CryptoGlobal Meets Q1 Machine Delivery Target of 8563 Machines
Expects to Achieve Positive EBITDA and Cash Flow in April 2018
TORONTO, March 15, 2018 /CNW/ - (TSXV: CPTO) CryptoGlobal Corp. — one of Canada's leading blockchain and FinTech companies — confirmed today it has accepted delivery of its final shipment of Q1 mining machines and now has 8563 machines in inventory.
The company is currently standing up machines in its mining facilities in Ontario and Quebec — along with strategic partner locations in Newfoundland and Quebec — and expects to start delivering positive monthly EBITDA (non-GAAP measure) and cash flow in April 2018.
7100 Machines Actively Mining By End of March
CEO Rob Segal says the company is on-track to have approximately 7100 machines actively mining by the end of March; bringing the company's current operating capacity to 11 MW by the end of the month.
All 8563 of its mining rigs are scheduled to be operational by the end of April 2018.
"CryptoGlobal's operations and engineering team are 100% focused on standing up machines throughout March and we'll continue to update our shareholders on our operational and financial progress as we move into positive EBITDA and cash flow this April," says Segal.
To date, CryptoGlobal President James Millership says the company has paid for and received delivery of the following machines:
| S9s |
= 3743 |
| GPUs |
= 1620 |
| L3s |
= 2100 |
| DASH |
= 1100 |
| Total |
= 8563 |
Millership says this represents a portfolio allocation of roughly 44% Bitcoin, 24% Litecoin, 13% Dash and 19% Ether. This mix will be optimized as the company continues to reinvest in growing its mining revenues.
Millership says the company expects to be EBITDA and cash flow positive starting in April 2018.
As previously announced, it is anticipated that 50% of company earnings will be reinvested in technology and scaling its operations, including its newly announced Sarnia, Ontario facility — which has short-term capacity of 30 MW and the potential to scale to over 100 MW as part of a 10 year land and Power Purchasing Agreement (PPA).
CryptoGlobal – We Power the Blockchain
CryptoGlobal is a leading Canadian blockchain and financial technology company built on a strong core of diversified cryptocurrency mining. Currently, CryptoGlobal focuses on mining Bitcoin, DASH, Ether and Litecoin — using a mix of custom-tuned mining technologies.
Learn more about CryptoGlobal and the future of mining at www.cryptoglobal.io
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.
Cautionary Note Regarding Forward Looking Information
This news release contains certain forward-looking information and forward-looking statements within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. These forward-looking statements may not be appropriate for other purposes. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate, among other things, to: information pertaining to strategy, plans, or future financial performance, such as statements with respect to future revenues, EBITDA, cash flows and other statements that express management's expectations or estimates of future performance, the anticipated timing of future cash flow and positive EBITDA, the number of machines that are expected to be running by various dates and future operating capacity, the proposed use of the company's earnings and the timing and receipt of the required regulatory approvals for the proposed acquisition of the Sarnia facility.
These forward-looking statements are based on reasonable assumptions and estimates of management of the company at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to materially differ from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors, among other things, include: that market prices will be consistent with expectations, the continued availability of capital and financing, general economic, market and business conditions will be consistent with expectations, satisfaction or waiver of all applicable conditions to the completion of the proposed acquisition of the Sarnia facility, fluctuations in general macroeconomic conditions; fluctuations in securities markets; fluctuations in the prices of cryptocurrencies mined by the company; historical prices of cryptocurrencies and the ability of the company to mine cryptocurrencies consistent with historical prices; higher operating costs; the presence of laws and regulations that may impose restrictions on the ability of the company to operate it business; the speculative nature of cryptocurrency mining and blockchain operations; changes in project parameters as plans continue to be evaluated; and those factors described under the heading "Risks Factors" in the company's most filing statement dated January 17, 2018 available on SEDAR. Although the forward-looking statements contained in this news release are based upon what management of the company believes, or believed at the time, to be reasonable assumptions, the company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements and information. There can be no assurance that forward-looking information, or the material factors or assumptions used to develop such forward-looking information, will prove to be accurate. The company does not undertake any obligations to release publicly any revisions for updating any voluntary forward-looking statements, except as required by applicable securities law.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.
SOURCE CryptoGlobal Corp.
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