Ether Capital Corporation Celebrates a Successful Shanghai Upgrade That Completes Ethereum�s Transition to Proof of Stake

TORONTO–(BUSINESS WIRE)–$ETHC–Ether Capital Corporation (�Ether Capital” or the “Company”) (NEO: ETHC) is pleased to celebrate a successful Shanghai upgrade (also referred to as the Shapella upgrade) — a major technical achievement by Ethereum developers that charts Ethereum on a path to a fully scalable, decentralized and secure blockchain.

Ether Capital believes Shanghai is one of the most significant events Ethereum has undergone to date as it completes the protocol’s multi-stage transition from Proof of Work to Proof of Stake. The upgrade that occurred on April 12 unlocked ETH liquidity by allowing participants to withdraw their Staked Ether that was previously being held on Ethereum’s Beacon Deposit Contract. This Ether was staked in exchange for the right to approve transactions that occur on the network. Additionally as a result of Shanghai, participants can access their consensus layer rewards (additional ETH) they have received as compensation for proposing and validating blocks.

“The Shanghai upgrade is a game-changer for Ethereum. The Merge initially proved that Ethereum was technically capable of overhauling its base layer to a more efficient and secure form of validation,” said Brian Mosoff, CEO of Ether Capital. “This upgrade paves a path forward for new structured products to emerge, giving a wider spectrum of investors access points. Ether Capital has always believed that staking would become a fundamental part of the industry and Ethereum’s value proposition. The Company remains one of the only access points in the capital markets for ETH exposure plus yield. This is something we firmly believe will increase shareholder value over time as we continue to use a portion of our Ether rewards to develop our operating business.”

There is currently $51 billion (18M ETH) in Staked Ether that is now available for withdrawal, a number which Ether Capital believes will increase over time as further adoption takes hold. To date, the Company has allocated approximately 79% of its portfolio (36,000 ETH) to Ethereum Staking and the yield on the Company’s Staked Ether during Q1 2023 was 5.6%. Ether Capital believes this yield will fluctuate over time based on network activity.

The latest upgrade supports the Company’s long-term investment thesis that Ethereum will become a primary settlement layer that supports trillions-of-dollars’ worth of activity. As Ethereum continues to evolve, Ether Capital remains focused on its three-pronged strategy: To be a long-term net accumulator of Ether, stake the majority of Company assets to generate an attractive yield, and build quality infrastructure that supports the Ethereum ecosystem.

For more information about staking on the Ethereum network and Ether Capital’s Staked Ether, please refer to the Company’s 2023 Annual Information Form available at www.sedar.com.

About Ether Capital Corporation

??Ether Capital (NEO: ETHC) is a public technology company with a long-term objective to become a central business and investment hub for the Ethereum ecosystem. The Company has invested most of its balance sheet in Ethereum’s native utility token “Ether” as a core strategic asset and yield-generating instrument. The Company is focused on building financial infrastructure that supports the Ethereum blockchain and delivers corporate value. Ether Capital’s management team and Board of Directors are comprised of crypto natives, leading venture capitalists and traditional finance experts, which uniquely positions the company to identify and capitalize on opportunities in the digital asset ecosystem. For more information, visit http://ethcap.co.

The content of this document is for informational purposes only and is not being provided in the context of an offering of any securities described herein, nor is it a recommendation or solicitation to buy, hold or sell any security. The information is not investment advice, nor is it tailored to the needs or circumstances of any investor. Information contained in this document is not, and under no circumstances is it to be construed as, an offering memorandum, prospectus, advertisement, or public offering of securities. No securities commission or similar regulatory authority has reviewed this document and any representation to the contrary is an offence. Information in this press release is current only as of the date provided and Ether Capital is under no obligation to update this information, other than in accordance with applicable securities laws.

Forward-Looking Information

This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. The Company cautions the reader not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. Generally, but not always, forward-looking information can be identified by the use of forward-looking terminology such as “plans,” “expects” or “does not expect,” “is expected,” “budget,” “scheduled,” “estimates,” “forecasts,” “intends,” “on pace,” “anticipates,” or “does not anticipate,” “believes,” and similar expressions or state that certain actions, events or results “may,” “could,” “would,” “should,” “might,” or “will” be taken, occur or be achieved.

Forward-looking statements are based on information available to management at the time they are made, management’s current plans, estimates, assumptions, judgments and expectations. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to the risk factors discussed in the Company’s Annual Information Form dated March 23, 2023, the Risk Factors section in its most recently filed management’s discussion and analysis and its other filings available online at www.sedar.com. Although the forward-looking information contained in this press release is based on assumptions that the Company believes to be reasonable at the date such statements are made, there can be no assurance that the forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. In addition, the Company cautions the reader that information provided in this press release is provided to give context to the nature of some of the Company’s future plans and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update or revise any forward-looking information, except in accordance with applicable securities laws.

Contacts

Brian Mosoff

Chief Executive Officer

brian@ethcap.co

Ian McPherson

President & Chief Financial Officer

imcpherson@ethcap.co

Ashley Stanhope

Director of Communications

ashley@ethcap.co