Beginning in January of 2018, the Company began identifying suitable properties in North America and Europe which possess the attributes needed for the buildout of a proprietary design of specialized data centers for the purpose of hosting Crypto Currency Mining Hardware (“Miners”), a secure network platform, and a suite of managed services specific to the needs of emerging large-scale mining operations. These attributes include the essential power and telecommunications components as well as climates that are conducive to cooling exceptionally large instances of power consumption. The Company has identified more than five (5) such properties and is 7 currently in the draft stages of a Letter of Intent with landlords to secure leases on multiple North American and European locations. The Company is negotiating bulk-pricing from multiple energy retailers to ensure a predictable cost of power for the mining facilities.
The Company is currently managing a pipeline of more than one hundred twenty megawatts (120MW) of demand from multiple prospects. The Company recognizes the shortage of proper data center space and low cost of power required for Crypto Currency Mining. The Company has retained a business development professional to build up a significant pipeline of hosting opportunities and is discussing representation with a global commercial property brokerage firm to further capitalize on the rapidly growing market for this type of hosting facility.
The Company is also finalizing a consulting agreement with a Crypto Currency Application Architect who specializes in emerging BlockChain development strategy. The Company believes strongly in the need to offer products and services that enable more widespread adoption of Cypto Currency by addressing the areas of performance, scalability, security, and simplification of the user experience. The Company is therefore redirecting its financial and intellectual assets toward the data center hosting business model specifically for the Crypto Currency Mining industry.
The Company will offer the following four (4) basic services to the mining industry initially:
1. Colocation – this basic product involves the Company hosting client-owned Miners within a Company facility. The Company will charge the customer a monthly rental fee plus an electrical reimbursement that is based on a targeted PUE (Power Usage Effectiveness) of between 1.1 – 1.5.
2. Secure Network Platform – using an industry standard network and information security architecture for financial services and internet-based businesses, the Company will provide a scalable, secure network for its mining customers. This will allow customer the option of offloading network provisioning and management, as well as security from externally and internally-based attack vectors. These functions are typically the burden of the end customer.
3. Managed Miner Service – the Company will offer a fully managed solution whereby the Company’s employees receive the customer’s Miners and perform all tasks associated with provisioning and managing the Miners. This includes operations and maintenance, as well as Move/Add/Change/Delete (MACD) services consistent with common outsourced Information Technology Services.
4. Mining as a Service – through its partnership with several leading manufactures and custom builders of Mining hardware, the Company will source a variety of mining hardware types, install, and run them from a Company facility. In this model, the end customer never has to interact with the hardware but pays the Company for the use of the Miners on a monthly basis. This service is offered on multi-year contracts and has automatic hardware upgrades built into the service. The Company is working with a leading certified architect on the final design of its generally-available mining facilities.
The Company is also working directly with potential end customers on custom data center build outs which will utilize the Company’s basic data center design in conjunction with client-specific alterations. Each of the Company’s facilities will provide local redundancy of critical building systems as well as an option for customers to have the Company implement and manage emergency power generation capabilities onsite. The Company has spent a considerable amount of time identifying the emerging logical and physical threats, and has factored these threats into the design of its facilities.
ITEM 7. NATURE AND EXTENT OF ISSUER’S FACILITIES The Company's principal operations are located at 50 West Liberty Street, Suite 880, Reno, NV 89501. The Company feels this space adequately meets the needs of the Company. Expanded facilities will be needed in the near future.
