SATO Technologies Corp. Announcing Financial Results for Q2 2022 Including Revenue Growth of 66% Compared to Six Months Ended June 30, 2021
Also announcing Bitcoin Mining Center Two in Québec with 100% renewable energy.
Toronto, Ontario--(Newsfile Corp. - August 24, 2022) - SATO Technologies Corp. (TSXV: SATO) (OTCQB: CCPUF) (the "Company", or "SATO", formerly known as Canada Computational Unlimited Corp.) is pleased to announce that it has filed its Q2 2022 financial results for June 30, 2022 ("2022"). All amounts in this news release are in Canadian dollars.
SATO is also pleased to announce the start of Center Two, with the signing of a lease agreement for 1,800 square feet of additional space starting with 0.5 MW available for crypto mining and up to 2 MW+ of renewable energy available for future expansion, which will allow the Company to expand its overall Bitcoin mining capacity.
Q2 - 2022 Highlights
- Total revenue of $2,021,642 in Q2 2022 which represents growth of 18% compared to Q1 2022 and 77% when compared to the three month period ended June, 30 2021.
- Steady increase in revenues despite the fact that the BTC price went from $US 35,041 to $US 19,785 respectively at June 30, 2021 and 2022.
- Revenue from hosting in Q2 2022 grew 1,154% compared to Q2 2021
- Gross profit excluding depreciation was $864,447 (43%) in Q2 2022
- Fair value of Digital assets held at June 30, 2022 was $2,035,385 compared to $1,056,570 at June 30, 2021
Center Two Highlights
- 1,800 sq ft, at $2.78 per square foot, with the potential for increasing the square footage;
- Immediate access to 496kW for Crypto Mining pre-moratorium (HQ A/P 2019-01) and 1.5 MW for traditional computing;
- 100% renewable energy, with potential for increase;
- 5-year term, renewable lease.
As consideration for providing the lease of Center Two, SATO will grant the landlord, upon the closing, 520,000 warrants in the capital of the Company (the "Warrants"), subject to acceptance by the TSX Venture Exchange. Each Warrant will be exercisable into one common share of SATO for a period of 5 years, at an exercise price of $0.25.
The above terms are subject to TSX Venture Exchange approval under TSXV Policy 5.1.
"The addition of Center Two to our existing 20 MW of Bitcoin mining power from Center One proves our commitment to increasing our hashrate as fast as possible, responsibly. This new center, in the vicinity of Center One in Québec, will be a great way to expand our operations while confirming our commitment to using 100% green energy to secure the network," says Romain Nouzareth, CEO and Chairman of SATO. "We are looking for other places around the world with sustainable energy available for crypto mining and computing operations. Get in touch!" he added.
On behalf of the board,
SATO CEO and Chairman
Consolidated Financial Statements and MD&A
A complete financial reporting package, including the Consolidated Financial Statements and Notes and MD&A, is available on SEDAR at www.sedar.com under SATO's profile and on the Company's website at https://bysato.com/.
SATO operates a state-of-the-art, carbon-neutral bitcoin mining center with a contract of 20 MW of stable, eco-friendly energy. The company's high-density calculation centers are built for high-grade cryptocurrency mining, AI, Data processing, and fintech infrastructure.
Founded at block 494673 in 2017, SATO is led by technology entrepreneurs, finance, electricity and ventilation experts, network specialists, and Canadian industrialists. Since its inception, the company has pursued a vision of environmental stewardship throughout the mining process. The excess supply of renewable energy in the province of Québec has made this endeavor feasible and a great base for growth.
For additional information, please contact:
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Cautionary Statement Regarding Forward-Looking Information
This news release contains certain forward-looking statements, including statements relating to the future performance of the Company, and other statements that are not historical facts. Wherever possible, words such as "may", "will", "should", "could", "expect", "plan", "intend", "anticipate", "believe", "estimate", "predict" or "potential" or the negative or other variations of these words, or similar words or phrases, have been used to identify these forward-looking statements. These statements reflect management's current beliefs and are based on information currently available to management as of the date hereof.
Forward-looking statements involve significant risks, uncertainties, and assumptions. Many factors could cause actual results, performance, or achievements to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully, and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, the Company cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release, and the Company assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.
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