Everyone has heard of cryptocurrency mining and data centers by now; but have you heard of a company that specializes in providing low cost infrastructure (power and water) and hosting services for these sectors. Specialized crypto mining and data centers use huge amounts of electricity so sourcing cheap, reliable, and ideally green electricity is paramount. Today’s company does just that.

Energy costs are a key factor for data centers and crypto mining operations due to the large amounts of electricity needed

Source: Link Global Technologies website

Link Global Technologies Inc. (CSE: LNK) (“LINK”) operates as a Bitcoin mining business as well as providing hosting and power purchase contracts to clients. LINK provides the infrastructure and operating expertise for digital mining and data hosting operations. The Company had its origins in crypto mining using low cost electricity so it has hands on experience.

LINK’s main businesses involve:

• LINK’s original Crypto mining business (1,400 Bitcoin mining machines).
• Securing power purchase agreements (PPAs) for customers in data centers or crypto mining. LINK arranges scalable, cost-effective access to clean energy. LINK provides power to over 5,000 mining machines within existing operational capacity.
• Supplying energy efficient containerized data centers.

LINK’s point of difference is energy efficiency. LINK is able to save data center or crypto mining clients money on their infrastructure costs (notably electricity and/or water bills) by providing expertise and personalized solutions for each client’s needs. LINK is able to tap into green energy sources as well as energy storage solutions.

LINK state: “Link’s staff has a combined 25 years of alternative and islanded power experience. We lead in the capture of unused energy and waste heat to generate power for the Blockchain……Link designs state of the art mobile facilities for environments spanning the globe. We have standalone solutions for every climate from the cold of Canada to the heat of Africa.”

About Link Global Technologies business and how they make revenue

Source: Link Global Technologies website

Revenue generation

LINK achieves its revenue primarily from its Bitcoin mining business and also from providing hosting (can be the complete infrastructure package) and power purchase contracts to clients.

One example of how LINK’s business model works is seen in the recently announced agreement to begin building the initial 10MW site with Mission World Group. LINK states: “Link will design, build and operate the infrastructure for the operation of the Miners and will also provide management services necessary to maintain 98% uptime on the Miners. In consideration of these services, Link will work with GSV to achieve competitive rates for power and receive a profit share of mined coins.”

LINK is able to fund such operations from capital such as the announced August 2021 deal to raise $18 million via an equity facility with Alumina Partners, LLC.

LINK acquires Clean Carbon Equity (“CCE”)

As announced on November 2, 2021, LINK completed the acquisition of Clean Carbon Equity (“CCE”). The acquisition allows LINK to take steps towards providing carbon offsets in the digital economy sector, immediately acquiring cash flow and creating new long-term revenue opportunities for the Company.

LINK CEO, Stephen Jenkins, commented: “This business model creates another revenue source apart from the digital currency mining by creating verifiable offsets that we can market and monetize.”

Closing remarks

Link Global Technologies is an innovative power and infrastructure solutions provider for crypto mining, and data center operations. These operations have huge electricity and water needs, so it makes sense to get the best supply deals. Increasingly this also involves sourcing green energy and energy storage backup systems, and now carbon credits.

LINK has experience being a Bitcoin miner and has gained the skills and IP to be able to assist others. LINK’s revenues are coming in from their Bitcoin mining business and their electricity supply contracts. Given the demand growth from crypto mining and data centers it stands to reason that LINK will capture an increasing number of these energy/infrastructure supply contracts.

Link Global Technologies trades on a market cap of ~C$10 million. One to follow in the exciting space of crypto and data center infrastructure providers. Stay tuned.

If you’ve been following some of the noteworthy news items in the cryptocurrency space, you’ll be aware that in May of this year, China banned financial institutions and payment companies from providing services related to cryptocurrency transactions, and warned investors against speculative crypto trading. China has banned crypto exchanges and initial coin offerings but has not barred individuals from holding cryptocurrencies…yet, but some suspect that may be on the horizon. June saw the Chinese government further up the pressure with The People’s Bank of China summoning payments firm Alipay and several major lenders to tell them they must not provide cryptocurrency-related services. Then in early July China’s central bank said it had called for the shutdown of a company that “was suspected of providing software services for virtual currency transactions.” These latest actions in China serve as a positive indicator for cryptocurrency mining operations in North America.

However, we are all aware that North America also has its focus on the reduction of its carbon footprint, which hardly seems to fit with power-hungry Bitcoin mining. The solution is a move towards efficient, clean cryptocurrency mining and that is being facilitated by Link Global Technologies Inc. (CSE: LNK). Link generates revenues from building and managing semi-portable, self-contained power solutions (containers) that can be rapidly deployed in virtually any environment; providing cost-effective power and infrastructure solutions to third party digital currency miners. Link is an innovative power and infrastructure solutions provider for Bitcoin mining, and data hosting operations.

The Company’s vision is a fully integrated hybrid of clean energy infrastructure and active support for the digital currency community. They have made two huge steps recently to help differentiate themselves and get on board with the increasing focus on how cryptocurrency is mined. First, in July, Link announced it had signed the Crypto Climate Accord. What does that mean? The Crypto Climate Accord (CCA) is a private sector-led initiative to decarbonize the cryptocurrency and blockchain sector. The CCA brings together organizations that inform, develop, test, and implement new solutions that accelerate cryptocurrency’s transition to renewable energy. As a CCA Signatory, Link has committed to achieve net-zero emissions from the electricity consumption associated with all of its respective crypto-related operations by 2030. Putting their money where their mouth is, two weeks ago the Company announced a letter of intent to acquire Clean Carbon Equity (CCE). This $1.4 million transaction (payable in shares) will provide Link with one of Canada’s leading traders of Verified Emission Reduction Credits in the voluntary carbon offset market. Along with showing Link’s commitment to carbon neutrality CCE’s business supports clean energy projects around the world, assists customers with reducing their Greenhouse Gas footprint and provides a resource to assist in reducing emissions to support Canada’s plan of Net Zero emissions by 2050.

The Company is obviously moving in the right direction to combine global desire for cryptocurrency with the need for it to be clean and green. But as a potential investor, what’s important to me is if they can make money doing it. The majority of Link’s revenue is currently derived from hosting not actual mining, which I like to see. Call me a wimp but the day to day fluctuations in the price of Bitcoin are a little too much for me. A more reliable, steady form of income from hosting is the kind of revenue I’m looking for. Q2 saw hosting revenue grow to $836,092 up from $689,640 the previous quarter.

We can anticipate this hosting revenue should continue to grow based on progress Link is making adding power capacity and hosting agreements. As of May 31^st, the Company had secured sites for an additional 50 MW of power-generating assets and continued to commission an existing 18.75 MW into commercial operations. To utilize that power capacity, on Jun 27^th they signed an agreement for a 40MW turnkey solution for hosting 12,000 of Atlas Mining’s latest generation Bitcoin miners. Commissioning is slated for late Q3 through Q4, 2021 with the agreement providing a profit-sharing model, in addition to the supply of power and infrastructure services. This is in addition to a 10MW agreement disclosed June 24^th with North American cryptocurrency mining company Mission World Group.

Granted Link is not profitable at this point in time. It is still very much in a growth phase where capital expenditures are outpacing current revenue. But you can see where this is headed by the hosting capacity the Company is bringing online. Additionally, they have signed a creative funding vehicle to allow the growth to continue with an $18 Million Equity Facility with Alumina Partners, LLC. Link, at its discretion, may elect to drawdown in $1,000,000 increments of the Facility as a new Offering with the terms of each Offering being determined subject to market conditions at the time of the drawdown. The Company currently has 52.3 million shares outstanding for a market cap of $27.7 million based on Friday’s close of $0.53. We know that by the end of Q3 they will be getting close to adding an incremental 50MW of hosting capacity and are committed to doing it in a carbon neutral way. I’ll be looking for continued top line revenue growth in Q3 knowing it should really ramp up in Q4.