BIGG Digital Assets Inc. (CSE: BIGG), owner of Netcoins, the online cryptocurrency brokerage that claims to make it easy for Canadians to buy, sell, and understand cryptocurrency, and Blockchain Intelligence Group, a developer of blockchain technology solutions, is reporting Q2 2022 financial results.
All figures “are in Canadian Dollars (CAD) unless otherwise stated.”
Q2 2022 Highlights:
- Gross operating revenue of $2.25M, with $1.75M for Netcoins (down ~12% QoQ) and $0.5M for Blockchain Intelligence Group (up ~30% YoY)
- Netcoins Q2 revenue of $1.75M is down 12% Quarter-over-Quarter (QoQ), versus 39% industry average volume decline(1) , significantly outperforming the broader market
- Customer accounts grew ~13.5% in Q1 (QoQ) to ~168k
- Customer fiat deposits exceeded $58M in the quarter
- Gross trading margins exceeded 1.3% in Q2
- BIG’s Q2 revenue representing 30% growth versus Q2 2021, with gross margins of 82%
- TerraZero generated $0.17M revenue in Q2 2022, with BIGG’s proportionate earnings equivalent to $0.057M
- As of June 30, 2022, BIGG’s cash and crypto holdings were ~$19 million
- The Company has no debt
Additional Highlights:
- BIGG currently “owns ~500 Bitcoin, valued at approximately $13.1M”
- Netcoins currently “has customer Assets Under Custody of approximately $60M”
- Netcoins registered users “now exceeds 172,000”
- Blockchain Intelligence Group’s Compliance Suite (QLUE and BitRank) now “supports 11 blockchains, including 425,849 ERC-20 based tokens and 108,450 NFT collections.” The company has “risk-scored 7.8 Billion addresses and transactions.” Several new blockchains requested by clients and prospective clients “are in development and will be released in the coming months.”
BIGG CEO, Mark Binns, commented:
“While Q2 2022 showed a slight revenue contraction from Q1, Blockchain Intelligence Group revenue remained steady and Netcoins significantly outperformed its trading peers by only contracting 12%, despite industry wide volumes falling by as much as 39%1. Netcoins customer base grew by over 13% in the quarter, and as volume and volatility return to the market, we are very well positioned to take advantage.”
In Q2, Netcoins also “expanded coin offerings on the platform by a further 20 coins bringing our total to 36.”
For the majority of Q1, Netcoins was only “offering 11 coins while awaiting regulatory updates.”
With 36 coins now offered, and a larger customer base, Netcoins continues “to develop and mature as a business, and is amongst the leading crypto trading platforms in Canada.”
In Q2, BIGG also “invested $2M in Luxxfolio acquiring a ~15% ownership position.” This adds a diversified crypto mining company to their portfolio, which now “spans trading, forensics, metaverse and mining.”
Finally, despite the crypto “contagion” seen in Q2, BIGG “remains healthy with no debt and no loans of customer (or company) assets.”
BIGG continues “to develop its primary businesses and is investing in new emerging businesses and opportunities.”