business model
XPECUNIA
XPECUNIA
ADVANTAGE OF XPECUNIA
Low energy costs in Sweden. Even with zero solar the business operations are still profitable due to favourable energy costs.
MONTHS WITH ENERGY SURPLUS
MONTHS WITH ENERGY COSTS
The goal is to offset as much as possible - the yearly cost (raw materials cost) is reduced with up to 80%.
THE MODEL OF TODAY IS VERY ENERGY INTESIVE
XPECUNIA
There are many areas where large scale of calculations is needed, these have different difficulty levels to process and requires in turn different amounts of energy to be executed.
All applications are not relevant from a business point of view – we only choose those which are marketable today, as we do not speculate in uncertainty.
Since the level of difficulty is rising the cost per unit in terms of electricity has gone up. The hardware to conduct these complicated calculations have also risen and become harder to acquire in largerÂ
For the most part it is the cost of electricity that has been the main driver of cost. From an operational standpoint electricty amounts to up to 99% of the cost. Seen over a technical lifespan of typically three to five years electricity amounts around 70 % of the incurred operational cost. The technical lifespan is closely connected to the difficulty level.
It has come to that consumption of electricity for data centres is being described as a serious environmental issue. Electricity is globally produced for the most part from fossil fuels of different kinds which gives a negative impact. From the perspective of society there are huge long term gains to be renewable in power generation. The management of Xpecunia has from the start been aware and focused on this to be a positive actor- in this regard.
We change the equation by introducing completely renewable and long term electricity in our production units. Currently we have an operation solar of 0.7 MW that contributes to our usage and are building yet another 2 MW during the year 2022. This means as long as the arbitrage to generate calculation driven revenues exceeds the revenue that can be received from selling the energy to the power companies, we do this. For Xpecunia it is far more profitable to offset the energy for the server halls than to sell it. In conjunction with using our AI model it provides a good hedge to have an alternative revenue stream. Xpecunia is cash flow positive and have generated strong returns of several years.
We can choose how to spend our cash flow, expand production capability, invest in more power generation (solar, wind, water), accumulate financial reserves or pay dividends to shareholders. We create a strong balance sheet with real assets with alternative revenue streams. We can do this with a clear environmental conscience and a very good economic profitability.
It is the net-cost of electricity and the average selling price that
are the main components of the operational profitability. Costs for
surveillance, security and maintenance are in single digit percentages overall.
Staffing
needs are low, and we rent in by the hour when needed, this is expected to
change going forward but in the overall relationship it is expected to stay the
same. Xpecunia is using a matched depreciation method which means the Income
Statement is carrying the depreciations at an aggressive level but matching the
technical life expectancy. This in order to achieve a balance in the cost and
valuations of the assets. The assets revenue generating ability are being evalued
on a continous basis to match the depreciation rate. Xpecunia adheres to
standard norms and accounting principles which are conformed to general and
widely adopted accounting methods.