Bitcoin Well Announces Record First Quarter 2021 Financial

EDMONTON, Alberta, June 18, 2021 (GLOBE NEWSWIRE) — Bitcoin Well Inc. (the “Company”, “Bitcoin Well” or “BTCW”) could be very happy to announce file monetary and working outcomes for the three months ended March 31, 2021, which mirror explosive development quarter-over-quarter and year-over-year. Bitcoin Well demonstrated the advantages of our differentiated non-custodial enterprise mannequin and monetary efficiency, pushed primarily by transaction quantity moderately than forex worth. The interim Financial Statements and Notes, in addition to Management’s Discussion and Analysis (“MD&A”) for the three months ended March 31, 2021 and 2020 have been filed on SEDAR.

The magnitude of development realized by Bitcoin Well throughout the group throughout the first quarter of 2021 was unprecedented in our historical past. In addition to asserting a $7.0 million brokered personal placement, we continued to efficiently increase our ATM depend and develop our proprietary software program enterprise whereas making progress towards being a publicly-traded firm. Subsequent to the quarter finish, we added two new board members who every deliver in depth, hands-on expertise as an officer or director of a public firm. All of our latest measures are designed to place Bitcoin Well as a profitable and engaged issuer inside the public markets.

Q1 2021 Overview

      Q1 ended
Mar 31, 2021
  Q1 ended
Mar 31, 2020
 
Revenue ($000s)     $ 27,525   $ 6,221  
Gross Profit ($000s)     $ 2,303   $ 492  
Gross Profit Margin (%)       8 %   8 %
Adjusted EBITDA1 ($000s)     $ 828   $ (12 )
Adjusted EBITDA1 Margin (%)       3.0 %   (0.2 )%
ATM Count       124     42  

1 Non-IFRS measure. See Advisories – “Non-IFRS measures”.

“I’m extremely proud to share our group’s significant progress and stellar monetary ends in the primary quarter of 2021 with vital development in income, Adjusted EBITDA1 and margins,” mentioned Adam O’Brien, Founder and CEO of Bitcoin Well. “While we continued to quickly increase operations and generate returns, our group is demonstrating the super scalability of our enterprise. Bitcoin Well additionally achieved quite a few strategic milestones within the interval, together with the revealing of thrilling plans for a brand new, cutting-edge headquarters in downtown Edmonton, and made continued progress on our public itemizing. This is barely the start of our journey to lift consciousness for Bitcoin Well and assist to teach the world on monetary sovereignty.”

Record Q1 2021 Highlights

  • Revenue elevated by over 342% to $27.5 million in Q1 2021 in comparison with $6.2 million for a similar interval in 2020. The development is due largely to a rise in energetic ATMs, larger per machine income, rising bitcoin and different cryptocurrency costs and a rise in our OTC gross sales.
  • Gross revenue in Q1 2021 grew roughly 368% year-over-year to $2.3 million, representing a gross revenue margin of 8%.
  • Adjusted EBITDA2 totaled $828,365 in Q1 2021, a rise of over $840,000 from Q1 2020.
  • A complete of 38 new ATMs have been added to our portfolio by means of the three months which contributed to a complete of 124 machines put in throughout Canada as at March 31, 2021. Currently, Bitcoin Well has over 140 ATMs put in throughout Canada.
  • Our common income generated per machine in Q1 2021 was over $83,000 with a median transaction measurement per machine of slightly below $1,100 (2020 – $113,940 per machine, and a median transaction measurement of $582). This lower was largely as a consequence of entry to sure machines being restricted as a consequence of COVID 19 associated restrictions.
  • Cash balances at March 31, 2021 totaled $5.2 million, a rise from $4.1 million at December 31, 2020.
  • Bitcoin Well recorded internet working earnings of $462,326 for Q1 2021, which incorporates $97,571 in going-public transaction prices, and $268,469 in depreciation and accretion, in comparison with a lack of $144,013 in Q1 2020.

Recent Events

  • Further enhanced the skillset, experience and variety of background of our Board of Directors with the appointment of Michèle D. McCarthy and Alice Reimer, introduced May 18, 2021. Michèle and Alice collectively have many years of expertise navigating the capital markets and technique execution, and have served as board members for high-growth public corporations, which can show invaluable for Bitcoin Well as we embark on life as a public firm.
  • On June 8, we accomplished a non-public placement elevating gross proceeds of $7.0 million.
  • On June 11, we accomplished our beforehand introduced arm’s size qualifying transaction (the “Transaction”) and having obtained conditional approval for the Transaction from the TSXV, our widespread shares are anticipated to start buying and selling on the TSXV below the ticker image “BTCW” throughout the week of June 21, 2021.
  • On June 15, we introduced the opening of our Calgary ‘over-the-counter’ (“OTC”) workplace which can present best-in-class service by appointment for people in search of to transact in bigger bitcoin denominations and can provide a snug setting for these occupied with studying about the advantages of bitcoin as a way of securing monetary sovereignty.

As a results of necessities below IFRS regarding revaluation of digital belongings and adjustments within the unrealized worth of the Company’s Use of Coin Agreements, vital swings in internet earnings (loss) could also be reported interval to interval which aren’t indicative of the underlying operational efficiency of the enterprise. These fluctuations resulted within the Company reporting a internet lack of $4.4 million for the three months ended March 31, 2021, however constructive complete complete earnings of $2.5 million. As a outcome, we current Adjusted EBITDA as probably the most significant metric to evaluate the well being and efficiency of the underlying operations, because it excludes the ‘noise’ attributable to the revaluations and represents true efficiency of the enterprise. Adjusted EBITDA elevated considerably in Q1 2021 to $0.8 million, pushed by the numerous enhance in income over the previous yr.

The plan we’ve developed for 2021 is anticipated to leverage the talents and experience of our rising all-star group and increasing ATM community. Bitcoin Well will proceed to reinforce our service choices to assist our development trajectory. We consider the Company is poised to drive additional growth of our enterprise, income and buyer base, whereas benefiting from the macro-level business discussions round bitcoin and its position in aiding people to attain monetary sovereignty.

Corporate Update

The Company’s Chief Financial Officer, Mandy Johnston, MBA, CPA (US), CMA (US), CSCA is taking a brief depart, efficient instantly, with an anticipated return to her submit later this yr. During her absence, the Company’s Board of Directors has appointed Jason Vandenberg as interim CFO to assist Bitcoin Well.

Jason brings over 20 years of expertise throughout various monetary management positions and has a longtime file of main a number of corporations by means of substantial development, each organically and thru the acquisition and integration of over 40 companies. Jason is the Senior Vice President and Co-Founder of Camilla Advisory Group Inc., a administration consulting agency in Edmonton, Alberta. Prior to, Jason held the position of CFO for 9 years at ENTREC Corporation, a pacesetter in crane and heavy haul transportation companies in Canada and the United States, and was CFO at Eveready Inc., a world industrial companies firm. Jason is a Chartered Accountant and holds a Bachelor of Commerce, with Distinction, from the University of Alberta.

“Mandy has performed an integral position in our efforts to turn out to be the world’s first publicly traded Bitcoin ATM firm and we respect her continued assist with this course of from afar, as she takes a needed depart to concentrate on her well being. We stay up for welcoming her again later this yr,” mentioned Adam O’Brien, Bitcoin Well CEO. “In the interim, we’re happy to welcome Jason to the group. His huge accounting expertise and information inside the monetary disclosure course of will likely be an asset to Bitcoin Well as we embark on life as a public firm.”

Benefits of Our Non-Custodial Model

One of the numerous benefits of Bitcoin Well is that our enterprise mannequin is ‘non-custodial’, which implies that at no time throughout a transaction are we holding shopper funds on their behalf.  True to our credo that Bitcoin ATMs provide the quickest and most secure methods to purchase, promote and use bitcoin, the time lapse between when a buyer deposits funds into our ATMs till they obtain their bitcoin delivered to their pockets is usually lower than half-hour.  This units Bitcoin Well other than crypto-asset buying and selling platforms (“CTP”s), that are custodial platforms (akin to cryptocurrency exchanges) that facilitate trades in safety tokens, or crypto contracts, and are very completely different from Bitcoin Well.

At the tip of March, 2021, Canadian securities regulators issued steering that represents a landmark change within the regulatory panorama for CTPs and which can have a fabric impression on these companies in Canada.  Since we’re non-custodial, these new rules don’t apply to Bitcoin Well and actually, assist to show the worth of our trusted, handy and high-integrity enterprise mannequin. Effective June 1, 2021, new compliance obligations will likely be required for all entities dealing in cryptocurrencies which is anticipated to turn out to be overly burdensome for smaller corporations and enhance acquisition alternatives for Bitcoin Well. Since we’re already registered with the Canadian Government’s Financial Transactions and Reports Analysis Centre (“FINTRAC”), Bitcoin Well has established extraordinarily rigorous compliance protocols and practices which defend the Company in addition to our purchasers.

About Bitcoin Well

Bitcoin Well gives handy, safe and dependable methods to purchase and promote bitcoin by means of a trusted Bitcoin ATM community and suite of web-based transaction companies. BTCW is Adjusted EBITDA constructive and positioned to turn out to be the primary publicly traded Bitcoin ATM firm, with an enterprising consolidation technique to ship accretive and cost-effective growth in North America and globally. As leaders of the longest-running, founder-led Bitcoin ATM firm, administration of Bitcoin Well brings deep operational capabilities that span your entire worth chain together with entry to proprietary, cutting-edge software program growth that helps additional growth. Follow us on LinkedIn, Twitter, YouTube, Facebook and Instagram to maintain updated with our enterprise.

Contact Information
For investor data, please contact:

Bitcoin Well

10142 82 Avenue NW
Edmonton, AB T6E 1Z4
bitcoinwell.com

Adam O’Brien, President & CEO
Jason Vandenberg, Interim CFO
Tel: 1 888 711 3866
[email protected]

For media queries and additional data, please contact:

Karen Smola, Director of Marketing
Tel: 587-735-1570
[email protected]

Reader Advisory / Forward-Looking Statements

Statements on this press launch concerning Bitcoin Well which aren’t historic info are “forward-looking statements” that contain dangers and uncertainties, such because the timing of growth plans and actions, the timing of graduation of buying and selling of Bitcoin Well’s widespread shares on the TSXV, in addition to numerous enterprise goals. Such data can usually be recognized by way of forwarding-looking wording akin to “might”, “anticipate”, “estimate”, “anticipate”, “intend”, “consider” and “proceed” or the unfavorable thereof or related variations. Since forward-looking statements deal with future occasions and situations, by their very nature, they contain inherent dangers and uncertainties akin to the danger that the closing might not happen for any motive. Actual ends in every case might differ materially from these at present anticipated in such statements as a consequence of components akin to: (i) opposed market situations and (ii) the necessity for added financing. Except as required by regulation, Bitcoin Well doesn’t intend to replace any adjustments to such statements.

Investors are cautioned that, besides as disclosed within the submitting assertion ready in reference to the Transaction, any data launched or obtained with respect to the Transaction will not be correct or full and shouldn’t be relied upon.

Non-IFRS Measures

The Company makes use of sure phrases on this information launch and inside the MD&A, akin to ‘adjusted EBITDA’, which don’t have a standardized or prescribed that means below International Financial Reporting Standards (IFRS), and, accordingly these measurements will not be comparable with the calculation of comparable measurements utilized by different corporations. For a reconciliation of every non-IFRS measure to its nearest IFRS measure, please check with the “Non-GAAP Measures” and “Selected Financial Information” sections within the MD&A for relevant definitions, calculations, rationale to be used and reconciliations to probably the most instantly comparable measure below IFRS. Non-IFRS measures are offered as supplementary data by which readers might want to think about the Company’s efficiency however shouldn’t be relied upon for comparative or funding functions.

The TSXV has not accepted nor disapproved the contents of this press launch.

1 Non-IFRS measure. See Advisories – “Non-IFRS measures”.
2 Non-IFRS measure. See Advisories – “Non-IFRS measures”.

A chart accompanying this announcement is offered at https://www.globenewswire.com/NewsRoom/AttachmentNg/f720011e-cf43-4a13-aed8-40ade71262b0

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