Business Update: Q3 and Q4 of 2020

Dear MoonLite Token Holder,

Our first trading year is complete, and we have successfully mined a total of 289 bitcoins!

It is always a nerve wrecking time when awaiting the final figures for an entire year of business, and more so when it is your very first.

Our mining project has already been exposed to adverse market conditions upon the bitcoin halving event that occurred in May, and this tested the resilience of our proposed business model. I am pleased to say that we successfully passed this test since we remained in business and were able to accept the new mining conditions, at a time where many miners were removed from the market.

This has also allowed us the opportunity to search for areas in which to improve upon, and to see certain cost bases that can be further optimised.

From 2021, we will be running at a cost base of $0.05 instead of $0.058 as we have been before. This represents an 18% efficiency that is being brought forward into the new year.

MoonLite has also successfully recovered just about 1/3rd of its capital expenditures to date, and we are currently experiencing a very buoyant market that is seeing BTC prices soar above $40,000 that is accelerating this recovery even further.

Considering our business performance and market conditions, we have made the decision to prepare the infrastructure on which to roll out the second phase of our mining operation. I expect that this equipment will be deployed at sub $0.04 cost levels, and this optimisation will be seen in the profits and the rate of capital recovery in this phase.

Our focus in 2021 will be on the following:

  1. Deployment of phase 2 on more efficient infrastructure
  2. Finding operational and financial efficiencies
  3. Finalisation of a new marketing and communication strategy – with team – to improve liquidity and market exposure for our token
  4. Website based mining dashboard

Lastly, we have accumulated in excess of $180,000 for token holders. Our team is working on finalising the process of the profit share distribution. It is our priority to complete the first profit share and token buy-back processes as soon as possible, but this has to be done in a safe, transparent, and replicable manner. We will be providing regular updates on this process.

MoonLite broke all the records set by our competitors in 2020. I look forward to furthering our business progress and creating more value in 2021.

Best,

Eric Krige

CEO

Phase 1 Breakdown:
Installed Miners (SHA256)1300
Hashrate at 100%65,000 Th/s
65 Ph/s
Energy Rating4,22 MW (+-10%)
% of Planned Deployment Completed +-33%
Mined Currencies BTC - 100%


Production Figures (Phase 1):
2020 Full YearQ4 of 2020Q3 of 2020Q2 of 2020Q1 of 2020
Total Mined Currency (Represented in BTC)288.7242.1745.4478.4293.46
Average Conversion Price$19,391.95$11,086.76$8,804.36$8,364.72*
Revenue$2,998,704.37$821,859.61$503,136.67$675,281.46$781,736.01
Operating Costs$2,169,908.33$503,467.33$505,104.42$509,425.42$507,722.48
Gross Profit$828,795.42$318,392.28-$1,967.75$165,856.04$274,013.53
Overhead Costs (Non-Operational)$291,500.00$69,000.00$69,000.00$69,000.00$69,000.00
EBITDA$537,295.40$249,392.28-$70,967.75$96,856.04$205,013.53
Net Profit %17.9222,76-14.779.7124.88
Benefit to Token Holders from Current Period$188,053.39$87,287.30$0.00$33,899.61$71 754,74
Running Benefit to Token Holders$188,053.39$125,604.81$125,604.81$91,705.20
Recovery of Capital Invested (ROC %)28.5228.5217.1021.3115.56
*This is the figure derived from an average of each months' average BTC conversion price. For indicative purposes only



Notable Items:

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.