November 1, 2023 by Cormint

FINANCIAL UPDATE - Q3 2023 RESULTS

Fort Stockton, Texas – November 1st, 2023 – 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 Q3 FY23.

(1) Deployed as at period end

(2) Sum of quarters may not equal Full Year due to rounding

During the final weeks of Q3 Cormint energized a further ~4,600 miners as part of its Phase 2 expansion thereby achieving a deployed fleet of ~9,200 miners, all in our proprietary Immersion solution. Phase 2 has been delivered at a substantial reduction in capital expenditure per unit thanks to the end-to-end in-house engineering efforts of the team.

The hot summer months at our Fort Stockton flagship site will often present the most challenging power market environment for our operations – the volatility of power price tends to increase, and the price of peak loads are at their yearly high. Nonetheless, 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 81% of available time intervals including time intervals where we benefited from negatively priced power. Despite the challenging Q3, our September YTD Power Price achieved remained under 3c kWh where we have mined 87% of available time intervals which positions us favorably relative to publicly listed competitors.

Cormint’s power consumption in these hot summer months reflects the synergistic relationship between Bitcoin mining and the needs of other consumers of the Grid. In the words of our CEO, Jamie McAvity, “When demand outstrips supply, the price signal is clear, and the power generation of West Texas is solely consumed by the industrial and retail consumers across the state – Bitcoin mining is good for Texas just as Texas is good for Bitcoin Mining”.

Looking ahead, the team is focused on implementing continuous improvements to our proprietary software stack and finalizing the design of our Phase 3 expansion which is expected to energize a further 0.6 EH/s of self-mining in Q1 2024 using our proprietary Air Cooled Solution. This mixed fleet of Immersion and Air-Cooled deployments will enhance the flexibility of the business to generate value in all prospective market conditions and with a wide spectrum of miner models. Given the investment already made in human and physical capital, Cormint expects its operating margins will improve as the business scales such that Administrative Expenses per BTC Mined to be market leading as the business scales through 2024.

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.

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.