Metavesco, Inc.

What they do

Metavesco commenced web3 operations in March 2022, generating income as a liquidity provider on decentralized exchanges like Uniswap and by farming tokens through staking. The company also invests in NFTs and virtual land, operates Bitcoin mining at a hosted facility in Texas since February 2023, and acquired Boring Brew LLC and Bored Coffee Lab, LLC in June 2023.

Revenue drivers

• Liquidity Provision — The company earns income based on a percentage of trade value for providing liquidity to decentralized exchange pools, primarily on Uniswap, which management expects to fuel other initiatives.
• Bitcoin Mining — Bitcoin mining operations at a hosted facility in Texas commenced in February 2023, contributing revenue from mining pool fees as of the quarter ended March 31, 2023.
• Token Staking — The company farms tokens via staking on pancake swap and other proof-of-stake protocols, earning rewards in cryptocurrencies, though specific revenue contribution is not broken out.
• NFT Holdings — As of March 31, 2023, the company held 14 NFT tokens with a carrying value of $87,895, primarily from Yuga Labs, but these NFTs do not currently generate royalties or other income.

Recent performance

For the fiscal year ended June 30, 2023, Metavesco reported revenue of $127,087, up from $82,617 in 2022. Net loss narrowed to $572,845 for fiscal 2023, compared to a net loss of $1.1 million in 2022. Operating cash flow was negative $198,863 for fiscal 2023, versus negative $153,308 in 2022. For the quarter ended June 30, 2023, revenue was $30,189, and for the quarter ended March 31, 2023, revenue was $13,004. As of June 30, 2023, the company had total assets of $336,326, total liabilities of $329,925, and shareholder equity of $6,401.

Strategy

The company plans to invest substantially in liquidity pools to generate ongoing revenue and to acquire large blocks of proof-of-stake assets for passive income. It aims to become a validator on Ethereum 2.0 and holds NFTs for capital appreciation and IP licensing. In August 2022, it announced plans to begin Bitcoin mining, which commenced in February 2023. In June 2023, it acquired Boring Brew, a web3 coffee startup, for $9,245 in cash and 5,000,000 shares of common stock. Management's key focus is on building the company through these web3 initiatives.

Risks

• Concentration of Control — Mr. Schadel, the sole officer and director, controls approximately 70% of the company's outstanding stock, allowing him to direct the affairs of the company.
• Limited Operating History — The company has a limited history of operations in web3 and is in the early stage of development, facing risks such as undercapitalization and cash shortages.
• Regulatory Compliance — The company's compliance and risk management programs may not be effective, potentially leading to investigations, penalties, or lawsuits.
• Dependence on Crypto Markets — Revenue is derived from liquidity provision, staking, and Bitcoin mining, which are highly volatile and subject to market price fluctuations.

Outlook

Management intends to continue investing in liquidity pools and staking to generate passive revenue and to pursue its Bitcoin mining operations. The company expects its revenue to fuel other initiatives, including NFT investments and potential IP licensing. However, management notes that it cannot assure profitability or positive cash flow from these activities.