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TLDR: When executing a sponsor backed buyout of a distressed Energy Intensive Manufacturing business (heavy manufacturing, mining, etc.), adding a Bitcoin mining layer to the transaction can reduce the fixed costs burdened by the business, improve IRR and reduce risk of the overall transaction.

Co-Authored with Harry Sudock, Director Strategy of Griid Infrastructure

Introduction

Modern industrial America has been particularly unkind to a subset of the Energy Intensive Manufacturing Sector; a combination of increasing globalization, tightening labor markets, and overall rising COGS created a dynamic where many of these businesses became unprofitable on a marginal basis. …


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If you have been around in crypto for long enough, you’ve probably heard people mention token or protocol M&A. After all, it’s logical; an industry that experiences such an extraordinary number of iconic divestitures (forks) should at least have a few mergers. While many (myself included) love pontificating on such a novel idea, as of today the progress in the field can be summed up in one word — pontification. Aside from a few insignificant M&A transactions ($COSS & $ARAX, $DOMO & $HEPTA), the space is pretty dead.

On the contrary, traditional, equity-based, M&A is alive and kicking. As many…


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Each one of us knows that adrenaline rush that you get after opening your favorite investment tracking app, seeing nice green numbers, and knowing that this morning you are just a bit wealthier than you were yesterday. This rush increases by multiple folds when you know that other people didn’t have a similar investment opportunity. The access to information and knowledge is free, but access to the right opportunities can carry the weight of gold. Exclusivity they call it.

Throughout the years, over 90% of Americans suffered from such exclusivity “problem.” These individuals were guilty of only one thing —…


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TLDR; as SaaS products continue to grow in popularity, many marketplace operators are starting to provide such products as part of the marketplace experience. Operators building such a combination are facing an increased execution complexity. New marketplace that are willing to take this challenge head on should maximize the potential benefits from it. By providing business compelling SaaS tools, marketplaces could convert early users to distributors and build a B2B2C distribution model for the core marketplace significantly decreasing lunch costs.

The online marketplace model brought a tremendous level of innovation to our lives. What started from static pages in Web…


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Have you seen your social media feeds over the last few weeks fill up with comments such as “MBA programs are overrated”, “Take the $200K tuition and start a business, you will learn more”, “it’s just a two-year vacation…”?


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Egyptian hieroglyphs, Medieval art, and computer graphics have one thing in common — providing people with visual tools to help convey a message. Throughout history people have been in a constant pursuit to create the best possible visual representation of items and events. The latest evolution of this pursuit is X Reality or as we know it — 3D, VR and AR.

Augmented and Virtual Reality technologies have been developed and hyped for years. Tech giants such as Samsung, HTC, Facebook and Google have been secretly and openly pouring billions of dollars into AR/VR related hardware and software products. Gear…


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Prior to launching a startup, one must pick an entry point and understand how the startup can position itself compared to industry incumbents. This process of selecting an entry point is not easy and is critical to the future success of a startup. Pick the wrong entry point and your startup will never get traction, pick the right one and you can accelerate growth. Traditionally, founders considered some of the the following criteria:

  • High Product Demand — is there access demand in the market that the startup can help filling? (e.g., …


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Unclear regulations, product first mentality, unrealistic valuations, and a lot of scams. Sound familiar? If it does, many may think that the above is related to cryptocurrencies, but another industry shares similar characteristics — cannabis. While cannabis is a much older and more established industry (California was the first state to legalize medicinal use back in 1996, and the plant itself has been around for, well, a while) it has a lot in common with the emerging cryptocurrency “industry” (if one can call it that).

Over the past few years both the cannabis and crypto came out to the main…


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BTC prices are down more than 80% from ATH and many question the profitability of BTC mining. Most state that high unit electricity costs make most mining units unprofitable to operate. This article presents a different approach, and explores the following hypothesis: In a bear market, the driving profitability factor for existing Bitcoin miners is not the unit electricity efficiency, but equipment cost.

For most large and sophisticated BTC miners, operating over 1,000 ASIC units, the 2017–2018 market cycle was not the first one. These companies experienced 20x gains in 2013 and saw prices drop by 85% during the 2014…


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With multiple ICOs and projects running out of funds (Sirin labs announced they have 6–12 months in run-way after raising $158M in 2017), innovative growth strategies are becoming more and more relevant. In the past few months, I have been exploring the concepts of M&A and growth hacking in crypto, focusing on how to apply “real world” growth strategies to crypto. The potential of crypto M&A is huge — EOS acquiring ETH Dapps, Monero absorbing Verge or Zcoin, etc. These ideas are theoretical, however, one project’s innovative thinking recently made it a reality. The first open source crypto “merger”.

Background:

Domocoin…

Michael

Just staying curious. B2B2C, Fintech/Crypto, Consumer Tech, Startups and M&A. Go Blue Devils.

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