T-REX Acquisition Corp.

T-REX Acquisition Corp. Annual Report - 2023 Performance Summary

Hey there! Let’s break down T-REX’s year in a way that’s easy to digest. Think of this like catching up over coffee—no fancy terms, just the stuff that matters.

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1. What does T-REX do, and how was their year?

T-REX operates like a “company hunter” with four divisions:

1. Mining: Bitcoin mining (their star performer this year).
2. Hosting: Renting space for tech gear at their Orofino facility.
3. Software: Building tools for future tech projects (still early days).
4. Holding: The “home base” that funds everything.

The big story: Bitcoin mining carried the team, while software and corporate costs dragged a bit.

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2. Money talk: Where’d the cash come from?

• Total revenue: $92 million (same as last year, but now with clarity!):
  • Bitcoin mining: $65 million (71% of total – up 23% from last year!)
  • Hosting services: $18 million (steady growth, up 20% from 2022)
  • Software: $9 million (new but unprofitable)
• Profit: $3 million overall, but divisions vary:
  • Bitcoin mining: $25M profit
  • Hosting: $5M profit
  • Software: $2M loss (still in development)
  • Holding segment: $15M loss (funding operations)

Takeaway: Bitcoin mining is the MVP, but corporate costs and software losses are still a headwind.

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3. Wins vs. Challenges

Wins:

• Bitcoin mining revenue surged 23% (from $53M to $65M).
• Hosting division grew 20% (now a reliable income stream).
• Cut corporate costs by 12% to redirect funds to growth areas.

Challenges:

• Software division isn’t profitable yet (-$2M loss).
• Bitcoin mining’s energy bills squeezed profits.
• Corporate costs (-$15M) remain a drag.

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4. Financial health check

• Cash: $70 million (up from $50M last year).
• Debt: Reduced by 20% to $25 million.
• Burn rate: Spending $5M/month (down from $7M).

Verdict: Solid cash position, but energy costs for mining could pressure margins.

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5. Risks to watch

• Bitcoin volatility: A price crash would hit mining profits hard.
• Energy prices: Mining guzzles power—price spikes hurt.
• Software delays: If their tools flop, that $9M revenue stream is at risk.

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6. How do they stack up?

• Bitcoin focus: All-in on crypto vs. competitors chasing solar/AI.
• Hosting advantage: Orofino facility provides steadier income than pure crypto players.
• Software potential: If successful, could give them an edge over smaller miners.

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7. Leadership’s game plan

• Doubling down on Bitcoin mining and hosting after software delays.
• Trimming corporate costs to fund growth areas.

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8. What’s next?

• Expanding Bitcoin mining capacity (more machines = more rewards).
• Upgrading Orofino to attract bigger hosting clients.
• Software division aims for profitability by late 2025.

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9. Market trends affecting T-REX

• Crypto uncertainty: Bitcoin’s swings will dictate 2025 success.
• Energy regulations: New taxes on power-heavy industries could hurt mining.
• Tech demand: Hosting growth relies on AI/cloud companies needing space.

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The Bottom Line (For Investors)

T-REX is a crypto play with training wheels (thanks to hosting income). The $3M profit shows progress, but mining’s volatility makes this RISKY.

Consider investing if:

• You believe Bitcoin will rebound/stabilize.
• You’re comfortable with energy cost risks.
• You trust management’s cost-cutting and hosting expansion.

Stay cautious if:

• Crypto’s unpredictability keeps you up at night.
• You prefer companies with diversified revenue beyond Bitcoin.

Always do your own research or chat with a financial advisor! 😊

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Key Takeaways:

1. Bitcoin mining drives growth, but energy costs and crypto volatility are risks.
2. Hosting provides stability; software remains a question mark.
3. Healthy cash/debt position, but profitability hinges on mining success.
4. Not for the risk-averse—best suited for crypto optimists.