VANCOUVER, British Columbia, June 01, 2020 (GLOBE NEWSWIRE) — Fortress Technologies Inc. (“Fortress” or the “Company”) (TSXV: FORT), a well-capitalized company currently evaluating emerging opportunities in technology sectors, reports its results of operations for the first quarter and three month period ended March 31, 2020 (“Q1 2020”) and for the fourth quarter and full year ended December 31, 2019 (“YE 2019”). For the full condensed consolidated interim financial statements and management discussion & analysis for the Q1 2020 and YE 2019, please visit the Company’s profile on the System for Electronic Document Analysis and Retrieval (“SEDAR”) at www.sedar.com.
Three-Months Ended March 31, 2020
“We are pleased to report a net income of $640,263 for the first quarter of 2020, which results in an earnings per share of $0.01 for this period,” said Aydin Kilic, CEO of Fortress.
“We have continued to streamline our operations by reducing overhead costs where possible, and as a result, Fortress is in strong financial position, with $10,675,000 of fiat and digital currency, with a Cash Value per Share of $0.15 as of June 1, 2020,” said Aydin Kilic, CEO. “By running a lean operation, the Company has been able to maintain its cash position through treasury management and the Grant County Sublease with WeHash.”
The Company decided to increase its inventory of Bitcoin, with the halving event approaching and the potential for increase in value. Fortress holds an inventory of 60.2 Bitcoin, comprised of 20.6 Bitcoin retained from the Grant County Sublease Amendment with WeHash (the “Sublease”) and 39.6 Bitcoin which were acquired in the first week of May 2020. The 60.2 Bitcoin are worth approximately $845,000 based on the Bitcoin price of US$10,200. In addition to this, as of June 1, the Company held $9,827,000 in cash and GICs, for a total of approximately $10,675,000 held in fiat and digital currencies.
First Quarter 2020 Financial Highlights
(All amounts are in Canadian dollars unless otherwise specified)
- Fortress had a net income of $640,263 during the Q1 2020.
- The Company realized earnings per share of $0.01 for Q1 2020.
- The Company reported total revenue of $316,811 from the Sublease with WeHash during Q1 2020, along with a gain of $758,694 from foreign exchange due to the increase in the US dollars to Canadian dollars from $1.2988 to $1.4187.
- The Company had gross mining margin of $73,365 during Q1 2020.
- As operator of the Grant County flagship facility under the Sublease, WeHash mined 28.47 Bitcoin on behalf of Fortress during Q1 2020.
- WeHash sold 23.82 Bitcoin and wired US$205,324 to Fortress, and retained 4.65 Bitcoin in their Trezor, not to be sold unless authorized by Fortress.
- Production cost of US$6,610 per Bitcoin mined (based on quantity of Bitcoin produced divided by incurred “Monthly Cash Operating Expenses”, which include lease, electrical cost, internet,…