TORONTO–(BUSINESS WIRE)–$ETHC–Ether Capital Corporation (“Ether Capital” or the “Company”) (NEO: ETHC) announces the reporting of its unaudited interim consolidated financial results for the three-month period ended March 31, 2023.

The Company experienced a strong rebound in portfolio value during Q1 2023 compared to December 31, 2022. Financial highlights for Q1 2023 include:

  • The Company recorded Revenue of $1.18 million in Q1 2023 vs. $1.20 million in Q1 2022, a decrease of 1%.
  • The Company incurred Operating Expenses of $1.26 million in Q1 2023 vs. $0.80 million in Q1 2022, a 59% increase.
  • The total value of digital assets held by the Company was $105.5 million as at March 31, 2023 vs. $73.1 million on December 31, 2022, a 44% increase over the three month period.
  • Cash and cash equivalents were equal to $2.44 million on March 31, 2023 vs. $2.89 million on December 31, 2022.
  • The Company had no debt in Q1 2023.
  • Basic Net Income per share for Q1 2023 was $0.55 compared to Net Loss per Share of $0.20 in Q1 2022.
  • The Net Income after Other Comprehensive Income (OCI) in Q1 2023 was $30.5 million vs. Net Loss after OCI of $22.9 million in Q1 2022.
  • The total shareholders’ equity of the Company was $106.7 million on March 31, 2023 vs. $75.6 million on December 31, 2022.

During Q1 2023, the price of Ether increased 53% and ended the period at $2,471 compared to $1,620 on December 31, 2022.

The comparative unaudited interim financial statements for Q1 2022 were restated to recognize a Deferred Tax Expense and Liability and facilitate comparison with Q1 2023.

Management Commentary

“We had a strong start to the year and it was a very productive quarter for the Company,” said Brian Mosoff, CEO of Ether Capital. “In Q1 we doubled down on our commitment to staking and launched an analytics tool that provides users with more transparency when it comes to their assets. We also witnessed an overwhelmingly positive response to Ethereum’s recent Shanghai upgrade and now have liquidity on our Ether due to staked ETH withdrawals being enabled. This puts us in a financially sound position to explore new business opportunities and additional revenue pipelines in the coming months.”

“Positive price action for ETH and the decision to stake more of our treasury has reflected well on our balance sheet. To date we are staking 36,000 ETH (79% of our portfolio) and generated yield at approximately 5.6% in Q1,” said Ian McPherson, President & CFO of Ether Capital.

Revenue Highlights

The Company’s revenue decreased 1% from $1.2 million in Q1 2022 to $1.18 million in Q1 2023.

Total Staked Ether Rewards Revenue, a combination of Consensus Layer Rewards (illiquid) and Execution Layer Rewards (liquid), was $0.932 million in Q1 2023 vs. $0.722 million in Q1 2022, of which 69% was Consensus Layer Rewards and 31% was Execution Layer Rewards. The amount of Staked Ether was much higher at the end of Q1 2023 (36,000 Ether) compared to the end of Q1 2022 (20,512 Ether) as was the amount of Staked Ether Rewards (see table below). The staking yield for the Company averaged 5.64% for Q1 2023 vs. 5.04% in Q1 2022. The average dollar price for Staked Ether Rewards was lower in Q1 2023 ($2,141) compared to Q1 2022 ($3,726), thus offsetting the higher Staked Ether Rewards earned during Q1 2023.


Q1 2023

Q1 2022

Consensus Layer Rewards



Execution Layer Rewards



Total Staked Ether Rewards






Average Staked Ether









Consensus Layer Rewards



Execution Layer Rewards









Additionally, the Company earns consulting fee revenue from Purpose Investments that is linked to the assets under management of Purpose Investment’s crypto ETFs (“Crypto AUM”). During Q1 2023, the average value of Purpose’s Crypto AUM was much lower than Q1 2022 (see table below). This resulted in a 51% reduction of consulting fees from $0.45 million in Q1 2022 to $0.22 million in Q1 2023.


Q1 2022

Q1 2023

Consulting Fees



Average AUM

$2,057 MM

$924 MM

Operating Expense Highlights

Operating Expenses increased 59% in the quarter to $1.26 million vs. $0.79 million in Q1 2022 primarily due to staff expansion and the building of internal capabilities. Ether Capital is assessing the launch of new products and business lines for which key staff were recruited. Additionally, the Company is in the process of internalizing some functions that it has outsourced historically, such as accounting.

The most material Operating Expense incurred by the Company during the three months was staff compensation. As at March 31, 2023, there were 10 full time employees or contractors compared to five on March 31, 2022 and 10 on December 31, 2022. Compensation expenses, both salaries and share-based compensation of employees, were $0.73 million for the quarter vs. $0.29 million in Q1 2022.

Revenue less Operating Expenses

One measure of operating performance is Revenue less Operating Expenses. For Q1 2023, it was ($0.08) million compared to $0.41 million in Q1 2022. The primary reason for the operating loss in Q1 2023 is due to unexpected professional fees pertaining to a restatement of 2021 audited Consolidated Financial Statements. See table below for a reconciliation for this non-IFRS measure.


Q1 2023

Q1 2022






Operating Expenses




Revenue less Operating Expenses




Other Comprehensive Income (Loss) and Net Income (Loss)

The Other Comprehensive Income (Loss) (“OCI”) incurred a significant reversal in Q1 2023. In Q1 2022, the OCI incurred a loss for shareholders of $16.2 million (restated) due to the fair market value adjustment to the Company’s digital assets. During the period, the price of Ether declined 12% and it triggered losses on the value of those assets.

By comparison, the OCI generated a gain of $11.8 million for the three months ended March 31, 2023. This reversal was due primarily to unrealized gains on digital assets of $13.6 million offset by the recognition of a deferred tax expense of $1.8 million. As previously mentioned, the price of Ether increased 53% during Q1 2023 and this was the major factor driving the gain in fair market value.


In general, the cashflows from operations of the Company in Q1 2023 are materially different from the financial statement earnings, whether before or after Other Comprehensive Income, for the following reasons:

  1. 79% of the Revenue in Q1 2023 is non-cash.
  2. Operating Expenses include a material amount for the amortization of Share Option Expense, a non-cash expense (17% of Operating Expenses).
  3. The unrealized gains for the Company’s digital assets total $17.9 million.
  4. The exercise of share options generated $0.42 million of cash.

The Consolidated Statement of Cashflow and the Notes in the Company’s Q1 2023 financial statements and the Management Discussion & Analysis (MD&A) include more detail.

Net Income (Loss) per Share

The Net Income per Share was $0.55 in Q1 2023 compared to a Net Loss per Share of $0.20 in Q1 2022 (restated). The Net Income (Loss) per Share does not include the impact of OCI (Loss), which is material.


Cash on the balance sheet was $0.245 million on March 31, 2023 compared to $0.44 million on December 31, 2022. The Company invested excess cash in a listed Purpose High Interest Savings ETF and the balance was $2.20 million on March 31, 2023 vs. $2.45 million on December 31, 2022. This ETF can be sold easily in the normal course and the Company deems it liquid and comparable to a cash equivalent. Combined, the cash and ETF totaled approximately $2.44 million on March 31, 2023.

During the three months ended March 31, 2023 there was a material change regarding the valuation of digital assets as discussed above. The Company’s digital assets increased in value by $31.4 million to $105.5 million from December 31, 2022, primarily due a 53% increase in the price of Ether during the period. The valuation of the Company’s digital assets exceeded the cost base of those assets by $47.1 million as at March 31, 2023. After taking into account tax loss carryforwards, the Deferred Tax Liability of those unrealized gains is approximately $0.91 million on March 31, 2023 ($12.1 million on March 31, 2022), and this is recognized on the Consolidated Interim Statements of Financial Position. Any potential future increase in the valuation of the digital assets will result in an increase in the Deferred Tax Liability of approximately 13.25% of the unrealized gains.


March 31, 2023

December 31, 2022

Digital assets valuation



Digital assets cost base



Unrealized capital gain on digital assets (excluding Wyre)



Shareholders’ Equity Highlights

The shareholders’ equity as at March 31, 2023 was $106.7 million compared to $75.6 million on December 31, 2022. The increase was primarily due to the revaluation of the Company’s digital assets given the 53% increase in the Ether price during the quarter. The Net Equity Value per Share also increased to $3.13 per share on March 31, 2023 from $2.24 on December 31, 2022. The number of shares outstanding increased to 34.103 million from 33.75 over the quarter.

The Company’s unaudited interim financial statements and the MD&A have been filed on SEDAR and may be viewed under the Company’s profile at Capitalized terms used and not defined in this news release have the meanings given to them in the Company’s quarterly financial statements and/or MD&A for the period ended March 31, 2023.

About Ether Capital Corporation

​​Ether Capital (NEO: ETHC) is a public technology company with a long-term objective to become a central business and investment hub for the Ethereum ecosystem. The Company has invested most of its balance sheet in Ethereum’s native utility token “Ether” as a core strategic asset and yield-generating instrument. The Company is focused on building financial infrastructure that supports the Ethereum blockchain and delivers corporate value. Ether Capital’s management team and Board of Directors are comprised of crypto natives, leading venture capitalists and traditional finance experts, which uniquely positions the company to identify and capitalize on opportunities in the digital asset ecosystem. For more information, visit

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.

Non-IFRS Measures

The Company’s condensed consolidated financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”). The Company refers to the Operating Revenue less Operating Expenses, which is a non-IFRS financial measure. This non-IFRS measure is not defined by IFRS, does not have a standardized meaning and may not be comparable with similar measures presented by other issuers. The Company has presented such non-IFRS measure as management believes it is a relevant measure of the Company’s operating performance independent of asset valuation changes. Non-IFRS measures should not be considered as alternatives to the information set out in the Company’s financial statements. The definition of Revenue less Operating Expenses and its reconciliation is included above in a table within this press release.

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 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.


Brian Mosoff

Chief Executive Officer

Ian McPherson

President and Chief Financial Officer

Ashley Stanhope

Director of Communications