FORT Announces Fourth Quarter 2020 Financial Results TORONTO, April 30, 2021 (GLOBE NEWSWIRE) -- Fortress Technologies Inc. (TSX-V: FORT) (the "Company" or “Fortress”) announces its full year audited financial results for 2020. This fiscal year, and the period to date, has been a pivotal time for the Company as it has exercised strategic oversight of its treasury, and identified a direction for growth.
The Company realized the importance of environmental, social and governance ("ESG") initiatives. As such, the Company has entered into a new partnership with Great American Mining LLC ("GAM"), which specializes in developing and operating environmentally sustainable Bitcoin mining containers which convert vented/flared natural gas into electricity.
In addition to this exciting new foray, the Company has enjoyed a strong boost to its income statement and balance sheet, as a result of its asset value. This has been the result of careful treasury management, as well as fiscal diligence.
In 2020, the Company realized a net income of $5,054,286, or $0.07 earnings per share. The Company has recognized a revaluation gain of $3,541,228 from 168.2 Bitcoin held by the Company at December 31, 2020 and an impairment recovery of $2,519,522 from its existing PPE for the year ended December 31, 2020.
Furthermore, on March 26, 2021 the Company completed a $9.3M bought deal financing with Canaccord Genuity Corp. Since then, in its strategic venture with GAM, the Company has already allocated capital to commence construction of 12 Bitcoin mining containers to be deployed in the US gas fields, where GAM's novel technology captures methane waste gas, a greenhouse gas emitted during the extraction of many hydrocarbon resources and many times more potent than CO2 emissions, and converts the stranded waste gas into a productive energy source for Bitcoin mining.
These 12 containers will allow Fortress to operate 2,160 new generation ASIC miners. Fortress has also already purchased 180 MicroBT ASIC miners for the first container which will produce 11.7 PH/s. Upon deployment of the 12 containers, the resulting hashrate will be between 140 to 200 PH/s depending on the variant of ASIC miner, which will be determined by optimal investment ROI.
The Company realizes the importance of securing ASIC hardware at an attractive $/TH, in order to realize an ROI on initial capital. In addition to this strategic venture with GAM, the Company has its additional existing 20 PH/s of Bitcoin mining capacity.
As of April 29, 2021, after the acquisition of the 12 GAM containers and the 180 MicroBT ASIC miners, the Company holds fiat and digital currencies of approximately $22,900,000, including 53.2 Bitcoin. The Company’s total asset value is $28,400,000.
Fortress reports the following financial results on its existing operations for the three and twelve months ended December 31, 2020.
Operational Highlights:
- Fortress has mined 12.21 Bitcoin for the three months ended December 31, 2020.
- As compared to the three months ended September 30, 2020, in which Fortress mined 13.42 Bitcoin.
- The average Bitcoin price for the three months ended Q4 2020 is US$16,655, compared to US$ 10,612 in Q3 2020 US$8,630 in Q2 2020, and US$7,990 for the average Bitcoin price in Q4 2019.
- During Q4 2020, the Company generated Bitcoin at a cost of $12,846 (based on quantity of Bitcoin mined divided by incurred monthly cash operating expenses, not including prepaid expenses).
Financial Highlights:
- The Company was well capitalized at the end of the quarter with cash balances of $7.0M and digital currencies of $6.2M. Total assets were $13.5M, primarily comprised of cash balances and Bitcoin.
- The Company reported total revenue from the data center operations for the three months ended December 31, 2020 is $264,560 ($189,723 for the three months ended September 30, 2020, $255,235 for the three months ended June 30, 2020, $316,811 for the three months ended March 31, 2020, and $364,028 for the three months period ended December 31, 2019), and a total of $1,683,185 for the year ended December 31, 2019.
- As the Company retained the Bitcoin mined from the data center operations, with the value of Bitcoin at US$28,857 as of December 31, 2020, based on the daily quantity of Bitcoin earned during this fiscal quarter, the unrealized gain (or additional gross mining margin) from the data center operations would be US$195,531.
- As of April 19, 2021, Bitcoin exceeded US$54,000. With the value of Bitcoin at US$54,000, based on the daily quantity of Bitcoin earned during this fiscal quarter. the unrealized gain (or additional gross mining margin) from the data center operations would be US$507,000.
- Fortress had a cash and cash equivalents balance of $7,048,050 as at December 31, 2020 compared to cash balance of $10,293,948 as at December 31, 2019. The cash balance decrease of $3,248,898 during the twelve-month period as the Company balanced its treasury to include Bitcoin, to better align with investor expectations. The Company has also purchased and cancelled 1,450,000 common shares for the amount of $194,324.
- Fortress had a digital currency balance of 168.20 Bitcoin as at December 31, 2020, in addition to the cash balance. Therefore, total value of cash, Bitcoin and accrued interest as at December 31, 2020 was $13,282,292 with Bitcoin at a price of US$28,857.
About Fortress Technologies
Fortress Technologies Inc. (TSX-V: FORT) is a well-capitalized company focused on developing projects where access to growth capital is highly valued, which can also advance ESG and environmentally conscious business initiatives.
For further information, please contact:
Aydin Kilic
Chief Executive Officer
604 477 9997
ir@fortressblockchain.io