Taal Distributed Information Technologies Inc C.SQR

Undervalued without a doubt

[Junit290]

This has got to be one of the best deals I’ve seen since I started investing. The management team that’s running this show is top notch, with a pedigree not seen in many juniors on the Canadian exchanges. 
 

I’ve spent the weekend catching up on dd and reading the white paper thoroughly. 

 

Key points-

 

• Firstly it appears Bitmain has not taken advantage of their monopoly over the mining system market and maintained innovating, instead they may have pulled a Blackberry and this is where Squire may have a tremendous opportunity to seize market share. 
• Profit margin on the ($2,000) mining rig appears to be $1,500, Squire owns 75% of Arasystems Technology Corp, which entitles them to $1,125 of the profits. I’m not sure what the revenue split will be with Coingeek and the partners that will market and sell the actual rigs but the numbers are great regardless, with lots of profit to go around. 
• Squire mining rigs deliver superior hashrate and ROI while consuming half the power of the closest competitors top rig. Meaning large power cost savings which may mean the difference between profit and loss for some players. 
• Initial test run of 60,000 chips is equivalent to 600 Bitmain Antminer S9’s. The capital recovered from the sale or operation (not sure I understand completely the purpose of this first run) of these will fund the first year of the companies activities. 
• Next run of 1 million chips equivalent to only 10,000 Bitmain Antminer S9 mining rigs. It is hinted that partners and several large enterprise mining operators who control hundreds of thousands of rigs have expressed significant interest in Squire’s hardware (I assume this will be Coingeek and nChain). The amount of potential sales out of the gate is significant, mining rigs operate 24/7 under heavy processing load and do have an efficient operating lifespan of anywhere from 1 year to 18 months, after that it becomes fairly inefficient.
• Partner Coingeek.com is the largest miner of Bitcoin Cash in the world. nChain Group also controls a large pool of bitcoin Cash mining as well. Both of whom have a major stake in Squire via management and/or the rights to sales and marketing. I believe it is safe to assume both have large reserves of bitcoin cash easily converted to fiat currency that would be placing large orders to Squire. I also believe they have large fleets of mining rigs that are due for replacement anytime. 
• Over 3 million Bitcoin and 3 million Bitcoin Cash still left to be mined. Squire has suggested they also intend to diversify their ASIC chips to mine other crypto currencies such as Dash going forward, the potential market share they could have a slice of is very large. 

 

 

It’s important Investors understand that there is an ever increasing difficulty level in Bitcoin/Bitcoin Cash mining designed to maintain consistency in the speed in which blocks are created and new coins are mined. For enterprise mining operations these increases in difficulty mean less ROI as time progresses. In order to retain the highest possible ROI they need to constantly keep their fleet as advanced as possible. It appears Squire is ready and able to deliver a superior machine to accommodate the ever evolving Bitcoin mining industry. 

 

If you’re not yet excited about this play yet then you better get excited.