This will serve as an executive summary for four separate and targeted business opportunities to generate a revenue stream for Crypto Partners, Inc. (the company).
A. Company Owned Crypto-Currency Mining
The company is in the process of completing the installation of at least 240 GPU’s for mining through Nicehash. We expect that the net annual profit stream to be over $300,000 in the first year and achieve at least $1 million by year three. A second mining site is planned for Reno as soon as possible, which will double that.
1. Virtual Retail
Using various forms of cold marketing such as radio broadcast, Youtube and Google, we would direct cold leads using webinar automation education to get prospects to call us. The virtual marketing company personal representatives would direct these prospects to utilize one or more of the following ways to make money from cryptocurrencies by them purchasing cloud mining contracts, day trading bots, master nodes, hardware mining rigs or ICO’s. The company would derive revenues equivalent to 10% from the affiliates referred to. In the case of them purchasing hardware mining rigs, they would be referred to company owned retail stores as described below. We expect revenues of $460,000 and net profits of $380,000 in the first year and at least $1.4 million in revenues and about $1 million in net profits by the end of year 3.
2. P2P Retail
Setting up locally owned retail stores that could also be franchised under such names as Bitcoin City, Crypto Mart or Crypto Universe, as examples, that would sell made to order and/or off the shelf mining rigs at price points of $5500 to $7500 each with profit margins of 10-15% where the purchaser can choose to take them home or have them hosted by the store. If hosted by the store, there would be a 20% profit margin. The stores could be LibertyX dealers so that people could walk in and pay cash for Bitcoin, Ethereum, or Litecoin and have it delivered immediately to their wallets. The profit margin would be between 2.5-5% for each transaction.
Each store would also serve as a P2P educational hub holding live seminars with demonstrations at local facilities that people would pay $299 as individuals, $599 as business owners, $2499 for a one year consulting contract or $4999 for a life time consulting contract. The purchase of hardware and educational instruction would be generated by walk-in traffic and referrals by the virtual retailing activities mentioned above.
Revenues in the first year are expected to be about $350,000 and net profits of about $100,000 per well situated store. By the third year revenues are expected to be about $1 million and net profits projected at $300,000 per year per location. Franchising revenues will be added. See below.
C. Master Node Mining
The company will invest a fixed dollar amount in master node cloud mining for its own account. The returns for a diversified master node dynamically managed account could represent overall returns of 100% or more per year diversified in proof of stake cryptocurrency mining.
D. Intial Coin Offerings (ICO's)
We will market an ICO that is politically and socially correct. The company has identified an opportunity in the adult day care, rehabilitative and long term care arenas that will be named Grace. A member of the company has networked with a Partnership Representative with Stellar Lumens in San Francisco and will present him with a coin design and white paper to ascertain their collaboration with the project. Stellar Lumens is a non-profit organization with one of the most successfully issued coins. Other coin companies may also be approached. The company will strive to retain 10% of the coin population with another small percentage set aside for operations. Income from such an endeavor could potentially go into the $millions depending on partnership and acceptance factors. We will attempt to form partnerships with hospital, medical and insurance companies who would utilize Grace as a funding source for American citizens having to utilize these services without having the money nor insurance coverage to pay for them or to supplement coverage by Medicaid (Medi-Cal) and Medicare.
With the aforementioned activities, with the exception of the Grace ICO, expected first year revenues are $1,110,000, with just one retail store and just one hard mining location, and net profits of $780,000. By the third year, with the addition of a second mining site and just five retail locations we would expect annual revenues to be about $3,350,000 and net profit to be $2,500,000. With the addition of franchising revenues, only 100 franchise sales at $25,000 each, would increase both revenues and net profits by $2,500,000 resulting in total projected revenues of $5,850,000 and net profits of $5,000,000 by the end of the 3rd year. Significant long-term appreciation in the cryptocurrencies may cause these numbers to go up over time.
Profits from master node mining could be in the $hundreds of thousands or $millions depending on the amount invested and individual coin returns. For example, a portfolio of 20 coin/tokens might result in 100-300% returns on average, with one coin potentially returning hundreds of per cents. We hope to put $250,000 in an initial portfolio to be in house managed. It is not possible at this time to speculate on the potential return from a successful ICO, but if it is successful the returns can be extremely high over time.