TORONTO, Aug. 06, 2021 (GLOBE NEWSWIRE) -- Fortress Technologies Inc. (TSX-V: FORT) (the "Company" or “Fortress”) provides an update on operations and business development in its strategic venture with Great American Mining LLC (“GAM” or “Great American Mining”). GAM specializes in developing and operating environmentally sustainable Bitcoin mining containers which convert vented/flared natural gas into electricity, which reduces greenhouse gas emissions. On April 6, 2021, Fortress announced the launch of a new Environmental, Social, and Governance (“ESG”) conscious Bitcoin mining venture with GAM.
The first container with 180 MicroBT M32S ASIC miners operated by GAM has been successfully hashing at 11.7 PH/s using flared gas at the well pad in Oklahoma.
Fortress recently acquired an additional 540 Micro BT M31SE ASIC miners, to outfit 3 additional containers with GAM. These 540 M31SE ASICs in 3 containers will generate 40.4 PH/s. These ASICs were received in Louisiana at GAM’s facility in the past 2 weeks, where they were tested and installed in 3 new containers. As of press time, these 3 containers are travelling to the natural gas fields in North Dakota and are expected to be connected to flared natural gas supply (thus reducing emissions of methane) and actively hashing by next week - producing approximately 10.6 Bitcoin per month at current difficulty levels.
This will bring the Fortress and GAM Bitcoin mining operating hashrate to 52 PH/s for the first 4 containers in the field, which collectively are expected to produce approximately 13.7 Bitcoin per month (based on current difficulty levels) starting next week.
Furthermore, the Company is pleased to announce it has purchased an additional 1,440 MicroBT M31S ASIC miners, which will fill the remaining 8 containers with Great American Mining and thus complete the first Statement of Work of 12 containers described in the Company’s June 25, 2021 press release. These 1,440 M31S miners in 8 containers will generate an additional 106 PH/s, and are expected to arrive in mid/late August 2021, and to be operational in the flared gas fields and hashing in September 2021.
Upon the deployment of all 12 containers and ASICs, the Company expects to have 158 PH/s of Bitcoin mining capacity from the Fortress/GAM containers, which would collectively generate approximately 41.5 BTC per month based on current difficulty. Under the terms of the strategic venture with GAM, depending on Bitcoin mining economics, Fortress receives between 60-85% of all Bitcoin produced by the containers which are operated by GAM in agreement with the natural gas suppliers. Fortress retains ownership of the ASICs and containers with downside protection in the operating agreement (there is no obligation to continually operate during any periods where Bitcoin mining economics are not profitable for Fortress). The low capital expenditure required to build the containers (which are custom designed and built by GAM) allows for a strategic and iterative rate of expansion. Accordingly, the Company seeks to realize an advantageous return on capital for shareholders through this venture.
Fortress has further exercised diligence and strategy to acquire ASIC miners at a competitive $/TH (USD per tera-hash) price to ensure a good return on capital invested for these 8 containers.
In addition to this, the Company has approximately 20 PH/s from its existing data center operations, which is generating approximately 5 BTC per month.
This would total 178 PH/s and generate approximately 46.5 Bitcoin per month at current difficulty, and is consistent with the Company’s previous projections in April 2021 to achieve approximately 180 PH/s upon completion of this initial stage of the strategic venture with Great American Mining.
Furthermore, the Company is in a strong financial position with approximately $3.0M CAD in cash, in addition to 146.3 Bitcoin in its treasury, for total treasury of approximately $9.8M CAD with Bitcoin at $38,000 USD. The Company is pleased to state that it is currently cash flow positive from existing operations (based on the IFRS revenue and monthly cash operating expenses).
About Fortress Technologies
Fortress Technologies Inc. (TSX-V: FORT) is a well-capitalized company focused on developing projects where access to growth capital is highly valued, which can also advance ESG and environmentally conscious business initiatives.
For further information, please contact:
Aydin Kilic
Chief Executive Officer
604 477 9997
ir@fortressblockchain.io
Cautionary Statement
Trading in the securities of the Company should be considered highly speculative. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This news release contains certain “forward-looking information” within the meaning of applicable Canadian securities laws that are based on expectations, estimates and projections as at the date of this news release. The information in this release about future plans and objectives of the Company, are forward-looking information. Other forward-looking information includes but is not limited to information concerning: the establishment and prospects for the Bitcoin mining venture with Great American Mining (“GAM”); the intentions, plans and future actions of the Company, as well as the Company’ ability to successfully mine digital currency; revenue increasing as currently anticipated; the ability to profitably liquidate current and future digital currency inventory; volatility of network difficulty and, digital currency prices and the resulting significant negative impact on the Company’s operations; the construction and operation of expanded blockchain infrastructure as currently planned; and the regulatory environment of cryptocurrency in applicable jurisdictions.
Any statements that involve 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 information and are intended to identify forward-looking information.
This forward-looking information is based on reasonable assumptions and estimates of management of the Company at the time it was made, and involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others, risks relating to: there is no assurance that the Company’s Bitcoin mining venture with GAM will operate as expected on a commercial basis or at all; there is no assurance that the Company will find other profitable undertakings or that it can successfully conclude a purchase of such undertakings at all or on terms which are commercially acceptable; the status and impact of new electrical power rates and the status of deliberations by the Grant County Public Utility District; risks relating to the global economic climate; currency exchange risks; the need for the Company to manage its planned growth and expansion; the effects of product development and need for continued technology change; protection of proprietary rights; the effect of government regulation and compliance on the Company and the industry; network security risks; the ability of the Company to maintain properly working systems; reliance on key personnel; global economic and financial market deterioration impeding access to capital or increasing the cost of capital; and, volatile securities markets impacting security pricing unrelated to operating performance. In addition, particular factors which could impact future results of the business of the Company include but are not limited to: the inability to operate the Bitcoin mining venture with GAM on a profitable basis or at all and thereby impairing the investment in the venture; failure to identify beneficial business opportunities, failure to convert the potential in the pursued business opportunities to tangible benefits to the Company or its shareholders; the impact of new electrical power rates which could impair profitability and operating performance; deliberations by the Grant County Public Utility District which could limit the ability of the Company to carry on business on a profitable basis or at all; the construction and operation of blockchain infrastructure may not occur as currently planned, or at all; the digital currency market; the ability to successfully mine digital currency; revenue may not increase as currently anticipated, or at all; it may not be possible to profitably liquidate the current digital currency inventory, or at all; a decline in digital currency prices may have a significant negative impact on operations; the volatility of digital currency prices; the anticipated growth and sustainability of hydroelectricity for the purposes of cryptocurrency mining in the Grant County of the State of Washington; the ability to complete current and future financings; any regulations or laws that will prevent the Company from operating its business. In addition, particular factors which could impact future results of the business of the Company include but are not limited to: the ability to establish the Bitcoin mining venture with GAM on the agreed schedule in accordance with the contract terms and the potential for further improvements to profitability and efficiency across mining operations; the construction and operation of blockchain infrastructure may not occur as currently planned, or at all; expansion may not materialize as currently anticipated, or at all; the digital currency market; the ability to successfully mine digital currency; revenue may not increase as currently anticipated, or at all; it may not be possible to profitably liquidate the current digital currency inventory, or at all; a decline in digital currency prices may have a significant negative impact on operations; an increase in network difficulty may have a significant negative impact on operations; the volatility of digital currency prices; the ability to complete current and future financings; any regulations or laws that will prevent the Company from operating its business; historical prices of digital currencies and the ability to mine digital currencies that will be consistent with historical prices; an inability to predict and counteract the effects of COVID-19 on the business of the Company, including but not limited to the effects of COVID-19 on the price of digital currencies, capital market conditions, restriction on labour and international travel and supply chains; there will be no regulation or law that will prevent the Company from operating its business; and those risks set out in the Company’s public documents filed on SEDAR. The Company has also assumed that no significant events occur outside of the Company’s normal course of business. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company undertakes no obligation to revise or update any forward-looking information other than as required by law.
