We marked last month with many important milestones for TAAL as we officially transitioned to a transaction processor. We also began the execution of our strategic five-year corporate vision, which aims to position TAAL as a leader in the new era of the blockchain industry by becoming among the first to leverage its emerging opportunities for capitalization.
As we look forward to more successes to come, we wanted to take a moment to share a few of last month’s highlights with you.
We transitioned to a transaction processor.
The industry is about to undergo significant change, and we expect to see a transition from a block rewards subsidy model to a transaction fee-based model. For companies to survive as the block subsidy reduces, mining operators must transition to transaction processors with the goal of providing solutions for businesses building applications and contributing data in the forms of transactions onto the blockchain. TAAL continues plans around our block production infrastructure and streamlined systems in order to place transaction processing, using M/API, bulk volume contracts, dynamic rates, and client tiering, at the heart of our business.
The BTC halving event set the stage for a new era of Bitcoin.
The much-anticipated BTC halving event on May 11 was monumental as it marked the beginning of the end for bitcoin mining as we know it. The halving came and went, and the price hardly moved, let alone doubled. With this, came the realization that this time around, the 3rd time is not a charm. The ability of BTC miners to sustain their business relies solely on the fact that the BTC price must appreciate constantly. When an asset has no intrinsic value, however, besides being an object of speculation, it can only appreciate for so long. Now, for the first time, the focus is changing from one based on mining rewards to one centred around transactions, where the more transactions you can process, the more you can earn.
We appointed Calvin Ayre to our advisory board.
On May 1st, TAAL announced the conversion of all outstanding debt held by Calvin Ayre into equity and his appointment to our advisory board. Calvin Ayre is a celebrated Canadian-Antiguan entrepreneur based in Antigua and Barbuda, and the founder of the Ayre Group, CoinGeek and the Bodog entertainment brand. A passionate investor and visionary, Mr. Ayre has been a central figure to the revolutionary explosion of creativity and innovation created by the Bitcoin SV blockchain ecosystem. His insight and expertise will be a valuable asset to TAAL’s continued growth.
We processed two record-breaking blocks.
On May 12, TAAL processed a record-breaking 309MB block containing 1.1 million transactions. Soon after, on May 16, we broke our own record by processing a 369MB block containing 1.3 million transactions. These record-breaking blocks demonstrated the transaction processing power of Bitcoin SV on the world stage, and proved how the transaction processors’ role in Bitcoin is evolving to a professional industry.
We announced our 2019 fiscal year-end financial results.
Released on May 26, the results show that our initial year of revenue-generating operations was marked by impressive growth, accelerating our mission to be a world-class, vertically integrated, blockchain infrastructure and service provider. 2019 was a year of transition and preparation for the future, which included a corporate name change, the suspension and/or disposal of non-core businesses and assets, and the making of arrangements for our transition to a transaction processing-based business model. Highlights of 2019 include a total revenue of $17,145,804, and a working capital of $22,048,009 as of December 31, 2019, of which $11,024,009 is unallocated, providing liquidity for 2020. You can find a full list of highlights from our 2019 fiscal year-end results here.
We released our 5-year strategic corporate vision.
Finally, we closed the month of May with the release of our 5 Year Strategic Vision, which features new innovations for a new economy and centres around 5 pillars of profit:
Pool – Running a public mining pool so that hash producers can contribute to building the blockchain.
Processing – Transaction Processing through our M/API while growing the number of transactions that are sent to us to process, through volume discounts helps grow the new core business model of a transaction based economy. Revenue is generated from transaction fees.
Data – Data storage, indexing, archival, and retrieval for the immutable information stored on the global blockchain.
Compute – General purpose, and scientific computing for the massively parallel global computer.
Blockchain Devices – Specialized hardware to maximize the efficiency of certain blockchain specific purposes.
As the industry transitions from a block rewards subsidy model to a transaction fee-based model, our strategic vision focuses on how TAAL will be leaders in this new paradigm by driving value based on utility, and not speculation. At the centre of this vision is our transaction processing business model, which will propel the adoption of businesses building applications and contributing data onto a public, permissionless and scalable blockchain.
We continue to invest in the future of blockchain technology.
Last month was one of transformation, with TAAL as well as the industry as a whole. Each one of these milestones are successes because they bring us closer to our vision of being a world-class, vertically integrated blockchain infrastructure and service provider, enabling customized solutions to enterprise clients.
As we look to the future, we hope that you will join us in shaping this new industry together.