Research Flash - Ether Capital Corp. (ETHC:NEO, $1.75|BUY $2.50 TARGET) - Ether Capitals Wyre, Inc. Potential Investment Write-Down
Ether Capital Corporation has announced it expects a full write down of its investment in Wyre and losses associated with FTX. ETHC is expecting a full write down of its investment in Wyre, Inc. but signals it does not represent a material impact on ETHC. ETHC invested US$1.5M or ~$2M CAD into Wyre in 2018. Wyre, Inc. confirmed via a press release on January 6th, 2023, that business conditions had deteriorated, and it is assessing strategic alternatives. These strategic alternatives will likely impact Wyre’s Shareholders.
ETHC continues to trade at a discount to NAV even with the potential write down of its Wyre Inc. investment. As of January 9th, 2023, ETHC was trading at a -25.73%.
ETHC holds their tokens in a cold storage and are not exposed to any exchange. The staked assets are staked directly with the Ethereum foundation. There is minimal risk that these staked tokens get lost to a hack or some other predatory activity.
ETHC provides a discount to “Ethereum”. The reader may believe in the future of cryptocurrencies as a whole; or may believe the system to be redundant. We suggest the reader who believes the former has a great opportunity to purchase Ethereum for a discount by acquiring ETHC.
We are maintaining our BUY rating and our target price at $2.50/share.