ALBANY, N.Y., Feb. 3, 2021 /PRNewswire/ — EcoChain, Inc. (“EcoChain” or the “Firm”), headquartered in Albany, New York, a completely owned subsidiary of Mechanical Know-how, Integrated, a publicly traded firm (OTCQB: MKTY) shares solutions to widespread investor questions.
As a part of the Firm’s ongoing efforts to maintain buyers knowledgeable throughout this dynamic time for the Firm, MKTY issued the next shareholder replace:
On December 23, 2020, the Firm wrote to its shareholders to supply a yearend replace and a blueprint for its 2021 goals. In the course of the previous a number of weeks since that letter, we have obtained quite a few questions from our shareholder base. To guarantee enough communication with our shareholders, we’re releasing this replace in a framework to simply deal with a number of of the inquiries we now have obtained:
Crypto Coin Markets
1) Will EcoChain maintain the Bitcoin or Alt coin it mines on its stability sheet? Will EcoChain use any of its money to purchase BTC or different Alt cash?
Presently, EcoChain’s marketing strategy doesn’t ponder direct possession of BTC or ALT cash mined, nor does it intend to make use of its capital to buy BTC or ALT cash.
EcoChain has introduced that it purchased land to construct out a 25MW ultra-low price inexperienced knowledge middle. Though the Firm has not but introduced the facility price, its present estimates lead it to consider that the last word energy price might be considerably beneath that of a number of well-known public corporations that additionally compete on this area. If the Firm’s estimates are appropriate, the ultra-low price will allow EcoChain to optimize its capital deployment because it may simply purchase calmly used present era processors, monetize second and third era processors and keep away from paying a premium and ready for the newest era miners. EcoChain expects to have a mixture of gear and provide preparations that can search to optimize its return on invested capital. Extremely-low price energy offers EcoChain that risk.
2) Is the Firm involved about Crypto coin costs and that they might collapse?
Crypto costs are unstable. The Firm continues to observe the motion of crypto valuations and its potential influence on its marketing strategy. To that finish, EcoChain’s plan is to assemble ultra-low price knowledge facilities such that they might have been worthwhile even by the final crypto winter and ideally be poised to climate future durations of volatility and potential vital declines.
Moreover, the Firm believes that mining profitability and return on invested capital will depend on greater than Crypto costs –network problem and the price of gear are additionally key variables. That’s the reason rising, static or declining crypto costs do not at all times instantly influence profitability in a straight line Moreover, as famous above, as a result of the Firm doesn’t ponder holding crypto on its stability sheet, we consider our marketing strategy is best suited to ship extra steady returns and therefore share costs; nonetheless, there aren’t any ensures that our expectations might be profitable.
The MKTY Group, Together with Soluna and EcoChain
1) Please describe the connection with Soluna and the way associated bills are billed and handed by the revenue assertion?
Soluna is a key expertise supplier to EcoChain. Brookstone Companions, which owns 39% of MKTY, controls about 62% of Soluna. Any and all agreements between the Firm and Soluna are negotiated by unbiased administrators of the Firm, instantly with the CEO of Soluna and characterize arms-length practices. That is extra totally described in our public filings.
Soluna is paid a per MW annual administration price, a % of the income as soon as EcoChain has its capital returned with a pre-specified price of return, and an preliminary transaction/arrange price. Soluna doesn’t present the personnel on the knowledge middle that service the bodily machines. Soluna directs these personnel. Presently these sources on the bottom are retained by EcoChain on a contract foundation, however because the Firm scales up it should periodically reassess this association.
2) What’s the CEO’s present compensation association?
Michael Toporek is an worker at will. His complete money compensation is $170,000. He’s additionally a Director, and as different administrators do, he receives the identical compensation in shares and choices. Brookstone Companions, an funding agency he helps to handle, controls about 39% of the Firm which at present gives enough alignment of incentives. Any modifications to Mr. Toporek’s compensation or our firm’s relationship with Brookstone or an affiliate of Brookstone, might be prominently mirrored in our filings with the SEC.
3) Will EcoChain ever want its personal workers, or will all actions at all times be dealt with by Soluna?
EcoChain repeatedly assesses its sources and the economics of outsourcing or insourcing. As such, present contract relationships might change with sure actions introduced in-house because the Firm continues to scale and the economics of insourcing change into less expensive. The aim is to retain the most effective expertise economically.
4) What number of Soluna workers are actively engaged on EcoChain actions?
Soluna has 4 folks which are actively engaged on issues for EcoChain along with sure engineers and consultants that are recurrently retained.
About EcoChain, Inc.
EcoChain is engaged in creating and working extremely low-cost inexperienced knowledge facilities targeted on crypto foreign money mining. For extra details about EcoChain, please go to https://ecochainmining.com/.
Ahead-Trying Statements for Mechanical Know-how, Integrated:
This communication incorporates forward-looking statements inside the that means of the Non-public Securities Litigation Reform Act of 1995. Ahead-looking statements mirror administration’s present expectations, as of the date of this communication, and contain sure dangers and uncertainties. Ahead-looking statements embody statements herein with respect to the profitable execution of the Firm’s enterprise technique. The Firm’s precise outcomes may differ materially from these anticipated in these forward-looking statements on account of numerous components. Such dangers and uncertainties embody, amongst different issues, our potential to determine and preserve the proprietary nature of our expertise by the patent course of, in addition to our potential to presumably license from others patents and patent purposes essential to develop merchandise; the provision of financing; the Firm’s potential to implement its lengthy vary marketing strategy for numerous purposes of its expertise; the Firm’s potential to enter into agreements with any obligatory companions; the influence of competitors, the acquiring and upkeep of any obligatory regulatory clearances relevant to purposes of the Firm’s expertise; and administration of development and different dangers and uncertainties that could be detailed occasionally within the Firm’s experiences filed with the Securities and Alternate Fee.
Please go to https://www.mechtech.com underneath Information & Occasions.
Contact Info:
Lisa Brennan
518-218-2592
[email protected]
Kirin Smith, President
PCG Advisory, Inc.
646.823.8656
[email protected]
SOURCE Mechanical Know-how, Integrated
