TORONTO, July 25, 2018 /CNW/ - HyperBlock Inc. (CSE: HYPR) — one of North America's largest and most diversified crypto asset enterprises — is on-track to meet its 2018 goals and has reported first quarter expected EBITDA of US$4.9M and revenue of US$7.4M for its predecessor company, HyperBlock Technologies Corp.
image: https://mma.prnewswire.com/media/723039/HyperBlock_Inc__HyperBlock_Inc__Shares_Financial_Update_Q1_EBITD.jpg
The company, which formed on July 10, 2018 — following the business combination of HyperBlock Technologies Corp., CryptoGlobal and Project Northwest — recently began trading on the Canadian Securities Exchange under the symbol HYPR.
The newly formed HyperBlock Inc. operates 21,500+ servers on 28.5MW of power and offers five product offerings — from hash rate sales and cloud mining to a proprietary crypto security vault solution that will launch later this year.
"HyperBlock is steadfastly focused on the fundamentals — and on building long-term, sustainable financial strength for our shareholders," says HyperBlock Inc. CFO Tim Smart.
Financial Strength through Diversity
"HyperBlock's financial strength is based on our unique, diversified business model that helps the company survive, thrive and build revenue, even during challenging market downturns," explains HyperBlock Inc. CEO Sean Walsh.
"HyperBlock offers five complimentary products — including our innovative Mining-as-a-Service hash rate sales, cloud mining and our proprietary crypto custodial vault, which will launch later this year," says Walsh. In addition to its core business divisions, HyperBlock operates an expanding R&D lab focused on Bitcoin adoption and usage.
Financial Highlights
In addition to providing an update on newly formed HyperBlock Inc.'s market performance, and in compliance with securities regulations, the company also provided the operating and financial results update for its privately-held predecessor HyperBlock Technologies Corp., for the three month period ended March 31, 2018. These financial statements are available under the company's issuer profile on SEDAR at www.sedar.com under the heading "Financial statements of RTO acquirer."
On a combined basis, HyperBlock Technologies Corp and Project Northwest for the three months ended March 31, 2018, had US$4.9 million of EBITDA and US$7.4 million of revenue.
| Figures in US$ millions | | | Figures in US$ millions | | |
| | | | | | |
| Project Northwest | Q1 2018 | | HyperBlock Technologies Corp. | | Q1 2018 |
| Operating Income | 5,842,603 | | Operating Income | | 211,926 |
| | Add: Depreciation | 701,257 | | | Add: Depreciation | | 669,603 |
| | EBITDA | 6,543,860 | | | EBITDA | | 881,529 |
| | Less: Gain on Hardware Sold to HyperBlock | (2,843,200) | | | Add: Hosting Fees Paid to Spokane | | 349,982 |
| Adjusted EBITDA | 3,700,660 | | Adjusted EBITDA | | 1,231,511 |
| | | | | | |
| Combined Q1 2018 EBITDA | 4,932,171 | | | | |
| | | | | | |
| | | | | | |
| Revenue - Project Northwest | 9,974,557 | | | | |
| Deduct: Servers sold to HyperBlock | (4,000,000) | | | | |
| Adjusted Revenue - Project Northwest | 5,974,557 | | | | |
| Revenue - HyperBlock | 1,466,458 | | | | |
| Combined Q1 2018 Revenue | 7,441,015 | | | | |
As previously reported for the three months ended March 31, 2018, CryptoGlobal (which was acquired by HyperBlock on July 10, 2018) generated a loss from operations of approximately US$2.6M as it was still in the process of building-out the required infrastructure for its Canadian cryptocurrency datacenters.
About HyperBlock Inc.
HyperBlock is a leading North American diversified crypto-asset company which operates one of North America's largest and most efficient cryptocurrency datacenters. HyperBlock operates five complimentary product offerings focused on helping people and businesses create, safeguard, manage and grow crypto-assets. HyperBlock profit centers include Mining-as-a-Service (MAAS), self-mining, server hosting, server hardware sales and a proprietary custodial vault product. Learn more at www.hyperblock.co
Financial Measures
There are measures included in this news release that do not have a standardized meaning under generally accepted accounting principles (GAAP) and therefore may not be comparable to similarly titled measures and metrics presented by other publicly traded companies. The company includes these measures because it believes certain investors use these measures and metrics as a means of assessing financial performance. EBITDA (earnings before interest, taxes, depreciation and amortization is calculated as net earnings before finance costs (net of finance income), income tax expense, and depreciation and amortization of intangibles) is a non-GAAP financial measure that does not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies.