Q3 Summary & Financial Results

A review of DLTx’s 3rd quarter highlights, activities and what’s on the horizon ahead as the company continues to scale its production and operations

DLTx

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10 min readNov 28, 2021

TL;DR

On Thursday, November 25th, DLTx released its public Q3 Financial Results disclosure. DLTx has seen significant success and traction since its birth in March of this year which includes a 75% growth in earnings per share since the second quarter, revenues before taxes of USD 3.8m, BMAQ listed onto NASDAQ as well as Rhodium Enterprises has filed for an IPO with the U.S. SEC along with new investments into SDG Exchange and Titan.

“The third quarter of 2021 marked a successful quarter on DLTx’s development path and the company’s positive progression as a technology company doing business with blockchains. Our first Filecoin storage provider is fully operational and generating revenues, we have added key resources in IR and marketing, and are continuing to focus on building the foundations of Web 3.,” says Thomas Christensen, Chief Executive Officer.

Outlook

The vision of DLTx is to be the leading company focused on creating opportunities for investors to be involved in the changes brought about by web3 and the new decentralized economies. The executive management team are among some of the earliest entrepreneurs within the blockchain industry and carry forth tremendous depth of knowledge and experience to understand these decentralized technologies and the opportunities they bring with them.

One of the basic theories for how DLTx is operating in this new decentralized world is to understand that algorithms and math are becoming law and the new ways we form agreements with third parties. In the cases of Bitcoin, Filecoin and others, they’re following a route where there are new opportunities to interact with a protocol instead of a traditional legacy business wherein a protocol is simply digitized mathematical code. Because of this, DLTx is able to transact with open-source protocols knowing what the outcome will be — making these transactions with protocols via “smart contracts” more secure, more predictable, more scalable, and we believe, more interesting than the historical legacy way of doing business through normal contracts.

The company has uncovered opportunities within Bitcoin and Filecoin to generate tokens at about one-tenth of their market prices and then to execute against these opportunities with about 90% margins in scalable formats where we’re raising capital using traditional financial vehicles thus enabling the company to leverage those margins and produce excellent returns for investors in the joint ventures, which are subsequently generating residual interests for DLTx.

At DLTx, we believe we have a business model that is foreseeable, reliable and predictable. For those who take the time to look into our numbers and information and then begin to attach linear logic to the company’s production, they will begin to see an understandable picture of the value that DLTx is building.

Filecoin

At DLTx, we are extremely passionate about decentralizing the internet. We continue to witness the decentralization of the transfer of value with Bitcoin and now we’re seeing the beginning of the same trend with the decentralization of cloud storage with Filecoin.

The way to think about Filecoin is really as a decentralized Amazon Web Services (AWS) where Amazon today is one of the largest clouds in the world, except only Amazon can provide storage to AWS. In the case of Filecoin, however, it’s an open marketplace where any data center and any miner can provide data storage to the network — this is truly a revolutionary approach where it’s an open-source and neutral platform that everybody can use and access.

On August 11th of this year, DLTx announced plans to launch its first Filecoin storage operation (FIL Ops 1). We are pleased to announce FIL Ops 1 has been operating immaculately with 100% uptime and generated USD 530,000 in revenue for DLTx in the third quarter with an adjusted EBITDA of USD 430,000. This is a fantastic breakthrough for the DLTx team and will serve as the template for further expansion of the capabilities on the Filecoin network.

This project is notable for both its capital market structure as well as the technical platform which enables low-cost scalable efficiency. Based on the current operations, DLTx is attracting multiple investors for new projects which are currently in different development stages. DLTx expects to add significant FIL earnings through the increased capacity brought about by these projects.

Today, the Filecoin network globally is growing really quickly, already providing over 13 exabytes of data capacity. We see Filecoin transitioning from focusing on storage to providing more and more interfaces directly to users, and the interesting thing is that as the Filecoin network is an open-source community, meaning that DLTx has an incredible opportunity to participate in building those interfaces and providing that storage capacity directly to users. We believe in the next one to two years our Filecoin focus will expand to include these transitional opportunities to ramp up the commercialization of the Filecoin network in addition to building out the storage capacity.

Q3 Investments

SDG Exchange

In line with our belief that the adoption of distributed ledger technologies will drive positive economic, environmental, and social change, DLTx invested USD 100,000 in the global sustainability marketplace, SDG Exchange, in the third quarter. SDG Exchange is the first global exchange to be fully compliant with Paris Agreement Article 6.

SDG Exchange is a global sustainability marketplace using blockchain to track carbon assets, facilitate trading and verifying compliance. The exchange’s goal is to help companies accelerate their adherence to Paris compliance through seamless and secure global transactions with blockchain transparency.

Titan

Titan is a leading developer of software and services for advancing Bitcoin mining at scale. Built by miners for miners, Titan makes mining easy, profitable, and scalable through advanced mining management software and North America’s first enterprise-grade mining pool. The company has announced the launch of the Lumerin Protocol, a peer-to-peer solution that makes Bitcoin hashpower a tradable, liquid financial asset, unlocking mining profitability and providing greater access to capital.

BMAQ — Blockchain Moon Acquisition Corp.

DLTx was an early investor BMAQ, a SPAC focused on blockchain technology. The company has completed their listing on NASDAQ and is actively pursuing a business combination with a high growth business in blockchain technologies in North America, Europe or Asia. DLTx chairman James Haft has been appointed as independent director.

DLTx invested USD 653,350 through Jupiter Sponsor LLC equating to 406,500 shares at the initial public offering. The shares were priced at USD 10 in the IPO which results in an increase of the value of the investment of USD 3,413,650 or 524 % after the close of the third quarter the listing of BMAQ was completed.

Rhodium Enterprises

Rhodium Enterprises (Rhodium) is one of the largest industrial scale Bitcoin mining operations in North America with 100 megawatts of liquid-cooled miners scheduled to be online by December 2021. The company is planning its launch of second site with 225 megawatts of miners scheduled for delivery in April 2022.

Rhodium has filed for an IPO with the U.S. Securities and Exchange Commission and plans to list on Nasdaq under the symbol RHDM. DLTx’s shareholding in Rhodium Enterprises is the result of a roll-up of our Rhodium 30MW position in Q2 2021.

Download the full 2021 Q3 report and presentation on DLTX.com.

Upcoming Events

With newly-added key resources in place for marketing and investor relations, DLTx is planning to continue increasing its travel, speaking, sponsoring and events engagements throughout Q4 and beyond.

If you will be attending any of the following events and would like to connect with a member of the DLTx team, please reach out directly.

Miami — Art Basel: Nov 29 to Dec 3

Up next, DLTx will be speaking, sponsoring and hosting events in Miami for Art Basel which has historically been the largest art gathering on the western hemisphere each year. With the explosion in NFTs and the welcoming nature of Miami’s politics around cryptocurrency, blockchain has quickly become the hottest trending topic, where DLTx will be on the ground at the epicenter of it all.

Nov 29–30: James Haft will be speaking at the largest blockchain conference of the week, DCentral Miami

Nov 30: Kaitie Zhee will be attending an intimate VIP dinner with the Mayor of Miami, Francisco Suarez.

Nov 30: DLTx will be co-hosting a private VIP Satellite Social event for a highly-curated guest list of 200 investors and industry professionals. At the time of writing, DLTx has received interest from more than 800 registration requests to attend.

Puerto Rico Blockchain Week: Dec 4 to Dec 11

Dec. 6: David Johnston to give keynote presentation at the HODL Here conference

Dec. 6: James Haft to interview U.S. Commissioner Hester Pierce at the HODL Here conference

Dec. 6: DLTx to host its VIP Investor & Builder Satellite Social event for 150 guests, positioned to being the premier VIP event during the PRBW Kickoff

Dec. 8: CoinAgenda — DLTx Keynote by James Haft, DLTx Panel discussion on Public Blockchain & the Public Markets, David Johnston to participate in a special fireside chat with Michael Terpin

Family Office Super Summit — Ft. Lauderdale, FL: Dec 12 to Dec 14

Dec. 13: David Johnston is an invited speaker at the Family Office Super Summit to a crowd of about 500 family offices and family office managers

Crypto Finance Conference — St. Moritz, Switzerland: Jan 15 to Jan 17

David Johnston and James Haft have been invited guests of CfC St. Moritz which brings together a maximum of 250 carefully selected international and sophisticated investors, family offices, funds and decision makers from both the traditional and the new world in the most private and unique setting in the heart of the Swiss Alps

World Economic Forum — Davos, Switzerland: Jan 17 to Jan 23

DLTx is planning a full week of hosting and attending meetings and events during the 2022 World Economic Forum Annual Meeting. The Davos Agenda is a pioneering mobilization of global leaders to shape the principles, policies and partnerships needed in this challenging new context. More details to come soon…

Capital Markets Day — Oslo, Norway: Jan 24 to Jan 27

Due to COVID-19-related restrictions, DLTx’s Capital Markets Day has moved to January 26th, 2022. On this day, the DLTx executive team will plan a day of discussions and short presentations to shareholders, members of the media and other interested parties. Event tickets and further information to come soon…

Satoshi Roundtable — undisclosed: End of January

Now in its eighth year, the Roundtable is characterized by high-level private discussions in a private relaxed venue, this years event brought together leading developers, CEOs, founders, scientists, academics and investors. With each iteration, we have learned and grown as our industry has continued to evolve. David Johnston and Jonathan Mohan have been recognized for their industry contributions and continue to be invited guests of the Roundtable.

Q3 Events in Review

Madrid

First, all in-person, team meeting!

Dubai — Gulf Blockchain Week

David Johnston and James Haft were invited speakers of several key events as well as hosted the first-ever international VIP Investor & Builder Satellite Social event.

Las Vegas

Jonathan Mohan gave a keynote presentation as well as sat down for a panel discussion and fireside chat at the 8th annual flagship CoinAgenda blockchain conference event.

NYC — NFT Week

James Haft sat down at the largest international blockchain event in the U.S. at NFT.NYC to discuss a VC’s guide to investing in NFT platforms. During this week, DLTx spent five non-stop days hosting and conducting investor meetings and discussions with major institutions, funds and family offices as well as hosted an extremely successful VIP Investor & Builder Satellite Social event.

Lisbon

DLTx attended the annual Web Summit event where we hosted a gathering of investors and industry professionals. DLTx was also representing at the Solana Breakpoint event.