Fortress Blockchain Exits Crypto Business
VANCOUVER, BC — Fortress Blockchain Corp. has exited the crypto-currency mining business as of March 5, 2019. Fortress Blockchain Corp. has deactivated all crypto-currency mining hardware located at the Company’s Grant County facility in British Columbia, Canada.
After a careful strategic review, management has cited the marginal profitability of the business as well as the risk of further decline, along with increased regulatory costs and oversight as the impetus for the major decision. According to the press release announcing the shift, these factors do not justify continued crypto-currency mining operations. The Company is currently assessing the need for asset impairment recognition, and the optimal strategy to realize value from the crypto-mining operations by divestiture as a going concern or asset sale.
The Company believes that the initial apparent opportunity in the crypto-currency mining industry has diminished to the point where the Company’s focus on building shareholder value should be sought in other sectors. Management is currently reviewing business opportunities to re-establish the Company in a new business sector. The Company expects further announcements to be made and any subsequent decision shall be subject to regulatory approval. It is anticipated that the Company will undertake a name change to reflect the exit from the crypto-currency mining business.
The Company is proud to have successfully managed the decline of the crypto-currency mining industry through the careful evaluation of business development opportunities. By avoiding investments in expansion during a period where returns were uncertain, the Company has preserved over $10,300,000 CAD in cash and redeemable GICs as of the date of this press release.
About Fortress Blockchain: Fortress Blockchain Corp. is a technology-oriented blockchain mining company committed to operating in low cost North American green-energy regions. Fortress Blockchain’s resources are dedicated to achieving peak operational efficiency in industrial scale Bitcoin mining with industry-leading performance. Fortress Blockchain is strategically developing state-of-the-art mining facilities. Its seminal Washington state facility has been in continuous operation since 2014 and will serve as an R&D facility to optimize and build out the next generation of highly scalable blockchain mining infrastructure.