NEW YORK--(BUSINESS WIRE)--CMSC was capitalized with approximately $86mm equity and no debt, through asset contributions from two cryptocurrency mining entities, as well as an additional capital raise that concluded at the end of November 2021.
It is intended for the Company’s shares to be direct listed on the OTCQX market on or about December 1, 2022, following the one-year lock-up period. With the anticipated upcoming listing, CMSC looks forward to building a cryptocurrency mining company that will grow shareholder wealth in a prudent and flexible manner.
Murray Stahl, Chief Strategy Officer, stated, “We are an enthusiastic participant in the decentralized crypto monetary policies through the process of cryptocurrency mining, which is revolutionary and has the potential to become the largest asset class. Crypto mining is very profitable because the return on equity is not set by the most efficient node; rather, it is set by the least efficient node. The least efficient participant establishes a rate of return floor and every other participant earns a higher rate of return. This is completely opposite from the conventional centralized winner takes all system where the most efficient company establishes the rate of return ceiling, and all the other market participants earn a lower rate of return. In a blockchain, the miners must collaborate in order for the system to exist, and the more miners there are, the more robust and reliable the network. If the network is more reliable, people are more likely to use it and, if people are more likely to use it, there will be more demand, and the price will go up, at least to the degree that the supply is fixed.”
Further details are available on the Company’s website at https://www.consensusmining.com/#news-link.
Consensus Mining and Seigniorage Corporation (“CMSC”) is an operating business and is not a registered investment adviser or broker-dealer. CMSC does not provide investment, legal or tax advice. Certain information set forth in this letter may contain “forward-looking information”. Forward-looking statements are provided to allow potential investors the opportunity to understand management’s beliefs and opinions in respect of the future so that they may use such beliefs and opinions as one factor in evaluating an investment.
These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance of result expressed or implied by such forward-looking statements. CMSC undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change.
Cryptocurrencies in general, including the mining of cryptocurrencies, represents a relatively new industry and therefore carries special and substantial risks. Investors should appreciate the risks associated with holding and mining cryptocurrencies before investing in such companies.
All material presented is compiled from sources believed to be reliable, but accuracy cannot be guaranteed. Opinions stated herein may change at any time without notice, and past results are not a guarantee of future results. Under no circumstances does the information contained herein represent a recommendation to buy, hold or sell any security.
Consensus Mining and Seigniorage Corporation |
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Statement of Financial Condition |
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| June 30, 2022 | |||
| Assets | |||
| Cash | 65,845,298 |
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| Cryptocurrency miners(1) | 9,800,454 |
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| Mined & held cryptocurrency(2) | 8,132,274 |
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| Loans receivable | 350,000 |
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| Prepaid miner hosting | 325,005 |
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| LP tax reimbursement receivable | 92,600 |
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| Prepaid insurance | 23,141 |
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| Interest receivable | 6,348 |
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| Total assets | 84,575,120 |
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| Liabilities | |||
| Accrued expenses | 46,311 |
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| Other payable | 974 |
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| Total liabilities | 47,285 |
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| Equity | |||
| Contributions | 86,309,313 |
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| Net income | (1,752,317 |
) |
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| Retained earnings | (29,161 |
) |
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| Total equity | 84,527,835 |
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| Total liabilities and equity | 84,575,120 |
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| Notes | |||
| (1) Net of $3,433,731 accumulated depreciation. | |||
| (2) Valued as of each day mined for all cryptocurrency mined after 11/30/2021. Cryptocurrency on hand at 11/30/2021 valued at 11/30/2021 pricing. | |||
Consensus Mining and Seigniorage Corporation |
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Statement of Income |
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| Q2 2022 | |||
| Revenues | |||
| Cryptocurrency mining (1) | 1,070,547 |
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| Dividend revenue | 63,107 |
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| Interest revenue | 5,992 |
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| Total revenues | 1,139,646 |
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| Operating expenses | |||
| Hosting fees | 460,788 |
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| Audit & Tax expenses | 15,000 |
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| Registered agent fees | 6,117 |
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| Transfer agent fees | 3,922 |
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| Management fees | 3,000 |
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| Custody fees | 2,821 |
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| Advertising fees | 2,125 |
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| Insurance expense | 2,104 |
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| Other operating expenses | 4,667 |
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| Coinmint fees | 12 |
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| Total operating expenses | 500,556 |
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| Net operating income | 639,090 |
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| Other expenses | |||
| Depreciation expense | 1,617,994 |
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| Tax expense | 124,917 |
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| Total other expenses | 1,742,911 |
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| Net income | (1,103,821 |
) |
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| Notes | |||
(1) Gross of Coinmint fees |
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