DLTx, in partnership with DSM Tech Enterprises (DSM), has entered into an arrangement with Genesis Global Capital, LLC (Genesis) to develop an innovative Filecoin (FIL) storage facility in the US utilizing a new multi-signature wallet approach.
“We´re excited to announce this relationship with Genesis to develop a high-capacity Filecoin storage provider in the US. The commercial operations will commence in August 2021, and will provide a short runway to profitability utilizing significant scalability. We will have the capacity to add more than 32,000 tebibyte of storage per year to the Filecoin network and the North American location provides an attractive alternative to Chinese-dominated storage competitors. The Filecoin project is fully aligned with our strategy to develop and execute the best blockchain projects globally,” says Thomas Christensen, CEO of DLTx.
“We are thrilled to work with DLTx, offering them financing to scale their Filecoin storage facility while implementing a lending agreement through a multi-signature wallet approach. We look forward to helping them grow their vision to become an increasingly important player in the Filecoin ecosystem.” says Eugene Chang from the Institutional Lending team at Genesis.
Filecoin is a peer-to-peer network that stores files, with built-in economic incentives to ensure data are stored reliably over time. With FIL, users pay to store their files on Storage Providers. Available storage, and the price of that storage, is not controlled by any single company. Instead, FIL facilitates open markets for storing and retrieving files that anyone can participate in. The market cap of Filecoin is currently estimated at USD 6.4 billion. (CoinGecko.com)
The JV will have the first Storage Providers ready in August 2021 and will continually add Storage Providers as it grows towards its goal of 128,000 tebibyte (TiB) of storage. The facility is expected to turn a profit in Q4 2022
The project is estimated to generate cash flows in the range of USD 130m to 200m during the first ten years of operation to DLTx, based on FIL prices of USD 50 and USD 75, respectively.
Currently, FIL is priced at approx. USD 67 (CoinGecko.com) — Breakeven is estimated below a FIL price of USD 10 The JV is organized as a new company, File Storage Partners, LLC, which will be 51 percent owned by DLTx and 49 percent by DSM.
It will be managed by David Johnston, on behalf of DLTx, and Simon Campbell, on behalf of DSM. “We are excited to be working with DSM and Genesis to expand DLTx’s mining activities into the Filecoin ecosystem. There is an amazing opportunity to rebuild the internet and much of that starts with low cost and reliable data storage, where the Filecoin community has shown itself to be leading the way in terms of adoption and market share,” says David Johnston, COO of DLTx
Simon Campbell, CEO of DSM adds, “We are excited to team up with DLTx to build a sizable Filecoin storage operation. This is a great example of blockchain technology enabling a disruptive business model within a huge, and ever expanding, market like data storage.”