Financial Terms
Throughout 2022 and 2023 Cormint structured and originated an innovative debt program through which it raised 947 Bitcoin from 35 Lenders through Bitcoin denominated Promissory Notes (the "Notes") with each Note having a three year term. These Regulation D offerings were an industry first by a Bitcoin miner, providing secured yield to Bitcoiners. The funds raised were critical to Cormint's expansion, facilitating the construction of 115MW of self-mining capacity at the company's Fort Stockton location.
Key Announcement
Cormint is now proud to announce that it has exercised its right to prepay the Notes in part or in whole, by returning 650 Bitcoin to its lenders, which at the time of distribution had an equivalent USD Value of ~$63MM.
The residual Note balance continues to accrue interest with the last Note falling due in Q4 2026. Investors continue to access our real-time mining analytics platform which enables them to monitor our power consumption, power costs and gross profit, in addition to quarterly financial statements amongst other reporting obligations.
Strategic Significance
This decision to partially prepay the Notes was made possible by the rapid accumulation of Bitcoin from operations as Cormint has mined Bitcoin at a discount to its market value, and the introduction of alternative sources of lower cost capital made possible by our top-ranking financial performance. By lowering the total outstanding balance ahead of schedule, and taking advantage of new funding sources, Cormint has enhanced its financial flexibility - putting the company in a strong position to pursue new growth opportunities.
"Cormint retains its ambition to have 500MW under management by the end of 2026 and expects to imminently make further disclosures on its second Texas site. As always, we remain focused on delivering returns on capital deployed to ensure that any investment will exceed our cost of capital in all conceivable market conditions and that we deliver a return to equity investors materially greater than what they would otherwise achieve through a passive allocation to Bitcoin."
For more information, please visit www.cormint.com or contact us.
Contact: [email protected]