and financial performance of the cryptocurrency and digital asset industry, the occurrence of force majeure events; the extent to which the Company is successful in gaining new long-term users or retaining existing users; developments and changes in laws and regulations, disruptions to the Company's technology network; inability to obtain financing; competitive factors; and such other factors as discussed in the "Risks and Uncertainties" section of the Company's MD&A.
Bitcoin Well actual results could differ materially from those anticipated in this forward-looking information as a result of the foregoing risk factors 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. Any forward-looking information contained in this news release represents Bitcoin Well 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 legislation.
For more information, see the Note Regarding Forward Looking Statements found in the Bitcoin Well MD&A.
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