Blockchain Power Reports Second Quarter 2018 Results
August 28, 2018
TORONTO, ONTARIO – August 28, 2018: Blockchain Power Trust (“Blockchain Power” or the “Trust”) (TSXV: BPWR.UN) today released its financial results for the three and six months ended June 30, 2018. All amounts in this release are expressed in Canadian Dollars unless otherwise indicated.
- Produced 34,778 MWh of energy for the second quarter ending June 30, 2018, an increase of 74% from the second quarter of 2017. Produced 80,133 MWh of energy for six months ending June 30, 2018, an increase of 103% from the comparative period in 2017.
- Revenue of $4.8 million for the second quarter, an increase of 43% from the second quarter of 2017. Revenue of $9.9 million for the six months ended June 30, 2018, an increase of 61% from the comparative period of 2017.
- Net earnings of $2.8 million for the second quarter of 2018, an increase of 180% over the net earnings of $1.0 million in the second quarter of 2017. Net loss of $2.6 million for the six months ended June 30, 2018.
- Earned operating margin (revenue less cost of sales excluding depreciation) of $2.8 million for the quarter, an increase of 22% over the operating margin of $2.3 million for the second quarter of 2017 (see reconciliation of operating margin under “Non-GAAP Measures”) and $5.8 million in operating margin for the six months ended June 30, 2018, an increase of 33% from 2017.
- Commenced cryptocurrency mining operations in June 2018. Commissioned 1,550 mining units (2.09 MW, 21.7 PH/s) and subsequent to quarter end commissioned an additional 432 machines utilising liquid immersion cooling for aggregate 27.8 PH/s of computing capacity consuming approximately 2.8 MW.
- Mined 22 Bitcoin during the second quarter of 2018 with revenue of $0.2 million from mining operations at an average realized price of $8,720 (US$6,637) per Bitcoin.
J. Colter Eadie, Chief Executive Officer of Blockchain Power commented “We are very pleased by the continued performance according to plan across our renewable energy portfolio. We are also excited to have commenced cryptocurrency mining in Romania and achieved a state of stable operation. Our growing portfolio of operations continues to perform in a consistent and predictable manner, the value of which we believe is currently being underestimated and we hope to communicate more effectively to capital markets.”
For further information please contact:
J. Colter Eadie
About Blockchain Power Trust
The Trust, through its direct and indirect subsidiaries in Canada, the Netherlands and Romania, acquires interests in renewable energy, blockchain and cryptocurrency related assets in Romania, other countries in Europe and abroad that can provide stable cash flow to the Trust and a suitable risk-adjusted return on investment. The Trust seeks to provide investors with long-term, stable value creation, while preserving the capital value of its investment portfolio through investment in a range of operational green energy, blockchain and cryptocurrency related assets. The Trust intends to qualify as a “mutual fund trust” under the Income Tax Act (Canada) (the “Tax Act”). The Trust will not be a “SIFT trust” (as defined in the Tax Act), provided that the Trust complies at all times with its investment restriction which precludes the Trust from holding any “non-portfolio property” (as defined in the Tax Act). All material information about the Trust may be found under the Trust’s issuer profile at www.sedar.com.
Statements in this press release contain forward-looking information. Such forward-looking information may be identified by words such as “anticipates”, “plans”, “proposes”, “estimates”, “intends”, “expects”, “believes”, “may” and “will”. The forward-looking statements are founded on the basis of expectations and assumptions made by the Trust. Details of the risk factors relating to Blockchain Power and its business are discussed under the heading “Business Risks and Uncertainties” in Blockchain Power’s annual management’s discussion & analysis dated May 15, 2018, a copy of which is available on Blockchain Power’s SEDAR profile at www.sedar.com. Most of these factors are outside the control of the Trust. Investors are cautioned not to put undue reliance on forward-looking information. These statements speak only as of the date of this press release. Except as otherwise required by applicable securities statutes or regulation, Blockchain Power expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.
Neither the TSXV nor its regulation services provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
The Trust has included certain non-GAAP measures to supplement its consolidated financial statements, which are presented in accordance with IFRS, including operating margin, adjusted earnings before interest, taxes and depreciation (“EBITDA”) and adjusted earnings before interest, taxes and depreciation per Unit.
Operating margin is calculated as cost of sales from revenues as follows:
|For the three months ended||For the six months ended|
|(in Canadian Dollars unless otherwise noted)||June 30, 2018||June 30, 2017||June 30, 2018||June 30, 2017|
|Cost of sales excluding depreciation||1,963,302||1,038,129||4,100,475||1,816,694|
The Trust believes that operating margin, together with measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Trust. Non-GAAP financial measures do not have any standardized meaning prescribed under IFRS, and therefore they may not be comparable to similar measures employed by other entities. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Management's determination of the components of non-GAAP and additional measures are evaluated on a periodic basis influenced by new items and transactions, a review of investor uses and new regulations as applicable. Any changes to the measures are duly noted and retrospectively applied as applicable.