Key highlights
Revenue of $21.0 million for the 3-months ended September 30 , 2024 (Q3 2023: $13.4 million, +57%); and $60.5 million for the 9-months ended September 30, 2024 (2023: $40.9 million, +48%).
Unique registrations grew by more than 4,800 in Q3 to a total of over 25,000 as of September 30, 2024 (representing growth of 23% from June 30, 2024 and 127% from December 31, 2023).
Financial overview
| | For the three months ended, | | For the nine months ended, |
| | Sept 30, 2024 | | Sept 30, 2023 | | Sept 30, 2024 | | Sept 30, 2023 |
Revenue | | $ Â Â 21,010,424 | | $ Â Â 13,412,337 | | $ Â 60,454,337 | | $ Â Â 40,941,790 |
Gross Profit | | 905,298 | | 1,110,325 | | 2,750,218 | | 3,398,365 |
Adjusted EBITDA (1) | | (611,367) | | (69,489) | | (1,681,563) | | (616,901) |
Adjusted Cash Flow (1) | | (806,613) | | (490,260) | | (2,243,400) | | (1,962,839) |
Net loss | | (949,226) | | (1,843,108) | | (7,948,965) | | (6,819,735) |
Total comprehensive loss | | (1,372,989) | | (2,208,561) | | (4,632,583) | | (4,038,470) |
(1) See Non-IFRS Measures.
Overall revenue in the second quarter of 2024 was $21.0 million, compared to $13.4 million in Q3 2023 (+57%), Â driven by higher transaction volumes on the Bitcoin Portal. Revenue from the Company's Online segment grew to $15.1 million in Q3 2024 from $4.9 million last year, an improvement of 209%. On a year-to date basis, revenue increased to $60.5 million, compared to $40.9 million in the first nine months of 2023 (+48%). Revenue from the Online segment grew to $41.4 million for the nine-month period from $16.6 million last year, marking growth of 148% YoY.
"We are proud of the growth of the Bitcoin Portal," said Adam O'Brien, founder and CEO of Bitcoin Well. "We have been working hard to create the best bitcoin platform which empowers our customers to take and use bitcoin in self custody. Our growth is a symbol that we have achieved product market fit. Now we are focused on exponential growth by tapping into the toughest and most resilient community in the world; the bitcoin community."
Overall gross profit declined to $0.9 million in Q3 2024 from $1.1 million last year (-18%) and for the nine months ended September 30, 2024 declined to $2.8 million from $3.4 million last year (-19%). The decline is primarily driven by a change in sales mix, with lower margin online transactions now making up a larger proportion relative to the high margin Bitcoin ATM sales. The Company sees this as a necessary stepping stone to successfully transition the business into a highly scalable online bitcoin platform.
The Company is experiencing a significant rate of growth on its Bitcoin Portal, which has now exceeded 27,000 unique signups as at November 4, 2024. This represents user growth of 23% from June 30, 2024 and 127% from December 31, 2023.
In addition, the Company's initiatives to increase the gross profit on the Bitcoin Portal have been successful. Gross profit from the Bitcoin Portal was $0.2 million for the 3-months ended September 30, 2024 (Q3 2023: $15 thousand, +1,198%) and $0.5 million for the 9-months ended September 30, 2024 (2023: $0.3 million, +86%).
Further, gross margin has improved to 1.3% in Q3 2024 from just 0.3% in the same quarter last year (+313% improvement), and these initiatives continue. This includes building products such as Lite Accounts and Cash Vouchers, and in the future, the ability to buy gift cards to popular merchants and stores with bitcoin.
Adjusted EBITDA declined to negative $0.6 million in Q3 2024 from negative $0.1 million in Q3 2023 and to negative $1.7 million for the nine months ended September 30, 2024 from negative $0.6 million last year. These declines were primarily due to higher marketing expenses and professional fees.
Year-to-date in 2024, the Company has made significant investments in marketing and advertising initiatives to promote usage of the Bitcoin Portal. Marketing and advertising expenses in Q3 2024 were $0.5 million, reflecting a $0.3 million increase from Q3 2023 (nine months ended September 30, 2024 - increased to $0.9 million from $0.3 million last year). The higher professional fees in 2024 was due to non-recurring legal fees incurred to vigorously litigate against Rapid Cash ATM Ltd. due to their alleged breach of contract in October 2023.
This news release should be read in concert with the full disclosure documents. The Bitcoin W ell condensed consolidated interim financial statements and MD&A for the three and nine months ended September 30, 2024 and 2023 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 Management Discussion & Analysis for the period ended September 30, 2024 ("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 | | Nine  months  ended |
| | Sept 30, 2024 | | Sept 30, 2023 | | Sept 30, 2024 | | Sept 30, 2023 |
| | | | | | | | |
Net loss | $ | (949,226) | $ | (1,843,108) | $ | (7,948,965) | $ | (6,819,735) |
Financing fees | | 633,995 | | 626,,169 | | 1,955,175 | | 1,601,669 |
Depreciation and accretion | | 134,310 | | 350,136 | | 554,775 | | 1,119,799 |
Fair value change – crypto loans (1) | | (43,366) | | (780,365) | | 5,873,575 | | 3,092,371 |
Share based compensation | | 62,515 | | 332,330 | | 325,928 | | 503,063 |
Foreign exchange (gain) loss | | (79,012) | | (97) | | 106,847 | | 18,414 |
(Gain) loss on debt settlement | | - | | - | | (20,000) | | 5,178 |
Loss (gain) on disposal of equipment | | 2,607 | | (18,904) | | (1,090) | | 7,992 |
Fair value change – crypto inventory (1) | | 159 | | 542 | | (296,673) | | (12,401) |
Realized gain on digital assets (1) | | (373,349) | | - | | (2,231,135) | | (374,958) |
Income tax expense | | - | | 1,263,808 | | - | | 241,707 |
Adjusted EBITDA | $ | (611,367) | $ | (69,489) | $ | (1,681,563) | $ | (616,901) |
| | | | | | | | |
Less: financing fees | | (633,995) | | (626,169) | | (1,955,175) | | (1,601,669) |
Add: non-cash interest items (2) | | 378,749 | | 205,398 | | 1,193,338 | | 255,731 |
Adjusted Cash Flow | $ | (866,613) | $ | (490,260) | $ | (2,443,400) | $ | (1,962,839) |
(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 2024 and 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 on 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 "Risk Factors" section of the Company's MD&A for the year ended December 31, 2023.
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 Cautionary Note Regarding Forward Looking Statements found in the Bitcoin Well MD&A.
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