Dear MoonLite Token-Holder,
I hope that this update finds you and your families in good health.
It is with great excitement that I can finally release our first formal quarterly update on financial and operational progress by reporting on the first 2 quarters of 2020.
This year has been a difficult year for many businesses around the world, brought on by the challenges of the Covid-19 virus. The crypto-mining business had an additional challenge brought on in mid-May by the phenomenon known as “halving” – simply put, this means that the 12.5 BTC block rewards miners earn through the SHA256 mining process has been slashed in half. Halving effects all miners around the world and is an unstoppable and unchangeable process, after which only the miners who are set up with low operating expenses and more modern mining equipment remain profitable by liquidating freshly mined inventories at current BTC prices.
MoonLite has been in operation since November 2019, and we have been running the first phase of mining gear since. We have created a controlled environment in which our mining equipment is able to run at almost 100% uptime and output, and where our costs and commitments are managed. I have taken a very conservative approach in the deployment of capital, and with onboarding additional monthly financial commitments, with the view of giving our fledgling business the room it needs to prove the concept and our business plan, company processes, and to make as much progress on recuperating the capital expenditure (we call this ROI in our reporting)
As of the end of June’20, we have a 21.3% ROI which is still considered to be in the ‘risk zone’; but this improving due to increasing BTC prices that have jumped by a significant 27% since the end of this reporting period.
We have made plans to deploy a second larger mining phase by end of 2020, which will increase our total mining capacity to around 11MW. This move will increase all of our metrics proportionately, but will mean that we would have achieved only a nominal overall ROI by the end of 2020, which would be very worrisome if it goes unchecked.
As a business we will need to commit to the decision to deploy phase 2 at tremendous capital cost for quite some time to come, and at least throughout the duration of 2021. We will need to manage all capital outflows very carefully – including dividends – and it should be noted that incorrect management of our remaining capital may very well result in us failing to achieve high levels of ROI, and thereby reducing our capital base. This process is well documented by every one of our ICO mining peers, who today are no more.
MoonLite will be running some additional projects in the latter half of 2020, including a website upgrade, the introduction of a token holder section that will at some point be integrated with the dividends and token buy-back programs, and the introduction of a mining dashboard that will display live mining telemetry – including a small surprise which will not be named at this time.
Throughout 2020 to date, our company has produced mining revenues of $1 457 017,47 and EBITDA of $301 869,57 or 20,72%. This alone is far greater than the sum of our peers, and this can be referenced in the comparison charts that we share from time-to-time. It is also noted that we have achieved a respectable EBITDA % even after halving in the middle of our second quarter.
From operations, we have generated a total of $125 604,81 in token holder benefits which is currently being retained in MoonLite.
Lastly, and in an effort to show some good faith to our supporters, I have made the decision to distribute a modest 30% interim-payment to token holders using the token-buy-back and dividend processes originally conceptualized in the whitepaper and documented in the inaugural report. The final amount earmarked for distribution is $37 681,44
Distribution is intended to be complete by the end of October’20 but we will be following quite a complicated process that has never been tested. We will begin preparations early, and keep a special line of updates to brief token holders on progress as we go through the process. Once complete, this will be the largest ever single distribution of funds to holders of mining tokens, and it is something which I am incredibly proud of.
Upon finalizing our Q3 results, which will be first full set after halving, we will make a decision on the distribution of the remaining 70% of funds attributable to holders as of end June’20. As elaborated on earlier, this is considered as a capital distribution and it directly effects Cashflow and ROI, so an informed decision will be made and subsequently announced in due course.
There are some exciting opportunities which we are currently considering after launching phase 2:
- The reduction of operating costs from 5,8c to 5,0c per kw/h ; which we hope to have finalized by end of year. This would represent a saving of around 14%
- The possibility of deploying our phase 2 equipment into a Capitevo owned data center, which will reduce costs to 3 – 3,5c per kw/h. This would represent a saving of 48% at current costs.
- The introduction of MNL tokens to a new token trading exchange, with market making and advertising services, and tracking via Coin Market Cap, Coin Gecko, and the like.
- The recommencement of our community management and marketing teams who will be able to better look after our communities and generate more interest in MoonLitefrom new users
- The creation of a more interactive view of our mining operations and token holderengagements.
The MoonLite Project has definitely not had an easy birth, but today we can confidently say that we have exited from stealth-mode and are the premier tokenized crypto-mining company in the world. We certainly have a long way to go in order to achieve our full vision, but we have to look back and acknowledge the significant progress we have made since our whitepaper was first published.
I would like thank all of our followers and token holders for your unwavering support throughout this process.
|Q1 of 2020||December'19|
|Installed Miners (SHA256)||1300||1300|
|Hashrate at 100%||65,000 Th/s|
|Energy Rating||4,22 MW (+-10%)||4,22 MW (+-10%)|
|% of Planned Deployment Completed||+-33%||+-33%|
|Mined Currencies||BTC - 100% ||BTC - 100% |
|Q2 of 2020||Q1 of 2020|
|Total Mined Currency (Represented in BTC)||78.42||93.46|
|Average Conversion Price||$8,804.36||$8,364.72*|
|Overhead Costs (Non-Operational)||$69,000.00||$69,000.00|
|Net Profit %||9.71||24.88|
|Benefit to Token Holders from Current Period||$33,899.61||$71 754,74|
|Running Benefit to Token Holders||$125,604.81||$91,705.20|
|Recovery of Capital Invested (ROC %)||21.31||15.56|
1. We run our business in EUR, but for the sake of maintaining a universal reporting standard we report in USD. All figures are rounded DOWN.
2. We have NOT kept the 25% 'long term appreciation allocation' in crypto as per the white paper. We have not yet got the staff to manage this trading yet, hence we believed it better to convert 100% to fiat.