BTCS (BTCS) AI Stock Analysis

• Market Cap: $29.33M
• Dividend Yield: N/A
• Average Volume (3M): 262.21K
• Price to Earnings (P/E): 5.3
• Beta (1Y): 0.09
• Revenue Growth: 199.18%
• EPS Growth: -117.49%
• Country: US
• Employees: 7
• Sector: Financial
• Sector Strength: 78
• Industry: Financial - Capital Markets
• EPS (TTM): -0.23
• Shares Outstanding: 20,087,980
• 10 Day Avg. Volume: 230,717
• 30 Day Avg. Volume: 262,212
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 14.30
• Price to Cash Flow (P/CF): -10.40
• 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: 242.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

BTCS's strong revenue growth and debt-free balance sheet are significant strengths. However, negative profitability and cash flow challenges weigh heavily on its financial performance. Technical indicators suggest bearish market sentiment, but the stock's low P/E ratio and promising corporate strategies provide potential upside if financial improvements materialize.

Positive Factors

Earnings

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.

Investor Interest

Ethereum accounted for approximately 83% of the company’s total crypto assets, up from 72%, showing positive signs of investor interest and ecosystem growth.

Revenue Growth

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

Negative Factors

Cost Management

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 company that operates in the blockchain and cryptocurrency sectors. It is primarily focused on developing and managing blockchain infrastructure and digital asset platforms. BTCS offers services that include cryptocurrency staking, transaction verification, and blockchain analytics, providing essential support to the growing digital economy.

How the Company Makes Money

BTCS makes money primarily through its blockchain infrastructure operations, including cryptocurrency staking and transaction verification services. These activities involve validating transactions on blockchain networks, for which BTCS earns rewards in the form of cryptocurrencies. Additionally, the company may generate revenue from its blockchain analytics services, which support businesses and individuals in navigating the complexities of digital asset management. BTCS's earnings are significantly influenced by the performance of the cryptocurrency market and its ability to efficiently manage and scale its blockchain infrastructure operations.

BTCS Financial Statement Overview

Summary

BTCS is experiencing robust revenue growth, but profitability remains a significant issue with negative margins across the board. The balance sheet is strong with no debt, suggesting financial resilience. However, persistent cash flow deficits and reliance on financing pose risks. The company needs to improve operational efficiency and achieve profitability to enhance financial health.

Income Statement

BTCS has shown significant revenue growth from $1,339,628 in 2023 to $4,073,518 in 2024, marking a strong upward trend. However, the company remains unprofitable with a net profit margin of -31.2% in 2024, due to consistent negative EBIT and EBITDA margins. The gross profit margin has decreased from 73.1% in 2023 to 23.2% in 2024, indicating rising cost pressures.

Balance Sheet

The company has a strong equity base with a debt-free balance sheet, resulting in a debt-to-equity ratio of 0. The equity ratio stands at 88.9% as of 2024, suggesting financial stability. However, the company's return on equity is negative due to ongoing net losses, which is a concern for potential investors.

Cash Flow

BTCS has faced consistent negative operating cash flows, and free cash flow remains negative, highlighting ongoing liquidity challenges. The free cash flow to net income ratio is unfavorable, and the operating cash flow to net income ratio is negative due to substantial net losses. Positive financing cash flows indicate reliance on external funding.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.07M	1.34M	1.69M	1.21M	0.00
	Gross Profit
946.01K	979.85K	1.27M	944.94K	-1.11K
	EBIT
-5.80M	-3.71M	-4.65M	-17.12M	-1.99M
	EBITDA
-8.16M	-3.71M	-4.65M	-13.99M	-1.99M
	Net Income Common Stockholders
-1.27M	7.82M	-27.06M	-18.10M	-2.96M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.98M	26.68M	4.07M	5.14M	1.52M
	Total Assets
38.25M	27.15M	9.92M	14.10M	1.55M
	Total Debt
0.00	0.00	0.00	0.00	131.94K
	Net Debt
-1.98M	-1.46M	-2.15M	-1.40M	-392.19K
	Total Liabilities
4.25M	980.90K	586.41K	2.00M	508.61K
	Stockholders Equity
34.00M	26.17M	9.33M	12.10M	1.04M
Cash Flow		Free Cash Flow
-3.53M	-3.57M	-782.18K	-4.87M	-2.97M
	Operating Cash Flow
-3.53M	-3.56M	-776.78K	-4.86M	-2.97M
	Investing Cash Flow
-2.63M	186.00K	-8.97M	-9.47M	-908.08K
	Financing Cash Flow
6.68M	2.69M	10.50M	15.21M	3.35M

BTCS Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 1.46 is below the 20-day moving average (MA) of 1.71, below the 50-day MA of 2.26, and below the 200-day MA of 2.00, indicating a bearish trend. The MACD of -0.21 indicates Negative momentum. The RSI at 33.39 is Neutral, neither overbought nor oversold. The STOCH value of 10.89 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 *	63 Neutral	$12.86B	9.17	9.14%	4.78%	16.41%	-10.11%
RIOT	63 Neutral	$2.50B	20.73	4.35%	―	34.20%	―
MARA	55 Neutral	$3.91B	8.24	18.84%	―	69.38%	30.30%
HUT	49 Neutral	C$1.68B	3.46	2.56%	―	199.41%	―
BTCS	47 Neutral	$29.33M	5.34	-4.23%	―	199.18%	-117.49%
HIVE	45 Neutral	$313.02M	―	-2.15%	―	27.99%	90.99%
BITF	44 Neutral	$592.40M	―	-11.98%	―	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.