Overview

• US blockchain infrastructure and DeFi operator's Q1 revenue rose 27% yr/yr, driven by Imperium

• Gross profit margin improved to 47% as business shifted to higher-margin DeFi operations

• Net loss widened to $69.1 mln, mainly due to realized and unrealized losses on digital assets

Outlook

• BTCS targets 2026 gross profit of $6 mln, driven primarily by Imperium DeFi operations

• Company expects Imperium to be the primary driver of gross profit through the rest of 2026

• BTCS says pending Clarity Act legislation could provide a regulatory tailwind if passed

Result Drivers

• IMPERIUM DEFI CONTRIBUTION - Company said Imperium DeFi revenues, launched in H2 2025, drove 47% of total Q1 revenue and were the main factor behind higher gross profit margin

• BUSINESS MIX SHIFT - Gross profit rose despite lower sequential revenue as company shifted focus from lower-margin block-building to higher-margin Imperium operations

• OPERATING EFFICIENCIES - Cost of revenues declined 28% yr/yr due to efficiencies in blockchain infrastructure segment, supporting margin improvement

Company press release: ID:nGNX9T1gDV

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 EPS	Miss	-$1.43	$4.50 mln (1 Analyst)
Q1 Net Income	Miss	-$69.10 mln	$100,000 (1 Analyst)

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the blockchain & cryptocurrency peer group is "buy"

• Wall Street's median 12-month price target for BTCS Inc is $5.00, about 135.8% above its May 14 closing price of $2.12

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