TAALF - TAAL Distributed Information Technologies (TAALF) - Completes Data Center Acquisition Preliminary 4Q21 Results
Data Center. TAAL has completed the acquisition of the 60,000 sq/ft facility in Grand Falls, New Brunswick. The new facility will enable TAAL to mine Bitcoin on an industrial scale. Once filled to capacity, TAAL will be able to power up to 2 Eh/s of Bitcoin mining. Notably, the 50 MW of energy to be supplied to power the operations is over 40% from renewable energy.Preliminary 4Q21 Results. For the fourth quarter, TAAL expects consolidated revenue to be in the range of $13.75 million and $14.25 million. This is up from the $12.4 million generated in the third quarter and would represent the fifth consecutive quarterly revenue increase. We were estimating 4Q21 revenue to come in at $13.6 million.Other Year-end Data. TAAL is projecting year-end BSV in treasury to be approximately 69,000, flat with the end of the third quarter. In addition, TAAL had $35 million (Canadian) in prepaid deposits for mining equipment, power deposits, and infrastructure, all of which should fuel future growth.Data To Come. We will be interested to see how many blocks TAAL mined in the quarter, and if mining was weighted towards the first half of the quarter when Bitcoin prices were rising, before dropping more recently. In addition, the number of transactions processed and what percentage of overall revenue transaction fees represented. Maintaining Outperform. We are maintaining our Outperform rating and our 12-month price target of US$7.00. We believe the Company's focus on using blockchain for transaction processing will bring long-term value, while crypto mining services provide near-term revenue and an option on rising prices for Bitcoin SV. Read More >>