Due to the turbulence that prevails in the digital economy, I would like to personally address Xpecunia's shareholders about the business, our outlook on the global situation and how we work to navigate through challenges.
The shift towards HPC
Xpecunia has in prior communication conveyed that the business has phased in a new area of application for its server halls, namely High-Performance Computing (HPC). This means that Xpecunia can deliver HPC services to the market to manage the huge amount of data that underpins our high-tech society today. With Xpecunia's efforts, progress has been evident with a high degree of automation involving nearly 95% capacity utilization of the HPC machine park. A dialogue about being partnering with a larger network to offer HPC capacity via a common platform has been ongoing with a foreign partner. It is clear that several market players have reached the same conclusion as Xpecunia regarding the opportunities that this market has to offer. According to a report from Market Research Future, the market is expected to grow at an annual growth rate of about 7% and reach a value of about USD 69.82 billion by 2030*.
Price levels in the market and company profitability
In recent months, the price levels of digital assets has fallen broadly. Digital assets are generally associated with significantly higher risks than other asset classes and many investors are now looking for safe havens for their savings. This has had a negative impact on Xpecunia's turnover. At the same time, however, we see that the turbulence causes an upside in that parts of the price components become scarcity priced, which benefits Xpecunia and has an improved effect on the level of profitability. Cashflow from operations remains positive and provides opportunities for reinvestments.
Expansion of self-produced solar energy continues
A cornerstone of Xpecunia's business has always been the use of self-produced energy to reduce dependence on purchased electricity. The expansion of Xpecunia’s solar energy installations has continued according to plan. Deliveries have been made and the installation from today's commissioned 0.7 MW to 1.55 MW will be operational by 31 August which is in line with our previous expectations. Thereafter we begin installing an additional 0.85 MW. Once completed, the solar park will yield 2.7 hectares in size, equivalent to 5.5 soccer fields. This will be among the top 15 largest in Sweden.
Xpecunia has initiated optimization work with a specialist team tasked with reviewing the entire server park. The company believes that this will significantly increase the stability of the installations and reduce resource inefficiencies.
As CEO of Xpecunia, my main ambition is to create value for our shareholders. Since Xpecunia was founded, our mantra has been to achieve growth without exposing ourselves to unnecessary risk. Instead, as a company we have always worked to minimize risk and instead grow through investing earnings in tanglible assets that broaden Xpecunia’s computing capacity. We cannot completely isolate ourselves from the uncertainties of the world, but we can work diligently to trim away unnecessary costs, manage our cashflow, and invest in the right things at the right time.
CEO Xpecunia Nordic AB
Xpecunia is a technical computing company that is expanding to strengthen its long-term potential and create a presence in the rapidly growing market for leased computing capacity. This type of computing capacity is mainly used for AI calculations. The company is listed on NGM Nordic SME in Stockholm, Sweden and on the Stuttgart Stock Exchange in Germany.
CEO: Daniel Moström – 070-7446901
Address: Taptogatan 6, 115 27 STOCKHOLM, Sweden
Xpecunia Nordic AB (publ) org: 559152-3013