Fort Stockton, Texas – April 6th, 2023 – Cormint Data Systems, Inc. (“Cormint”), is innovating across the full value chain of Bitcoin mining – power, engineering, and capital – in its pursuit to become the lowest cost producer of Bitcoin in North America. We are pleased to announce the successful conclusion of our 2023 Bitcoin denominated Venture Debt offering as we operate at the forefront of innovation in Bitcoin denominated financial services.
After successfully closing a $30m Series A in January 2023 and delivering outstanding EBITDA results year-to-date, Cormint has now raised a total of 949 Bitcoin from over 30 investors, marking the successful launch of its Bitcoin denominated financial services platform. Investors included the Bitcoin Opportunity Fund, UDHC, Jonathan Marcus, the co-founder of Staked, and Meanwhile Incorporated, the parent company of the world’s first BTC life insurer, along with several of Cormint’s own management team.
The offering provided Accredited investors with a BTC denominated interest rate of 10% compounding daily, senior secured position in the capital structure over all assets of the company, a 3 year term, and had substantial warrant coverage which allows investors to participate in Cormint’s growth. Cormint believes this offering was the first of its kind by a non-Financial Corporation and is proud to have found early product market fit in its Bitcoin denominated financial services platform.
The use of Bitcoin denominated debt in the capital structure of a Bitcoin miner has powerful risk management characteristics relative to USD denominated debt. This is especially true for a miner like Cormint that expects to consistently operate at the leading edge of industry cost efficiency. The Bitcoin raised is used to acquire assets whose value has a high correlation to the price of Bitcoin – namely ASICs and associated mining infrastructure. These assets generate Bitcoin when deployed. The resulting elimination of asset-liability mismatch otherwise found in USD denominated debt instruments is a powerful risk mitigant in bear and bull markets alike. In bull markets, Cormint expects that its gross margin expands as USD revenue per unit of hashing power increases. Conversely, in bear markets, we expect that difficulty will fall as less efficient miners cease production such that the more efficient miners who remain in operation will earn more BTC from the same hashing power.
Given the Equity and Debt capital now raised, Cormint has now fully funded its expansion plan to at least 2.4 EH/s of self mining by Q3 2024 at its Fort Stockton Site in Texas. With the experience gained in raising Bitcoin denominated debt, Cormint now looks forward to bringing further innovations to Bitcoin denominated capital markets through its platform in the coming year.
For more information, please visit www.cormint.com or contact us at [email protected]
Please note that this press release is for informational purposes only and it does not represent an offer to sell or the solicitation of an offer to buy any of Cormint’s securities.
This press release contains a number of forward-looking statements. Words such as “expect,” “will,” “working,” “plan” and variations of such words and similar future or conditional expressions are intended to identify forward-looking statements. These forward-looking statements reflect Cormint’s current views with respect to, among other things, future events. These forward-looking statements are not guarantees of future results and are subject to a number of risks and uncertainties, many of which are difficult to predict and beyond Cormint’s control. Important factors that may cause actual results to differ materially from those in the forward-looking statements include, but are not limited to Cormint’s ability to deliver and execute on its strategic plans; Cormint’s ability to maintain free cash flows and increase its operating margins and other risks related to Bitcoin mining.
