2022 Financial Highlights
Revenue for fiscal year 2022 rose 39% to
Gross margins were 75% for fiscal year 2022, compared to 78% during 2021.
In 2022, net loss decreased to
The fair value of BTCS’s crypto assets totaled
As of
Management Commentary
“Building on the momentum of staking our own crypto assets over the past several years and through extensive research and development in the necessary technology to create and run validator nodes on a growing number of proof-of-stake blockchains, we successfully completed the beta launch of our innovative StakeSeeker platform in early January 2023,” said
StakeSeeker is a comprehensive crypto dashboard and education center for crypto asset holders to learn how to earn crypto rewards by staking through its non-custodial Stake Hub and evaluate their crypto portfolios across exchanges and wallets in a single analytics platform. StakeSeeker sets itself apart by solving the common problem of central tracking for crypto holdings stored on various crypto exchanges and digital wallets, providing crypto holders with an improved user experience and the ability to easily track and analyze the performance of their entire portfolio. The platform was developed to empower crypto holders, to self-custody their crypto, and to better understand and grow their crypto asset holdings with innovative portfolio analytics and a non-custodial process to earn staking rewards through the direct participation in blockchain consensus algorithms.
“Since launching StakeSeeker, we have continued to expand its features and functionality, with a particular focus on integrating new blockchain networks and improving user experience,” added
“At BTCS, we recognize that blockchain technologies are still emerging, and we remain committed to being at the forefront of the industry’s ongoing evolution,” continued Allen, “As such, we continue to invest time and resources into educating the public on emerging blockchain technologies, the benefits of self-custody of crypto assets, and the importance of secure staking practices. We firmly believe in the transformational potential of blockchain technologies and passionately advocate for its increasing use in both the private and public sectors. We are optimistic about the future and excited to continue driving new innovations that strengthen long-term shareholder value.”
Industry and Business Highlights
The recent failures of
BTCS believes the failure of FTX as well as recent actions taken by the
In non-custodial staking, users retain control over their crypto assets and directly participate in the network’s consensus mechanism by staking their crypto and earning rewards. In contrast, centralized staking, such as that employed by Kraken and other exchanges, involves entrusting a third-party with your crypto assets. While centralized staking may seem convenient, they often come with significant undisclosed risks, such as hacking, theft, and going bankrupt.
“As the crypto industry continues to grow and mature, it is vital that we maintain a clear understanding of the differences between non-custodial and centralized staking,” continued Allen. “By doing so, we can ensure the general public is informed and make wise decisions about how they participate in consensus mechanisms and earn rewards.”
About BTCS:
Forward-Looking Statements:
Certain statements in this press release, constitute “forward-looking statements” within the meaning of the federal securities laws including statements regarding the growth of our StakeSeeker use base, our beliefs regarding the transformational potential of blockchain technologies and the optimism regarding delivering shareholder value. Words such as “may,” “might,” “will,” “should,” “believe,” “expect,” “anticipate,” “estimate,” “continue,” “predict,” “forecast,” “project,” “plan,” “intend” or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward-looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including without limitation regulatory issues unexpected issues with our proprietary Digital Asset Analytic and Staking-as-a-Service Platform: StakeSeeker, regulatory issues, and the reluctance of users to try or accept our product, as well as risks set forth in the Company’s filings with the
Investor Relations:
ir@btcs.com
Public Relations:
Mercy Chikowore
m.chikowore@btcs.com
Financials
The tables below are derived from the Company’s financial statements included in its Form 10-K filed on
Balance Sheets
2022 | 2021 | |||||||
Assets: | ||||||||
Current assets: | ||||||||
Cash | $ | 2,146,783 | $ | 1,400,867 | ||||
Crypto assets | 982 | 3,117,360 | ||||||
Investments, at value (Cost | 100,000 | - | ||||||
Staked crypto assets | 1,826,307 | 623,754 | ||||||
Prepaid expense | 123,727 | 324,551 | ||||||
Total current assets | 4,197,799 | 5,466,532 | ||||||
Other assets: | ||||||||
Property and equipment, net | 11,152 | 9,783 | ||||||
Staked crypto assets | 5,708,624 | 8,625,678 | ||||||
Total other assets | 5,719,776 | 8,635,461 | ||||||
Total Assets | $ | 9,917,575 | $ | 14,101,993 | ||||
Liabilities and Stockholders' Equity: | ||||||||
Accounts payable and accrued expense | $ | 76,727 | $ | 138,716 | ||||
Accrued compensation | 295,935 | 7,334 | ||||||
Warrant liabilities | 213,750 | 1,852,500 | ||||||
Total current liabilities | 586,412 | 1,998,550 | ||||||
Stockholders' equity: | ||||||||
Common stock, 97,500,000 shares authorized at | 13,108 | 10,529 | ||||||
Additional paid in capital | 160,800,263 | 147,682,384 | ||||||
Accumulated deficit | (151,482,208 | ) | (135,589,470 | ) | ||||
Total stockholders' equity | 9,331,163 | 12,103,443 | ||||||
Total Liabilities and Stockholders' Equity | $ | 9,917,575 | $ | 14,101,993 |
Statements of Operations
For the Year Ended | ||||||||
2022 | 2021 | |||||||
Revenues | ||||||||
Validator revenue (net of fees) | $ | 1,692,454 | $ | 1,213,284 | ||||
Total revenues | 1,692,454 | 1,213,284 | ||||||
Cost of revenues | ||||||||
Validator expense | 426,440 | $ | 268,346 | |||||
Gross profit | 1,266,014 | 944,938 | ||||||
Operating expenses: | ||||||||
General and administrative | $ | 1,916,193 | $ | 1,590,707 | ||||
Research and development | 611,758 | 712,736 | ||||||
Compensation and related expenses | 3,313,638 | 15,583,258 | ||||||
Marketing | 78,171 | 180,290 | ||||||
Impairment loss on crypto assets | 13,348,874 | 3,845,899 | ||||||
Realized gains on crypto asset transactions | (506,757 | ) | (3,054,418 | ) | ||||
Total operating expenses | 18,761,877 | 18,858,472 | ||||||
Other income (expenses): | ||||||||
Interest expense | - | (186,740 | ) | |||||
Amortization on debt discount | - | (1,868,059 | ) | |||||
Change in fair value of warrant liabilities | 1,638,750 | 3,918,750 | ||||||
Distributions to warrant holders | (35,625 | ) | - | |||||
Total other income (expenses) | 1,603,125 | 1,863,951 | ||||||
Net loss | $ | (15,892,738 | ) | $ | (16,049,583 | ) | ||
Deemed dividends related to amortization of beneficial conversion feature of Series C-2 convertible preferred stock | - | (45,541 | ) | |||||
Deemed dividends related to recognition of downround adjustment to conversion amount for Series C-2 convertible preferred stock | - | (5,020,883 | ) | |||||
Net loss attributable to common stockholders | $ | (15,892,738 | ) | $ | (21,116,007 | ) | ||
Net loss per share attributable to common stockholders, basic and diluted | $ | (1.25 | ) | $ | (3.09 | ) | ||
Weighted average number of common shares outstanding, basic and diluted | 12,732,914 | 6,840,665 |
Statements of Cash Flows
For the Year Ended | ||||||||
2022 | 2021 | |||||||
Net loss | $ | (15,892,738 | ) | $ | (16,049,583 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation expense | 4,039 | 939 | ||||||
Amortization on debt discount | - | 1,868,059 | ||||||
Stock-based compensation | 2,625,270 | 15,490,555 | ||||||
Stock-based compensation in connection with issuance of Series C-2 convertible preferred stock | - | 179,277 | ||||||
Validator revenue | (1,692,454 | ) | (1,213,284 | ) | ||||
Blockchain network fees (non-cash) | 1,321 | - | ||||||
Change in fair value of warrant liabilities | (1,638,750 | ) | (3,918,750 | ) | ||||
Purchase of non-productive crypto assets | - | (5,761,550 | ) | |||||
Sale of non-productive crypto assets | 2,547,325 | 4,274,491 | ||||||
Realized gain on crypto asset transactions | (506,757 | ) | (3,054,418 | ) | ||||
Impairment loss on crypto assets | 13,348,874 | 3,845,899 | ||||||
Changes in operating assets and liabilities: | ||||||||
Prepaid expenses and other current assets | 200,824 | (292,676 | ) | |||||
Accounts payable and accrued expenses | (62,332 | ) | 112,428 | |||||
Accrued compensation | 288,601 | (343,042 | ) | |||||
Net cash used in operating activities | (776,777 | ) | (4,861,655 | ) | ||||
Net cash used in investing activities: | ||||||||
Purchase of productive crypto assets for validating | (9,453,024 | ) | (9,462,279 | ) | ||||
Sale of productive crypto assets | 585,595 | - | ||||||
Purchase of investments | (100,000 | ) | - | |||||
Purchase of property and equipment | (5,408 | ) | (10,491 | ) | ||||
Net cash used in investing activities | (8,972,837 | ) | (9,472,770 | ) | ||||
Net cash provided by financing activities: | ||||||||
Dividend distributions | (630,801 | ) | - | |||||
Proceeds from exercise of warrants | - | 400,000 | ||||||
Proceeds from issuance of Series C-2 convertible preferred stock | - | 1,100,000 | ||||||
Net proceeds from issuance of convertible notes | - | 1,000,000 | ||||||
Net proceeds from issuance of common stock and warrants for cash | - | 8,865,000 | ||||||
Net proceeds from issuance of common stock | - | 3,014,005 | ||||||
Net proceeds from issuance common stock/ At-the-market offering | 11,126,331 | 2,832,152 | ||||||
Payment to convertible notes principle | - | (2,000,000 | ) | |||||
Net cash provided by financing activities | 10,495,530 | 15,211,157 | ||||||
Net increase in cash | 745,916 | 876,732 | ||||||
Cash, beginning of period | 1,400,867 | 524,135 | ||||||
Cash, end of period | $ | 2,146,783 | $ | 1,400,867 | ||||
Supplemental disclosure of non-cash financing and investing activities: | ||||||||
Deemed dividends related to amortization of beneficial conversion feature of Series C-2 convertible preferred stock | $ | - | $ | 45,541 | ||||
Deemed dividends related to recognition of downround adjustment to conversion amount for Series C-2 convertible preferred stock | $ | - | $ | 5,020,883 | ||||
Conversion of Series C-1 Preferred Stock | $ | - | $ | 20 | ||||
Conversion of Series C-2 Preferred Stock | $ | - | $ | 6,216,289 | ||||
Beneficial conversion feature of Series C-2 convertible preferred stock | $ | - | $ | 129,412 | ||||
Beneficial conversion features associated with convertible notes payable | $ | - | $ | 1,000,000 | ||||
Dividends payable | $ | - | $ | - |
Source:
2023 GlobeNewswire, Inc., source