ALBANY, N.Y., Feb. 3, 2021 /PRNewswire/ — EcoChain, Inc. (“EcoChain” or the “Firm”), headquartered in Albany, New York, an entirely owned subsidiary of Mechanical Expertise, Integrated, a publicly traded firm (OTCQB: MKTY) shares solutions to frequent investor questions.
As a part of the Firm’s ongoing efforts to maintain traders 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 aims. 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 sufficient communication with our shareholders, we’re releasing this replace in a framework to simply handle a number of of the inquiries we’ve 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?
At present, 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 value inexperienced knowledge middle. Though the Firm has not but introduced the facility value, its present estimates lead it to imagine that the final word energy value will probably be considerably under that of a number of well-known public firms that additionally compete on this area. If the Firm’s estimates are appropriate, the ultra-low value will allow EcoChain to optimize its capital deployment because it might 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 value energy provides EcoChain that chance.
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 impression on its marketing strategy. To that finish, EcoChain’s plan is to assemble ultra-low value knowledge facilities such that they’d have been worthwhile even by way of the final crypto winter and ideally be poised to climate future intervals of volatility and potential vital declines.
Moreover, the Firm believes that mining profitability and return on invested capital depends upon 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 straight impression profitability in a straight line
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 way of the earnings assertion?
Soluna is a key know-how 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 impartial administrators of the Firm, straight with the CEO of Soluna and symbolize arms-length practices. That is extra absolutely described in our public filings.
Soluna is paid a per MW annual administration charge, a % of the earnings as soon as EcoChain has its capital returned with a pre-specified price of return, and an preliminary transaction/arrange charge. Soluna doesn’t present the personnel on the knowledge middle that service the bodily machines. Soluna directs these personnel. At present these sources on the bottom are retained by EcoChain on a contract foundation, however because the Firm scales up it is going to periodically reassess this association.
2) What’s the CEO’s present compensation association?
Michael Toporek is an worker at will. His whole 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 presently offers ample alignment of incentives. Any adjustments to Mr. Toporek’s compensation or our firm’s relationship with Brookstone or an affiliate of Brookstone, will probably 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 constantly assesses its sources and the economics of outsourcing or insourcing. As such, present contract relationships could change with sure actions introduced in-house because the Firm continues to scale and the economics of insourcing turn out to be less expensive. The aim is to retain the perfect 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 usually retained.
About EcoChain, Inc.
EcoChain is engaged in growing and working extremely low-cost inexperienced knowledge facilities centered on crypto forex mining. For extra details about EcoChain, please go to https://ecochainmining.com/.
Ahead-Trying Statements for Mechanical Expertise, Integrated:
This communication accommodates forward-looking statements inside the that means of the Non-public Securities Litigation Reform Act of 1995. Ahead-looking statements replicate 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 might differ materially from these anticipated in these forward-looking statements on account of varied components. Such dangers and uncertainties embody, amongst different issues, our capacity to ascertain and keep the proprietary nature of our know-how by way of the patent course of, in addition to our capacity to presumably license from others patents and patent purposes essential to develop merchandise; the supply of financing; the Firm’s capacity to implement its lengthy vary marketing strategy for varied purposes of its know-how; the Firm’s capacity to enter into agreements with any vital companions; the impression of competitors, the acquiring and upkeep of any vital regulatory clearances relevant to purposes of the Firm’s know-how; and administration of development and different dangers and uncertainties which may be detailed occasionally within the Firm’s studies filed with the Securities and Alternate Fee.
Please go to https://www.mechtech.com beneath Information & Occasions.
Kirin Smith, President
PCG Advisory, Inc.
SOURCE Mechanical Expertise, Integrated