Fortress Technologies Inc. Announces First Quarter 2021 Financial Results TORONTO, May 31, 2021 (GLOBE NEWSWIRE) -- Fortress Technologies Inc. (TSX-V: FORT) (the "Company" or “Fortress”) announces the results of its operations for the first quarter and three months period ended March 31, 2021 (“Q1 2021”). The first quarter of the fiscal year constituted a strong start for the Company, with a net income of approximately $3,700,000 which translates to an earnings per share of $0.05. This period also marked the beginning of a new venture with Great American Mining LLC (“GAM”).
The Company realizes the importance of environmental, social and governance ("ESG") initiatives. As such, the Company has entered into a new partnership with GAM, which specializes in developing and operating environmentally sustainable Bitcoin mining containers which convert vented/flared natural gas into electricity, which reduces greenhouse gas emissions.
The Company has commissioned and paid for 12 containers in its strategic venture with GAM, which are currently under production, and these will operate 2,160 new generation ASIC miners.
The first of twelve containers has been built and is currently being populated with 180 MicroBT ASIC miners, and is expected to be deployed and hashing in the gas fields in the first week of June 2021. This will bring the Company’s total operating Bitcoin mining hashrate to approximately 31 PH/s.
As of May 31, 2021, after the acquisition of the 12 GAM containers and the 180 MicroBT ASIC miners, the Company holds fiat and digital currencies of approximately $21,900,000, including 56.2 Bitcoin.
Production of the subsequent containers is underway. The Company is fully funded to acquire the remaining 1,980 ASIC miners for the remaining 11 containers; Fortress is strategically evaluating opportunities at an attractive $/TH rate, to seek a good return on capital invested. These remaining containers would produce an additional 130-180 PH/s of Bitcoin mining hashrate, in addition to the company’s existing capacity. Upon the deployment of all 12 containers and ASICs, the Company will retain a strong working capital balance for further business opportunities.
Fortress reports the following financial results on its operations for the three months ended March 31, 2021.
Operational Highlights:
- Fortress has mined 11.70 Bitcoin for the three months ended March 31, 2021;
- As compared to the three months ended December 31, 2021, Fortress has mined 12.21 Bitcoin.
- The average Bitcoin mined per day during Q1, 2021 was 0.13, as compared to 0.13 during Q4 2020, 0.15 during Q3 2020, 0.24 during Q2 2020 and 0.31 during Q1 2020.
- The average Bitcoin price for the three months ended Q1, 2021 is US$44,847 compared to US$16,655 in Q4, 2020, US$ 10,612 in Q3 2020 US$8,630 in Q2 2020, and US$8,274 for the average Bitcoin price in Q1 2020.
- During Q1 2020, the Company generated Bitcoin at a cost of $15,937 (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 and cash equivalents balance of $21,460,773 and digital currencies of $3,685,351. Total assets were $29,339,617, primarily comprised of cash and cash equivalents and Bitcoin.
- The Company reported total revenue from the data center operations for the three months ended March 31, 2021 is $644,813, ($264,560 for the three months ended December 31, 2020, $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).
- As the Company retained the Bitcoin mined from the data center operations, with the value of Bitcoin at US$58,730, based on the daily quantity of Bitcoin earned during this fiscal quarter, the unrealized gain (or additional gross mining margin) from the data center operation would be US$500,622.
- Fortress had a cash and cash equivalents balance of $21,460,773 as at March 31, 2021 compared to cash balance of $7,048,050 as at December 31, 2020. The cash balance increase of $14,412,723 during the three-month period was from the private placement for total gross proceeds of $9,300,000 in exchange for 14,794,700 units of the Company as well as the sale of Bitcoin.
- Fortress had a digital currency balance of 49.90 as at March 31, 2021, in addition to the cash balance. Therefore total value of cash, Bitcoin and accrued interest as at March 31, 2021 was $25,221,014 with Bitcoin at a price of US$58,730.
- Fortress had cash flow from data center operations of $424,009 during the quarter (which includes proceeds of Gross Mining Margin after prepaid expenses). The Company defines gross mining margin (a non-IFRS measure) as the revenue generated from mining activities less operating costs. Operating costs include monthly cash operating expenses, as well as incidental or accrued expenses. Depreciation, being a non-cash cost, is not deducted to arrive at the gross mining margin. Gross mining margin is a non-standard measure of mining efficiency and should not be considered as a substitute for other IFRS operating and profitability measures of performance.
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.