Ether Capital Corporation (NEO: ETHC) Releases Audited Comprehensive Financial Performance Report for the Year 2022

It is reported that the Canadian listed company Ether Capital Corporation (NEO: ETHC) has released its audited comprehensive financial performance report for the year ended December 31, 2022. The company’s revenue increased by 149% from $1.5 million in 2021 to $3.7 million in 2022, mainly due to the significant increase in Stacked Ether awards. In addition, the company receives consulting fee income from its related party, Purpose Investments, which is associated with assets managed by Purpose Investments’ crypto ETF (“crypto asset management scale”). The cash on the balance sheet as of December 31, 2022 was $440000, compared to $3.4 million as of December 31, 2021. However, the increase of $2.45 million was invested in cash equivalents and marketable securities. As mentioned above, significant changes occurred in the valuation of the company’s digital assets during 2022. The value of digital assets decreased by $137.3 million to $73.1 million, mainly due to a 65% decline in Ethereum prices during the year. As of December 31, 2022, the valuation of the company’s digital assets exceeded the cost base of these assets by $15.5 million.

Listed company Ether Capital’s revenue in 2022 was $3.7 million

As of December 31, 2022, Ether Capital Corporation (NEO: ETHC) has released its audited comprehensive financial performance report for the year ended December 31, 2022. The report outlines several significant changes that occurred in the company’s revenue, digital assets, and investments.

Overview of the Report

The report shows that in 2022, the company’s revenue increased by 149% from $1.5 million in 2021 to $3.7 million in 2022. This increase was primarily attributed to the significant increase in Stacked Ether awards, which contributed to a boost in revenue for the company.
In addition to the revenue from Stacked Ether awards, the company also received consulting fee income from its related party, Purpose Investments. Purpose Investments is associated with assets managed by Purpose Investments’ crypto ETF, which contributed to the rise in the company’s crypto asset management scale.
However, while the company’s revenue increased significantly in 2022, its cash on the balance sheet decreased from $3.4 million as of December 31, 2021, to $440000 as of December 31, 2022. Most of this decrease was due to investments in cash equivalents and marketable securities.
Significant changes also occurred in the valuation of the company’s digital assets during 2022. The value of digital assets decreased by $137.3 million, from $210.4 million to $73.1 million, mainly because of a 65% decline in Ethereum prices during the year. Nevertheless, as of December 31, 2022, the valuation of the company’s digital assets exceeded the cost base of these assets by $15.5 million.

The Increase in Revenue

The increase in revenue was primarily due to the significant rise in Stacked Ether awards. Staked Ether (or ETH) rewards are incentives that Ethereum 2.0 offers to participants for securing the network. The company’s revenue increased with the rising popularity of Ethereum Staking among cryptocurrency traders.
The purpose of Ethereum Staking is to provide security for the Ethereum network. The staking process involves depositing a certain amount of ETH into a “validator node,” which helps to keep the network secure. For their contribution to network security, validators receive a percentage of the new Ether that the network generates.
Ether Capital uses the staking rewards to increase its revenue, which helps the company to grow its digital assets holdings.

Consulting Fee Income

The report also shows that the company received consulting fee income from its related party, Purpose Investments. Purpose Investments is a fund manager that specializes in exchange-traded funds (ETFs). Purpose Investments’ crypto ETF is associated with assets managed by Purpose Investments’ crypto asset management scale, which contributed to the rise in the company’s revenue.
The consulting fee income that the company received from Purpose Investments shows that the company has diversification plans in place for its investments.

Decrease in Digital Asset Valuation

During 2022, the valuation of the company’s digital assets fell significantly, mainly because of a 65% decline in Ethereum prices during the year. Nevertheless, as of December 31, 2022, the valuation of the company’s digital assets exceeded the cost base of these assets by $15.5 million.
Although this decline is significant, it is not alarming. Cryptocurrency investments are often volatile and can experience sudden price drops. Nevertheless, the company still holds a substantial amount of digital assets, and the investment remains lucrative given the valuation that still exceeds the cost base of the assets.

Conclusion

Ether Capital Corporation’s audited comprehensive financial performance report for the year 2022 shows that the company has experienced significant changes in its revenue, digital assets, and investments. Despite the significant decline in digital asset valuation, the company still holds a substantial amount of digital assets that exceed the cost base of these assets by $15.5 million.
As cryptocurrency continues to gain popularity, the company’s diversification plans for its investments and revenue sources indicate a promising future for the industry.

FAQs

1. What are Stacked Ether awards?
– Staked Ether (or ETH) rewards are incentives that Ethereum 2.0 offers to participants for securing the network. The staking process involves depositing a certain amount of ETH into a “validator node,” which helps to keep the network secure.
2. Why did the company’s revenue increase in 2022?
– The company’s revenue increased primarily due to the significant rise in Stacked Ether awards.
3. What was the cause of the significant decline in digital asset valuation?
– The valuation of the company’s digital assets fell significantly, mainly because of a 65% decline in Ethereum prices during the year.