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 Rust, the adoption of bare-metal servers, the implementation of a data lake, a partnership with and investment in ETHGas, the introduction of rebates, multiple new sources of private order flow, the launch of the Staking Protection Plan ("SPP") with WonderFi and Figment, and our scaled validator implementation with Rocket Pool.

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 www.btcs.com.

For more information follow us on:
Twitter: https://x.com/NasdaqBTCS
LinkedIn: https://www.linkedin.com/company/nasdaq-btcs
Facebook: https://www.facebook.com/NasdaqBTCS

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
X (formerly Twitter): @Charles_BTCS
Email: ir@btcs.com

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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BTCS Reports Record 2024 Results