EtherCapital Corporation Reports Third Quarter 2021 Financial Results

Ether CapitalCorporation (“Ether Capital” or the “Company”) (NEO: ETHC) announces the reporting of its financial results as at and for the three and nine months ended September 30, 2021.

As at September 30, 2021:

•               The total value of the Ether held by the Company was $165.4 million

•               The total assets of the Company were $177.5 million

•               The total shareholders’ equity of the Company was $177.2 million

•               TheCompany recorded revenue during the quarter of $376,582 and a net loss of $39,664

•               The Company recorded a gain on other comprehensive income (OCI) of $44.5 million during the quarter, which was the result of the net change in unrealized gain on fair value revaluation of the Company’s digital intangible assets

As at November 10, 2021, the gross value of the assets of theCompany, consisting of Ether, MKR tokens and UNI tokens valued as at November10, 2021 as well as the Company's Wyre investment valued as at September 30,2021, amounted to $263.5 million. On a per basic common share basis, this represents$7.80 of gross asset value per basic common share.

Brian Mosoff, Ether Capital’s CEO said: “Ethereum continues to represent one of the most important technologies ever invented and a once-in-a-generation investment opportunity. Ether Capital is at an exciting and pivotal moment in our journey that is focused on participating in the developments and growth of the Ethereum and Web 3 ecosystem. Over the past few years, we have remained focused on holding the majority of our assets in Ether as they represent what we believed to be the greatest risk/reward opportunity for participating in the technology. We continue to believe that this remains the case for the foreseeable future; however, we also see amazing progress in the underlying technology and ecosystem to enable us to now transition from being a passive owner of our digital assets into an operating business that can generate meaningful cash flow and return on our assets for shareholders. We are focused on technology development with unique IP developed in-house to complement our core asset ownership of Ether. Over the past year, we have worked hard to generate strong revenue streams, starting with the work we did alongside our partner, Purpose Investments, to bring the world’s first Bitcoin and Ethereum ETFs to market, in an effort to provide cash flow to offset our operating costs and fund our product development. To enable our next phase of revenue growth, we recently brought leading technical talent in-house to focus on developing our staking technology to generate productive returns on our asset base, and to develop our product roadmap for new products and services.”

“We had a solid and productive third quarter on a number of fronts. Positive market sentiment in the digital assets space led to strong revenue, which grew over 23% quarter-over-quarter. We are currently very well positioned to exceed this growth rate in the fourth quarter. Based on current market data,Ether Capital’s run-rate annual revenue is over $2 million, which is above our current run rate of operating expenses. We have also made significant progress in our ability to participate in Ethereum staking with a meaningful portion of ourEther balance. We look forward to updating the market on this development in particular in the coming weeks,” continued Mr. Mosoff.

In the third quarter, the Company hired its Chief TechnicalOfficer, Shayan Eskandari, who alongside of management will focus on executing our core business strategy of i) being a net accumulator of Ether on our balance sheet and ii) creating attractive positive value through staking and other technology developments within the ecosystem.

As part of management’s increasing focus on Ethereum and infrastructure development, the Company is disclosing that it is undertaking a review of the non-Ether assets currently on the Company’s balance sheet. Brian Mosoff, Ether Capital’sCEO commented: “we are committed to operating and developing infrastructure on Ethereum and our ownership of Ether as well as our plans to stake a material portion of it in the near future means we are revising our focus away from ancillary assets in the ecosystem. Accordingly, we will be completing a strategic review of our non-Ether assets and considering their role in our development roadmap. Where we do not deem an asset strategic to the Company, we will look to divest such asset and deploy the net proceeds from sale into Ether.”

“There is much to be excited about as we move into the fourth quarter – Ethereum continues to be a go-to platform for developers and applications and we at Ether Capital are beginning to harvest the results of investments we’ve made to-date. As a publicly traded company with a material commitment to staking, we believe we provide a unique opportunity for financial access to Ethereum infrastructure,” continued Mr. Mosoff.

For condensed consolidated interim financial statements for thequarter ended September 30, 2021, please refer to the Company’s website athttp://ethcap.co/. The Company also provides regularly updated disclosure of its investments in the investors section of its website.

The Company’s condensed consolidated interim financial statements, along with the accompanying management’s discussion and analysis have been filed on the System forElectronic Document Analysis and Retrieval (“SEDAR”) and may be viewed under the Company’s profile at www.sedar.com. 

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 in Ethereum’s native utility token “Ether” as a strategic asset, and selectively invests in projects, protocols and businesses that leverage the Ethereum ecosystem and Web 3 technologies. Founded by a highly experiencedBoard of Directors and management team, Ether Capital has the experience and relationships to support businesses and invest in industry-shifting disruptive technologies. 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 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 EtherCapital 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 FinancialReporting Standards (“IFRS”). In this press release, the Company discloses 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 theCompany’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 Etherum 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 datedMarch 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 atwww.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.

Contacts

Brian Mosoff
Chief Executive Officer
Brian@ethcap.co

Stefan Coolican
President and Chief Financial Officer
Stefan@ethcap.co

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