204% Year-Over-Year Revenue Growth Driven by Expansion in Ethereum Block-Building Operations
Silver Spring, Maryland--(Newsfile Corp. - March 20, 2025) - BTCS Inc. (NASDAQ: BTCS) ("BTCS" or the "Company"), a leader in blockchain infrastructure and technology, announced its financial results for the year ended December 31, 2024 ("2024").
2024 Financial Highlights
- 2024 Revenue: $4.1 million, representing a 204% increase from $1.3 million in 2023.
- Quarterly Revenue Growth: $2.3 million Q4 2024 revenue, a 612% increase over Q4 2023, and a 214% quarterly increase from Q3 2024.
- Gross Margin: 23%, reflecting the scaling of Builder+, BTCS's Ethereum block-building operations, compared to NodeOps, our ultra high-margin staking operations.
- Net Income/Loss: Reported net loss of $1.3 million, or $0.08 per share, compared to net income of $7.8 million, or $0.55 per share, in 2023, primarily driven by non-cash charges.
- Cash and Cryptocurrency Holdings: $38.1 million as of December 31, 2024, up 43% from $26.7 million at year-end 2023.
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Management Commentary
In 2024, BTCS solidified its position as the leading publicly traded Ethereum infrastructure company, pioneering block-building operations at scale. The success of Builder+, which optimizes block construction to maximize transaction fee (gas) revenue, drove record growth, underscoring the strength of both our strategic direction and execution.
Our goal is simple: drive shareholder value by growing revenue and improving margins. We aim to achieve this goal in three ways: 1) enhance our tech stack, 2) increase order flow, and 3) control block space. The following table outlines our 2025 progress towards these initiatives.
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In 2024, we were fully focused on building our operations, which culminated in several key developments-including the transition to , the adoption of , the implementation of a data lake, a partnership with and in , the introduction of rebates, multiple new sources of private order flow, the of the ("SPP") with and , and our with .
As a result, our peak daily block-building market share accounted for over 1.5% of all transactions processed on Ethereum's network and has averaged over 1% over the last 30 days.
With a strong foundation in place, BTCS is well-positioned to execute our strategy and maximize shareholder value.
Industry & Market Commentary
The cryptocurrency market experienced significant developments in late 2024 and early 2025, including:
- Regulatory Tailwinds: The new administration's pro-crypto policies have fostered a constructive regulatory environment not seen in the last 10 years. With regulatory clarity and sensible oversight being the new norm, the stage is set for innovation and renewed confidence and growth across the industry. The change is marked by the SEC's recent dismissal of several high-profile cases, including Coinbase, Robinhood, Uniswap, Gemini, Consensys, and Cumberland.
- Ethereum's Network Growth: The upcoming Pectra upgrade in 2025 is set to be a game-changer for Ethereum, enhancing speed, reducing costs, and simplifying transactions. Key features include the ability to pay transaction fees with tokens like USDC instead of just ETH, an increase in staking limits from 32 ETH to 2,048 ETH to improve efficiency, and expanded transaction capacity through blob technology. With these advancements, Ethereum is strengthening its competitive edge against Solana, positioning itself to remain the go-to blockchain for DeFi, NFTs, and beyond.
- Institutional Adoption: Ethereum ETF approvals were officially granted in 2024, marking a major milestone for institutional investment in digital assets. This development has significantly increased accessibility for traditional investors and is expected to drive long-term capital inflows into Ethereum, reinforcing its position as the foundation of a growing global digital economy.
These transformational developments far outweigh any short-term price fluctuations in the crypto market. Enhanced scalability, improved regulatory clarity, and increasing institutional participation create a strong foundation for long-term growth. As blockchain adoption accelerates, Ethereum's ongoing advancements position it as the premier network for decentralized applications, reinforcing the bullish outlook for the sector.
About BTCS:
BTCS Inc. (NASDAQ: BTCS) is a U.S.-based blockchain infrastructure technology company currently focused on driving scalable revenue growth through its blockchain infrastructure operations. BTCS has honed its expertise in blockchain network operations, particularly in block building and validator node management. Its branded block-building operation, Builder+, leverages advanced algorithms to optimize block construction for on-chain validation, thus maximizing gas fee revenues. BTCS also supports other blockchain networks by operating validator nodes and staking its crypto assets across multiple proof-of-stake networks, allowing crypto holders to delegate assets to BTCS-managed nodes. In addition, the Company has developed ChainQ, an AI-powered blockchain data analytics platform, which enhances user access and engagement within the blockchain ecosystem. Committed to innovation and adaptability, BTCS is strategically positioned to expand its blockchain operations and infrastructure beyond Ethereum as the ecosystem evolves. Explore how BTCS is revolutionizing blockchain infrastructure in the public markets by visiting .
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Forward-Looking Statements:
Certain statements in this press release constitute "forward-looking statements" within the meaning of the federal securities laws, including statements regarding growing revenue, improving margins, increasing order flow, expected results from the upcoming Pectra upgrade, expectations from the Ethereum ETF approval. 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 assumptions and are subject to various risks and uncertainties, including without limitation regulatory issues, unexpected issues with Builder+ and ChainQ, as well as risks set forth in the Company's filings with the Securities and Exchange Commission including its Form 10-K for the year ended December 31, 2024 which was filed on March 20, 2025. Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements, whether as a result of new information, future events, or otherwise, except as required by law.
Investor Relations:
Charles Allen - CEO
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Financials
The tables below are derived from the Company's financial statements included in its Form 10-K filed on March 20, 2025, with the Securities and Exchange Commission. Please refer to the Form 10-K for complete financial statements and further information regarding the Company's results of operations and financial condition relating to the fiscal quarter and fiscal year ended December 31, 2024 and 2023. The Company's Form 10-K also includes a discussion of risk factors applicable to the Company and its business.
BTCS Inc.
Balance Sheets
| December 31, | December 31, | |||||
| 2024 | 2023 | |||||
| Assets: | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 1,977,778 | $ | 1,458,327 | ||
| Stablecoins | 39,545 | 21,044 | ||||
| Crypto assets | 646,539 | 302,783 | ||||
| Staked crypto assets | 35,410,144 | 24,900,146 | ||||
| Prepaid expenses | 63,934 | 62,461 | ||||
| Receivable for capital shares sold | - | 291,440 | ||||
| Total current assets | 38,137,940 | 27,036,201 | ||||
| Other assets: | ||||||
| Investments, at value (Cost $100,000) | 100,000 | 100,000 | ||||
| Property and equipment, net | 7,449 | 10,490 | ||||
| Total other assets | 107,449 | 110,490 | ||||
| Total Assets | $ | 38,245,389 | $ | 27,146,691 | ||
| Liabilities and Stockholders' Equity: | ||||||
| Accounts payable and accrued expenses | $ | 70,444 | $ | 55,058 | ||
| Accrued compensation | 3,907,091 | 712,092 | ||||
| Warrant liabilities | 267,900 | 213,750 | ||||
| Total current liabilities | 4,245,435 | 980,900 | ||||
| Stockholders' equity: | ||||||
| Preferred stock: 20,000,000 shares authorized at $0.001 par value: | ||||||
| Series V preferred stock: 15,033,231 and 14,567,829 shares issued and outstanding at December 31, 2024 and December 31, 2023, respectively | 2,646,314 | 2,563,938 | ||||
| Common stock, 975,000,000 shares authorized at $0.001 par value, 18,717,743 and 15,320,281 shares issued and outstanding at December 31, 2024 and December 31, 2023, respectively | 18,718 | 15,322 | ||||
| Additional paid-in capital | 171,283,199 | 162,263,634 | ||||
| Accumulated deficit | (139,948,277) | (138,677,103) | ||||
| Total stockholders' equity | 33,999,954 | 26,165,791 | ||||
| Total Liabilities and Stockholders' Equity | $ | 38,245,389 | $ | 27,146,691 | ||
BTCS Inc.
Statements of Operations
| For the Year Ended | ||||||
| December 31, | ||||||
| 2024 | 2023 | |||||
| Revenues | ||||||
| Blockchain infrastructure revenues (net of fees) | $ | 4,073,518 | $ | 1,339,628 | ||
| Total revenues | 4,073,518 | 1,339,628 | ||||
| Cost of revenues | ||||||
| Blockchain infrastructure costs | 3,127,509 | 359,778 | ||||
| Gross profit | 946,009 | 979,850 | ||||
| Operating expenses: | ||||||
| General and administrative | 1,672,276 | 1,450,724 | ||||
| Research and development | 755,813 | 687,288 | ||||
| Compensation and related expenses | 6,598,348 | 2,542,336 | ||||
| Marketing | 80,993 | 12,153 | ||||
| Realized losses on crypto asset transactions | 767,375 | 604,269 | ||||
| Total operating expenses | 9,874,805 | 5,296,770 | ||||
| Other income (expenses): | ||||||
| Change in unrealized appreciation on crypto assets | 7,683,772 | 12,135,648 | ||||
| Change in fair value of warrant liabilities | (54,150) | - | ||||
| Other income | 28,000 | - | ||||
| Total other income (expenses) | 7,657,622 | 12,135,648 | ||||
| Net income (loss) | $ | (1,271,174) | $ | 7,818,728 | ||
| Basic net income (loss) per share attributable to common stockholders | $ | (0.08) | $ | 0.55 | ||
| Diluted net income (loss) per share attributable to common stockholders | $ | (0.08) | $ | 0.45 | ||
| Basic weighted average number of common shares outstanding | 16,263,702 | 14,092,233 | ||||
| Diluted weighted average number of common shares outstanding, basic and diluted | 16,263,702 | 17,546,339 | ||||
BTCS Inc.
Statements of Cash Flows
| For the Year Ended | ||||||
| December 31, | ||||||
| 2024 | 2023 | |||||
| Net cash flows used from operating activities: | ||||||
| Net income (loss) | $ | (1,271,174) | $ | 7,818,728 | ||
| Adjustments to reconcile net income to net cash used in operating activities: | ||||||
| Depreciation expense | 5,689 | 5,033 | ||||
| Stock-based compensation | 2,423,560 | 1,341,729 | ||||
| Blockchain infrastructure revenue | (4,073,518) | (1,339,628) | ||||
| Builder payments (non-cash) | 2,765,731 | - | ||||
| Change in fair value of warrant liabilities | 54,150 | - | ||||
| Realized losses on crypto assets transactions | 767,375 | 604,269 | ||||
| Change in unrealized appreciation on crypto assets | (7,683,772) | (12,135,648) | ||||
| Changes in operating assets and liabilities: | ||||||
| Stablecoins | (18,501) | (21,044) | ||||
| Prepaid expenses and other current assets | (1,473) | 61,266 | ||||
| Receivable for capital shares sold | 291,440 | (291,440) | ||||
| Accounts payable and accrued expenses | 15,386 | (21,669) | ||||
| Accrued compensation | 3,194,999 | 416,157 | ||||
| Net cash used in operating activities | (3,530,108) | (3,562,247) | ||||
| Cash flows from investing activities: | ||||||
| Purchase of productive crypto assets for validating | (3,531,550) | (1,804,482) | ||||
| Sale of productive crypto assets | 901,980 | 1,994,851 | ||||
| Purchase of property and equipment | (2,648) | (5,276) | ||||
| Sale of property and equipment | - | 904 | ||||
| Net cash provided by (used in) investing activities | (2,632,218) | 185,997 | ||||
| Cash flow from financing activities: | ||||||
| Net proceeds from issuance common stock/ At-the-market offering | 6,681,777 | 2,687,794 | ||||
| Net cash provided by financing activities | 6,681,777 | 2,687,794 | ||||
| Net (decrease)/increase in cash | 519,451 | (688,456) | ||||
| Cash, beginning of period | 1,458,327 | 2,146,783 | ||||
| Cash, end of period | $ | 1,977,778 | $ | 1,458,327 | ||
| Supplemental disclosure of non-cash financing and investing activities: | ||||||
| Series V Preferred Stock Distribution | $ | 82,376 | $ | 2,559,533 | ||
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