TORONTO--(BUSINESS WIRE)--Ether Capital Corporation (“Ether Capital” or “the Company”) (NEO: ETHC) is proud to announce it has allocated an additional 7,488 Ether (C$13.4 million equivalent) to Ethereum Staking, bringing the Company’s total Staking balance to 28,000 ETH (C$50.2 million equivalent) representing 62 per cent of its total Ether portfolio.
Since Ether Capital’s inception in 2018, the Company has held conviction that Ethereum will one day reshape the global economy and act as a primary settlement layer for financial activity. Staking Ether has always been part of the Company’s core strategy to generate yield and support Ethereum as it continues to be the leading Layer-1 protocol. Ether Capital intends to use a portion of the revenue accrued from Staking (i.e. Staking Rewards) to build critical infrastructure that helps investors navigate the Ethereum ecosystem.
Ether Capital is one of the largest institutional holders of Ether and the first public entity in the world to stake a significant quantity of the token to generate yield. The Company believes Staking an additional 7,488 ETH will maximize shareholder value and position Ether Capital as a dominant player in industry. Security is also paramount, which is why the Company relies on a self-custody solution to safeguard both its Staked and non-Staked Ether in cold storage using a multi-signature wallet. This ensures no other parties are granted access to Company assets.
“Staking has always been a fundamental part of our roadmap and following last year’s successful transition to a Proof-of-Stake blockchain, we continue to put our weight behind Ethereum as the number one platform of choice. By staking this additional Ether off our balance sheet, we help maintain the integrity of the network and further decentralize the ecosystem by moving validators away from a small number of service providers and centralized exchanges,” said Brian Mosoff, CEO of Ether Capital.
“Despite the pullback in asset prices over the past 12 months, we believe Ether Capital is in a healthy position to allocate more of our core ETH to Staking in order to generate an attractive yield and accumulate a greater amount of ETH,” said Ian McPherson, President and CFO of Ether Capital. “In 2022, that yield was approximately 5.1 per cent of Staked Ether, generating revenue that supports the growth of our Company.”
Ether Capital looks forward to seeing how Ethereum’s upgrades and scalability efforts play out in the months ahead and will update the market if it decides to Stake more of its Ether balance.
About Ether Capital Corporation
Ether Capital (NEO: ETHC) is a public technology company with a long-term objective to become a central business and investment hub for the Ethereum ecosystem. The Company has invested the majority of its balance sheet in Ethereum’s native utility token “Ether” as a core strategic asset and yield-generating instrument. The Company is focused on financial infrastructure that supports the Ethereum blockchain and delivers corporate value. Ether Capital’s management team and Board of Directors are comprised of crypto natives, leading venture capitalists and traditional finance experts, which uniquely positions the company to identify and capitalize on opportunities in the digital asset ecosystem. For more information, visit http://ethcap.co.
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 in 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 in this press release is current only as of the date provided and Ether Capital is under no obligation to update this information, other than in accordance with applicable securities laws.
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 net 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 anticipated impact on the Company of its investment in Wyre. 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 assumptions and judgments related to fair value estimates of investment in Wyre, and the other risk factors discussed in the Company’s Annual Information Form dated March 23, 2022, 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 online 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 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.
