DLT ASA reported a profit before tax of USD 2.1 million in the second quarter of 2021, up from USD -1.0 million in the corresponding period last year, following the successful transition towards becoming a global leader within distributed ledger technologies. The company expects to generate operating revenues of USD 7 – 13 million over the next twelve months.
“The second quarter of 2021 marked the beginning of a new era for DLT and our pursuit of developing, operating, and supporting the best use cases in distributed ledger technologies. The recent announcement of the pioneering Filecoin project is the perfect example of value creation by technology development within distributed ledger technologies, and we look forward to report on the rapidly growing revenue development. To strengthen our recognition in the digital ecosystem even further, and to underline our new strategy, we today also announce the name change to DLTx,” says Thomas Christensen, Chief Executive Officer.
DLTx reported no revenues in the second quarter 2021 since the business transformation and revenue generating Filecoin project was announced after the closing of the quarter. The underlying development of the portfolio company was solid, and the company reported a profit before tax of USD 2.1 million, up from USD -1.0 million in the corresponding period last year.
“Several of the technology companies we are supporting are showing great progress, and we participated in a roll-up during the quarter where we exchanged our interest in Rhodium 30MW into Rhodium Enterprises at a value of USD 15.5 million,” says Christensen.
After the closing of the quarter, DLTx in partnership with DSM Tech Enterprises entered into an arrangement with Genesis Global Capital, LLC to establish File Storage Partners for the development of the innovative Filecoin (FIL) storage facility in the US utilizing a new multi-signature wallet approach. DLTx holds 51% of File Storage Partners.
“The partnering with a strong technical partner, raising capital from external investors, and securing Filecoin from an external party has allowed us to accelerate the development of the facility without diluting our shareholders. Since we made the initial investment in the project, the value of our share of File Storage Partners has risen by USD 9 million. We strongly believe in the future of Filecoin and are actively pursuing opportunities to expand the operational capacity of the facility through similar structures,” says Christensen.
DLTx believes in positive environmental change through the adoption of distributed ledger technologies and are signatories of the Crypto Climate Accord (CCA). The company also outlines a strong revenue stream from File Storage Partners.
“DLTx supports the efforts of CCA to decarbonize the blockchain industry and are committed to achieving net-zero emissions from electricity consumption associated with all crypto-related operations. We look forward to leverage on our pole position within distributed ledger technologies and reiterate our strong outlook. DLTx expects operating revenues in the range of USD 7 – 13million over the next twelve months, provided that the Filecoin price stays above USD 50, and a financial income of USD 18 – 21 million,” Christensen concludes.