Building In The Bear Market

As all the noise & hype fades away & investors focus back on the fundamentals

How is DLTx fund raising in the current market?

DLTx’ team members have been through many crypto bear markets since 2010. Thanks to the lessons from this experience, we are able to look through the cycles and flourish during bear markets, not just during bull runs.

In fact, during a bull market, flashy things soak up lots of capital driving up prices to unsustainable levels. DLTx chose to avoid the hype and concentrate on core business operations versus overpaying and destroying shareholder value. With the bear market upon us, the opportunity is now to make investments and partner to continue our infrastructure development at distressed prices.

Case In Point: Bitcoin Mining

Take for example the Bitcoin mining operations DLTx is invested in. They continue to produce BTC at or under $6,000 per coin. That solid 3X profit margin business all of a sudden seems very compelling versus those erroneously claiming 10x returns and now find themselves exiting the industry.

As a company with a long term view on Bitcoin, we understand that bear markets reduce competition and thus lower mining difficulty. In the bull market everybody and their brother wants to be a miner, and thinks their four or five cents per kilowatt energy will make them profitable. Then when the bear market hits, these same high-cost miners are swept away and the battle-hardened professionals, who pay less than three cents per kilowatt remain, racking up additional coins and buying hardware at a fraction of their bull market highs.

These dynamics are very similar across all the protocols that DLTx provides infrastructure for.

Partnership With Baseline Capital + DLTx

DLTx is delighted to partner with Baseline Capital to further develop our Filecoin operations. The team at Baseline understands our business model and are excited to fund our operations because of our unique risk-return profile within the space. Using Baseline allows DLTx to develop a wholly owned Filecoin SPV without external investors, which means an increased share of future revenue compared to investor funded SPVs.

Joel Gheen the Managing Director of Baseline commented:

“We’re very pleased to be partnering with David and the team at DLTx. They’re experienced operators and they’ve proven their ability to produce at costs well below market.”

Expect to see DLTx continue to double down where our experience & scale provide us great returns.

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