2021 Q1 Performance

2021 Q1 Financial Summary

  • Trading volume of $4.2 million
  • Net returns from trading totaling $64,833, or 1.5% return on trading volume (“Trading ROI”). Including cash back bonuses and promotional offers generated from our trades, our net returns were $69,759.
  • Average position size of $4,258 across NFL, and NBA, and NCAAM.
  • Realized gains of $3,456 and unrealized gains of $45,785 related to transactions buying and selling Bitcoin (“BTC”) to fund sportsbook accounts.



Volume and Performance

With a starting portfolio of $500,000, trading commenced on January 1, 2021 on NFL, NCAAM, and NBA betting markets. As sports recovered from the impact of COVID-19 and resumed play, so did our trading volume. In Q1, at $4.2 million, our trading volume was higher than our volume during the entirety of 2020 at $2.5 million. This is despite Q1 being an out-of-season period for our main betting sport, MLB.

77% of our betting volume was on NCAAM college basketball, where we wagered $3.3 million. Despite our significant volume, college basketball was a loss leader for us, with net returns of -$94,188. In contrast, NFL betting volume came in at just 6% of our total volume, but was our most profitable betting arm, generating $79,974 in profits.

We benefited from an appreciation in the price of bitcoin, which is a required currency for transacting with sportsbooks from across the world.

Volatility

The annualized volatility of our total portfolio, inclusive of wagers and BTC fluctuations, was 58.3%.

Looking Ahead to Q2

Our expectation for Q2 is to increase our volume to $5.3 million, a 25% sequential increase from Q1. We expect our Trading ROI, inclusive of cashback bonuses and promotions, to be 5.0%. This represents a significant increase over Q1. However, with the beginning of MLB on April 1, we are entering a period which we forecast to have our strongest performance. As we ramp up trading volume on MLB and other sports wind down, we will use this period to focus on improving our betting algorithms and models for sports returning Q3, such as NFL and NCAA College Football.


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