Bitcoin Well

Overview

Bitcoin Well (TSXV:BTCW,OTCQB:BCNWF) is a two-business-unit organization providing an ecosystem of products and services to make it easy for everyday people to use bitcoin. The company was established in Canada in 2013, has reached significant revenue growth year-over-year since, and has recently expanded the Online Bitcoin Portal to the US market.

Bitcoin Well earns revenue through its two core business lines, which include:

1. Bitcoin ATM network: Operating more than 190 Bitcoin kiosks across Canada that accept cash and vend bitcoin and other cryptocurrencies. Bitcoin ATMs provide stable cash flows at an estimated gross margin of 15 percent.
2. Online Bitcoin Portal: A non-custodial bitcoin platform that allows Canadians and now Americans to buy, sell and use bitcoin. Launched in Q4 2022 in Canada, Online Bitcoin Portal expanded to most of the USA in Q3 2023, and all 50 states in February 2024. Current monthly revenues exceed $4 million and are currently experiencing high growth. The gross margin is an estimated 1 percent.

Bitcoin Well earns consistent cash flow through its existing fleet of Bitcoin ATMs. The company reinvests this cash flow into the Online Bitcoin Portal, which is a scalable growth product the company believes will see exponential adoption during the bitcoin bull run – which appears to be underway.

The Bitcoin market often makes headlines when it reaches new heights or lows, but it’s shown consistent growth over the long term. The price of Bitcoin surpassed the US$72,000 mark in March 2024 and is expected to continuously captivate investors’ interest as it follows the typical halving price cycle.

Bitcoin Well has passed significant milestones since its establishment in 2013:

• The company found success with its Bitcoin ATM business in 2013, generating over US$21 million in annual revenue in 2022 at a gross margin of 15 percent.
  • Q3 2023 ATM run rate revenue: US$25 million
• In Q4 2022, Bitcoin Well began offering a non-custodial Online Bitcoin platform which reached over 17,000 users as of May 2024 and over $4.5 million in monthly revenue.
• Bitcoin Well has exceeded US$51 million in annual revenue since 2020.
• Record number of signups to the Bitcoin Portal in 2024
  • 1,242 new users signed up in February 2024
  • 56 percent increase from January 2024
  • 29 percent of new users were signed up in the USA
  • In March 2024, the company recorded the largest single-day new user sign-ups at 146, after tutorial videos were published on YouTube about Bitcoin Portal's’ differentiator of automatic self custody.

Every product or service offered by the company is wrapped in the security of its non-custodial ecosystem. This is a hot topic right now as multiple custodial exchanges have collapsed in the last few years. The non-custodial ecosystem is widely seen by knowledgeable investors as the safest way to buy bitcoin.

In 2024, Bitcoin Well launched Cash Vouchers, which allow Canadian customers to make cash payments when buying bitcoin from the Bitcoin Portal. Cash Vouchers eliminate the barriers when using digital payments to use the Bitcoin Portal. Bitcoin Well is the only company able to offer this service.

The company intends to utilize its unique positioning of a large network of Bitcoin ATMs and a growing online Bitcoin Portal to begin combining the benefits and set itself out as a true differentiator. These unique differences allow for Bitcoin Well to offer their customer a stickier product with more offerings than other competitors which could open the door for a subscription model or other alternative customer revenue models.

Company Highlights

• Two business units
  • Canada-wide network of Bitcoin ATMs - nearly 200 ATMs and growing
  • Online Bitcoin Portal live in both Canada (Nov 2022) and the entire USA (Feb 2024) – Over 17,000 users
• Non-custodial ecosystem that enables the safest way to buy bitcoin both online and in person
• The two business units offer investors the ideal combination of stable cash flow and high-growth potential
  • Bitcoin ATMs are a 10-year established business with a level of stability
  • Bitcoin Portal is high growth and scalable in both Canada and USA
  • Bitcoin Portal users grew 70 percent from Q4 2023 to Q1 2024
• The company was established in 2013 and has been a market leader for the last decade.
• The price of bitcoin reached an all-time high in Canada in March 2024, and interest in bitcoin continues to grow while macroeconomic trends impact its current spot price.
• The company expanded its Online Bitcoin Portal into all 50 states in the US in February 2024.
• Bitcoin Well launched cash vouchers as a revolutionary payment rail to allow Canadian customers to buy bitcoin in the Bitcoin Portal using cash, they are the only company able to do this in Canada.
• More than 40 years of bitcoin experience across management and board members.

Key Business Offerings

The Bitcoin Well business strategy is embodied in two core product lines, designed to make it easier for everyday people to use bitcoin as part of their financial plans. Both offerings cater to different types of customers.

Bitcoin ATM Network

With more than 190 Bitcoin ATMs across Canada, the Bitcoin Well ATM network provides users a way to buy bitcoin quickly and safely with cash. This well-established, cash-flowing Bitcoin ATM business provides revenue to support the company’s accretive future growth.

Highlights:

• Established in 2014
• Over 190 units across Canada
• 10 to 20 percent transaction fee
• Internal software for maximum ecosystem effect and cost savings
• Stable cash flows and steady growth

Online Bitcoin Portal

This is the most scalable and future-oriented product. It offers the fastest and safest way for North Americans to buy, sell and use bitcoin. Launched in Q4 2022, this offering currently generates monthly revenues exceeding $4.5 million.

Highlights:

• Non-custodial online bitcoin platform
• Live in Canada (Nov 2022) and USA (Sept 2023)
• 1 percent transaction fee
• Nearly 15,000 unique users signed up
• Surpassed Bitcoin ATM revenue in February 2024
• Automatic self-custody

Management Team

Adam O’Brien - Founder and CEO

Adam O’Brien is a husband, father of four and a bitcoin entrepreneur with a mission to enable independence. Since founding Bitcoin Well in 2013, he has made it easy to buy, sell and use bitcoin both online in the bitcoin-only portal, and in person at Bitcoin ATMs across Canada. Today, Bitcoin Well is a publicly traded organization (BTCW) and is one of the largest bitcoin companies in the country... And it's just getting started!

Jason Vandenberg - CFO

Jason Vandenberg brings more than 20 years of experience across diverse financial leadership positions and has an established record of leading multiple companies through substantial growth, both organically and through business acquisitions. He has experience with micro-cap companies listed on the TSXV and was involved with the company as they went public in 2021.

Chantel Lillycrop - VP of Operations

Chantel Lillycrop has 10 years of experience in leadership, business development and operations. She has a deep-rooted passion for streamlining processes, optimizing efficiency and fostering collaboration with her teams and external partners. Her mission is to drive the company’s growth while ensuring operational excellence.

James Kerr - Director of Product

James Kerr is an accredited product builder with nearly a decade of experience working with teams to build solutions for both B2B and B2C users. Kerr loves solving problems, challenging conventions, and working with creative people to build and grow products that make the world a better place.

Dave Bradley - Board Member

Dave Bradley is widely considered one of the leading experts in Canada on bitcoin and blockchain technology. Before his current role, Bradley founded the world’s first bricks-and-mortar bitcoin store and co-founded the successful company, Bull Bitcoin, which is Canada’s longest-serving bitcoin brokerage. He also serves as a vice-president for the Canadian Blockchain Consortium.

Terry Rhode - Chairman, Audit Committee

Terry Rhode was one of Rosenau Transport's longest-serving employees and a partial owner. Before starting with Rosenau Transport in 1998, he was a management consultant and advised various businesses on ways to streamline their operations. Rhode is well-versed in every aspect of administration including accounting and IT, operations, change management, project management, sales, and pricing.

Mitchell Demeter - Governance Committee

Mitchell Demeter brought the world its first Bitcoin ATM in 2013 to Vancouver, BC. After a successful exit, he moved to be the president of Netcoins, a Canadian online cryptocurrency brokerage wholly owned by BIGG Digital Assets. Demeter is a serial entrepreneur with a range of experience in blockchain, exchanges and currency trading. He currently sits on the board of Neptune Digital Assets and advises several other cryptocurrency and fintech businesses including Secure Digital Markets and Inetco Systems.

Mark Binns - Capital Markets Advisor

Mark Binns has a long history and deep experience in the bitcoin and cryptocurrency markets, and valuable connections in the Canadian and US capital markets. Binns is the former CEO of Netcoins, a leading Canadian cryptocurrency broker, and BIGG Digital Assets, a diversified public Canadian digital asset company.