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VANCOUVER, British Columbia, 23 August 2018 (GLOBE NEWSWIRE) – Fortress Blockchain Corp. (" Fortress Blockchain " or " Corporation ") (TSXV: FORT), a company growth-oriented blockchain mining operations established in low-cost regions of North America in the green energy sector, reports the results of operations for the second quarter ended June 30, 2018. All amounts are in Canadian dollars if not otherwise specified. For the full abbreviated half-yearly consolidated financial statements and the discussion and management analysis for the second quarter ended June 30, 2018, visit SEDAR at www.sedar.com .
"With the first six months of the fiscal year behind us, and our first full operating quarter in books, we could not be more satisfied with the results generated by operations to date," said Aydin Kilic, co-founder, CEO and Director of Blockchain Fortress Corp. "As a low-cost leader in the industry, we are pleased to report industry-leading mining margins of 75% and EBITDA margins of 24% for the quarter despite bitcoin price volatility. our high margins exemplify and further confirm our successful business model of efficiencies through operations and access to some of the most economic power in North America. "
" While cryptocurrency prices have been under pressure , the Fortress team achieved extremely positive results, "continues Aydin Kilic. "We remain focused on scaling down our operations to maximize shareholder value with our industry-leading efficiency and a low-cost environment that will continue to deliver impressive results, and shareholders will benefit from the low level of Industry Fortress, which provides the Company with flexibility to manage the volatility of the underlying spot prices. "
Second Quarter Financial Highlights:
- Total revenues during the quarter were $ 1,353,976 (31 March 2018: $ 264,348). Revenues from the extraction of digital currencies were $ 986,253 (March 31, 2018: $ 264,348). The Company had other revenues of $ 367,723 (March 31, 2018: zero) from the sale of coupons for the purchase of ASIC hardware
- La Fortress began to extract cryptocurrencies at its Flagship Facility on March 7, 2018. as a consequence, the revenue generated by the extraction of cryptocurrencies in the first quarter ended March 31, 2018 represents mining for the period from March 7, 2018 to March 31, 2018. The quarter ended June 30, 2018 was the first complete quarter of mining activities for the Company. As a result, the results of the two quarters are not comparable
- Gross margin in the quarter was $ 740.872 or 75%. The Company defines the gross margin of mining activities (a non-IFRS measure) such as revenues generated by mining activities minus direct costs relating to digital mining currencies – including rents for the lighting instrument, power and costs directly related to mine management . The amortization, being a non-cash cost, is not deducted to reach the gross margin of the mines. Gross margin from mines is a non-standard measure of mining efficiency and should not be considered a substitute for other measures of operational performance and profitability of IFRS.
- Earnings before interest, taxes, depreciation and amortization "EBITDA" (a non-IFRS measure) during the quarter was $ 234.337 or 24%.
- Net loss during the quarter was $ 268,741. The higher expenses were non-cash expenses for amortization $ 384,215 and share-based compensation $ 355,712
- As at June 30, 2018 the Company had cash available of $ 9,181,127 and digital currencies worth $ 1,024,455 [19659006] At June 30, 2018, total assets were $ 21,373,441, consisting primarily of assets deployed at the flagship facility and cash balances
- During the quarter ended June 30, 2018, Fortress had extracted 93.8 Bitcoin (24.4 Bitcoin in the quarter ended March 31, 2018) worth $ 941.438 based on the price of Bitcoin ranges from US $ 5,908 to US $ 9,803 between April 1, 2018 and June 30, 2018. The value of Bitcoin is dropped to US $ 6,381 as of June 30, 2018, with a negative adjustment to the revaluation of Bitcoin of $ 191,237 during the quarter [19659006] During the quarter ended June 30, 2018, the Fortress had extracted 31.1 million Bitcoin Cash valued at $ 44.815 based on p Bitcoin Cash between US $ 610 and US $ 1,766 between April 1, 2018 and June 30, 2018. The value of Bitcoin C ashes fell to $ 748 USD on June 30, 2018, resulting in a negative adjustment for the revaluation of Bitcoin Cash of $ 14.591 during the quarter.
Other highlights:
- Fortress completed the acquisition of Flagship Facility by WeHash on February 16, 2018.
- Following the closing of the acquisition of Flagship Facility, the Company received its shipment of 1,400 AS9 S9 hardware in the first week of March and implemented all these by the end of March; and
- Executed Letters of Intent and initiated due diligence on a 9 MW and 100 MW facility.
Subsequent events:
- Extraction of 39 Bitcoins and 29 Bitcoins Cash from 1 July to 22 August 2018
- On 22 August 2018, the Fortress extracted more than 157 Bitcoins and 60 Bitcoins Cash from the beginning ; and,
- worked with the TSX-V and other regulatory bodies to receive approval for our qualifying transaction with FCII, culminating in a successful listing on the TSX-V on 22 August 2018 with the symbol "FORT". [19659014] About Fortress Blockchain Corp.
Fortress Blockchain Corp. is a technology-oriented mining company committed to operating in low-cost regions in North America of green energy. Fortress resources are currently dedicated to achieving the peak of operational efficiency in industrial-scale Bitcoin extraction, in order to provide industry-leading competitive advantage in terms of performance. The Fortress has strategically acquired a state-of-the-art mining facility in Washington, which has been in continuous operation since 2014, serving as a research and development facility to optimize and build the next generation of highly scalable blockchain mining infrastructure.
[1945903] For further information, please contact:
Aydin Kilic
Chief Executive Officer
604 477 9997
[email protected]Prit Singh
Investor Relations
905 510 7636
[email protected]Neither the TSX Venture Exchange nor its regulatory service provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or # 39; accuracy of this press release. [19659028] Forward Looking Statements:
The statements contained in this press release that are not historical facts are "forward-looking information" or "forward-looking statements" (collectively, "Forward-Lo" oking Information " ) pursuant to applicable Canadian securities legislation.The forward-looking information includes, but is not limited to, information on possible events, income, conditions or expected financial returns based on assumptions about future economic conditions and policies. , forecasting information can be identified by using words and phrases such as "plans", "expect" or "do not expect", "is expected", "quote", "scheduled", "suggest", "Optimize", "estimate", "forecast", "intend", "anticipate", "potential" or "do not anticipate", believes "," anomalous "or variations of such words and phrases or statements that certain actions, events or results " can "," could "," would "," could "or" be taken "," occur "or" be achieved ". Forward looking information involves known risks, unknown risks, uncertainties and other factors that may cause actual results, performance or results that are substantially different from future results, performance or results that are expressed or implied by forecasts. Although Fortress Blockchain has attempted to identify important factors that could affect Fortress Blockchain and cause actual actions, events or results that differ materially from those described in the forward-looking Information, there may be other factors that could cause actions, events or results not as expected, estimated or expected. There is no guarantee that forward-looking information will prove to be accurate, as actual results and future events may differ materially from those expected in such statements. As a result, readers should not rely excessively on forward-looking information. Except as required by law, Fortress Blockchain assumes no obligation to publicly disclose any revisions to the forward-looking information contained in this press release to reflect events or circumstances after the date of this document or to reflect the occurrence of unforeseen events.
