EDMONTON, Alberta, Aug. 15, 2022 (GLOBE NEWSWIRE) -- Bitcoin Well Inc. (the “Company” or “Bitcoin Well”) (TSXV: BTCW), today announced that it has undertaken a thorough review of its financial forecast for 2022 and 2023. Management feels it is crucial to ensure the business is capable of being self-funded and has taken the necessary actions to reduce expenses accordingly.
“I believe this is the start of a new era for the public markets,” said Adam O’Brien, Founder & CEO of Bitcoin Well. “A transition from rewarding growth at all costs and being reliant on regular financings to rewarding sustainable businesses with a growth oriented team and strategy. I am excited to show our investors that Bitcoin Well can thrive in that environment, as we did in the early days of the business.”
To read more in depth about Adam’s thoughts on the market’s transition, view his blog post here.
Going forward in 2022, we are anticipating moderate monthly growth in our in-person services and have significantly reduced expenses to a manageable level within this conservative forecast to improve our Adjusted EBITDA. Our forecasts do not rely on any material revenue growth in our online products, so all growth in our online products would be an upside to our forecast. Overall, revenues are expected to remain strong in 2022 with the bottom line significantly improving due to the re-evaluation and actions taken towards lowering expenses.
In the second quarter of 2022, we began to streamline operations and fortify our business to be self-sufficient. To date in 2022, we have put into effect the following cost savings:
- 65% reduction of employees compared to year-end 2021 which will significantly lower our salary and wages and general and administrative expenses, which were our largest expenses
- reduction in salary costs for all executive and senior team members, with the largest reduction being to our Founder & Chief Executive Officer, Adam O’Brien.
- elimination of all non-discretionary costs
- reduction in the size of the Board of Directors from seven to four people and an expected 75% reduction in annual governance costs
- Joining Adam O’Brien and Dave Bradley on the Board of Directors at the AGM in June are:
- Mitchell Demeter - deployed the world’s first Bitcoin ATM in 2013 with his first venture “Bitcoiniacs”. He was then appointed as President of Netcoins Inc., a Canada online cryptocurrency brokerage wholly owned by BIGG Digital Assets (CSE:BIGG). Mitchell has a range of experience in blockchain, exchanges and cryptocurrencies, and he serves on the Board of BIGG and Neptune Digital Assets (TSX: NDA).
- Terry Rhode - previously Vice President of Corporate Development and Chairman of the Board of the Rosenau group of companies. Prior to Rosenau, Terry was a management consultant and advised various businesses on ways to streamline their operations. Terry is a significant investor in Bitcoin Well common shares and recently added to his investments in the company by way of a convertible debenture for $5 million.
The organization-wide cost saving actions that we undertook in the second quarter of 2022 are expected to begin generating tangible financial improvements immediately, which will be evidenced in our third quarter 2022 financial results. We have set a medium term goal to have our monthly cash flow be neutral, with revenues equaling expenses, and growing from that point on.
Making prudent financial decisions today will give us the flexibility to look for consolidation opportunities in the future. We will continue to execute our strategy of enabling users to buy, sell and use bitcoin in the fastest and safest way possible. We will continue to grow the Company while making sensible financial decisions to weather the current economic storm and continue our organic growth plans that will help future-proof money and generate long-term shareholder value.
Grant of Stock Options
As part of the cost saving measures mentioned above, the Company has granted stock options (“Options”) in lieu of salary for certain officers to purchase up to a total of 3,379,130 common shares (“Common Shares”) of the Company. The Options will be granted at an exercise price of $0.07 per Common Share. One half of the options will vest on the first anniversary of the date of grant and one half will vest in quarterly installments over the second year. The Options will expire after five years from August 12, 2022. The grant of Options was made in accordance with the Company’s existing stock option plan and the policies of the TSX Venture Exchange.
About Bitcoin Well
Bitcoin Well offers convenient, secure and reliable ways to buy, sell and use bitcoin. Bitcoin Well is on a mission to enable independence by offering an ecosystem of products and services that give users the convenient control of their bitcoin. This ecosystem will future-proof money by including self custodial financial offerings (both in-person and online) and educational resources designed with the needs of both the customers, and the industry, in mind.
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Bitcoin Well Contact Information
To book a virtual meeting with Founder & CEO Adam O’Brien please use the following link: https://calendly.com/adamobitcoin/meet-adam
For additional investor & media information, please contact:
Tel: 1 888 711 3866
ir@bitcoinwell.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Information:
Certain statements contained in this news release may constitute forward-looking information. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "plan", "estimate", "expect", "may", "will", "intend", "should", or the negative thereof and similar expressions.Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information.
Bitcoin Well actual results could differ materially from those anticipated in this forward-looking information as a result of regulatory decisions, competitive factors in the industries in which Bitcoin Well operates, prevailing economic conditions, and other factors, many of which are beyond the control of Bitcoin Well.
Bitcoin Well believes that the expectations reflected in the forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon.
Any forward-looking information contained in this news release represents Bitcoin Well expectations as of the date hereof, and is subject to change after such date. Bitcoin Well disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable securities legislation.
For more information, see the Cautionary Note Regarding Forward Looking Information found in the Bitcoin Well quarterly Management Discussion and Analysis.
