Bitcoin Well Inc · TSXV:BTCW
Bitcoin Well — Investor Presentation (August 2021)
31 slides from Bitcoin Well's investor presentation, August 2021
Slide 1: Providing the Fastest and Safest Way to Buy and Sell Bitcoin
AUGUST 2021 PRESENTATION PROVIDING THE FASTEST AND SAFEST WAY TO BUY AND SELL BITCOIN
Slide 2: Advisories: Cautionary Statements
ADVISORIES CAUTIONARY STATEMENTS This presentation (the "Presentation") by Bitcoin Well Inc. (formerly Red River Capital Corp.) (the "Company") has been compiled by management of the Company solely for information purposes. This Presentation has been prepared as of August 2021 and the information co
Slide 3: Advisories: Forward-Looking Information, Non-GAAP Measures
ADVISORIES FORWARD-LOOKING INFORMATION, CONT’D The Company strongly cautions readers not to place undue reliance on these forward-looking statements, as a number of important risk factors, many of which are beyond our control, could cause the Company's actual results to differ materially from the be
Slide 4: Key Backgrounder
KEY BACKGROUNDER • On June 14, 2021, Bitcoin Well completed the previously announced arm’s length qualifying transaction (the “Transaction”) with Red River Capital Corp. (“Red River”), a capital pool company • The resulting issuer, “Bitcoin Well Inc.” received approval from the TSXV and its common s
Slide 5: What We Do
WHAT WE DO Bitcoin Well offers convenient, secure & reliable ways to buy, sell & use bitcoin with a non-custodial platform • Trusted Bitcoin ATM network with 190+ machines in stores across Canada and the UK In-person transactions Web-based transaction services The Bitcoin Gift Card Non-custodial Cus
Slide 6: Where We Came From
WHERE WE CAME FROM “An 8-year old company in an 8-year old industry” - Adam O’Brien, CEO 2021 2020 • 190+ ATMs in use 2019 • Announced Ghostlab acquisition, expanding BTCW’s future potential SaaS revenue stream • 95 ATMs in use • 35,000 square foot HQ announced in 2017 • • Completed 3 acquisitions C
Slide 7: About Bitcoin Well
ABOUT BITCOIN WELL Providing the fastest and safest way to buy and sell bitcoin • The first publicly-traded Bitcoin ATM company1 • Trusted and growing network of 190+ Bitcoin ATMs and web-based transaction services supported by proprietary, industry-leading software in a non-custodial model • Aggres
Slide 8: Bitcoin Well Investment Opportunity
BITCOIN WELL INVESTMENT OPPORTUNITY REVENUE GENERATION TRUSTED HIGH-GROWTH MARKET-LEADING & GROSS PROFIT • Revenue generation • Fastest and safest way • Organic expansion + • Non-custodial model driven by transactions to buy & sell bitcoin acquisitions • Ghostlab brings supports continued proprietar
Slide 9: Corporate Snapshot
CORPORATE SNAPSHOT BITCOIN WELL INC. SHARE CAPITALIZATION1 Common shares issued & outstanding (basic) 162,879,500 Options 5,621,042 Targeting continued growth & geographic expansion through: Warrants2 14,569,000 • Accretive acquisitions Shareholder loan ($750,000) convertible into common shares 6,25
Slide 10: Proven Track Record
PROVEN TRACK RECORD REVENUE ATM COUNT1 ($Millions) (Total ATM Deployment) $45 180 $41.7 169 Active +182% 160 +405% $40 Partner Machines $35 Q2/20 to Q2/21 140 Q2/20 to Q2/21 $30 $27.5 120 114 $25 $22.9 100 93 $20 80 70 $14.6 60 $15 60 $10 $8.3 40 $5 20 $0 0 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q2
Slide 11: Bitcoin Well Service Offerings
BITCOIN WELL SERVICE OFFERINGS BUY / SELL BITCOIN Via ATMs throughout Canada; in-person exchanges booked online through the Bitcoin Well website; or online transactions through the Bitcoin Well website Rise Wallet acquisition allows Bitcoin Well to sell bitcoin gift cards, further supporting increas
Slide 12: Increasing Adoption
INCREASING ADOPTION “Bitcoin has reached all-time highs over the past few months, and with this meteoric rise, institutions, hedge funds, and major corporations have begun to add digital assets to their balance sheet. As the oldest, most liquid, and most well-known cryptocurrency, bitcoin is rapidly
Slide 13: Market Ripe for Consolidation
MARKET RIPE FOR CONSOLIDATION ORGANIC + ACQUISITION GROWTH • Steady rollout of new terminals to be supported by management experience, and forecast 2021 positive working capital + cash flow1,2 • Upcoming development of web-based services set to add new revenue streams and further diversify income2 •
Slide 14: Ghostlab
GHOSTLAB1 FINANCIAL TECHNOLOGY RE-IMAGINED A software company that designs and develops solutions to improve the functionality and accessibility of modern financial technology and services, including Bitcoin ATM machines • Ghostlab works behind the scenes, building software solutions for bitcoin ret
Slide 15: Corporate Growth Strategy
CORPORATE GROWTH STRATEGY1 REVENUE GROWTH OPPORTUNITIES ACCRETIVE CONTINUOUS ATM EXPANDED ONLINE ENHANCED SOFTWARE ACQUISITIONS DEPLOYMENT & IN PERSON SERVICES DEVELOPMENT • Capitalize on balance sheet strength in • Organically expand ATMs and engage with • Further develop web-based services to • Re
Slide 16: Executive Team & Board
EXECUTIVE TEAM & BOARD LEADERSHIP TEAM Adam O’Brien Mandy Johnston Dave Bradley Founder & CEO MBA, CPA(US), CMA(US), CSCA Chief Revenue Officer CFO Established leader in the field of Long history of executive leadership cryptocurrency with a passion for Over 19 years of public, private and non- and
Slide 17: Doing Things Right
DOING THINGS RIGHT Bitcoin Well is committed to being an industry leader in corporate governance and transparency, leading the way in terms of security, trust and integrity • SECURITY – Users of our services can count on superior security practices and policies to eliminate the potential for fraud w
Slide 18: Leaders in a Changing Regulatory Environment
LEADERS IN A CHANGING REGULATORY ENVIRONMENT Bitcoin Well is positioned to become a strategic acquiror following regulatory changes • On March 29, 2021, Canadian securities regulators issued Staff Notice 21-329 - Guidance for Crypto-Asset Trading Platforms: Compliance with Regulatory Requirements •
Slide 19: The Bitcoin Well Opportunity
THE BITCOIN WELL OPPORTUNITY • REVENUE GENERATION & GROSS PROFIT – Revenue is driven by transactions and supports continued expansion and Ghostlab software development; 5% - 18% average gross profit margins1,4 • TRUSTED – Fastest, safest way to buy & sell bitcoin provided by longest-serving, founder
Slide 20: Contacts
WEB bitcoinwell.com OFFICE 10142 82 Avenue NW Edmonton, AB T6E 1Z4 EMAIL [email protected] CONTACTS
Slide 21: Appendix
APPENDIX mo WELL BITCOIN WELL
Slide 22: Benefits of Bitcoin
BENEFITS OF BITCOIN “Existing currency is flawed in that governments have to continue to print currency to fund unsustainable spending. Bitcoin, on the other hand, can’t be devalued in the same way. It is borderless, inclusive, and reaches finality rapidly” – Adam O’Brien, Founder and CEO of Bitcoin
Slide 23: Demystifying Bitcoin
DEMYSTIFYING BITCOIN BITCOIN LEADING THE CHANGE Digital currency managed using advanced encryption and stored in a • Bitcoin Well provides educational video series digital & public ledger called a blockchain for consumers and investors • World's largest cryptocurrency, introduced to the market in 20
Slide 24: Bitcoin's Road to 10X
BITCOIN’S ROAD TO 10X BITCOIN PRICE, USD1 logarithmic JULY 2020 BITCOIN HALVING After a certain number of bitcoins are mined, the reward given to miners for processing transactions is cut in half, reducing the rate at which new bitcoins are released and creating synthetic inflation – referred to as
Slide 25: Competitive Advantages
COMPETITIVE ADVANTAGES1 WE ARE DIFFERENT We are the first publicly-traded Bitcoin ATM company2 and we generate gross profit, offer nationwide ATM coverage with online transaction services, and a have a proven track record of financial success with access to exclusive, cutting-edge software implement
Slide 26: Why Bitcoin ATMs?
WHY BITCOIN ATMs ? • Provides the fastest and easiest way to buy and sell bitcoin • Machines are available 24/7 and accessible for everyone • ATMs enable short verification times • Bitcoin Network transactions can reach finality in just ~10 minutes vs up to 90 days for similar transactions done onli
Slide 27: ATMs
ATMs MEANINGFUL SOURCE OF REVENUE GENERATION ~$920 • Bi-directional functionality enabling the on-site purchase and sale of bitcoin AVERAGE TRANSACTION SIZE • Consistent transaction fee revenue based on flat fee and percentage of transaction size PER UNIT1 • In-depth data analysis pinpoints the best
Slide 28: Software Opportunities
SOFTWARE OPPORTUNITIES SIGNIFICANT FUTURE GROWTH POTENTIAL1 • Expansion plans facilitated by partnerships with strategic software groups, which afford a competitive advantage relative to peers / competitors • Bitcoin Well now offers a proprietary gift card service (The Bitcoin Gift Card) enabling ho
Slide 29: Online Services
ONLINE SERVICES MEANINGFUL SOURCE OF REVENUE GENERATION • Fee-based online transaction options: • Gift Cards • Bill Payments • Buy & Sell: • Flexepin – Use a Flexepin voucher code to securely purchase bitcoin • E-transfer – Use Interac’s established web transfer solution to purchase or sell bitcoin
Slide 30: Financial Summary
FINANCIAL SUMMARY Quarter ended Year ended Year ended Year ended June 30, December 31, December 31, December 31, 2021 2020 2019 2018 Summary Operating Results Total revenue $41,733,509 $51,970,582 $14,539,490 $11,964,363 Adjusted EBITDA1 $(845,431)2 $2,964,563 $531,230 $(393,784)3 Net income (loss)
Slide 31: Corporate Partners
CORPORATE PARTNERS Legal Counsel Financial Advisors Transfer Agent Auditor 31