NEW YORK–(BUSINESS WIRE)–CMSC was capitalized with approximately $86mm equity and no debt, through asset contributions from two cryptocurrency mining entities, as well as an additional capital raise that concluded at the end of November 2021.

It is intended for the Company’s shares to be direct listed on the OTCQX market on or about December 1, 2022, following the one-year lock-up period. With the anticipated upcoming listing, CMSC looks forward to building a cryptocurrency mining company that will grow shareholder wealth in a prudent and flexible manner.

Murray Stahl, Chief Strategy Officer, stated, “We are an enthusiastic participant in the decentralized crypto monetary policies through the process of cryptocurrency mining, which is revolutionary and has the potential to become the largest asset class. Crypto mining is very profitable because the return on equity is not set by the most efficient node; rather, it is set by the least efficient node. The least efficient participant establishes a rate of return floor and every other participant earns a higher rate of return. This is completely opposite from the conventional centralized winner takes all system where the most efficient company establishes the rate of return ceiling, and all the other market participants earn a lower rate of return. In a blockchain, the miners must collaborate in order for the system to exist, and the more miners there are, the more robust and reliable the network. If the network is more reliable, people are more likely to use it and, if people are more likely to use it, there will be more demand, and the price will go up, at least to the degree that the supply is fixed.”

Further details are available on the Company’s website at https://www.consensusmining.com/#news-link.

Consensus Mining and Seigniorage Corporation (“CMSC”) is an operating business and is not a registered investment adviser or broker-dealer. CMSC does not provide investment, legal or tax advice. Certain information set forth in this letter may contain “forward-looking information”. Forward-looking statements are provided to allow potential investors the opportunity to understand management’s beliefs and opinions in respect of the future so that they may use such beliefs and opinions as one factor in evaluating an investment.

These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance of result expressed or implied by such forward-looking statements. CMSC undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change.

Cryptocurrencies in general, including the mining of cryptocurrencies, represents a relatively new industry and therefore carries special and substantial risks. Investors should appreciate the risks associated with holding and mining cryptocurrencies before investing in such companies.

All material presented is compiled from sources believed to be reliable, but accuracy cannot be guaranteed. Opinions stated herein may change at any time without notice, and past results are not a guarantee of future results. Under no circumstances does the information contained herein represent a recommendation to buy, hold or sell any security.

 

Consensus Mining and Seigniorage Corporation

Statement of Financial Condition

June 30, 2022
Assets
Cash

65,845,298

 

Cryptocurrency miners(1)

9,800,454

 

Mined & held cryptocurrency(2)

8,132,274

 

Loans receivable

350,000

 

Prepaid miner hosting

325,005

 

LP tax reimbursement receivable

92,600

 

Prepaid insurance

23,141

 

Interest receivable

6,348

 

Total assets

84,575,120

 

Liabilities
Accrued expenses

46,311

 

Other payable

974

 

Total liabilities

47,285

 

Equity
Contributions

86,309,313

 

Net income

(1,752,317

)

Retained earnings

(29,161

)

Total equity

84,527,835

 

Total liabilities and equity

84,575,120

 

 
Notes
(1) Net of $3,433,731 accumulated depreciation.
(2) Valued as of each day mined for all cryptocurrency mined after 11/30/2021. Cryptocurrency on hand at 11/30/2021 valued at 11/30/2021 pricing.

Consensus Mining and Seigniorage Corporation

Statement of Income

 
Q2 2022
Revenues
Cryptocurrency mining (1)

1,070,547

 

Dividend revenue

63,107

 

Interest revenue

5,992

 

Total revenues

1,139,646

 

Operating expenses
Hosting fees

460,788

 

Audit & Tax expenses

15,000

 

Registered agent fees

6,117

 

Transfer agent fees

3,922

 

Management fees

3,000

 

Custody fees

2,821

 

Advertising fees

2,125

 

Insurance expense

2,104

 

Other operating expenses

4,667

 

Coinmint fees

12

 

Total operating expenses

500,556

 

Net operating income

639,090

 

Other expenses
Depreciation expense

1,617,994

 

Tax expense

124,917

 

Total other expenses

1,742,911

 

Net income

(1,103,821

)

 
Notes

(1) Gross of Coinmint fees

 

Contacts

CMSC Investor Relations

Agustin Krisnawahjuesa, CFA

646-495-7340

ir@consensusmining.com
www.consensusmining.com