From a financial due diligence perspective, we believe that even in terms of strategic partnerships, extra price-taking capacity and volume growth, even upside-down even basic estimates are likely to grow. Since its first discussions with CoassFund with Compass, the team has already delivered fourth-quarter sales in excess of budget, while also aggressively expanding new revenue opportunities while maintaining a lower cost base and leveraging social media marketing to maximize spending ROI Compass product launch and launch above. Although Compass is not yet in the same growth phase as large publicly listed infrastructure companies, the similarity of business models (recurring revenues, scalable platform model, relevant barriers to entry) between Compass and premium multiples enjoyed by data centers such as EQIX or DLR (25x + EBITDA) and , such as AMT or CCI (also 25x + EBITDA), which we consider an effort.

One question is whether you assume that BTC and its SHA-256 algorithm will remain the market leader compared to a POS chain such as ETH2 or newer base layers such as DOT. At this point, we believe it is unlikely that BTC will lose its central position as a ‘digital gold’ asset in the digital asset world, which has only strengthened despite numerous forks such as LTC, BCH, Bitcoin Gold and more, none of which they have been able to participate in BTC: n cash premiums and have mostly lost their place on a price basis compared to Bitcoin. While it is true that current and future generation POS-based layer-1s continue to show better programmability and scalability, the success of wrapping projects such as wBTC suggests that the BTC moat is actually stronger, not weaker in the era of connectivity and interoperability as its core features. , which cannot be easily copied (spotless perception and bypassing the POW cold start problem now that mainstream awareness and attraction have been achieved).

Another potential concern is that most ASIC supply chains continue to rely on manufacturing processes with a strong Chinese involvement, not to mention dependence on Chinese manufacturers such as Bitmain and MicroBT. Historically, the Chinese government has also periodically cracked down on encryption-related companies, seized miners involved in illegal mining activities, or robbed stock exchanges accused of violating the Securities Act. However, While country-specific risk remains an issue, we believe that the trend of geographic diversification of hashower operations outside China will only continue because there are natural incentives for both our own miners and equipment suppliers to seek to minimize their own risks to a single state / government system. In particular, we believe that the combination of 1) encourages Chinese miners to diversify geographically for personal / political protection, 2) increased proliferation of mining equipment + longer equipment cycles (allow for larger capital investment projects) and 3) greater desire for mining operations in China, although I have highlighted some obstacles and sources of variance that are worth watching. There are already examples of ASIC manufacturers diversifying their operations to reduce the risk of regional disruption in China and optimizing buyers ’tax liability, such as when Bitmain has stalled final assembly operations in Malaysia to save U.S. equipment buyers 20 percent of value added. tax on ASICs purchased directly from China.

Global hashrate distribution: https://cbeci.org/mining_map

Conclusion: We are excited to support Compass’s vision to enable simplified, owned and democratized access to the previously confusing world of cryptocurrency mining, especially given the opportunity for scalable and global value-added services outside the beachhead marketplace, such as data, finance and more. Although CoinFund had previously refused to invest in the mining industry, we believe Compass has a unique position to leverage market background and leverage the history of its team’s successful implementation to add sustainable value to the industry in the years to come.

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