TORONTO–(BUSINESS WIRE)–Ether Capital Corporation (Ether Capital or the Company) (CBOE CA: ETHC) announces the reporting of its unaudited interim financial results for the three-month period ended March 31, 2024.
The first quarter of 2024 saw a continuation of the operational strategy adopted in 2023 of focusing on staking a material portion of the Company’s Ether to generate yield, with approximately 64% on internal proprietary staking infrastructure. During the quarter, the Company was heavily engaged in its strategic review which involved the analysis of various strategic options for the Company, and ultimately resulted in the Company entering into a framework agreement (the Framework Agreement) with Purpose Unlimited Inc. and Purpose Investments Inc. (together, Purpose), pursuant to which (i) the Company would convert into an exchange-traded fund (the Fund) structured as a mutual fund corporation that would be managed by Purpose Investments Inc. and (ii) in furtherance of the ETF conversion, Purpose would purchase certain non-Ether assets of the Company (the Transaction) (for more details see the May 2nd Press Release).
Highlights for the first quarter of 2024 include:
- Total treasury was 46,274 Ether units, of which 45,408 or 98% of the Company’s Ether was staked.
- Total value of digital assets held was $227.4 million as at March 31, 2024, a 62.0% increase from the value at December 31, 2023 ($140.3 million) and a 115% increase from the value at March 31, 2023 ($105.5 million). This increase was primarily the result of the increase in the value of of 62.5% in the first quarter of fiscal 2024 to $4,912 ($3,022 as at December 31, 2023) and a 99% increase in the Ether price year over year ($2,471 at March 31, 2023).
- Total revenue was $1.8 million versus $1.2 million in the comparable quarter of 2023; an increase of 52.5%.
- Staked Ether Rewards (yield) of 413 Ether Units or $1.6 million, compared to 430 Ether units or $0.9 million in the comparable quarter in 2023. During the current quarter, the gross yield was 3.63% p.a. (5.5% for Q1 2023).
- Operating Expenses before Impairment and Revaluation Expenses (Operating Expenses) of $1.0 million, a 21.7% decrease from the same quarter in 2023 ($1.3 million).
- Repurchase of 442,900 shares under the normal course issuer bid program (NCIB) at a weighted average share price of $3.52 per share, for a total cash consideration of $1.5 million. Total shares repurchased since the inception of the NCIB were 1,169,300…
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