Mr. Dan Reitzik reports
NETCOINS CANADA PROVIDES Q4 2024 FINANCIAL GUIDANCE
Bigg Digital Assets Inc. has provided Netcoins Canadian operations unaudited fourth quarter financial guidance for the period ended Dec. 31, 2024.
Q4 2024 financial guidance:
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Netcoins 2024 trading volume was approximately $672-million, roughly 2.3 times 2023's trading volume of $288-million, marking a 133-per-cent increase year over year.
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Total Q4 2024 trading and staking revenue is expected to be $3.66-million, setting a new quarterly record for Netcoins and marking an increase of 125 per cent over third quarter 2024 revenues of $1.6-million. Gross margin remained consistent at 1.31 per cent (Q3 2024: 1.32 per cent).
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Net income was approximately $6.7-million, including unrealized gains on digital asset inventory due to price appreciation and foreign exchange gains. Operating expenses were roughly $1.9-million.
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Netcoins cash and digital assets are valued at approximately $16.2-million as of Dec. 31, 2024 (2023: $7.9-million), an increase of 105 per cent from the prior year.
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Netcoins holds $207-million of assets under custody as of Dec. 31, 2024 (2023: $87.4-million), an increase of approximately 136 per cent from the prior year.
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Netcoins completed SOC 2 Type 1 certification during Q4 2024.
"In 2024, Netcoins had over 66,000 unique users active on the platform, which shows significant growth," said Netcoins chief executive officer Fraser Matthews. "In addition to this milestone customer activity, we have seen tremendous year-over-year volume growth, with Q4 2024 expected to be a record revenue quarter for Netcoins.
"Our team continues to build quality products and services for our clients, evidenced by the launch of eight new assets to kick off 2025, and we look forward to relaunching our Web trading platform at the end of March," remarked Mr. Matthews.
Preliminary unaudited financial information
The financial and operating results included in this news release are based on preliminary unaudited estimated results which have not yet been finalized or, in the case of annual results, audited. These estimated results are subject to change upon completion of the financial statements for the year ended Dec. 31, 2024, and the audit of such financial statements and such changes could be material due to, among other things, the completion of Bigg's financial closing procedures, final adjustments, review by Bigg's auditor and other developments that may arise between now and the time the financial results are finalized. Accordingly, such estimated results are forward-looking statements within the meaning of applicable securities legislation and are subject to limitations and risks.
Bigg anticipates filing its audited annual financial statements for the year ended Dec. 31, 2024, and related management's discussion and analysis on SEDAR+ in late April, 2025.
About Bigg Digital Assets Inc.
Bigg Digital believes the future of crypto is a safe, compliant and regulated environment. Bigg invests in products and companies to support this vision. Bigg has three portfolio companies: Netcoins, Blockchain Intelligence Group and TerraZero Technologies Inc.:
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Netcoins offers secure crypto trading in Canada and the United States, with a mission to make crypto trading easy. Netcoins has a robust product offering with over 60 assets for crypto trading, Netcoins pay MasterCard and staking (Canada only). Netcoins facilitates crypto trading through its cutting-edge mobile and Web applications, API, and its OTC trading desk.
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Blockchain Intelligence Group is an industry-leading digital asset forensics, anti-money-laundering detection and cryptocurrency investigations company. At the heart of its operations is a deep-rooted expertise in visualizing digital assets and market-related activities. This expertise is leveraged to monitor transactional data with a constant eye to assisting its customers with risk management, due diligence and forensic services for digital assets.
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TerraZero is a vertically integrated metaverse development group and leading Web3 technology company, specializing in helping brands create immersive experiences. TerraZero's metaverse-agnostic vision is to develop and implement products and services with scalable commercial applications to flourish engagement across gamified experiences where enterprise-level businesses, metaverse platforms and Web3 creators can seamlessly bridge and actionably expand their virtual world and the physical world endeavours together as one. TerraZero owns digital real estate for brands to establish a presence in existing virtual worlds, and can also offer brands their own private worlds to provide offices and services to those interested in the metaverse. Furthermore, TerraZero acquires, designs, builds and operates virtual assets and solutions to monetize the metaverse ecosystem. TerraZero's businesses are segmented into five divisions which include: (1) immersive experience creation in existing or private virtual worlds; (2) advertising; (3) data analytics; (4) events and marketing; and (5) development of the intraverse. TerraZero aims to support the community, foster innovation and drive adoption.
Future operating results could also be materially affected by the price of cryptocurrency and the demand (or lack thereof) for cryptocurrency. In addition, Bigg's past financial performance may not be a reliable indicator of future performance.
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