TORONTO--(BUSINESS WIRE)--Ether Capital Corporation (“Ether Capital” or the “Company”) (NEO: ETHC), a leading technology company focused on participating in the development of the Ethereum and Web 3 ecosystem, is pleased to announce the allocation of additional 10,240 Ether, currently worth approximately $38 million (US$30 million), to staking.
The Company’s total Ethereum staking balance now consists of 20,512 Ether, currently worth approximately $76 million (US$59 million). Ether Capital is running validator infrastructure pursuant to an agreement with Figment Inc., an industry leading blockchain services provider. Based on data from the Ethereum Foundation, current staking rewards reflect an approximate 4.9% annual percentage rate. To date, the Company has accrued staking rewards of 91 Ether, or approximately $335,000
The Company intends to stake at least 30,000 of its Ether balance, which represents over 65% of its total Ether balance, to staking prior to the merger of Ethereum’s current mainnet into Ethereum’s Beacon Chain (the “Merge”). The Merge is currently expected to occur later in 2022.
In addition, the Company is announcing the divestment of an additional 766 Maker tokens (“MKR”) for gross proceeds of approximately $1.9 million. The proceeds of the MKR sale will be used for general corporate purposes, which may include share purchases under the Company’s normal course issuer bid or purchases of Ether in furtherance of the Company’s strategy of being a net accumulator of Ether.
Excluding any staking rewards to-date, the Company’s current Ether balance is 44,061, reflecting a market value of approximately $162 million. As at February 13, 2022, the gross value of the assets of the Company, consisting of its Ether and MKR balance valued as at February 13, 2022 as well as the Company's Wyre investment valued as at September 30, 2021, amounted to $166 million. On a per basic common share basis, with basic common shares being those outstanding as at September 30, 2021, this represents $4.92 of gross asset value per basic common share.
“We are thrilled to announce that we are now staking over 20,000 Ether and are well on the path to staking a majority of our Ether balance in the coming months,” said CEO Brian Mosoff. “We are firmly committed to our unique strategy of being a net accumulator of Ether and are proud to provide validation and security to the Ethereum network as it transitions from proof of work consensus to proof of stake.”
About Ether Capital Corporation
Ether Capital is a Toronto-based technology company whose long-term objective is to become the central business and investment hub for the Ethereum and Web 3 ecosystem. Ether Capital has invested the majority of its balance sheet in Ethereum’s native utility token “Ether” as a core strategic asset and intends to become a net accumulator of Ether over time. Ether Capital is focused on technology development to further expand Web 3 technologies and generate corporate value. Ether Capital’s management team and Board of Directors are comprised of crypto-natives, leading venture capitalists and capital market experts, which uniquely positions us to identify and capitalize on opportunities in the digital asset ecosystem.
The content of this document is for informational purposes only, and is not being provided in the context of an offering of any securities described herein, nor is it a recommendation or solicitation to buy, hold or sell any security. The information is not investment advice, nor is it tailored to the needs or circumstances of any investor. Information contained on this document is not, and under no circumstances is it to be construed as, an offering memorandum, prospectus, advertisement or public offering of securities. No securities commission or similar regulatory authority has reviewed this document and any representation to the contrary is an offence. Information contained in this document is believed to be accurate and reliable, however, we cannot guarantee that it is complete or current at all times. The information provided is subject to change without notice and neither Ether Capital Corporation, nor any of its affiliates, will be held liable for inaccuracies in the information presented.
Non-GAAP Measures
The Company’s condensed consolidated financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”). The Company refers to the gross value of its assets and the gross value per basic common share, which are non-GAAP financial measures. These non-GAAP measures are not defined by IFRS, do not have a standardized meaning and may not be comparable with similar measures presented by other issuers. The Company has presented such non-GAAP measures as management believes they are relevant measures of the value of the Company’s underlying assets. Non-GAAP measures should not be considered as alternatives to the information set out in the Company’s financial statements.
Forward-Looking Information
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements in regard to the Ethereum ecosystem. The Company cautions the reader not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. Generally, but not always, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “on pace”, “anticipates”, or “does not anticipate”, “believes”, and similar expressions or state that certain actions, events or results “may”, “could”, “would”, “should”, “might”, or “will” be taken, occur or be achieved.
Forward-looking statements are based on information available to management at the time they are made, management’s current plans, estimates, assumptions, judgments and expectations. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to: general business, economic, competitive, geopolitical, technological and social uncertainties; uncertainties in regard to the development and acceptance of blockchain technology (including proof of stake and Ethereum 2.0), and the Ethereum platform and anticipated timing and impact of the Ethereum network upgrade, the impact of the outbreak of the COVID-19 coronavirus on the Company, and the other risk factors discussed in the Company’s Annual Information Form dated March 25, 2021, the Risk Factors section in its most recently filed management’s discussion and analysis, the Risk Factors section in its Supplement and Base Shelf Prospectus and its other filings available on-line at www.sedar.com. Although the forward-looking information contained in this press release is based on assumptions that the Company believes to be reasonable at the date such statements are made, there can be no assurance that the forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. In addition, the Company cautions the reader that information provided in this press release is provided in order to give context to the nature of some of the Company’s future plans and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update or revise any forward-looking information, except in accordance with applicable securities laws.
