Company Provides Annual Audit Status Update and
Shares Anticipated Timing for Q1/Q2 Financials
TORONTO, Sept. 19, 2019 /CNW/ - HyperBlock Inc. ("HyperBlock" or the "Company") (CSE: HYPR) confirmed today that it has fully deployed its first US $1.1M shipment of Bitmain T17 Bitcoin mining servers at its 20 MW US datacenter. The Company reports the new servers are delivering significantly more efficient energy consumption, which has increased HyperBlock's potential datacenter hashrate to over 165 PH/s.
As previously announced, HyperBlock expects to receive its next Bitmain 7nm server order, of US $2.7M, prior to calendar year-end, further boosting its Bitcoin mining power and better positioning the Company for future growth, strategic opportunities and improved profitability.
The Company is financing its new server investment with a US $2M loan from CEO Sean Walsh that was previously announced and completed in June 2019, along with anticipated cash flow from cryptocurrency mining operations.
HyperBlock Reports Positive Working Capital, Continues to Meet Payment Obligations
At this time, the Company has positive working capital, continues to meet its payment obligations to creditors, and is working to conclude the settlement of payables owed to its major creditors. HyperBlock successfully completed an extensive restructuring earlier this year, exiting its Canadian facilities and consolidating operations at its 20MW US datacenter. The Company continues to seek strategic opportunities for expansion.
In the meantime, normal operations continue at the Company's US datacenter, where it enjoys an electricity price of approximately US $0.04 per kWh. Current power contracts are expected to be active into 2022 and HyperBlock expects to continue to grow profitability as it focuses on upgrading older servers with new, more efficient technology.
Update on Audit Status, Q1 and Q2 Financials
The Company continues to work diligently with its auditors so that it may complete the filing of its financial statements, management's discussion and analysis and related officer certifications for the financial year ended December 31, 2018 (the "Annual Filings"). The Company now anticipates its auditors will complete their work by the end of October 2019 and expects to release its Q1 and Q2 2019 financials at the same time as its Annual Filings. The Company plans to hold its AGM shortly after audited financials are released and intends to continue to provide further updates.
About HyperBlock Inc.
HyperBlock is a leading publicly traded crypto-asset enterprise. The Company operates one of North America's most efficient cryptocurrency datacenters and provides complementary product offerings, which include cryptocurrency mining, Mining-as-a-Service (MAAS), server hosting and server hardware sales, depending on market conditions. HyperBlock is committed to operating as sustainably as possible, purchasing electricity for its current 20MW US datacenter from a hydro-electricity generator — and employing advanced recycling technology to minimize environmental impact. Learn more at www.hyperblock.co
Cautionary Note Regarding Forward Looking Information and Future-Orientated Financial Information
Certain information in this news release constitutes forward-looking statements under applicable securities law. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "plan", "believe", "may", "should", "anticipate", "expect", "intend", "forecast" and similar expressions. The forward-looking information contained in this press release includes, but is not limited to, statements related to: the deployment of new Bitmain servers by calendar year-end, the profitability and growth of the Company as a result of the deployment of the Bitmain servers, the future status of the Company's current power contracts, the anticipated completion date of the work conducted by its auditors on the Company and the anticipated filing date of the Annual Filings. These forward-looking statements contained herein are made as of the date of this press release and are based on assumptions and estimates of management, which management considers reasonable, based on information available on the date hereof. Such assumptions may be incorrect. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance or achievements expressed or implied by such forward looking statements. Such factors, among other things, include: general economic, market and business conditions will be consistent with expectations, fluctuations in general macroeconomic conditions; fluctuations in securities markets; risks relating to the Company's ability to execute its business strategy and the benefits realizable therefrom, the ability to retain personnel to execute the Company's business plans and strategies; the ability to retain auditors to perform an audit of the Company's financial statements; the presence of laws and regulations that may impose restrictions on the ability of the Company to operate its business, including securities laws applicable to the Company; the speculative nature of cryptocurrency mining and blockchain operations including but not limited to cryptocurrency prices and mining difficulties; and those factors described under the heading "Risks Factors" in the Company's listing statement dated July 10, 2018 and the risks described in the Company's Management's Discussion & Analysis for the nine months ended September 30, 2018 dated November 29, 2018, each of which is available on the Company's issuer profile on SEDAR. There may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements and information. There can be no assurance that forward-looking information, or the material factors or assumptions used to develop such forward-looking information, will prove to be accurate. The Company does not undertake any obligations to release publicly any revisions for updating any voluntary forward-looking statements, except as required by applicable securities law. All forward-looking information contained in this news release is expressly qualified in its entirety by this cautionary statement.