Blockmate Ventures Inc (TSX-V:MATE, OTCQB:MATEF) chairman Domenic Carosa discussed Hivello's strategic partnership with Zulu, a Bitcoin Layer 2 solutions provider, which will provide Hivello access to Zulu's 750,000 users and enhance its presence in the decentralized physical infrastructure networks (DePIN) market.
Carosa also highlighted Hivello's plans for a $5 million capital raise, the launch of a Windows beta version, and the upcoming release of Mac and Linux versions.
Proactive: You’ve announced that your investee Hivello has entered a strategic partnership with Zulu. Could you tell us more about this partnership and what it entails?
Domenic Carosa: We have just announced a partnership with Zulu, a pioneer in Bitcoin Layer 2 solutions. More importantly, from Hivello's perspective, this collaboration grants us access to Zulu's 750,000 customers who are currently utilizing the Zulu Layer 2 solution. This partnership is focused on building relationships and expanding Hivello's potential customer base.
Remind us about Hivello. What is it Hivello does and how it is going to benefit from this partnership with Zulu?
Hivello is a DePIN (Decentralized Physical Infrastructure Network) aggregator, which is a segment of Web3. DePIN represents a new and growing area within the Web3 crypto space. To explain DePIN, consider the analogy of having spare capacity on devices like mobile phones, desktops, and laptops. Consumers can rent out this excess capacity and earn money, whether in tokens, stablecoins, or fiat currency. It's similar to renting out a room or house on Airbnb, where you extract more value from an asset. With Hivello, users can contribute to DePIN networks and earn passive income by utilizing their idle computers. There are millions of spare desktops and laptops that can be used in this way, transforming them into valuable resources.
Tell us about the benefits that Zulu will derive from the strategic partnership.
There will be a revenue-sharing opportunity from Zulu's perspective, as well as plans to integrate Zulu's Layer 2 into our platform. This integration means we can gradually add more DePINs that we're aggregating on the Hivello platform. As new DePINs launch on the Zulu network, they will automatically become available on Hivello. It's a symbiotic relationship, as Zulu has a large user base of 750,000, allowing us to tap into existing audiences. We see tremendous potential in DePIN, as it brings cryptocurrency to the mass market.
How does this build on previous relationships that Hivello has formed?
Late last year, we completed an investment round, which serves as a prelude to our upcoming fundraising. We are now aiming to raise up to $5 million with a pre-money valuation of $30 million USD. Shareholders often ask what this means for them. Ultimately, Blockmate will be diluted to around 55%, retaining approximately a 50% stake in a $30 million USD asset. While I haven't calculated the exact price per share, it is significantly higher than our current valuation.
What are the upcoming milestones for Hivello?
The upcoming capital raising is a significant milestone for us. Additionally, we have released our Windows beta version, and by the end of this quarter, we will launch Mac and Linux versions of our software products. This expansion means Hivello will be accessible on almost any device in the marketplace. It allows more people to generate passive income, while Hivello earns a portion of the transactions in the growing DePIN market.
Quotes have been lighty edited for style and clarity