DLTx Building Filecoin Infrastructure
DLTx Collaborates with DSM Tech Enterprises & Genesis Global Capital to Develop Pioneering Filecoin Storage Project
(Oslo, 11 August, 2021) DLT ASA (DLT, OSE:DLTX), in partnership with DSM Tech Enterprises (DSM), has entered into an arrangement with Genesis Global Capital, LLC (Genesis) to develop an innovative Filecoin (FIL) storage facility in the US utilizing a new multi-signature wallet approach.
“We´re excited to announce this relationship with Genesis to develop a high-capacity Filecoin storage facility in the US. The commercial operations will commence in August 2021, and will provide a short runway to profitability utilizing significant scalability. We will have the capacity to add more than 32,000 tebibyte of storage per year to the Filecoin network and the North American location provides an attractive alternative to Chinese-dominated storage competitors. The Filecoin project is fully aligned with our strategy to develop and execute the best blockchain projects globally,” says Thomas Christensen, CEO of DLTx.
DLTx has entered into a Joint Venture (JV) with DSM for the development of a Filecoin (FIL) storage facility where DLTx has invested USD 1 million. Total funding in excess of USD 25 million has been secured through a combination of a lending facility with Genesis and funds contributed through a special purpose vehicle subsidiary. — Approx. USD 20m of FIL tokens secured in a pioneering multi-signature collateral solution with Genesis — Over USD 5m equity contributed to SPV from external investors
“We are thrilled to work with DLTx, offering them financing to scale their Filecoin storage facility while implementing a lending agreement through a multi-signature wallet approach. We look forward to helping them grow their vision to become an increasingly important player in the Filecoin ecosystem.” says Eugene Chang from the Institutional Lending team at Genesis.
Filecoin is a peer-to-peer network that stores files, with built-in economic incentives to ensure data are stored reliably over time. With FIL, users pay to store their files on Storage Providers. Available storage, and the price of that storage, is not controlled by any single company. Instead, FIL facilitates open markets for storing and retrieving files that anyone can participate in. The market cap of Filecoin is estimated at USD 6.4 billion. (CoinGecko.com)
The JV will have the first Storage Providers ready in August 2021 and will continually add Storage Providers as it grows towards its goal of 128,000 tebibyte (TiB) of storage. The facility is expected to turn a profit in Q4 2022
The project is estimated to generate cash flows in the range of USD 130m to 200m during the first ten years of operation to DLTx, based on FIL prices of USD 50 and USD 75, respectively.
Currently, FIL is priced at approx. USD 67 (CoinGecko.com) — Breakeven is estimated below a FIL price of USD 10 The JV is organized as a new company, File Storage Partners, LLC, which will be 51 percent owned by DLTx and 49 percent by DSM.
It will be managed by David Johnston, on behalf of DLTx, and Simon Campbell, on behalf of DSM. “We are excited to be working with DSM and Genesis to expand DLTx’s mining activities into the Filecoin ecosystem. There is an amazing opportunity to rebuild the internet and much of that starts with low cost and reliable data storage, where the Filecoin community has shown itself to be leading the way in terms of adoption and market share,” says David Johnston, COO of DLTx
Simon Campbell, CEO of DSM adds, “We are excited to team up with DLTx to build a sizable Filecoin storage operation. This is a great example of blockchain technology enabling a disruptive business model within a huge, and ever expanding, market like data storage.”
THE PRESENTATION ACCOMPANYING THIS ANNOUNCEMENT WAS PRESENTED VIA WEBCAST AUGUST 12TH, 2021 AT 13.00 CET. LINK TO THE STREAM WILL BE MADE AVAILABLE THROUGH XTRAINVESTOR AND OUR HOMEPAGE. THE PRESENTATION WILL BE HOSTED BY THOMAS CHRISTENSEN, CEO, AND ROGER LUND, VP, STRATEGY. THE PRESENTATION WILL BE HELD IN NORWEGIAN AND QUESTIONS CAN BE SUBMITTED BEFORE THE PRESENTATION TO IR@DLTASA.NO. A RECORDED VERSION OF THE WEBCAST WILL BE AVAILABLE ON THE COMPANY’S WEBPAGE AFTER THE STREAM IS CONCLUDED. THE PRESENTATION WILL BE AVAILABLE AT DLTASA.NO. For further information, please contact: Thomas Christensen, CEO, +47 9225 5444
ABOUT DLTx DLTx is focused exclusively on building technology in the blockchain industry. DLTx will partner with the best-in-class companies in sectors being reshaped by Distributed Ledger Technologies. The management and advisory board have considerable experience within the blockchain ecosystem and will actively advise and support the companies DLTx helps develop. DLTx will support core developers, run validation nodes, hold governance tokens, and help companies with the right technology, teams, and market prospects to succeed.