Company Website: CreekRoadMiners.com
PARK CITY, Utah--(BUSINESS WIRE)--Creek Road Miners, Inc. (OTCQB:CRKR) announces letter to shareholders from its Co-Chief Executive Officers Scott D. Kaufman and John D. Maatta. The text of the letter follows:
To the Shareholders of Creek Road Miners, Inc.:
In the last 7 months, since Creek Road Miners, Inc. (“Creek Road”) launched its inaugural facility in Louisiana, much has taken place. We are excited to share the retrospective details, and to advise you about our plans are for the future.
Notwithstanding market volatility (in the capital markets and in the cryptocurrency and energy markets), we remain firm in our belief that Creek Road is on the right path to build sustained, long-term growth for the Company and value for its shareholders.
Appointment of a Co-CEO
On May 12, 2022, the Creek Road Board appointed John D. Maatta the Co-Chief Executive Officer of the Company to serve alongside Scott D. Kaufman. Because of the large number of significant opportunities before the Company, it made sense to have Mr. Kaufman focus on business development strategic initiatives and growth opportunities, while Mr. Maatta focuses s on the day-to-day business of the Company. As a former CEO of the Company and as a sitting Board Member, he has assumed the Co-CEO duties without the necessity of a learning curve. The company is moving full speed ahead with its growth initiatives and its operational initiatives.
What’s Next for the Company
On May 30, 2022, Creek Road entered into a Binding Memorandum of Understanding to acquire certain energy assets of Highwire Energy Partners, Inc. (“Highwire”) in South Dakota, North Dakota, and Wyoming. Highwire is a Wyoming-based company with expertise locating and analyzing the potential of oil and gas field acquisitions and in overseeing the operation of such facilities. Highwire is especially knowledgeable about the oil and gas industry in the Rocky Mountains and, more specifically, in the states of Wyoming, North Dakota and South Dakota.
In entering into the Highwire transaction, Creek Road delivered-on its objective of acquiring energy-producing assets to power cryptocurrency mining. In anticipation of this next stage of the Company’s growth, Creek Road officially decommissioned its proof-of-concept facility (Modular Data Center or MDC No. 1) in Louisiana. MDC No. 1 is currently in the process of being transported to Meeker, Colorado, where the Company plans to begin operations within the next ten (10) days. The cost factor at the Meeker facility is very desirable and will allow the Company to operate at a favorable cost basis by paying a fixed price of approximately $.0455/kWh. The Wyoming, South Dakota and North Dakota sites will also be priced on a basis that is advantageous to the Company. In Wyoming, Creek Road also has the opportunity to obtain fixed-price electricity at $.056/kWh.
Given the increasing cost of energy worldwide, the opportunity for fixed-and low-price energy production provide Creek Road with a significant cost advantage in conducting it mining Bitcoin operations. Even at current prices (approx. $29,000 per Bitcoin), Creek Road’s mining operations are currently projected to generate a gross profit.
Stock Price
There has been some shareholder communication concerning the significant drop in the Company’s stock price from $2.76 to $1.80 on April 1, 2022. Given that there was not any significant news or events on that date, we found this downward activity to be unusual. After review of the ambient circumstance, we concluded that the dip was occasioned by the actions of one seller liquidating its shares in the Company. There was no apparent or reasonable nexus between the action of such individual shareholder and any prevailing business fundamentals.
Conclusion
There clearly is some broad turbulence and uncertainty in the capital markets. However, we strongly and steadfastly believe that Creek Road continues on a proper trajectory. We have always known that owning and controlling our source of energy is the key to the Company’s near and long-term success. Despite the current ambient market conditions, we remain committed and focused upon identifying and successfully executing on new strategic opportunities, as we smartly operate the existing business of the Company.
Forward-Looking Statements
Certain statements in this letter contain "forward-looking statements" regarding future events and our future results. All statements other than statements of historical facts are statements that could be deemed to be forward-looking statements. These statements are based on current expectations, estimates, forecasts, and projections about the markets in which we operate and the beliefs and assumptions of our management. Words such as "expects," "anticipates," "targets," "goals," "projects", "intends," "plans," "believes," "seeks," "estimates," "endeavors," "strives," "may," or variations of such words, and similar expressions are intended to identify such forward-looking statements. You are cautioned that these forward-looking statements are subject to a number of risks, uncertainties and assumptions that are difficult to predict, estimate or verify. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. Such risks and uncertainties include those factors described in the Company's most recent annual report on Form 10-K, as such may be amended or supplemented by subsequent quarterly reports on Form 10-Q, or other reports filed with the Securities and Exchange Commission. The forward-looking statements are made only as of the date hereof, and we undertake no obligation to publicly release the result of any revisions to these forward-looking statements. For more information, please refer to the Company's filings with the Securities and Exchange Commission.
Contacts
Investor Relations and Media:
Scott A. Sheikh
Creek Road Miners, Inc.
IR@creekroadminers.com