In another victory for MoonLite, we have secured all of the mining equipment we need to execute our plans as envisioned in our white paper. This is a significant step in cementing our presence in the global mining arena.
As some may know, it is not very easy to purchase mining equipment from the manufacturers in todays market, especially at volume. As in our case, around 15,000 miners are required to complete plans as outlined. Complicating things further is that we require a set number of machines, at specific dates along the next 12 months.
As a project, MoonLite needs to be able to rollout its expansion plan in a structured manner, and this relies on the ability to purchase equipment, in fixed volume, at a fixed rate, and exactly when we need it. We have entered into agreements for the first order of equipment with the original manufacturers, as planned, and this equipment will be delivered in June/July 2018. However, we have been unable to get high level finality on January and July 2019 orders.
The entire crypto-mining equipment industry is essentially dominated by Bitmain, who are the manufacturers of the Antminer machines. There are other manufacturers of ASIC equipment, but none of them have anything close to the market share of the former. Due to this advantage, Bitmain have no compelling need to be tied down to supply agreements at preferential rates, nor need to negotiate for long term contracts. The same applies to Bitfury, and others.
Eric Krige, the Moonlite Project CEO, was in Taipei last week where he conducted a technical due diligence on Orion, and their proposed ASIC miners. The outcome is summarized as follows:
- Orion is a new, up and coming manufacturer that differs from its competitors in that it does not compete with its clients by mining with their own equipment, and is a fully transparent organization, where, to date, the same may not be said about other manufacturers.
- Orion SHA256 (BTC and BCH algorithm) ASIC miners have the capacity to mine at 16.7th/s
- Next generation 7nm chipset, instead of the popular 16nm, allowing for greater hashing power and improved efficiency. This is the first available 7nm chip on the market, and is well ahead of its competitors.
- Consumption of energy and size of machines are in line with the popular Antminer S9 machines, therefore requiring no changes to floor plan and DC Design.
- Differs from the S9 as the cores in each chip are laid out in a ‘parallel’ pattern, therefore enabling the chip to continue hashing even when individual cores fail. Other machines would fail entirely.
- Overall performance is ahead of the Antminer S9 and other competitors, with an even newer and more efficient design being released soon.
- Improved API functionality for live miner and data centre management, including hashing rate, pool changes, chip and board status, temperature, and many more critical information reports. This is well ahead of the market, and allows us extra functionality for our custom miner management system.
- Several design updates and improvements, making the Orion ASIC miners the best on the market, for our planned use
- Improved equipment guarantee, customer support, and returns policy.
Based on the information and the outcomes of our technical due diligence, MoonLite has decided to enter into a purchase and supply agreement with Orion. This is not an exclusive agreement and does not restrict MoonLite from purchasing equipment from other manufacturers, but by entering said agreement, we secure ourselves the following:
100% of required miners, guaranteed to be delivered in time for our second and third expansion phases, including penalties for breach, late delivery, and downtime.
- First rights to all future batches of equipment, including other models.
- First rights to all newly produced equipment – Due to NDA being in place, this cannot be elaborated on, but you can trust that this Is explosive!
- With rights to 10,000 miners per monthly batch and by including “Rolling Delivery” options we are assured that future equipment orders will be met free of volume throttling.
- This is significant because we can be assured future expansion will not be inhibited by Orion and that we can expand at 100% of our planned rate.
- Ability to plan and deliver on future custom orders
- Preferential volume pricing and equipment acquisition at much better prices than competitors.
- Access to the top level team members in their organisation.
- A true long term mutually beneficial relationship, unlike what would be possible elsewhere.
Status of Engagement:
- We have entered into NDA
- We have counter-signed and returned a Letter of Intent to purchase 10,000 SHA256 ASIC miners, for delivery in February and July 2019.
- We are awaiting the final purchase agreement. This will be countersigned and retuned, after-which a 50% deposit will be paid on our order.
By heading in this direction, we can be sure that we have access to sufficient supply of equipment for phases 2 and 3, while remaining dynamic enough to order greater volumes for more ad-hoc expansion. As Moonlite grows, and we expand further than what is envisioned in the white paper, we now have contractually assured access to equipment, which in our opinion is going to be the best in the market.
We feel that this is another major victory for the project as the values of Orion fit with that of our own, and enable us to remain dynamic in our approach to mining, with an open source of supply, without restriction. We feel that this partnership further distinguishes us from other mining firms In our ability to reach targets and deliver.
More information on this will be provided in future updates.
Yours in mining,
The Moonlite Team
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