September 5, 2023 by Cormint

BITCOIN FINANCIAL SERVICES UPDATE - 650 BTC RAISED

Fort Stockton, Texas – April 6th, 2023 – Cormint Data Systems, Inc. (“Cormint”), an emerging Bitcoin miner focused on becoming North America’s lowest cost producer of Bitcoin provides an update on its Capital Management activities.

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 delighted to provide an update on our capital position having successfully concluded on the first window of our 2023 Bitcoin denominated Venture Debt offering.

After successfully closing its $30m Series A in January 2023, Cormint has now raised a total of 649 Bitcoin from its 2022 and current 2023 Offering of Bitcoin Denominated Venture Debt. Investors in the current Offering 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.

The 2023 Bitcoin Denominated Venture Debt Offering avails itself of Rule 506c of Regulation D Exemption which permits an issuer to broadly solicit and generally advertise an offering, provided that all purchasers in the offering are accredited investors and certain other conditions are satisfied. The offering provides investors with an interest rate of 10% compounding daily, senior secured position in the capital structure over all assets of the company, a 3 year term, and has substantial warrant coverage which allows investors to participate in Cormint’s growth. Cormint believes this offering is the first of its kind and is proud to be at the forefront of innovation in Bitcoin denominated capital markets.

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.

After the successful Series A and ongoing success of the Offering, Cormint has now fully funded its expansion plan to 1 EH/s of self mining in September 2023, and also fully funded a further expansion to 1.5 EH/s of self mining in Q1 2024. The second window for the 2023 offering is expected to open again in September 2023 with BTC raised expected to contribute to funding our 2024 expansion. We continue to expect to have at least 2.4 EH/s of self-mining capacity by late 2024 at our flagship Fort Stockton site.

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.