Goobit Group AB publishes interim report Q1 2023/2024, 1 May - 31 July 2023
Goobit Group AB ("Goobit") releases its Q1 Interim Report for the fiscal year 2023/2024, available in full on goobit.se. Despite market swings, it was a vibrant quarter characterized by product development, operational improvements and cost-reduction efforts. The Company welcomes all stakeholders to read the full report for a more detailed report.
Overview Financial Results for Goobit Group AB (publ) (“the Company”)
Q1, 1 MAY 2023–31 JULY 2023
– COMPARED WITH THE CORRESPONDING PERIOD OF THE PREVIOUS YEAR –
• Net sales amounted to 21.5 MSEK (24.9). The decrease is primarily due to the termination of banking services in mid-December 2021, which resulted in lower exchange volumes.
• Operating profit amounted to -3.1 MSEK (-5.7). The period includes lawyer costs attributable to the concluded investigation from the Swedish Financial Supervisory Authority, which are considered non-recurring.
• Income after financial items amounted to -3.1 MSEK (-5.7).
• Earnings per share before and after dilution amounted to -0.02 SEK (-0.04).
Important Events During the Period
• In May 2023, Goobit acquired the assets of Snowbank AB (BTCSWE), a well-regarded Swedish bitcoin exchange service registered with the Financial Supervisory Authority. The acquisition includes BTCSWE's brand, technology, and customer base which will be integrated into Goobit Group's operations.
• Goobit has decided to sell Nova Exchange's assets to strengthen its position as a dedicated bitcoin exchange. The sale opens new opportunities for Goobit to enhance its offerings, specifically BTCX, one of Europe's oldest and most trusted bitcoin exchanges, and AML Desk, a leading tool for complying with Anti-Money Laundering regulations in the crypto industry.
• The Swedish Financial Supervisory Authority (“SFSA”) has concluded its investigation of Goobit, which began in October 2021. According to the SFSA, Goobit has had shortcomings in its work against money laundering and terrorist financing which the company swiftly corrected. The SFSA has ordered Goobit to pay a sanction fee of 2 MSEK. Goobit has decided to appeal the penalty fee.
Important Events After the Period
• In August, Goobit announced the appointment of lawyer and current board member, Jan Tibbling, as Money Laundering Reporting Officer and regular board member of its subsidiary Goobit AB. This strategic decision underlines the company's commitment to stringent regulatory compliance and further strengthens its governance structures.
Fellow Shareholders and Bitcoin believers,
The journey we embarked on at Goobit Group, or the one I described in my previous letter discussing our quarter achievements, will take multiple quarters or possibly years to unfold. Just like Bitcoin, we, the world's oldest still-operational Bitcoin exchange, are here for the long game. As the saying goes within the Bitcoin community when discussing the potential for Bitcoin adoption, 'we're still early.' Therefore, in that sense, even more opportunities lie ahead for Goobit Group.
In this first quarter, we continued to integrate the brand, technology, and customer base of Snowbank AB (BTCSWE), a trusted Swedish Bitcoin exchange service, into our business, further strengthening our market position. Our BTCX link is already on Snowbank's website, and traffic is starting to increase.
Also, it is important to remember what differentiates Bitcoin companies from other market actors. The success of one Bitcoin company is beneficial to all other Bitcoin companies, regardless of their jurisdiction. More adoption and increased Bitcoin purchasing power are the primary goals of all Bitcoin companies, and we are thus all incentivized to collaborate rather than compete.
More and more companies are realizing this, and synergetic relationships between all sorts of Bitcoin companies are becoming more common. BTCX and the Goobit group are focusing on tapping into this, and we're working actively to set up partnerships with a handful of promising global Bitcoin companies.
At the same time, we are working diligently to foster better mutual understanding with the Swedish banking industry. If we succeed, it will open up enormous growth opportunities for our business. I firmly believe that our new board member, Jan Tibbling, possibly the best Money Laundering Reporting Officer in the Nordics, will play his part in achieving this.
That said, inflation in Sweden remains elevated, and there are no signs that governments and central banks are becoming more responsible in addressing the long-term problems of our economies and societies. I believe that Bitcoin has great potential to bring about positive change in this regard.
It is not just a technical upgrade of our financial system or a sustainable economic model for global growth. It just happens to be our most powerful tool for ensuring world peace and aligning our incentives for creating a trustworthy global trade system for everyone.
The cost of starting a war today is extremely high, but by inflating the monetary supply, that cost is pushed upon future generations to pay. This technique has been widely used since 1971, when the US dollar left the gold standard with inflation accelerating as a result.
By investing in Bitcoin early and long term, you protect yourself from inflation, which many say is here to stay for years to come. It also makes it harder for states to hyperinflate their currency and start a war. The economic incentives become clear when you settle your indifferences with trade and diplomacy instead of war. Furthermore, with no major actor being able to manipulate or benefit by owning the world currency money supply, the step towards a Bitcoin standard becomes easier. A circumstance which might be inevitable.
Hence, while this may seem pretentious to an outsider, our mission at Goobit is to set the world on a path toward peace and prosperity through Bitcoin adoption.
This was eloquently articulated by Knut Svanholm in his keynote speech at the Baltic Honeybadger conference, a Bitcoin-only event in Riga that took place in early September. In his talk, he compared the deadliest form of energy usage with perhaps the most peaceful: J. Robert Oppenheimer's discovery of the atomic bomb versus Satoshi Nakamoto's invention of Bitcoin.
Here are my main takeaways from that talk.
In the recent Nolan biopic about the father of the atomic bomb, Oppenheimer reasons that by constructing the biggest, deadliest bomb ever, he would contribute to world peace since no country would ever dare to attack another country again with the knowledge that doing so would, in all probability, be a suicidal move. He reasons that the whole world would be in a sort of perpetual "Mexican standoff." One could argue that wars are the consensus mechanism for our current financial system, which utilizes energy to keep it running in a somewhat predictable way.
While the true intentions of Satoshi Nakamoto are unknown, the incentive for world peace is global trade, where everyone can participate on equal terms and where no one stands to benefit over another. Everyone wins.
In summary, Oppenheimer might have been right in thinking that changing people's incentives by harnessing the power of physics is one way to achieve peace in the world. Science propels humanity forward, but powerful discoveries can also have devastating effects in the hands of the wrong people. Nakamoto discovered a way to remove those hands from the equation entirely.
Now, we have a choice, and perhaps Bitcoin is our best path to peace.
The markets go up and down, but Bitcoin keeps to its core functionality, and we have never lost faith in its long-term success. This is why the world's oldest BTC exchange, Goobit Group, wholeheartedly focuses on Bitcoin and no other cryptocurrencies.
Founder and CEO Goobit Group AB (publ)
Read the full interim report on goobit.se
For further information, please contact:
Christian Ander, CEO, Goobit Group AB
Eminova Fondkommission AB | 08-684 211 10 | email@example.com
About BTCX | Goobit Group
Goobit AB launched the world's first still operating bitcoin exchange BTCX in 2012. It’s Sweden's leading bitcoin and educational company. The company offers exchange services from fiat currencies to bitcoin and has so far exchanged over 2.0 billion SEK. The company's best-known brands are BTCX Express and Standard Bitcoin Exchange (BTCX). In addition to exchange, the company also offers services in anti-money laundering (AML), through AML Desk, and compliance for virtual currencies and digital assets. Goobit Group AB (publ) was registered in 2013 and includes the fully owned subsidiaries Goobit AB, Goobit Blocktech AB and Goobit Exchange AB. Goobit AB services are aimed at private individuals, corporate customers and financial institutions.
For more information, see Goobit's website www.goobit.se
This information is information that Goobit Group AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2023-09-15 08:30 CEST.