Blockchain Technology

TAAL Files 2021 Year-End Financial Results and Provides Operational Guidance for 2022

TAAL Distributed Information Technologies Inc. (CSE: TAAL) (FWB: 9SQ1) (OTC: TAALF) (“TAAL” or the “Company”), a vertically integrated blockchain infrastructure and service provider for enterprise, announces its financial results and management discussion and analysis for the fiscal year ended December 31, 2021 (“FY 2021”). These filings are available for review on the Company’s SEDAR profile at www.sedar.com and on the Company’s website at www.taal.com/investors. All financial information in this press release is reported in Canadian dollars unless otherwise indicated.

FY 2021 HIGHLIGHTS

  • Gross revenue from hashing operations was $34,664,905 versus $7,993,449 in the prior year, representing a year over year increase of $26,671,456 or 334%.
  • Adjusted EBITDA was $3.3 million, up from the $9.6 million loss in the previous year.
  • Cost of revenue for the year was $15,801,267 (including depreciation and amortization of $2,264,892), compared to $6,878,128 (including amortization of $891,178) in the prior year.
  • During FY 2021, the Company mined over 162,000 coins on the BSV network and 4,200 coins on the BCH network.
  • Future growth secured with deposits for plant and equipment of $20.7 million.
  • TAAL processed over 172 million transactions on the BSV network for the year, earning almost $1 million in additional rewards from transaction processing or 3% of total revenue.
  • As of December 31, 2021, TAAL held approximately 77,000 BSV coins in treasury, compared to the 70,000 BSV in the issued guidance; this increase was due to additional rented hash remaining online in the fourth quarter.

FY 2021 OVERVIEW

Fiscal 2021 was a year of growth and execution for TAAL. We progressed as a vertically integrated blockchain technology company growing hashing operations to increasing subsidy revenues which, in turn, support our product development of value-added services to support blockchain-based enterprise clients.

While TAAL endured challenges with its hosting providers in Alberta during the year, the Company reached its FY 2021 target of 400 petahash (PH/s). This supports and maintains the subsidy and transaction processing business lines through an exclusive cloud computing agreement with a third party, deploying its fleet of blockchain computers into new locations and utilizing alternative sources of hashing power through rental agreements.

In 2021, TAAL acquired Chief Fuels Inc. (“Chief Fuels”) as its flagship, clean-energy facility in New Brunswick. Through the recently announced transaction with an established professional property fund, TAAL has secured a commitment for up to US $20 million of capital expenditures to install heavy plant and infrastructure at the facility. The commitment also sees long-term development and operating the site as a bitcoin data center exclusively for TAAL. The new data center supports our operational growth strategy to increase TAAL’s hashing capacity for 2022 and beyond.

Also in 2021, TAAL expanded its enterprise blockchain infrastructure and software services with its public beta launch of the STAS token protocol, the TAAL Console, and additional services like UTXO management and nodes management to remove the complexities and overhead of running blockchain applications at scale.

The STAS digital asset tokenization is an on-chain, native, Bitcoin, script-based solution. The Company intends to license this technology to companies, individuals, and organizations who are looking to build custom token solutions for any number of use cases, across many industries. TAAL released the STAS Whitepaper and a Software Development Kit (SDK) and has seen positive adoption during the beta phase (a number of use cases are highlighted on TAAL.com).

TAAL Console is the new home and primary portal for customers to manage their accounts, submit transactions, provision API keys, access reports and analytics, talk to support and access documentation. TAAL Console will be the long-term home for a host of new services and features scheduled for release in 2022, enabling technology innovators, builders, and decision makers across all industries to access the power, scalability and world beating economic utility of the BSV blockchain.

The launch of this platform and API Transaction processing service is part of TAAL’s corporate vision which reflects an anticipated paradigm shift in the blockchain industry, marked by a transition from a block rewards subsidy model to a transaction fee-based model as the prevailing profit model.

For examples of 30+ businesses building with TAAL, please visit our blog – https://www.taal.com/blog/category/use-cases/

TAAL continued to grow its team globally and remotely, hiring in product management, engineering, service and operational roles. In addition, the Company saw the appointment of David Allen as Chief Financial Officer and Daniel Diemers as a new independent Director. Subsequent to year end, Mr. Stefan Matthews, the Chairman of the Company’s board of directors, transitioned away from the Chief Executive Officer position and is now serving as Executive Chairman. Richard Baker was appointed Chief Executive Officer and transitioned the Lead Independent Director role to Deborah Rosati.

President Chris Naprawa steps down

Chris Naprawa stepped down as President of the Company effective April 30, 2022. During his time with the business, the Company has transformed financially and operationally as well as established solid foundations with an experienced leadership team, strong board of directors and clear strategic vision. Chris will continue to provide consulting services to the Company after April 30, 2022.

“I am proud to have played a critical part in the evolution of TAAL and look forward to working closely with Richard Baker for the growth next phase,” said Mr. Naprawa. “The opportunity for TAAL remains immense, especially as it applies to utility-based transaction exchanges and Web 3.0. I am excited to strategically assist the Company to reach its potential.”

Stefan Matthews, Chairman would like to acknowledge and thank Mr. Naprawa for his leadership and his contributions to the Company’s growth throughout his term and looks forward to continuing to work with him in his capacity as consultant.

Mining Operations in Russia

TAAL is deeply concerned about the ongoing developments in Ukraine and has been closely monitoring the conflict in Europe. A material portion of the Company’s blockchain computing equipment, mining operations, and operations are in Siberia, Russia. A combination of TAAL-owned and managed equipment is hosted with an enterprise scale service provider that offers competitive rates for power primarily produced from clean energy sources. At the present time, TAAL’s operations in Russia are compliant with all international sanctions and remain subject to ongoing risk management assessment. The Company has decided to discontinue the deployment of new mining equipment in this operation and will limit its dependency on this facility through a network rebalancing programme that is underway.

To reduce our exposure to geopolitical risks, the Company is actively engaged in negotiations with several service providers within North America to host TAAL’s existing and future machine deployments. These deployments are part of our network rebalancing and hash power expansion plans this year. In addition, the Company has recently secured alternative sources of hashing power in North America for business continuity assuredness. These alternate sources are to mitigate any impact on TAAL’s subsidy and transaction processing business should operations in Russia be discontinued or interrupted in the future.

The Company continues to monitor and assess the global situation and will update shareholders in the event of any significant developments.

“We are a modern network service provider whereby the BSV blockchain is utilised daily for millions of transactions for enterprises small and large,” said TAAL CEO Richard Baker. “It is our duty to provide network assurance and resilience for our customers and shareholders. However, as a global citizen, we take our social responsibility very seriously and have acted promptly to manage and mitigate risks.”

2022 OPERATIONAL OUTLOOK

We believe in a future beyond block subsidy rewards where fees and new revenue streams come from utility-based transaction exchanges, P2P, B2C, B2B and IoT. Our focus is to make the tools and services available to builders and businesses, to remove the complexities and barriers for greater adoption.

“2021 was a strong year financially for TAAL,” said CEO Richard Baker. “While Q1 will be a weaker quarter due to the macro global market conditions and the decrease in coin prices, we remain focused on driving growth across the business in 2022. Our opportunity in both our infrastructure and software services business remains strong, and I look forward to updating the market as we execute against our growth strategy throughout the year.”

Hashing Operations

Pending market conditions and risk factors outlined in our AIF:

  • Petahash growth targets for end of 2022 to be 600 PH/s of computing power.
  • Achieve geographic diversity of hosting locations though partner data centre hosting agreements.
  • Committed to a carbon offset program with a goal to source 90% of our power from renewable energy by 2023.
  • Future growth secured with deposits for plant and equipment of $20.7 million.
  • Continued improvements to TAAL Orchestrator for mining pool management, fast economic switching (30 seconds) across Bitcoin protocols (BSV, BCH & BTC) and service operations, accounting and reporting integrations.

Software services for 2022

  • TAAL Console upgrades to the customer experience, including improved and customizable dashboards, self-service pricing packages, credit card billing and the market leading “blockchain search” capability integrated to enable “internet style search” of the public files stored on chain.
  • Value added services or “Boost Your Build” commercial packages such as UXTO (micro-payment) services and customer “node-as-a-service” management and monitoring services.

Headcount

  • We will continue to grow our global team in sales, marketing, and engineering to support and drive growth.

ABOUT TAAL DISTRIBUTED INFORMATION TECHNOLOGIES INC.

TAAL Distributed Information Technologies Inc. delivers value-added blockchain services, providing professional-grade, highly scalable blockchain infrastructure and transactional platforms to support businesses building solutions and applications upon the BitcoinSV platform, and developing, operating, and managing distributed computing systems for enterprise users.

Visit TAAL online at www.taal.com/investors

The CSE, nor its Regulation Services Provider, accepts no responsibility for the adequacy or accuracy of this release.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Certain statements included in this news release constitute “forward-looking information” as defined under applicable Canadian securities legislation. The words “will”, “intends”, “expects” and similar expressions are intended to identify forward-looking information, although not all forward-looking information will contain these identifying words. Specific forward-looking information contained in this news release includes but is not limited to statements regarding: the growth of TAAL’s treasury through, among other things, BSV hashing activities; TAAL’s future computing power and capacity; development plans for the New Brunswick facility, geopolitical risks to operations and TAAL’s business and strategic plans. These statements are based on factors and assumptions related to historical trends, current conditions and expected future developments. Since forward-looking information relates to future events and conditions, by its very nature it requires making assumptions and involves inherent risks and uncertainties. TAAL cautions that although it is believed that the assumptions are reasonable in the circumstances, these risks and uncertainties give rise to the possibility that actual results may differ materially from expectations. Material risk factors include the future acceptance of Bitcoin SV and other digital assets and risks related to information processing using those platforms, the ability for TAAL to leverage intellectual property into viable income streams and other risks set out in TAAL’s Annual Information Form dated April 30, 2021 under the heading “Risk Factors” and elsewhere in TAAL’s continuous disclosure filings available on SEDAR at www.sedar.com. Given these risks, undue reliance should not be placed on the forward-looking information contained herein. Other than as required by law, TAAL undertakes no obligation to update any forward-looking information to reflect new information, subsequent or otherwise.

SOURCE Taal Distributed Information Technologies Inc.

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CoinSmart announces new Chief Compliance Officer, AGM Voting Results and provides Corporate Update

CoinSmart Financial Inc. (“CoinSmart” or “CFI”) (NEO: SMRT) (FSE: IIR), a leading Canadian-headquartered crypto asset trading platform, announced today that Sheereen Khan has joined CoinSmart as Chief Compliance Officer. 

Prior to joining CoinSmart Ms. Khan held senior compliance positions with Coinberry Ltd., Laurentian Bank Financial Group, JP Morgan Chase and Bank of Montreal.  She will replace Jeremy Koven who acted as Interim Chief Compliance Officer following the departure of Joe Tosti.

Annual General Meeting Results

CoinSmart also announced that all resolutions considered by the shareholders at the Annual General Meeting of Shareholders (the “Meeting“) previously held on June 29, 2022 were passed.

Voting as to each of the director nominees were as follows:

DirectorFor%Withheld%
Alexa Abiscott27,814,12499.99 %3,2830.01 %
Jeffrey Haas27,813,92499.99 %3,4830.01 %
Justin Hartzman27,813,12499.98 %4,2830.02 %
Jeremy Koven27,814,12499.99 %3,2830.01 %
G. Scott Paterson27,814,12499.99 %3,2830.01 %

Please refer to the report of voting results filed under CFI’s profile at www.sedar.com for the detailed results of all matters voted upon by shareholders at the Meeting.

Corporate Update

CoinSmart recently launched SmartPay, the easiest way for businesses to send and accept crypto payments. This payment processing service guarantees no chargebacks, no holds, same day settlements, and up to 80% cost savings, compared to traditional payment methods like credit cards.  It is estimated that there are over 300 million crypto users worldwide. Also, over 75% of global retailers plan to accept crypto over the next 24 months, making crypto more mainstream than ever. Moreover, crypto payment processing eliminates chargebacks, which is currently a $125 billion problem in the world of payment processing.

CoinSmart also became the first crypto platform to receive an Online Sports Wagering Vendor Permit from the State of Wyoming, allowing CoinSmart to process cryptocurrency payments for legalized gaming companies licensed in Wyoming.

CoinSmart has terminated the previously disclosed investment in NFT cross-bridge marketplace Curate due to repeated breaches and non-fulfillment by Curate Group Ltd. of its obligations pursuant to the Share Purchase Agreement.  CoinSmart is in the process of evaluating any available recourse against Curate Group Ltd.

About CoinSmart Financial Inc.

CoinSmart is a leading Canadian-headquartered crypto asset trading platform dedicated to providing customers with an intuitive way for buying and selling digital assets, like Bitcoin and Ethereum. CoinSmart is one of the few crypto asset trading platforms in Canada to be registered as a securities dealer and marketplace with the Ontario Securities Commission. CoinSmart is also one of the first Canadian headquartered trading platforms to have an international presence, accepting customers across 40+ countries at a time when the digital asset industry continues to rapidly expand.

CoinSmart further builds on its mission to make cryptocurrency accessible by providing educational resources tailored to every level of cryptocurrency knowledge and unparalleled 24/7 omni-channel customer support. Offering instant verification, industry leading cold wallet storage, advanced charting with order book functionality and over-the-counter premium services, CoinSmart ensures every client’s needs are met with the highest level of quality and care. For more information please visit https://www.CoinSmart.com/.

Cautionary Note Regarding Forward-Looking Information and Other Disclosures

This press release contains statements that constitute “forward-looking information” (“forward-looking information“) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking information and are based on expectations, estimates and projections as at the date of this news release. Any statement that discusses predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information. In disclosing the forward-looking information contained in this news release, the Company has made certain assumptions. Although the Company believes that the expectations reflected in such forward-looking information are reasonable, it can give no assurance that the expectations of any forward-looking information will prove to be correct. Known and unknown risks, uncertainties, and other factors may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Such factors include, but are not limited to: regulatory approvals. Accordingly, readers should not place undue reliance on the forward-looking information contained in this news release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking information to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking information or otherwise.

SOURCE CoinSmart

AMPD Ventures Announces the Addition of Tanya Woods to its Board of Directors

AMPD Ventures Inc. (CSE:AMPD)(OTCQB:AMPDF)(FRA:2Q0) (“AMPD” or the “Company”), a next-generation digital infrastructure provider, is pleased to announce that Tanya Woods has been appointed to its board of directors, effective September 12, 2022.

Ms. Woods is a Canadian-American entrepreneur, technology lawyer, and policy leader working in the verticals of mainstream and digital media, telecommunications, AI and blockchain, and high-performance computing infrastructure. She is currently the CEO of Futurity Partners, a strategic consulting firm advising public and private sector organizations on exponential and innovative technologies, digital policy, and ESG matters.

“I am delighted to be joining the experienced Board of AMPD Ventures as the Company and its subsidiaries break ground in the metaverse,” said Woods, “the Company’s multi-faceted approach from enabling mobile high-performance computing infrastructure to supporting first class metaverse and digital content creation is a unique and compelling innovation journey I look forward to talking with the team.”

“Tanya is an accomplished business leader with deep knowledge and experience in video games, digital content, high-performance computing infrastructure, ESG, and Web3,” said Anthony Brown, CEO of AMPD Ventures Inc., “she has a strong track record of successfully advancing public and private company growth objectives in these verticals making her an ideal addition to our Board, we look forward to her insights and are pleased to welcome her onboard.”

Ms. Woods has held increasingly senior executive level leadership roles advancing the commercial and regulatory agendas of global technology companies and government for nearly twenty years. She recently served as the founding Managing Director of Canada’s first Chamber of Digital Commerce, General Counsel, EVP Regulatory Affairs and Corporate Secretary of Hut 8 Mining Corp., General Counsel of the Entertainment Software Association of Canada, and Regulatory and Copyright Counsel for BCE Inc. She is also currently serving a three-year appointment as an expert advisor to UNESCO in Canada supporting the advancement of the United Nations Sustainable Development Goals.

Ms. Woods’ has received recognition as one of IT World’s Top Women in FinTech and Blockchain, a Government of Canada Leading TechWoman, CBC Trailblazer, Obama Foundation Global Civic Leader, Toastmasters International Community Leadership Award Recipient, and as a Top 40 Under 40. She studied law and global trade at the London School of Economics, University of Ottawa, and American University Washington College of Law.

About AMPD Ventures Inc.

AMPD is a next-generation infrastructure company specializing in providing high-performance computing solutions for low-latency applications. With state-of-the-art, high-performance computing solutions hosted in sustainable urban data centres, AMPD is leading the transition to the next generation of computing infrastructure as ‘the hosting company of the Metaverse.’ Through a mix of infrastructure as a service (“IaaS”) and an upgraded, high-performance cloud offering, we are meeting the low-latency requirements of multiplayer video games and eSports, computer graphics rendering, artificial intelligence, machine learning, mixed reality, big data processing, and the as-yet uncharted technological developments of the coming decades. Additional information about the company is available on SEDAR and our website at http://www.ampd.tech.

For further information please contact Investor Cubed Inc.:

Neil Simon, CEO
Telephone: (647) 258-3310
Email: nsimon@investor3.ca

ON BEHALF OF THE BOARD OF DIRECTORS

/s/ “Anthony Brown”

Anthony Brown
CEO & Director
AMPD Ventures Inc.
Telephone: 604-332-3329
Email: ir@ampd.tech

Cautionary Statement

Forward Looking Statements

Certain statements made herein may contain forward-looking statements or information within the meaning of the applicable Canadian securities laws. Often, but not always, forward-looking statements and forward-looking information can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such forward-looking statements should not be unduly relied upon. Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. The Company believes the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct. The Company does not undertake to update these forward-looking statements, except as required by law.

SOURCE: AMPD Ventures Inc.