Bitcoin Well Reports 2021 Financial Results and Announces

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EDMONTON, Alberta, March 21, 2022 (GLOBE NEWSWIRE)– Bitcoin Well Inc. (the “Company” or “Bitcoin Well”) (TSXV: BTCW), today revealed our monetary and operating outcomes for the 4th quarter and twelve months ended December 31, 2021 and the closing of the 2nd tranche under the Company’s protected convertible debenture (the “Convertible Debenture”) in the primary quantity of $2 million on March 17, 2022.

The interim Financial Statements and Notes, in addition to Management’s Discussion and Analysis (“MD&A”) are readily available on our site and have actually been submitted on SEDAR.

“Bitcoin Well increased revenue by 92% in 2021 as a result of the expansion of white glove service at our in-person offices in Western Canada. The next step is to expand our online ecosystem of products to eventually serve a global market,” stated Adam O’Brien, Founder and CEO ofBitcoin Well “While our network of more than 220 Bitcoin ATMs and in-person offices represent a base business for us today, our expanding technological offerings will create new scalability and better user value across the business.”

Financial Overview

For the 3 months ended, For the twelve months ended,
Dec 31,
2021
Dec 31,
2020
%
Change
Dec 31,
2021
Dec 31,
2020
%
Change
Revenue ($ 000s) $ 14,411 $ 22,866 ( 37 )% $ 99,613 $ 51,971 92%
Gross revenue ($ 000s) $ 968 $ 3,834 ( 75 )% $ 5,173 $ 7,292 ( 29 )%
Adjusted EBITDA 1($ 000s) $( 2,333) $ 2,037 ( 215 )% $( 4,353) $ 2,994 ( 241 )%
Net loss $( 5,372) $( 1,840) ( 192 )% $( 13,603) $( 2,743) ( 396 )%
New ATMs Added in Period 40 23 142 52

1 See Non- IFRS Measures.

Fourth Quarter and Full Year 2021 Results

  • Revenue was $99.6 million in the complete year 2021, $47.6 million or 92% greater compared to 2020. Higher earnings was primarily due to a boost in Over the Counter (OTC) client deals.
  • In the 4th quarter of 2021, earnings was $14.4 million compared to $22.9 million in the exact same duration in 2015. Lower earnings was primarily due to a decline in ATM volume partly balanced out by a boost in OTC volume.
  • Gross revenue was $1 million and $5.2 million in the 4th quarter and complete year 2021 respectively, compared to $3.8 million and $7.3 million in the exact same durations in 2020. OTC sales generally represent bigger deals at a lower cost compared to ATM deals. This modification in sales mix in the 4th quarter and complete year 2021 led to lower gross revenue.
  • Adjusted EBITDA was a loss of $2.3 million and $4.4 million in the 4th quarter and complete year 2021 respectively, compared to a gain of $2 million and $3 million in the exact same durations in 2020. Lower Adjusted EBITDA was primarily due to lower gross revenue and greater operating costs arising from an increased headcount, expert costs connected to legal costs for our company acquisitions, and innovation financial investments to enhance the future of the company in 2022 and beyond. These organizational improvements are anticipated to set the phase for awaited online and mobile app-based scalable development, additions to our ATM network, and the pursuit of targeted company acquisition chances both in Canada, and globally.
  • Net loss was $5.4 million and $13.6 million in the 4th quarter and complete year 2021 respectively, compared to a bottom line of $1.8 million and $2.7 million in the exact same durations in 2020. Net loss consisted of a non-cash, reasonable worth modification on the revaluation of cryptocurrency loans which are more than balanced out by a revaluation gain on digital properties tape-recorded in Other Comprehensive Income of $2.1 million and $7.2 million in the 4th quarter and complete year 2021. It likewise consisted of a non-cash problems of $1.3 million associated to the ceasing of operations in the UK, and $1.5 countless listing costs connected to taking Bitcoin Well public in 2021.

Recent Business Developments

  • Added 142 Bitcoin ATMs to our running fleet in 2021, 40 of which were included the 4th quarter of 2021. We now have more than 220 ATMs running throughoutCanada We boosted our collaboration with RapidCash ATM to broaden special operations of our Bitcoin ATM software application on an expected 100+ freshly released makers, offering incremental earnings capacity to Bitcoin Well without any extra capital expense.
  • Completed a services contract in January 2022 with Memory Express to process bitcoin payments for Memory Express’ online clients. Bitcoin Well will likewise be setting up Bitcoin ATMs in Memory Express shops throughout Canada.
  • Signed a letter of intent in January 2022 with Greater Property Group, a Canada- broad property business, to work out a conclusive Joint Venture contract to collaborate assisting clients utilize bitcoin and other cryptocurrencies to purchase and offer business and property property.

Convertible Debenture Financing– Second Tranche Issued

In February, Bitcoin Well released a protected convertible debenture for approximately $5 million to money the improvement of the existing Bitcoin Well online item, and for user acquisition and basic working capital. The Bitcoin Well community of services and items will use users the capability to purchase, utilize and offer bitcoin online with self-custodied blockchain innovation and through an exclusive mobile app.

The Convertible Debenture will be released in approximately 3 tranches. The very first tranche in the primary quantity of CDN$ 1.5 million was released on February 23, 2022. A 2nd tranche in the primary quantity of CDN$ 2.0 million was released on March 17, 2022. At the choice of the holder, the primary quantity of the Convertible Debenture is convertible into typical shares of Bitcoin Well (the “Common Shares”) at a conversion cost of $0.30 per Common Share, based on changes in particular situations. Any such changes will undergo TSXV evaluation and approval. Bitcoin Well can require conversion of the primary quantity if the volume weighted typical trading cost for the Common Shares for 10 (10) trading days surpasses or equates to $0.60 perCommon Share The Convertible Debenture bears interest at a rate of 10% per year and develops on February 23, 2025, based on 2 automated one year extensions.

For more details concerning the Convertible Debenture, please see the Bitcoin Well press release provided on February 24, 2022.

Non- IFRS Measures

The Company utilizes particular terms in this press release and within the MD&A, such as ‘Adjusted EBITDA’, which do not have a proposed or standardized significance under International Financial Reporting Standards (IFRS), and appropriately, these measurements might not be equivalent with the estimation of comparable measurements utilized by other business. See the table listed below for a reconciliation of each non-IFRS procedure to its nearby IFRS procedure or describe the “Non- GAAP Measures” and “Selected Financial Information” areas in the MD&A for relevant meanings, estimations, reasoning for usage and reconciliations to the most straight equivalent procedure under IFRS. Non- IFRS procedures are offered as supplemental details by which readers might want to think about the Company’s efficiency however must not be trusted for relative or financial investment functions.

Reconciliation of Adjusted EBITDA to Net loss

For the 3 months ended, For the twelve months ended,
$ 000s Dec 31, 2021 Dec 31, 2020 Dec 31, 2021 Dec 31, 2020
Net loss $( 5,372) $( 1,840) $( 13,603) $( 2,743)
Listing cost( 1 ) 1,477
Goodwill problems loss( 2 ) 1,306 1,306
Business acquisition and QT expenses ( 74) 245 793 819
Depreciation and accretion 580 154 1,384 538
Fair worth modification– crypto loans( 3 ) 512 3,338 4,295 3,751
Income tax cost/( healing) 740 325 ( 529) 326
Share based payment ( 42) 530 303
Other 16 ( 185 ) ( 7)
Adjusted EBITDA $( 2,333) $ 2,037 $( 4,353) $ 2,994

( 1) Listing costs connected to taking Bitcoin Well public in 2021.
( 2) Goodwill problems loss connected to the ceasing of operations in the UK.
( 3) Non- money, reasonable worth modification on the revaluation of cryptocurrency loans which are more than balanced out by a revaluation gain on digital properties tape-recorded in Other Comprehensive Income of [$2.1] million and [$7.2] million in the 4th quarter and complete year 2021.

This press release must read in show with the complete disclosure files. The Bitcoin Well combined monetary declarations and management’s conversation and analysis for the year ended December 31, 2021 will be readily available on the Bitcoin Well site ( www.bitcoinwell.com), through SEDAR ( www.sedar.com) or can be asked for from the Company.

About Bitcoin Well

Bitcoin Well uses hassle-free, reputable and safe methods to purchase, utilize and offer bitcoin. Bitcoin Well is on an objective to move the relationship that society has with cash by using an environment of services and products that make Bitcoin available and comprehended. This community consists of non-custodial monetary offerings (both online and in-person); innovation advancement, consisting of SaaS and internal innovation advancements through Ghostlab, the innovation arm of business; and academic resources created with the requirements of both the clients, and the market, in mind.

Sign up for our newsletter and follow us on LinkedIn, Twitter, YouTube, Facebook, and Instagram to maintain to date with our company. For OTC area details check out bitcoinwell.com/appointment/

Bitcoin Well Contact Information
For financier details, please contact:

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

Myles Dougan, Director of Investor Relations
Tel: 587 982 2769
m.dougan@bitcoinwell.com

For media questions and more details, please contact:

Karen Smola, Director of Marketing
Tel: 587 735 1570
k.smola@bitcoinwell.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is specified in policies of the TSX Venture Exchange) accepts duty for the adequacy or precision of this release

Forward-Looking Information
Certain declarations consisted of in this press release might make up positive details. Forward- looking details is frequently, however not constantly, recognized by the usage of words such as “prepare for”, “strategy”, “quote”, “anticipate”, “might”, “will”, “mean”, “must”, or the unfavorable thereof and comparable expressions. Forward- looking details includes unidentified and recognized threats, unpredictabilities and other elements that might trigger real outcomes or occasions to vary materially from those prepared for in such positive details.

Bitcoin Well real outcomes might vary materially from those prepared for in this positive details as an outcome of regulative choices, competitive consider the markets in which Bitcoin Well runs, dominating financial conditions, and other elements, a number of which are beyond the control of Bitcoin Well.

Bitcoin Well thinks that the expectations shown in the positive details are affordable, however no guarantee can be considered that these expectations will show to be such and appropriate positive details must not be unduly trusted.

Any positive details consisted of in this press release represents Bitcoin Well expectations since the date hereof, and goes through alter after such date. Bitcoin Well disclaims any objective or responsibility to upgrade or modify any positive details whether as an outcome of brand-new details, future occasions or otherwise, other than as needed by relevant securities legislation.

For more details, see the Cautionary Note Regarding Forward Looking Information discovered in the Bitcoin Well quarterly Management Discussion and Analysis.

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