Ether Capital Provides Corporate Update

• 98% Treasury Allocated to Staking, and on-track to exceed C$98 million of treasury exposure to staking activities by early in the fourth quarter 2023
• Management’s restructuring efforts are nearing completion and positions the Company towards being cash flow positive from an operating perspective and reaching profitability by the fourth quarter of 2023.
• The Company continues to be active with its NCIB and has purchased a total of 261,400 shares as at September 12, 2023.
• Net equity value per share as at September 12^th is $2.96

TORONTO--(BUSINESS WIRE)--Ether Capital Corporation (“Ether Capital” or “the Company”) (NEO: ETHC), a technology company within the Ethereum ecosystem, today announced that the Company has successfully reached a corporate milestone in its mission towards securing the Ethereum blockchain in its allocation of an additional 9,120 ETH (having a current value of approximately C$19.7 million) to yield-generating staking activities.

The newly staked ETH will run on the Company’s proprietary in-house infrastructure. This latest tranche follows an initial deployment of 320 ETH (having a current value of approximately $694, 000) on its own infrastructure in July. This allocation reaffirms the Company's commitment made in June 2023 to maximize treasury exposure to staking and internalizing operations with custom built intellectual property (IP) supporting its staking activities.

The approximately $20 million allocation of ETH to staking using proprietary infrastructure is in addition to the 36,000 ETH (having a current value of approximately $78 million) staked using a third-party service provider. Year-to-date yield on the staked ETH has averaged 5.04% on an annualized basis (as at August 31, 2023). The price of ETH at present is up 33% from the start of the year.

Brian Mosoff, CEO of Ether Capital, commented, "Ether Capital remains committed to staking its treasury and using ETH as a core strategic asset to drive balance sheet growth. The Company’s unique structure consistently allows it to take advantage of the most attractive revenue activities, which is holding ether, staking, and continuing the build out of its proprietary infrastructure. As the digital asset ecosystem continues to evolve, staking and blockchain security remain core base layer activities that reinforce our decision to internalize the infrastructure to continue developing our institutional grade IP to support our staking activities and be leveraged into future growth opportunities."

"Over the past 12 months, our technical team has diligently addressed the complexities of monitoring, reporting, and validating within the evolving digital asset landscape,” commented Jillian Friedman, Chief Operating Officer and interim CFO. “We remain well positioned, committed and very enthusiastic about our business and where we sit in the ecosystem. With our restructuring efforts nearing completion, our near-term objectives are on track to have the Company reach profitability and be cash flow positive through cost management and optimal allocation of resources.”

Restructuring Update

The Company announced a strategic restructuring in June 2023. This process is near completion with the majority of the cost-cutting measures having been made. The Company is on track to realize a $2 million reduction in normalized operating cash expenses over projected operating expenses for the current fiscal year.

Staking generates yield denominated in ETH and yield fluctuates on a daily basis. The price of ETH is volatile and as such, the Company’s future revenue from staking has the potential of being volatile as well. Note that any material reduction in the future staking revenue will have an impact on the net cash flow generated after Company expenses.

Normal Course Issuer Bid (NCIB) Update

As at September 12, 2023, Ether Capital has purchased and cancelled a total of 261,400 shares pursuant to its NCIB announced on June 15, 2023.

About Ether Capital Corporation

Ether Capital is a technology company within the Ethereum ecosystem with a mission to be the premier access point in the public markets for investment in Ethereum’s native token, Ether. The Company generates yield on its Ether treasury through staking, a process that allows Ether holders to participate in securing the Ethereum network and earn rewards in the form of additional Ether tokens. The Company’s strategy is to hold and stake Ether, build intellectual property related to staking and Ethereum infrastructure in general, and supplement staking income with consulting and sub-advisory mandates in the digital asset sector. For more information, please visit http://ethcap.co. Ether Capital Corporation is a publicly traded company trading on the Canadian NEO Exchange under the symbol “ETHC”.

The content of this document is for informational purposes only and is not being provided in the context of an offering of any securities described herein, nor is it a recommendation or solicitation to buy, hold or sell any security. The information is not investment advice, nor is it tailored to the needs or circumstances of any investor. Information contained in this document is not, and under no circumstances is it to be construed as, an offering memorandum, prospectus, advertisement, or public offering of securities. No securities commission or similar regulatory authority has reviewed this document and any representation to the contrary is an offence. Information in this press release is current only as of the date provided and Ether Capital is under no obligation to update this information, other than in accordance with applicable securities laws.

Forward-Looking Information

This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. The Company cautions the reader not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. Generally, but not always, forward-looking information can be identified by the use of forward-looking terminology such as “plans,” “expects” or “does not expect,” “is expected,” “budget,” “scheduled,” “estimates,” “forecasts,” “intends,” “on pace,” “anticipates,” or “does not anticipate,” “believes,” and similar expressions or state that certain actions, events or results “may,” “could,” “would,” “should,” “might,” or “will” be taken, occur or be achieved.

Forward-looking statements are based on information available to management at the time they are made, management’s current plans, estimates, assumptions, judgments and expectations. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to the risk factors discussed in the Company’s Annual Information Form dated March 23, 2023, the Risk Factors section in its most recently filed Management Discussion and Analysis and its other filings available online at www.sedarplus.com. Although the forward-looking information contained in this press release is based on assumptions that the Company believes to be reasonable at the date such statements are made, there can be no assurance that the forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. In addition, the Company cautions the reader that information provided in this press release is provided to give context to the nature of some of the Company’s future plans and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update or revise any forward-looking information, except in accordance with applicable securities laws.

For more information:

Jillian Friedman
Chief Operating Officer and interim Chief Financial Officer
jillian@ethcap.co

Brian Mosoff
Chief Executive Officer
brian@ethcap.co