Mr. Brian Mosoff reports

ETHER CAPITAL CORPORATION REPORTS 2023 Q2 AND YTD FINANCIAL RESULTS

Ether Capital Corp. has released its unaudited interim consolidated financial results for the three-month and six-month periods ended June 30, 2023.

On June 15, the company announced it is streamlining costs and internalizing certain operations to focus on profitability. It also announced that it was approved to implement a normal course issuer bid for 2,566,662 shares. The company anticipates its actions and focused strategy will impact its financial results positively in 2024.

With respect to the financial results announced today, the highlights for second quarter 2023 include the following:

• The net equity value per share increased to $3.41 per share on June 30, 2023, from $2.24 on Dec. 31, 2022.
• The company recorded revenue of $1.46-million in Q2 2023 versus $1.08-million in Q2 2022, an increase of 35 per cent.
• The company incurred operating expenses of $840,000 in Q2 2023 versus $1.13-million in Q2 2022, a 26-per-cent decrease.
• The total value of digital assets held by the company was $118.0-million as at June 30, 2023, versus $73.1-million on Dec. 31, 2022, a 61-per-cent increase over the six-month period.
• Cash and cash equivalents were equal to $1.65-million on June 30, 2023, versus $2.89-million on Dec. 31, 2022.
• The company had no debt on June 30, 2023, nor at any time during the six-month period.
• Basic net income per share for Q2 2023 was $1.24 compared with basic net loss per share of $1.95 in Q2 2022.
• The net income after other comprehensive income (OCI) in Q2 2023 was $9.9-million versus net loss after OCI of $114.7-million in Q2 2022.
• The total shareholders equity of the company was $116.5-million on June 30, 2023, versus $75.6-million on Dec. 31, 2022.

During Q2 2023, the price of ether increased 3.6 per cent and ended the period at $2,561 compared with $2,471 on March 31, 2023. The price of ether on Dec. 31, 2022, was $1,620.

The comparative unaudited interim financial statements for the three-month and six-month periods ended June 30, 2022, were restated to recognize a deferred tax expense and liability. Additionally, the valuation methodology for staked ether and consensus layer rewards changed during Q2 2023 from a historic cost basis to a fair market value basis. This was due to a major technical upgrade (Shanghai or Shapella) of the ethereum network on April 12, 2023, that facilitated liquidity for these intangible digital assets, thus warranting a change in the valuation methodology applied prospectively from the date of the Shanghai upgrade.

Management commentary

"In Q2, we announced a strategic plan to lower our operating expenses and increase our treasury allocation to staking by at least 95 per cent," said Brian Mosoff, chief executive officer of Ether. "Since the last quarter, our team has worked hard to bring our proprietary best-in-class staking infrastructure on-line and ramp up our validation efforts, securing the ethereum blockchain and bringing increased revenue to our shareholders. We're very bullish on the long-term outlook for the ethereum ecosystem and are seeing renewed appetite amongst investors globally. Based on our focus to streamline costs, internalize operations and maximize exposure to staking, we feel that we're best positioned to service our shareholders as the No. 1 access point to ethereum staking and yield in the capital markets."

Interim chief financial officer announcement

The company is also pleased to announce the appointment of Jillian Friedman as interim chief financial officer, effective Aug. 16, 2023. Ms. Friedman joined Ether as chief operating officer in March, 2022, and will continue to oversee operations in addition to the finance mandate. The company would like to express appreciation and gratitude to departing chief financial officer Ian McPherson.

About Ether Capital Corp.

The company's mission is 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 subadvisory mandates in the digital asset sector.

We seek Safe Harbor.