TORONTO, Aug. 06, 2021 (GLOBE NEWSWIRE) -- Fortress Technologies Inc. (TSX-V: FORT) (the "Company" or “Fortress”) provides an update on operations and business development in its strategic venture with Great American Mining LLC (“GAM” or “Great American Mining”). GAM specializes in developing and operating environmentally sustainable Bitcoin mining containers which convert vented/flared natural gas into electricity, which reduces greenhouse gas emissions. On April 6, 2021, Fortress announced the launch of a new Environmental, Social, and Governance (“ESG”) conscious Bitcoin mining venture with GAM.
The first container with 180 MicroBT M32S ASIC miners operated by GAM has been successfully hashing at 11.7 PH/s using flared gas at the well pad in Oklahoma.
Fortress recently acquired an additional 540 Micro BT M31SE ASIC miners, to outfit 3 additional containers with GAM. These 540 M31SE ASICs in 3 containers will generate 40.4 PH/s. These ASICs were received in Louisiana at GAM’s facility in the past 2 weeks, where they were tested and installed in 3 new containers. As of press time, these 3 containers are travelling to the natural gas fields in North Dakota and are expected to be connected to flared natural gas supply (thus reducing emissions of methane) and actively hashing by next week - producing approximately 10.6 Bitcoin per month at current difficulty levels.
This will bring the Fortress and GAM Bitcoin mining operating hashrate to 52 PH/s for the first 4 containers in the field, which collectively are expected to produce approximately 13.7 Bitcoin per month (based on current difficulty levels) starting next week.
Furthermore, the Company is pleased to announce it has purchased an additional 1,440 MicroBT M31S ASIC miners, which will fill the remaining 8 containers with Great American Mining and thus complete the first Statement of Work of 12 containers described in the Company’s June 25, 2021 press release. These 1,440 M31S miners in 8 containers will generate an additional 106 PH/s, and are expected to arrive in mid/late August 2021, and to be operational in the flared gas fields and hashing in September 2021.
Upon the deployment of all 12 containers and ASICs, the Company expects to have 158 PH/s of Bitcoin mining capacity from the Fortress/GAM containers, which would collectively generate approximately 41.5 BTC per month based on current difficulty. Under the terms of the strategic venture with GAM, depending on Bitcoin mining economics, Fortress receives between 60-85% of all Bitcoin produced by the containers which are operated by GAM in agreement with the natural gas suppliers. Fortress retains ownership of the ASICs and containers with downside protection in the operating agreement (there is no obligation to continually operate during any periods where Bitcoin mining economics are not profitable for Fortress). The low capital expenditure required to build the containers (which are custom designed and built by GAM) allows for a strategic and iterative rate of expansion. Accordingly, the Company seeks to realize an advantageous return on capital for shareholders through this venture.
Fortress has further exercised diligence and strategy to acquire ASIC miners at a competitive $/TH (USD per tera-hash) price to ensure a good return on capital invested for these 8 containers.
In addition to this, the Company has approximately 20 PH/s from its existing data center operations, which is generating approximately 5 BTC per month.
This would total 178 PH/s and generate approximately 46.5 Bitcoin per month at current difficulty, and is consistent with the Company’s previous projections in April 2021 to achieve approximately 180 PH/s upon completion of this initial stage of the strategic venture with Great American Mining.
Furthermore, the Company is in a strong financial position with approximately $3.0M CAD in cash, in addition to 146.3 Bitcoin in its treasury, for total treasury of approximately $9.8M CAD with Bitcoin at $38,000 USD. The Company is pleased to state that it is currently cash flow positive from existing operations (based on the IFRS revenue and monthly cash operating expenses).
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