CREEK ROAD MINERS
Overview
The cryptocurrency industry is at an inflection point:
- Rising Bitcoin prices due to rising global adoption of cryptocurrency.
- Rising processing power and energy requirements to support Bitcoin mining.
Creek Road Miners management consists of a seasoned team of operating executives with:
- Significant experience in cryptocurrencies, NFTs, and tech leadership.
- Strong relationships in the oil and gas industry.
- Expertise in product management at scale, construction projects, logistics, and operational management.
Creek Road Miners Five Cornerstone Strategy:
- Vertical Integration.
- Energy Diversification.
- Geographic Diversification.
- Cryptocurrency Diversification.
- Revenue Diversification.
CREEK ROAD MINERS
Strategic Development
Creek Road Miners is deploying a unique and differentiating strategy to cryptocurrency mining by,
“taking control of what it can control and leaving behind what it can’t.”
What Creek Road Miners CAN control:
- Cost of electricity
- Number of miners / hash rate
- Continuity of mining (minimal downtime)
- Corporate expenses and overhead
What Creek Road Miners CANNOT control:
- Network hash rate
- Price of Bitcoin
- Block reward & # of blocks/year
- Price of miners
CREEK ROAD MINERS
Five-Cornerstone Strategy
Vertical Integration
Revenue Diversification
Cryptocurrency Diversification
Energy Diversification
Geographic Diversification
CREEK ROAD MINERS
Cornerstone I
Vertical Integration
By striving to own its energy sources, Creek Road Miners can:
Increase profits by eliminating the need for “middlemen”.
Reduce costs of transporting energy.
Reduce risks associated with additional governmental oversight and regulation of energy companies that provide energy to the grid.
Maintain best possible control of energy continuity.
CREEK ROAD MINERS
Cornerstone II
Energy Diversification
By diversifying its energy sources at each power generation facility, Creek Road Miners can :
Reduce reliance on any individual energy production source.
Utilize mobile units on a stand-alone basis or aggregated into a larger, centralized facility.
Mitigate supply and interruption risks.
CREEK ROAD MINERS
Cornerstone III
Geographic Diversification
By geographically distributing its mining facilitates, Creek Road Miners can:
Mitigate risks associated with interruptions and outages, whether due to weather, disasters, or lost connectivity.
Exploit differentials in energy pricing across geographic regions.
CREEK ROAD MINERS
Cornerstone IV
Cryptocurrency Diversification
By focusing on diversification of cryptocurrencies mined, Creek Road Miners can:
Mitigate cryptocurrency volatility
Quickly pivot to the most profitable cryptocurrencies.
CREEK ROAD MINERS
Cornerstone V
Revenue Diversification
Having multiple non-correlated revenue streams across varied commodities Creek Road Miners can:
Cover operating expenses utilizing revenue generated from other commodity sales.
Maintain treasury status of mined cryptocurrencies, offering control over when to sell and hedge.
Diversify revenue risk across multiple commodities.
CREEK ROAD MINERS
ESG Benefits of the Five-Cornerstone Approach
PHASE 1 (INITIAL)
- Use natural gas vs. coal
- Locating near production reduces energy required to transport molecules and electrons to cryptocurrency miners
PHASE 2
- Stranded Gas opportunities – locate mining facilities near production site
- Use renewable energy (wind, solar) when possible, supplemented by natural gas.
PHASE 3
- Carbon Capture
- Integrate with recycling efforts and use syngas (synthetic gas)
CREEK ROAD MINERS
Mining Economics
Revenue:
Computation Power
- Creek Road Miners Hash Rate.
- Network Hash Rate.
Bitcoin available to be mined per year
- 52,560 Blocks Mined Per Year.
- 6.25 Bitcoin per block.
Market Price
- USD Price per Bitcoin.
Costs:
Inputs
- Cost of Natural Gas.
Capital Investments
- Cost of Gas Turbines and Blockchain Miners (Lease or Depreciation)
Operating Costs
- Operating Expenses.
CREEK ROAD MINERS
Getting Here
It took less than five months from idea generation to implementation
Genesis of cryptocurrency mining operations from legacy business.
MAY 2021
Attended Bitcoin 2021 Conference in Miami Beach, FL to confirm strategy and establish relationships.
JUNE 2021
Purchased 156 S19J Pros – 16 Ph/s of total mining capacity. Purchased 1st mobile data center from Boundary Electric. Acquired lease on Capstone Turbine.
JULY 2021
Sale of historical non-core assets resulting in significant reduction in outstanding liabilities and working capital requirements.
AUG-SEPT 2021
Completed installation of 1MW facility. Purchased 84 S19J Pro – adding 8 Ph/s of mining capacity. Purchased 2nd mobile data center to house additional 270 miners
OCTOBER 2021
In negotiations for multiple additional energy sources and locations.
PRESENT