3️⃣CASE STUDY 3

Cost analysis, return of investment and compounding time

1. Cost Analysis:

For Rigs: The current price for an Iceriver AL3 (15 TH/s) miner in Dubai is approximately $11,990 to $13,100

For Solar Panel: The cost of a 10 kW solar panel system is around $11,570 to $12,250

For 20 mining units and 14 panels the approximate cost is around $400,000

The on grid electricity cost incurred by 20 rigs is approximately $5,000 per month, hence the transition from on grid to solar panel can happen at a healthy rate

1. Return on Investment:

For Rigs:

Calculations are made with the cost of 1 unit = $11,990

For Solar Panels:

Calculations are made with the cost of 1 unit = $9,500

• Solar Installation Cost: $133,300 (for 14 panels).

• Annual Savings on Electricity: $60,480

The payback period is:

After approximately 2.2 years, the solar panel system would have paid for itself through savings on electricity costs.

1. Compounding effect:

40% of the revenue generated every month goes back into buying more rigs and panels. Let us assume that the Solar AI token has a modest $200,000 trading volume per month. With a 5% buy and sell tax that amounts to $10,000 per month, out of which 60% that is $6000 goes back into buying equipment.

Taking these parameters into account at current market conditions, the time taken to double our equipment will be:

1. Total units cost:

11,980+9,500 = $21,480

1. Reinvestment per month:

The reinvestment amount of $22,981 per month is slightly more than the cost to add one miner and one solar panel.

1. Doubling Time:

When ALPH = $1.59

The approximate doubling time will be 20 months in this case

When ALPH = $7.38

The approximate doubling time will be 5 months in this case

When ALPH = $13.85

The approximate doubling time will be 2.5 months in this case