BTCS (BTCS) AI Stock Analysis

• Market Cap: $38.57M
• Dividend Yield: N/A
• Average Volume (3M): 365.58K
• Price to Earnings (P/E): 5.7
• Beta (1Y): -0.08
• Revenue Growth: 56.67%
• EPS Growth: N/A
• Country: US
• Employees: 5
• Sector: Financial
• Sector Strength: 93
• Industry: Capital Markets
• EPS (TTM): 0.35
• Shares Outstanding: 19,000,612
• 10 Day Avg. Volume: 368,084
• 30 Day Avg. Volume: 365,576
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 17.18
• Price to Cash Flow (P/CF): -12.40
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $5.00
• Price Target Upside: 187.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

BTCS's overall score reflects its strong revenue growth and no-debt balance sheet, positively impacted by recent corporate events. However, operational inefficiencies and cash flow concerns weigh down its financial performance. While technical analysis indicates mild bullish momentum, the lack of dividends and modest P/E ratio suggest a balanced outlook.

Positive Factors

Revenue Growth

Strong revenue growth associated with the company's Ethereum block building effort, Builder+, leading to raised estimates and price target.

Staking Revenue

BTCS Inc. reported 2Q24 revenues of $0.6M, a 46% increase from $0.4M in 1Q24, surpassing the $0.4M estimate, driven by staking revenue and Ethereum block-building under its Builder+ initiative.

Negative Factors

Cost and Margins

Buying the blocks necessary has an associated cost, impacting margins due to increased spending on blocks.

BTCS Business Overview & Revenue Model

Company Description

BTCS Inc. is a digital asset company that operates within the cryptocurrency and blockchain technology sector. The company focuses on providing services related to blockchain infrastructure and digital asset mining. BTCS is primarily involved in the development of transaction verification services, also known as 'mining,' for various cryptocurrencies, leveraging its expertise and technology to participate in this rapidly growing industry.

How the Company Makes Money

BTCS Inc. generates revenue primarily through its cryptocurrency mining operations. The company earns money by verifying and validating transactions on blockchain networks, for which it receives transaction fees and newly minted digital currencies as rewards. This process involves using specialized hardware and software to solve complex mathematical problems, thereby contributing to the security and efficiency of blockchain systems. Additionally, BTCS may explore partnerships or strategic investments in blockchain-related projects to enhance its operational capabilities and revenue potential. However, the company's earnings are significantly influenced by the volatility of cryptocurrency markets and the competitive nature of the mining industry.

BTCS Financial Statement Overview

Summary

BTCS has a stable balance sheet with no debt, which is positive. However, its financial performance is challenged by negative EBIT and EBITDA margins, indicative of operational inefficiencies. Despite revenue growth, the company struggles with profitability and cash flow generation.

Income Statement

BTCS shows a challenging financial situation with negative EBIT and EBITDA margins in the TTM period. Although there's a notable increase in total revenue from the previous year, the company still reports negative EBIT and EBITDA margins, indicating operational inefficiencies. The net income is positive due to non-operating factors. Revenue growth is positive, but the profitability metrics remain concerning.

Balance Sheet

The company's balance sheet is relatively stable with no debt, which is a positive sign. However, the return on equity is low given the high stockholders' equity. The equity ratio is strong, reflecting a conservative financial structure, but the lack of earnings leverage remains a challenge.

Cash Flow

The cash flow statement indicates negative free cash flow and operating cash flow, which are concerning signs for liquidity and operational sustainability. The company relies on financing activities to support its cash flow needs. Free cash flow to net income ratio is negative, highlighting the discrepancy between reported profits and cash generation.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
2.01M	1.34M	1.69M	1.21M	0.00	0.00
	Gross Profit
1.12M	979.85K	1.27M	944.94K	-1.11K	-1.36K
	EBIT
-4.20M	-3.71M	-4.65M	-17.12M	-1.99M	-1.43M
	EBITDA
-4.61M	-3.71M	-4.65M	-13.99M	-1.99M	-1.43M
	Net Income Common Stockholders
7.38M	7.82M	-27.06M	-18.10M	-2.96M	-1.73M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
52.12K	26.68M	4.07M	5.14M	1.52M	396.00K
	Total Assets
63.15K	27.15M	9.92M	14.10M	1.55M	421.35K
	Total Debt
200.00K	0.00	0.00	0.00	131.94K	159.85K
	Net Debt
147.88K	-1.46M	-2.15M	-1.40M	-392.19K	16.76K
	Total Liabilities
319.15K	980.90K	586.41K	2.00M	508.61K	605.11K
	Stockholders Equity
-255.99K	26.17M	9.33M	12.10M	1.04M	-183.76K
Cash Flow		Free Cash Flow
-3.27M	-3.57M	-782.18K	-4.87M	-2.97M	-1.12M
	Operating Cash Flow
-3.27M	-3.56M	-776.78K	-4.86M	-2.97M	-1.12M
	Investing Cash Flow
531.07K	186.00K	-8.97M	-9.47M	-908.08K	-374.98K
	Financing Cash Flow
2.23M	2.69M	10.50M	15.21M	3.35M	1.59M

BTCS Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.74
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BTCS, the sentiment is Negative. The current price of 1.74 is below the 20-day moving average (MA) of 2.36, below the 50-day MA of 2.66, and below the 200-day MA of 1.99, indicating a bearish trend. The MACD of -0.27 indicates Positive momentum. The RSI at 30.15 is Neutral, neither overbought nor oversold. The STOCH value of 18.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BTCS.

BTCS Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$14.34B	10.61	9.28%	4.07%	18.04%	-9.54%
RIOT	63 Neutral	$2.93B	24.30	4.35%	―	34.20%	―
MARA	55 Neutral	$5.54B	11.68	18.84%	―	69.38%	30.30%
BTCS	54 Neutral	$38.57M	5.70	43.89%	―	56.67%	―
HUT	49 Neutral	C$2.01B	4.15	2.56%	―	199.41%	―
HIVE	46 Neutral	C$385.40M	―	-2.15%	―	27.99%	90.99%
BITF	44 Neutral	C$724.20M	―	-31.62%	―	45.19%	-33.48%

BTCS Corporate Events

BTCS Surpasses 2024 Revenue Target with 177% Growth

BTCS Inc. announced that it surpassed its revenue target of $3,712,500 for 2024, marking a 177% increase from the previous year, and unveiled an updated investor presentation and website. The company aims to become the leading Ethereum blockchain infrastructure company, focusing on block-building and validation, and has set ambitious revenue targets for 2025, highlighting its strategic growth and commitment to shareholder value.

BTCS Focuses on Strategic Growth and Leadership Changes

BTCS Inc. has announced its executive compensation achievements for 2024, emphasizing performance-based incentives without discretionary bonuses. Key milestones included achieving over $3.7 million in revenue, maintaining a cash and crypto balance of $42.4 million, and completing certain product initiatives. Executive compensation was awarded in cash, restricted common stock, and stock options, with a focus on aligning incentives with measurable outcomes. For 2025, the company plans to continue this strategy with milestones heavily weighted towards revenue generation and financial liquidity, underscoring their commitment to financial stability and strategic growth.