Neptune Announces Record Comprehensive Net Income of $18.6 Million for the Six Months Ended February 29, 2024

Rhea-AI Summary

Neptune Digital Assets Corp. reports strong financial performance with a 32% increase in assets and $1.8 million in revenue from Bitcoin mining. The company holds $7 million in cash reserves and 341 Bitcoin in cold storage. Neptune's CEO announces a share buyback program and highlights the strategic acquisition of Solana for future growth.

Positive

• Neptune's assets increased by 32% to $51.6 million, and the company generated $1.8 million in revenue from Bitcoin mining.
• General administrative expenses decreased by 38% compared to the previous year.
• Neptune holds $7 million in cash reserves with tier 1 Canadian banks and has 341 Bitcoin in cold storage.
• The company's three largest digital asset holdings are 341 BTC, 31,185 SOLANA, and 176,500 ATOM.
• Neptune CEO announced a share buyback program and highlighted the strategic acquisition of Solana for future growth.

Negative

• None.

Vancouver, British Columbia--(Newsfile Corp. - April 2, 2024) - Neptune Digital Assets Corp. (TSXV: NDA) (OTCQB: NPPTF) (FSE: 1NW) ("Neptune" or the "Company"), one of the first publicly traded blockchain companies in Canada, is pleased to announce the release of its quarterly condensed consolidated interim financial statements and management discussion and analysis.

The financial highlights for the six months ended February 29, 2024 and the period subsequent to quarter-end up to the date of this news release are as follows:

• Neptune ended the quarter with $51.6 million in assets, an increase of 32% over prior quarter and 57% over six months.

• Neptune earned gross mining revenue and other income of $1.8 million through Bitcoin mining, staking, interest and other income-generating activities during the six-month period ended February 29, 2024 based on prevailing crypto prices during the period.

• General administrative expenses fell by 38% over the comparable period of 2023 and as of the date of this release the Company has cash reserves of $7 million held with tier 1 Canadian banks.

• Neptune mined $1 million worth of Bitcoin during the six-month period ended February 29, 2024. As of the date of this release, Neptune has a total balance of 341 Bitcoin in cold storage. Neptune presently retains all its Bitcoin in cold storage and does not engage in active selling or trading of Bitcoin holdings.

• Neptune's three largest dollar value digital asset holdings as of the date of this release are 341 BTC, 31,185 SOLANA and 176,500 ATOM. The Company also holds positions in ETH, DOT, FTM, DASH, GRT, OCEAN and a number of other tokens, as well as an investment in SpaceX valued at approximately $3.5 million.

"As a pivotal Bitcoin halving approaches and more institutions get behind the crypto market, Neptune's foundation is stronger than ever. Our focus on proof-of-stake, proof-of-work and using rewards to grow our asset base has paid off, reflected as substantial growth in our balance sheet. Given our assets seem to be growing faster than our market cap, we will take advantage of this disconnect and have initiated a share buyback program. The recent strategic acquisition of Solana should drive proof-of-stake revenues even higher into subsequent quarters marking a new phase of growth for Neptune.", stated Cale Moodie, Neptune CEO.

Operating and Financial Overview
($CAD)
	For the six-month period ended			February 29, 2024		February 28, 2023
	Mining revenue			1,030,152		1,106,951
	Staking revenue			273,746		301,971
	DeFi revenue			-		19,636
	Direct Mining expenses (not incl depreciation)			(825,493	)	(972,601	)
	Other income*			462,868		512,517
	Total earnings			941,273		968,474
	Depreciation**			146,048		259,399
	Stock based compensation**			-		443,069
	General expenses			797,756		1,278,209
	Impairments			-		(183,168	)
	Realized gain on settlements and sales			153,914		601,952
	Revaluation gain on digital currencies***			17,908,915		2,208,468
	Unrealized gain related to lending activities and investments			581,839		690
	Comprehensive income (loss) for the period			18,642,137		1,615,739
Financial Position
($CAD)
	As at			February 29, 2024		August 31, 2023
	Cash and receivables			10,284,509		12,118,891
	Total digital assets			33,124,709		12,946,322
	Total other assets			8,173,124		7,870,310
	Total liabilities			204,782		654,475
	Total shareholders equity			51,377,560		32,281,048
	Working capital****			13,735,723		14,538,573
	* All non-Bitcoin mining, and non-Staking revenue and non-DeFi revenue generating activities
	** Non-cash items, including depreciation of mining rigs
	***  Revaluation is calculated as the change in value (gain or loss) on digital currencies. When digital currencies are sold, the net difference between the proceeds received and the cost of the digital currencies determined on a First-in, First-out basis, is recorded as a gain (loss) on the sale of digital currencies
	**** Current assets less current liabilities

 

About Neptune Digital Assets Corp.

Neptune Digital Assets Corp. (TSXV: NDA) (OTCQB: NPPTF) (FSE: 1NW) is one of the first publicly traded blockchain companies in Canada and is at the forefront of the cryptocurrency and blockchain landscape. Neptune engages in operations across the digital asset ecosystem including Bitcoin mining, proof-of-stake mining, blockchain nodes, decentralized finance (DeFi), and other associated cutting-edge technology. Our unwavering commitment to innovation and strategic growth enables us to continually explore new opportunities and maximize value for our shareholders. For more information about Neptune Digital Assets Corp., please visit our website at www.neptunedigitalassets.com or follow us on X (@NeptuneDAC).

ON BEHALF OF THE BOARD

Cale Moodie, President and CEO
Neptune Digital Assets Corp.
1-800-545-0941
www.neptunedigitalassets.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX ‎Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.‎

Forward-Looking Statements

This release contains certain "forward looking statements" and certain "forward-looking information" as defined under applicable Canadian securities laws. Forward-looking statements and information can generally be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans", "proposes" or similar terminology. Forward-looking statements and information are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that, while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties, and contingencies. Forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of the Company to control or predict, that may cause the Company's actual results, performance or achievements to be materially different from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out herein, including but not limited to: the auditors completing the remaining auditing items with respect to the Annual Filings; the inherent risks involved in the cryptocurrency and general securities markets; the Company may not be able to profitably liquidate its current digital currency inventory, or at all; a decline in digital currency prices may have a significant negative impact on the Company's operations; the volatility of digital currency prices; uncertainties relating to the availability and costs of financing needed in the future; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, currency fluctuations; regulatory restrictions, liability, competition, loss of key employees and other related risks and uncertainties.

The Company does not undertake any obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/203916

FAQ

What is Neptune Digital Assets Corp.'s ticker symbol?

Neptune Digital Assets Corp.'s ticker symbol is NPPTF.

What was Neptune's revenue from Bitcoin mining for the six-month period ended February 29, 2024?

Neptune generated $1.8 million in revenue from Bitcoin mining during the six-month period ended February 29, 2024.

How much cash reserves does Neptune hold?

Neptune holds $7 million in cash reserves with tier 1 Canadian banks.

What are Neptune's three largest digital asset holdings?

Neptune's three largest digital asset holdings are 341 BTC, 31,185 SOLANA, and 176,500 ATOM.

What strategic initiative did Neptune's CEO announce?

Neptune's CEO announced a share buyback program and highlighted the strategic acquisition of Solana for future growth.