Dear Valued Token Holders & Members,
The last month has certainly been an interesting time in the crypto markets, and for some, including us, a time which is difficult to look at CoinMarketCap or your Block Folio page! Markets are down, there is a lot of “FUD” in the market place, with a ton of “skittish” investors dropping tokens and currencies out of fear…
The MoonLite Team has been working hard, and chasing an unchangeable goal to get our first data centre fully operational on schedule, and things are looking good so far. We are working on a few loose ends, but do not anticipate any delays to starting date.
Important news regarding Iceland and our first facility:
Energy has been reserved and we will now be commencing with the payment of deposits and finalization of contracts. Due to energy purchase agreements being on a take-or-pay basis, we have elected to leave this to the very end, in order to avoid unnecessary costs to the project – we do not anticipate this being a delay
The transmission of energy will hopefully be finalized in the same timeline, but is a separate contract with a different company
We are comfortable with where we are, and we have made every part of the plan for our launch clear to all parties involved
As some may know, there has been a steep rise in difficulty in the Bitcoin network which came about approximately 2-3 weeks ago. There is a lot of speculation, but with some insider insight, we believe that a new generation of 7nm machines have been covertly deployed. As these machines are not available yet, even through back-channels which we now have access to, we are certain enough to state on record that we believe this to be the work of one or more large manufacturers who are in the habit of mining with equipment prior to selling it on the open market (names are withheld from this article)
Additionally, there has been a notable drop in the BTC spot price, just about breaching the $6000 mark.
These sudden and unexpected market conditions have caused us to re-evaluate the miner setup and acquisition policies which we are rolling out. In parallel, we have made some powerful connections in the hardware industry which allow us some additional insight and easier access to equipment. These are the important take-aways:
MNL will not be ordering Antminer S9i units for now, instead we will be switching these out for more powerful 12nm 19Ths units
We now have access to very full and very low priced secondary markets for approved equipment still under warranty. Where necessary, there is always the option of purchasing S9’s (and other machines) at around 40% of the manufacturer price from sellers who may be operating outside of the profitable parameters, which we are configured for – some extra info, we are set up for sub-$30 monthly costs, where some machines are running in facilities which cost the owners something in the region of $75-$90.
DC1 will add in mining for Decred (DCR) and Z-Cash (ZEC) in addition to Bitcoin (BTC) and Bitcoin Cash (BCH) to improve profitability of our first phase, as it is now practically not worth mining DASH. These currencies are considered to be the ‘new gold-rush’ due to improved profits and the new, vastly more powerful equipment being produced by manufacturers such as Innosilicon (with whom we now have a good contact)
Due to a good ICO fund raise, we are able to remain dynamic in our approach to filling our racks with the latest and most profitable equipment, where others may be bound to their planned expenditure and may need to sit with their original plans
Acquisition costs of equipment is expected to come down due to new contacts in the industry
Even though this is a slight change of plans, it does not negatively effect our margins, nor cash on hand. This has however re-itterated the importance of keeping our project dynamic in this very volatile industry, and this will hopefully prove to be one of our strong points.
EVEN BIGGER NEWS: We will be diversifying our interests in crypto-mining – by building an additional data centre for Co-Location Services
Yes, you read right, we will be building a second facility! (insert cliche here)
The idea behind this expansion is that we can create a second facility with our highly engineered and reduced cost structure, that will attract miners and mining companies who will pay a set fee per KW, per month.
This business case behind this is that the CO-LO income generated by this division will subsidize our corporate profits with sustainable income and bank-able profits that are totally independent to mining conditions such as currency price fluctuation and difficulty levels.
The Key points are:
No changes to our plan in Iceland now, or for any of the expansion phases. This is an ADDITIONAL project
Iceland will remain a 100% mining facility, and no Co-Location services will be provided from there
We are still to decide on a name for this business, but the 2 options are: “USA-Colo” and “Miner-Colo”
Our first facility will be based in Florida, USA and will be small, in order for us to prove our concept. This facility will be rated at around 6Mw and would be suitable for around 4,000 Antminer S9 miners.
We have engaged with an additional service provider, and we have ‘reserved’ land and an additional 30Mw of capacity in Montana, USA for when we are ready to expand outside of our first build
We have entered into an NDA and we have issued a LOI to secure this capacity, although deposits will be withheld until we are ready to proceed. We believe that the most frugal approach will be to trial our concept in Florida, and once it is proven, roll out to a large facility from which we can continue operations.
Total input costs for the first phase is really small, at around $300,000
ROI is approximately 4.5 months with contingencies built in, and this is in-line with any ASIC miner investment – hence why we chose to consider this option
We have secured customers for phase 1 of the project, who have pledged (we have not started to accept payments or contracts yet) to occupy all the available capacity we have in this facility – Yes, we are already sold out – Thanks to key people who have come on-board and our involvement in the US based mining circles
Like MoonLite, this project will be operated as its own registered corporation, which will be shortly registered in the USA.
COLO will be a subsidiary of our holding company, and all profits benefit MNL token holders (who have their stake in the holding company)
Our Group Chief Mining Officer is coincidentally based in Florida, and will therefore have direct oversight over this operation, as well as our mining facility in Iceland.
Our investment is spread over 2 income streams
Similar ROI to ASIC mining as we are doing in Iceland, with minimal input costs
Fixed income, immune to mining changes
Room to further diversify group income
Highly scaleable, and far less capital intensive
Our pricing structure allows miners of less efficient machines to still make profits, which would be difficult elsewhere, hence an ever growing potential customer base
Although energy pricing in Florida is higher than Iceland, we have secured the same rate in Montana, thereby allowing customers 100% efficiency as per our Icelandic business model
All profits are attributable to MNL holders
MoonLite also has room to expand outside of Iceland (if ever needed) and has uncovered a second strategy for miner acquisition
With the changes in our miner orders, coupled with the decision to diversify into co-location of ASIC miners, we feel that we are successfully mitigating many of the effects caused by current issues effecting miners globally.
In other news:
1) Starting on Monday, our web team will be completely re-deisgning the Moonlite Project web site, making it more current:
We want the site to have a better ‘updates’ area for project progress
We will be removing all ICO marketing related content, and will just leave a small section regarding the ICO results
We will be moving the login area – where investors were able to log in to see their allocations – to the main web site (www.moonlite.io) instead of on the ‘sales’ sub-domain.
Additionally, we will be moving the token and wallet setup pages
The token holder voting system ‘module’ will be installed into the ‘login’ section of the moonlite.io site (so users will see their allocations, and will be able to vote)
The token sales site will be taken down permanently
The Capitevo Group holding company web site will be launched around this time, which encompasses all subsidiary company information and links to the respective web sites
The COLO services web site will be launched simultaneously
It is possible that we may make use of some sub-domains for additional functionality, and we may standardize the use of ‘Capitevo.io’ email addresses throughout all group companies
2) We have appointed a Chief Mining Officer for the Group. Michael will be responsible for all data centre operations in both companies, from the initial design, to miner setup, to miner operations. Michael’s impressive bio and credentials will be sent out in a subsequent email within the next few days.
3) Due to a massive price recovery after the ‘token dumping’ phase of our ICO, we have seen prices increase to levels somewhere around that of our initial offering. We may proceed with listing MoonLite on some additional and much larger exchanges which can provide MNL tokens with greater liquidity and trading volumes. We will release a dedicated newsletter ahead of time, with specific information. Depending on the readiness of our voting system, we may hold the vote at that time.
As always, we are super grateful to all of our supporters, investors, token holders, and stakeholders for your ongoing support and encouragement of our project. It is truly humbling to see this project evolve from an idea printed on a piece of paper, to the first of many real life data centre’s, and further becoming a corporation as dynamic and enthusiastic as we are today.
Signing off for now,