Dear SATO shareholders, partners, followers, and friends,
Our entire team at SATO extends our heartfelt holiday wishes to you and your families. As we eagerly anticipate the start of 2024, we're energized about the new year and the upcoming cycle for Bitcoin, marked by significant, positive events:
👉The Halving, expected to occur in April 2024, will reduce the issuance of new Bitcoin, potentially driving up its price as seen in past cycles.
👉The prospect of a Bitcoin ETF, which, if materializes, could enhance Bitcoin's reputation and significantly increase investments and capital flows into Bitcoin.
👉FASB’s adoption of Fair Value Accounting for Digital Assets in the United States streamlines the process for corporations to add Bitcoin to their balance sheets. This raises an intriguing possibility…could industry giants like Apple finally begin to allocate a portion of their cash reserves to Bitcoin?
👉Additionally, we anticipate several other key developments: more countries may adopt Bitcoin as a standard or ease regulations, inspired by El Salvador’s example. In addition, people’s growing awareness of soaring global debt may drive them to use Bitcoin as a hedge against continued currency debasement. Furthermore, a decline of Bitcoin supply on centralized exchanges could spur higher supply shock, particularly following the halving event. Lastly, potential future interest rate cuts could reinvigorate risk appetite in public markets.
👉Increasing transaction fees — particularly since the start of the ordinals revolution early this year. Fees per block have seen substantial growth, sometimes increasing by as much as 300X, as observed from December 1st to 18th, which added 4,271 Bitcoin (equivalent to US$183 million at today's price) in fees alone. This represents increased revenue and margins for Bitcoin miners without the need for additional energy consumption or the addition of more computing power (rigs).
👉Beyond Bitcoin, the emergence of AI/HPC positions companies like SATO, which has significant expertise in converting electrical power into computing power, to capture increasing market share.
In-light of these developments, publicly listed Bitcoin miners like SATO are well-positioned for substantial growth in market value over the coming year. In the Bitcoin mining sector, efficiency trumps size, and SATO has not only excelled in efficiency but also achieved the top spot in the last month's analysis as seen by Anthony Power for Compass Mining.
From 2MW, SATO has expanded to 20 MW in the previous cycle, running around 6,000 miners, reaching around 0.13% of the Bitcoin network overall during the year. We are now committed to growing another tenfold as swiftly as possible, augmenting our mining capacity and deploying resources rapidly for both Bitcoin and AI/HPC.
Expect more updates from us throughout the year.
On behalf of our entire team, we wish you happy holidays!
P.S. Here is our Christmas card, designed by DALL·E, the image AI from ChatGPT, wishing you a 'prosperous' year…
