Fortress Technologies Announces Second Quarter 2021 Financial Results and Management Changes

TORONTO, Aug. 25, 2021 (GLOBE NEWSWIRE) -- Fortress Technologies Inc. (TSX-V: FORT) (the "Company" or “Fortress”) announces the results of its operations for the second quarter and six months period ended June 30, 2021 (“Q2 2021”). The first six months of the fiscal year constituted a strong start for the Company, with net income of approximately $2.9 million or earnings per share of $0.03. This period also marked the launch of our strategic venture with Great American Mining LLC (“GAM”).

GAM specializes in developing and operating environmentally sustainable Bitcoin mining containers which convert flared natural gas into electricity thereby reducing greenhouse gas emissions.

The Company has commissioned 12 containers in its strategic venture with GAM, and these can operate 2,160 new generation ASIC miners (or 180 ASIC miners per container). Currently, 4 of these containers are actively hashing in the field producing approximately 52 PH/s.

Methane has a global warming potential that’s 25-80x that of CO2 and the practice of mining Bitcoin with stranded gas reduces the potential emission of methane into the atmosphere. Additionally, the current 4 containers operating in North Dakota are utilizing roughly 450 MCFD (450,000 cubic feet per day) of associated gas that would otherwise be flared into the atmosphere. Once fully operational, the project will utilize roughly 1,800 MCFD of associated gas that would otherwise be flared into the atmosphere.

The remaining 8 containers have been constructed, and 1,440 MicroBT M31S ASIC miners have been shipped from China. The Company expects these remaining 8 containers will be deployed in the gas field by the end of September 2021 and will bring the Company’s total operating Bitcoin mining hash rate with GAM to approximately 158 PH/s. Fortress also continues to operate its 20 PH/s data center operation in Washington State. Our portfolio of bitcoin mining assets is expected to produce 27.6 Bitcoin per month (based on current difficulty) to Fortress by as the Fortress and GAM expect that the remaining 8 containers are deployed throughout the month of September 2021.

The company maintains a healthy treasury at quarter end with a Bitcoin a balance of 140.14 as of June 30, 2021, in addition to the cash balance of $12.1 million. Consequently, the total value of cash, Bitcoin and accrued interest as of June 30, 2021 was $18,350,165 at a US$35,847 price per bitcoin.

Management Changes

Fortress announces that effective September 20, 2021, Aydin Kilic will resign as CEO and President of Fortress to pursue a new opportunity as COO and President of Hive Blockchain Technologies (NASDAQ: HVBT). Roy Sebag, who is Chairman of Fortress has been appointed interim CEO of the company.