Q4 2023 Results

Fort Stockton, Texas – February 18th,  2024 – Cormint Data Systems, Inc. (“Cormint”), an emerging Bitcoin miner focused on becoming America’s lowest cost producer of Bitcoin, announced today its unaudited financial results for Q4 FY23.   

Financials in USD Q1 2023Q2 2023Q3 2023Q4 20232023
Nameplate Hashrate1500 PH/s500 PH/s960 PH/s960 PH/s960 PH/s
Bitcoin Mined2135116113154519
Power Price achieved2.3c kWh2.5c kWh3.9c kWh2.4c kWh2.8c kwH
Power Expenses per BTC $5,989$7,725$14,110$9,463$9,177
Gross Margin73%72%50%74%68%
Admin Expenses per BTC $8,818$11,273$10,777$9,774$10,078
Operating Expenses per BTC $14,806$18,998$24,887$19,237$19,255
Operating Margin34%32%11%48%34%
  1. Deployed as at period end
  2. Sum of quarters may not equal Full Year due to rounding
  3. Operating Expenses includes electricity and administrative costs including cash and stock compensation expenses.   It excludes items such as depreciation, interest, and digital asset impairment.

Q4 was a strong result from Cormint as favorable trends in hashprice combined with attractive power prices to deliver a gross margin of 74%.  Our proprietary software enables a strategy of economically perfect voluntary curtailment in which our fleet rapidly powers down in price intervals where the power price exceeds the Bitcoin Opportunity Value.  This resulted in our fleet mining during 86% of available time intervals including time intervals where we benefited from negatively priced power. Overall, during Q4 Cormint mined with an average power price of 2.4c kWh.   On a year-to-date basis, Cormint’s power strategy has delivered an average power price of 2.8c kWh while mining in 87% of available time intervals.  While we expect continued seasonality to this performance, the 2023 full year result validates our thesis and we believe this result places Cormint amongst the leaders of the industry.    

With our hashing power at ~1EH, all in our proprietary immersion solution, the engineering team is now focused on deploying our proprietary Air-Cooled expansion for Phase 3 which will energize later in Q1.    Preliminary performance data is encouraging and will position Cormint to monetize a wide range of ASIC models through lower priced power intervals in particular where our capacity to acquire, repair and deploy used miners delivers superior risk adjusted returns and short payback periods.  

With the halving approaching, Cormint continues to focus on extracting additional efficiencies in our capex, power strategy, and administrative expenses in our pursuit of being the lowest cost producer of Bitcoin in North America while mining bitcoin at a substantial discount to the cost it can be acquired in the open market.  Furthermore, Cormint continues to manage its financial resources so that it can thrive in all conceivable market conditions.  To that end, it exited 2023 with 539 Bitcoin held on the balance sheet, significant cash reserves, and a sophisticated derivative hedging program.   

After our successful Series A which closed in January 2023, and the success of our innovative Bitcoin denominated venture debt offering, Cormint is fully funded to scale to at least 2.4 EH/s at Fort Stockton by late 2024.    Cormint’s strategic aspiration remains to be the lowest cost producer of Bitcoin in North America and is targeting a statutory profit in 2024 enabled by market leading power costs and administrative costs per Bitcoin. 

For more information, please visit www.cormint.com or contact us.

Contact: [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.