Our next company is a non-custodial, Bitcoin exchange headquartered in Edmonton, Canada. The company’s mission is to make Bitcoin more accessible and more inclusive for investors.
Joining us is Adam O’Brien, founder and CEO of Bitcoin Well Inc. (TSXV:BTCW), who is here to divulge all the information about the company and the bitcoin exchange’s recent projects.
TMH: There’s been a ton of noise about crypto over the past few years, leaving some investors unsure about who to trust in this space. What sets Bitcoin Well apart from other crypto exchanges?
O’Brien: Great question. I think it’s very notable right now too, seeing Sam Bankman-Fried going to jail for like a century or something. Bitcoin Well is designed as a non-custodial platform. What that means is anyone who buys Bitcoin at bitcoinwell.com immediately takes custody of their funds. That means we don’t hold a balance on the platform. We are not like traditional exchanges. That makes us far, far safer because at no point in time do we have your money on our platform.
TMH: Your company recently released its Q3 financial results. Can you walk us through these results and what they mean for the exchange?
O’Brien: For the last, I’d say nine to 12 months, we’ve really been on a mission to increase productivity, decrease expenses. I don’t think that we’re alone in that in that initiative here in the microcap space. But finally we’re starting to see some of the fruits to our labours there.
We’re seeing our adjusted EBITDA numbers, which has kind of been the number we’ve been tracking for the last year and a half or so trending in the right direction, kind of hitting that nearly neutral mark in Q3. And then we saw gross profits kind of maintain even with a little bit of a revenue decline.
But what that tells us is that we’re able to, you know, increase our gross margin during this time. And now finally here in Q4 and then into 2024, we’re able to kind of turn on the growth tap to sort of see this new strategy, you know, into the future.
TMH: Bitcoin Well’s ecosystem of products and services expands across two product categories. Can you tell us about these two categories and what they offer investors?
O’Brien: The Bitcoin ATM category is brick and mortar, very traditional, more of a traditional business. Not as scalable as our online portal, but very, very good margins. The online portal is very, very scalable. We just launched that in the USA, which is pretty exciting and we’re seeing great growth to that.
So, kind of hitting the investor at both sides there. We’ve got one cash-flowing business unit coupled with a high-growth business unit.
TMH: I read that in 2014, you deployed the first Bitcoin ATM in Alberta and then did the same in Saskatchewan soon after. How did you determine the demand from Bitcoin at that time and how has that approach evolved since then?
O’Brien: There was no demand for Bitcoin in 2014, so it was definitely more of a passion project at that time.
Today we’ve got a bunch of analytics and a bunch of data from the last nearly 10 years. This February it’ll be 10 years since we launched our first Bitcoin ATM, which is pretty exciting.
And so today we use a lot more of a structured process, mostly for placing Bitcoin ATMs. It has to do with where there’s less segregation of Bitcoin ATM, but then obviously online there is no need to decipher.
We can service like I said, both Canada and the U.S. There’s a couple of restricted states that we can’t access in the U.S. right now, but for the most part, there is no need to decide where we can serve customers online, which is awesome.
TMH: In terms of investment value, then, where do you see your company going over the next year or so?
O’Brien: The next year or two are crucial. We’re definitely going to be in a position to hopefully reward some of the early investors. Given that we’re entering this growth phase again, for the last year like I said, we’ve kind of been in the process of cutting costs while maintaining some semblance of revenue.
Now we can get back into the exciting growth mode. We’ve got a small marketing budget carved out to continue increasing the online portal sales and really start to see the fruits of the last year and a half of development for the online portal. So, I think it’s going to be a very fruitful adventure and looking forward to seeing the results.
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