Bitcoin Well Inc · TSXV:BTCW
Bitcoin Well — Investor Presentation (July 2021)
35 slides from Bitcoin Well's investor presentation, July 2021
Slide 1: Providing the Fastest and Safest Way to Buy and Sell Bitcoin
JULY 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 July 2021 and the information cont
Slide 3: Forward-Looking Information, Cont'd and 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.” has received conditional approval for the Transa
Slide 5: What We Do
WHAT WE DO Bitcoin Well offers convenient, secure and reliable ways to buy, sell and use bitcoin • Trusted Bitcoin ATM network with 145+ machines in centers across Canada In-person transactions Web-based transaction services The Bitcoin Gift Card Non-custodial Custodial platforms We never hold clien
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 • 145+ ATMs in use 2019 • Closed qualifying transaction to become publicly listed on the TSXV • 35,000 square foot HQ announced • 95 ATMs in use in Edmonton to support rapid 2017 • • Completed 3 acquis
Slide 7: About Bitcoin Well
ABOUT BITCOIN WELL Providing the fastest and safest way to buy and sell bitcoin • Set to become the first publicly-traded Bitcoin ATM company1 • Trusted and growing network of 145+ Bitcoin ATMs and web-based transaction services supported by proprietary, industry-leading software in a non-custodial
Slide 8: Bitcoin Well Investment Opportunity
BITCOIN WELL INVESTMENT OPPORTUNITY ADJUSTED EBITDA TRUSTED HIGH-GROWTH MARKET-LEADING POSITIVE • Revenue driven by • Fastest and safest way • Organic expansion + • Non-custodial model transactions to buy & sell bitcoin acquisitions • Proprietary software • 8% gross profit • Longest-serving, • Fragm
Slide 9: Corporate Snapshot
CORPORATE SNAPSHOT BITCOIN WELL INC. SHARE CAPITALIZATION1 Common shares issued & outstanding (basic) 162,879,500 Options 5,346,018 Targeting continued growth & Warrants2 14,569,000 geographic expansion through: Shareholder loan ($750,000) convertible into common shares 6,250,000 • Accretive acquisi
Slide 10: Proven Track Record
PROVEN TRACK RECORD REVENUE GROSS PROFIT ADJUSTED EBITDA1 ($Millions) ($000’s) ($000’s) $900 $30 $2,800 $828 $27.5 $800 $2,400 +368% $2,303 Massive $25 +344% $700 Growth Q1/20 to Q1/21 Q1/20 to Q1/21 $2,000 Q1/20 to Q1/21 $20 $600 $1,600 $500 $15 $400 $1,200 $10 $300 $800 $6.2 $492 $200 $5 $400 $100
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: 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 15: Executive Team & Board
EXECUTIVE TEAM & BOARD LEADERSHIP TEAM Adam O’Brien Jason Vandenberg, CPA, CA Dave Bradley President & CEO Interim CFO1 Chief Revenue Officer Established leader in the field of Over 20 years of management Long history of executive leadership cryptocurrency with a passion for experience helping compa
Slide 16: 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 17: 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 18: The Bitcoin Well Opportunity
THE BITCOIN WELL OPPORTUNITY • ADJUSTED EBITDA POSITIVE - Revenue driven by transactions and 8% gross profit margins1 • TRUSTED – Fastest, safest way to buy & sell bitcoin provided by longest-serving, founder-operated Bitcoin ATM company in Canada2 • HIGH GROWTH - Targeting organic expansion globall
Slide 19: Contacts
WEB bitcoinwell.com OFFICE 10142 82 Avenue NW Edmonton, AB T6E 1Z4 EMAIL ir@bitcoinwell.com CONTACTS
Slide 20: Appendix
APPENDIX mo WELL BITCOIN WELL
Slide 21: 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 22: 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 23: 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 24: Competitive Advantages
COMPETITIVE ADVANTAGES1 WE ARE DIFFERENT We are set to become the first publicly-traded Bitcoin ATM company2 that generates gross profit, offering nationwide ATM coverage with online transaction services, and a proven track record of financial success with access to exclusive, cutting-edge software
Slide 25: 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 26: ATMs
ATMs MEANINGFUL SOURCE OF REVENUE GENERATION • Bi-directional functionality enabling the on-site purchase and sale of bitcoin ~$1,100 AVERAGE TRANSACTION SIZE • Consistent transaction fee revenue based on flat fee and percentage of transaction size PER UNIT1 • In-depth data analysis pinpoints the be
Slide 27: 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 28: 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 29: Financial Summary
FINANCIAL SUMMARY Quarter ended Year ended Year ended Year ended March 31, December 31, December 31, December 31, 2021 2020 2019 2018 Summary Operating Results Total revenue $27,525,181 $51,970,582 $14,539,490 $11,964,363 Adjusted EBITDA1 $828,366 $2,964,563 $531,230 $(393,784)3 Net income (loss) $(
Slide 30: Advisories
ADVISORIES This Presentation may constitute an offering memorandum under applicable securities laws. The purchaser may have, depending on the jurisdiction in which the trade was made, remedies for rescission or damages if this Presentation (including any amendment thereto) contains a misrepresentati
Slide 31: Advisories: Ontario, Cont'd
ADVISORIES ONTARIO, CONT’D d) in no case will the amount recoverable exceed the price at which the securities were offered to the purchaser; and e) the statutory right of action for rescission or damages is in addition to and does not derogate from any other rights or remedies the purchaser may have
Slide 32: Advisories: Saskatchewan, Cont'd
ADVISORIES SASKATCHEWAN, CONT’D Not all defences upon which we or others may rely are described herein. Please refer to the full text of the Saskatchewan Act for a complete listing. Similar rights of action for damages and rescission are provided in section 138.1 of the Saskatchewan Act in respect o
Slide 33: Advisories: New Brunswick, Cont'd
ADVISORIES NEW BRUNSWICK, CONT’D An issuer shall not be liable where it is not receiving any proceeds from the distribution of the securities being distributed and the misrepresentation was not based on information provided by the issuer unless the misrepresentation: a) was based on information that
Slide 34: Advisories: Nova Scotia, Cont'd
ADVISORIES NOVA SCOTIA, CONT’D Furthermore, no person or company other than the issuer is liable with respect to any part of the offering memorandum or amendment to the offering memorandum not purporting: (a) to be made on the authority of an expert; or (b) to be a copy of, or an extract from, a rep
Slide 35: Corporate Partners
CORPORATE PARTNERS Legal Counsel Financial Advisors Transfer Agent Auditor 35