Toronto, Ontario--(Newsfile Corp. - May 13, 2020) - HyperBlock Inc. (CSE: HYPR) ("HyperBlock" or the "Company") today provided an operational update to shareholders related to the risks associated with the recent Bitcoin algorithm halving — which occurred on May 11, 2020 — and has significantly reduced Bitcoin mining compensation rewards earned by the Company.
The Company confirmed that the algorithm halving, which occurs approximately every four years to create scarcity by limiting the number of Bitcoin in circulation, has cut the Company's reward for mining each block by half. The Company cautions that this has resulted in making its operations uneconomical, based on current Bitcoin pricing, overall network hashrate, and the Company's ability to continue to access reliable, affordable power.
Electricity Provider Intends to Terminate Contract
The Company also announced that its electricity provider, Energy Keepers, Inc., has indicated that it intends to terminate its long-term power contract with the Company effective as of May 14, 2020. The Company is exploring power supply alternatives and cautions that an inability to secure power would require it to pause or cease mining operations.
The Company and its Board continue to explore strategic and financing options and will continue to provide further updates.
About HyperBlock Inc.
HyperBlock is a crypto-asset enterprise operating a North American cryptocurrency datacenter and providing complementary product offerings, which include cryptocurrency mining, Mining-as-a-Service (MAAS), server hosting, and server hardware sales, depending on market conditions. HyperBlock operates sustainably, purchasing electricity for its flagship US datacenter from a hydro-electricity generator — and employs 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 profitability and growth of the Company as a result of the recent deployment of Bitmain servers; the future status of the Company's current power contracts; the impacts of the Company's liquidity, debt maturities, and trade payables; and the potential revocation of the cease trade orders on the Company's securities. 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, block rewards, 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 year ended December 31, 2018 dated December 12, 2019, 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.
For more information:
Ronald R. Spoehel, Bryan Reyhani
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