- We are on track as the company eCommerce Revenue Run Rate
Increased from $10 Million to Over $36 Million with the recent
Acquisition
- First Revenue Contribution from Bitcoin Mining Operations to
be Recognized in the First Quarter as we started mining at the end
of 2021
The OLB Group, Inc. (NASDAQ:OLB) a diversified Fintech eCommerce
merchant services provider and cryptocurrency mining enterprise,
issued the following open letter to shareholders today from Ronny
Yakov, Chairman and CEO.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20220505005251/en/
(Graphic: Business Wire)
Dear Fellow Shareholders:
We are pleased to provide you with an update on the substantial
progress our business has made in 2021 and in the first three
months of 2022 with our core business in eCommerce FinTech services
and our expansion into Bitcoin mining.
As we grow and expand OLB, technology is constantly changing. We
must adapt to new software and innovations in order to constantly
be a cutting-edge company. We are also investing a tremendous
amount of time and money to expand the infrastructure required to
continue our expansion into new marketplaces and to take advantage
of new technologies to provide our customers with many solutions
for their business.
Our Mission To facilitate
brick &mortar store merchants with OmniCommerce solutions,
combined with a financial Dashboard where they can manage their
Business:
- Payments
- B2B payments management (vendors, suppliers)
- Inventory management
- Social media marketing
- Cash flow
- Loans
- Line of credit
- Employee's wages & benefits
Our Vision To become a
crypto charter bank. OLB will serve Omni commerce stores by
bridging Crypto's new payment rails to the existing traditional
payment system.
Businesses will soon be able to accept all kinds of payment
methods, managing all financial needs, including NFT
issuance/redemption/promotion (loyalty rewards for
personal/secondary market usage).
Our focus is to be a one stop destination for small businesses,
from managing your local business online, in-store, and on mobile.
We are currently and will be offering additional services from
accepting cryptocurrency payments to lending money to small
merchants’ businesses. This gives them the ability to invest part
of their profits and earn money through our services. Our vision is
to become a one stop destination for all financial needs of small
businesses.
With the threefold increase in our revenue base from our latest
merchant portfolio acquisition (at a very attractive valuation of
under 1X sales and 4X projected EBITDA), OLB’s eCommerce solutions
are now utilized by over 10,500 merchants in over 150 industries in
all 50 states of the U.S. In addition, our monthly transaction
volume has also experienced healthy organic growth during 2021.
This includes increases in transactions with larger merchants that
have successfully navigated the challenges of this pandemic (by
taking advantage of the disruption to their competitors).
eVance eVance provides all
needs to small businesses through a variety of services which
compliment not only the merchant services, but also onboarding any
merchant to our ecosystem. All the data is captured in one
place—this includes merchant boarding, underwriting a merchant,
risk monitoring, customer support, sales force, and residual
payments.
This subsidiary supports all of our 10,500+ merchants. Our goal
is to grow our base to 5 times what we are doing today, through
acquisitions, organic growth, and an expansion of edit value
services. A large part of this will come from our sister companies.
We are looking to acquire companies or portfolios that we can
purchase and will be self-financed with third party financing. All
merchants that we manage have access to all services from those
sister companies as well, including our proprietary payment gateway
(that will offer crypto payments and conversion to USD).
Our recent acquisition of a portfolio of approximately 1,500 CBD
product-related merchants has increased our annualized transaction
volume to $1.35 Billion based on a trailing 12-month calculation of
the transactions executed during 2021. OLB has the potential to see
an increase of $20 million in new revenue and $5 Million in EBITDA
with continued execution of similar transaction volumes. This would
provide OLB with an annual revenue run rate from our eCommerce side
of the business of approximately $30 Million to $36 Million per
year. In the past few months, because of the relationships built
with the merchants in the portfolio, we have been able to expand
our new merchant base by an average of 120 new merchant accounts
per month in this rapidly growing sector.
Omnisoft Omnisoft is a
subsidiary that is our R&D arm and develops all Omnicommerce
applications that are fully customizable and are tailor-made
solutions to individual merchants’ needs for online and in-store
POS systems, and on mobile. Over the last year, we have achieved
tremendous progress in the application side. We created an
environment for some of our large clients in the cafeteria
business. They can order online, pick up in front of the cafeteria,
and/or self-served kiosks where any order goes directly to the
kitchen for fulfilment. This even expands to creating a ticketing
system for minor league baseball: customers can order tickets
online, order from the concession stand, and/or purchase
merchandise at the game (pre-order available as well).
We started with three teams and are expending to the fourth as
we aim to add an additional 30 teams next year. After having that
in place, we also plan to introduce NFTs to the ticketing system
and some of memorabilia products.
We will continue to expand and improve our technology platform
for our growing merchant base. Additionally, we announced that OLB
will be able to process Mastercard Bitcoin payments as soon as it
becomes available by Mastercard. Merchants utilizing OLB’s OmniSoft
business management platform and the company’s SecurePay Payment
Gateway for credit cards and ACH Platform, can activate Mastercard
cryptocurrency transaction processing.
Crowd Pay & Crowd
Ignition Crowd Pay and Crowd Ignition are two
subsidiaries that are critical to our future of providing total
services. Crowd Pay is a platform for large service offerings that
works on servicing Broker Dealers as SaaS. Crowd Ignition is a
Regulation CF-regulated portal for crowd funding approved by FINRA,
which we acquire this past January. It is complimentary to the
capital raised specifically for small businesses, in which they can
raise or borrow capital up to $5 million. The system will offer
blockchain technology that will track the investments and loans for
each offering.
DMINT Last year, we secured
the rights to purchase natural gas at extremely competitive prices
to enable us to mine Bitcoin in Bradford, Pennsylvania. We have
also purchased 1,000 Antminer S19j Pro cryptocurrency mining
computers programed for the mining of Bitcoin. During 2021, we
received 750 of the ordered machines. As of today, approximately
half of them are fully operational and the remining 250 are due to
come online before the end of the second quarter of 2022.
Initially, we did face challenges in many parts of the business,
from supply chain delivery issues to needing sufficient electrical
power supplies and generators to operate in the location. We are
anticipating the deliveries of the remaining mining machines before
the end the second quarter this year. Additionally, we are
exploring more locations with different power resources, starting
anywhere from 10 MW and to 100 MW which would allow us to expand
the operation. We believe that this mining operation will be a big
boost to our overall objective and complimentary to our merchants.
This will enable OLB to be able to lend funds to them from the
capital that we generate from Bitcoin. We anticipate that we will
have revenues of approximately $1 million a month from those
machines alone (assuming a market price of Bitcoin’s of at least
$45,000 over a 30-day period). We are confident that once we are
able to procure on the additional power, we will be able to bring
the additional machines online. We are also looking very carefully
at the environmental impact and how OLB will be able to operate in
an efficient manner. Once 1000 miners are in operation, we plan to
explore other venues with this subsidiary and how to maximize all
our existing shareholders’ value.
We plan to acquire more cryptocurrency mining machines towards
our goal of operating up to 24,000 machines, focusing on using
internally generated cash flow and debt financing, rather than
using our equity to raise capital.
OLBit This subsidiary is
just a few months old and has been formed to hold and manage all
the licenses that are required to operate OLB’s planned money
transmission and lending business, including a Bitlicense from the
State of New York, as well as a money transitions license in all 50
states. That is the first step towards our lengthy process to apply
to become qualified to operate as a charter bank.
Once our licensing is in place, it will allow us to have the
ability convert payments made using cryptocurrency into fiat
currency and to be able to have a platform to allow our merchants
to trade cryptocurrencies.
Recently, we updated our Investor Presentation and Investor Fact
Sheet to reflect our business expansion into Bitcoin mining and
both are now available to all investors and the public at
www.olb.com/investor-data.
We plan to report our first quarterly contribution to revenue
and income from our cryptocurrency mining operations, along with
our first full quarter of revenue and income recognition from our
CBD products merchant portfolio acquisition in the First Quarter
2022.
1st Quarter Earnings will be on May 12,
2022 at 4:15 EST
Link for Participants to Register for the Listen Only
Conference Call
Conference ID: 80513
Direct Event Registration Link:
https://conferencingportals.com/event/csGMIMOL
Link for Participants to Register for the Webcast and to Ask
a Question
Audience URL:
Use this link to access the audience view of the webcast. This
URL can be distributed for posting on various websites or for
inclusion in email notifications.
https://event.on24.com/wcc/r/3778731/0ABA94F167FA2CC8BFB70A9053CFAE01
Respectfully,
Ronny Yakov, CEO
Future OLB Press Releases and Updates
Interested investors or shareholders can be notified of future
Press releases and Industry Updates by e-mailing:
investorrelations@olb.com
About The OLB Group, Inc.
The OLB Group, Inc. is a diversified Fintech eCommerce merchant
services provider and Bitcoin crypto mining enterprise. The
Company's eCommerce platform delivers cloud-based merchant services
for a comprehensive digital commerce solution to over 10,500
merchants in all 50 states. DMint, a wholly owned subsidiary of OLB
Group, is engaged in the mining of Bitcoin utilizing sustainable
natural gas with an initial deployment of efficient 1,000
ASIC-based S19j Pro 96T mining computers projected by end of
2021.
For more information about The OLB Group, please visit
https://www.olb.com and www.olb.com/investors-data
If you want to post a question to the company management you can
email us at InvestorRelations@OLB.com or post a question online at
https://olb.com/investors-faq/
You can also register to see our independent valuation report at
https://olb.com/valuation-report/
Safe Harbor Statement
All statements from The OLB Group, Inc. in this news release
that are not based on historical fact are "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995 and the provisions of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These forward-looking
statements include, but are not limited to, statements concerning
the impact of COVID-19 on our operations and financial condition,
our ability to implement our proprietary merchant boarding and CRM
system and to roll out our Omni Commerce and SecurePay
applications, including payment methods, to our current merchants
and the integration of our secure payment gateway with our
crowdfunding platform, our ability to successfully launch a
cryptocurrency mining operation and our ability to earn revenue
from the new operations. While the Company’s management has based
any forward-looking statements contained herein on its current
expectations, the information on which such expectations were based
may change. These forward-looking statements rely on a number of
assumptions concerning future events and are subject to a number of
risks, uncertainties, and other factors, many of which are outside
of our control, that could cause actual results to materially
differ from such statements. Such risks, uncertainties, and other
factors include statements regarding the expected revenue and
income for operations to be generated by The OLB Group, Inc. For
other factors that may cause our actual results to differ from
those that are expected, see the information under the caption
"Risk Factors" in the Company’s most recent Form 10-K and 10-Q
filings, and amendments thereto, as well as other public filings
with the SEC since such date. The Company operates in a rapidly
changing and competitive environment, and new risks may arise.
Accordingly, investors should not place any reliance on
forward-looking statements as a prediction of actual results. The
Company disclaims any intention to, and undertakes no obligation
to, update or revise any forward-looking statement.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220505005251/en/
OLB Group Investor Relations Rick Lutz InvestorRelations@OLB.com
(212) 278-0900 Ext. 333
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