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One of the most highly sought-after investment themes since the tech boom in the late 90s might just be a sector to which very few people are currently paying attention.
It’s an asset class that has grown to nearly a trillion-dollar valuation in the past 5 years (according to Refinitiv) and until now has mainly been limited to institutional involvement. (2)
DeepMarkit Corp. (OTC: MKTDF, TSX-V: MKT) has found a way to provide easy access to the retail community, as well as to large players that have, until now, had a difficult time accessing these markets.
We are referring to the carbon credit sector. Driven by the “Net Zero by 2050” (5) decarbonization movement, the sector is flourishing, and its markets are growing and expanding quickly.
DeepMarkit Corp. is working to do to carbon offset and renewable energy markets what the Internet did to stock trading 30 years ago: bring them online and make them accessible to anybody with a Wi-Fi connection.
In a move to add even more value to the company, on April 20, 2022, DeepMarkit announced a strategic initiative to explore the minting of Renewable Energy Credits – a market whose value surpassed $12 billion last year and is projected to reach $100 billion by 2030. (1)
In addition, there is a potentially lucrative royalty model built into the company’s soon-to-launch platform. Read on to learn how all of this works together to create what could be a significant early-stage opportunity for DeepMarkit and its shareholders.
DeepMarkit’s platform, MintCarbon.io, is being planned to launch imminently. (6) What a great opportunity to get a company with a market capitalization of approximately US$20 million (as of April 28, 2022) on your radar.(11)
In a potentially “company making” move, on April 12th DeepMarkit signed a binding definitive agreement with Radiance Assets Berhad (Radiance) under which Radiance will introduce carbon credit projects for onboarding through DeepMarkit’s MintCarbon.io platform that is being developed to mint carbon offset credits into NFTs. Any minting and royalty-based revenues earned by DeepMarkit via Radiance’s referrals will result in a percentage-based sharing arrangement with Radiance.(8)
Based in Malaysia, Radiance is a diverse investment holding company with a focus on innovative and technologically-driven businesses in the areas of Cleantech, Medtech and Fintech. Radiance also has a focus on the environment and solutions that better peoples’ lives. Radiance has several classes of funds including a new Agritech fund being launched with an asset value of USD 250 million. As previously announced, Radiance is currently a shareholder of DeepMarkit via recent private placements. (8)
With this agreement in place and more potentially on the way, as well as the imminent launch of MintCarbon.io, the table has been set for potentially significant growth for this microcap stock.
Very few investors are familiar with carbon credit markets, or how big, they have become. Global carbon markets reached a valuation of $851 billion last year (2) while hedge funds and asset managers with trillions of dollars under management are expecting this number to grow by up to 15 times by 2030.(3)
In fact, carbon markets are poised to surpass the entire oil and gas sector in value.(4)
To the average investor, carbon credits are a fairly new concept because the sector has been opaque and largely inaccessible. Yet, it’s one of the biggest asset classes in the world and growing at a rapid pace thanks to the global push for countries and/or companies to become “Net Zero by 2050”. (9)
The SEC recently published a proposal that would force every publicly listed company to disclose their climate policy. (10)
Once implemented, the table will be set for carbon credits markets to become more mainstream and better understood.
DeepMarkit is doing to carbon markets what the Internet did to stock trading 30 years ago – bringing them online via the Internet or, in this case, via the block-chain.
By facilitating the transition of global carbon markets to the digital economy via the block-chain, the company is working to enable access and transparency to carbon credits that never existed before. And DeepMarkit will be collecting minting fees and royalties while doing so, which positions the company for a high rate of growth in the near future.
The Company’s proprietary MintCarbon.io platform allows carbon credit holders to profile their projects and mint their carbon credits into NFTs, which are then deposited into the carbon credit holder’s block-chain wallet (ie. MetaMask) to be easily listed on any decentralized exchange in the world (such as OpenSea).
DeepMarkit Aligns with Verra and Gold Standard Carbon Credit Registries
In a move to prove the legitimacy of its product, DeepMarkit recently aligned with two of the world’s largest carbon credit registries – Verra and Gold Standard – ensuring that only legitimate, high-quality credits are minted via the MintCarbon.io platform. (12)
This collaboration also avails DeepMarkit to a vast database of projects for potential onboarding.
DeepMarkit’s business model is designed to earn revenue by charging the carbon credit holder a minting fee of up to 10% of the value of their credit-to-NFT transaction. The fee can be collected in carbon credits, Ethereum tokens, carbon credit NFT’s or a combination of the three.
And every time a carbon credit NFT is traded, on any decentralized exchange in the world, DeepMarkit is also set to collect a recurring royalty, which is shared with the original NFT minter.
As more carbon credits become listed via MintCarbon.io, DeepMarkit’s inventory of carbon credits and/or Eth-er-eum tokens will grow accordingly, and this exposes DeepMarkit investors to two rapidly growing asset classes, aside from carbon credit NFTs themselves.
DeepMarkit Successfully Tests and Mints Carbon Credit NFTs via its MintCarbon.io Platform
DeepMarkit Enters Into Liquidity Support Agreement With Radiance
DeepMarkit is unlocking access, transparency and reliability to global carbon credit markets which were valued at $851 billion (Refinitive) last year.
By enabling the minting of carbon credits into universally tradable NFTs, the Company’s proprietary MintCarbon.io platform unlocks liquidity and transparency in historically opaque carbon markets, and features a shared revenue model underpinned by a recurring royalty stream in a market primed for rapid growth.
The Net Zero Asset Owner Alliance, a consortium of asset managers representing over US$6 Trillion, called for an immediate increase in the quality of carbon credits, which would lead to higher prices. “In essence, this means formalizing the use of carbon credits as a market proxy for a global carbon tax,” the Alliance said. (13)
Over the past six years, decarbonization has moved from a fringe idea to what may become the most highly sought-after investment theme since the late 90s tech boom.
Increased pressure on corporations to implement Environmental, Social & Governance (ESG) policies has resulted in rapidly growing demand for carbon offset markets. Due to these changes, the total value of global carbon market trading grew five times since 2017, hitting a record $261 billion in 2020 (compliance & voluntary markets combined.)(14)
THE CHALLENGE
While carbon credits are broadly available, trading is highly inaccessible, fragmented, opaque and inefficient. These issues hamper both supply and demand in the market.
THE OPPORTUNITY
Voluntary carbon credits are quickly becoming an inevitable part of everyday life; estimates show that demand could increase 15x by 2030 to $50 billion.* (15)
Unlocking access and liquidity to this growing asset class will drive innovation and funding toward the green economy.
* Task Force on Scaling Voluntary Carbon Markets
DeepMarkit (TSX Venture Exchange: MKT) (OTC: MKTDF) is transforming the way investors and project developers access the billion dollar voluntary carbon credit market. Its proprietary platform, MintCarbon.io, is powered by the Polygon network and enables offset holders to mint their credits into NFTs, which can be listed for trading on decentralized exchanges (such as OpenSeas.io) globally. A unique revenue-sharing model gives DeepMarkit investors exposure to a growing asset class.
DeepMarkit (TSX Venture Exchange: MKT) (OTC: MKTDF) proprietary, easy-to-use MintCarbon platform provides an on ramp into blockchain marketplaces for existing carbon credits issuers, unlocking access to a broader pool of investors and purchasers to better monetize the full value of their carbon credits.
THE SOLUTION
MintCarbon.io is a proprietary platform enabling turnkey tokenization of carbon credits into NFTs.
Powered by the Polygon network, MintCarbon provides carbon credit holders an 'on ramp' to the Blockchain, while enabling users to track, trade and consume / burn credits in a simple and secure way that is accessible to everyone, everywhere.
MintCarbon NFTs (smart contracts) are highly customizable and can be listed for trading on decentralized exchanges such as OpenSea.io.
PERPETUAL REVENUE STREAMS
DeepMarkit (TSX Venture Exchange: MKT) (OTC: MKTDF) collects up to 10% upon the first minting (creation) of a carbon credit NFT (smart contract)
The smart contract ensures a recurring royalty is automatically collected when a carbon credit NFT is re-sold or traded on a secondary market (eg. OpenSea.io)
Fees and royalties can be received in Eth-er-eum, carbon credits, carbon credit NFTs, or a combination, providing DeepMarkit with flexibility and increasing DeepMarkit's addressable market and exposing DeepMarkit to growing asset classes.
Even as voluntary carbon credits become an increasingly obvious tool in the global push to achieving net-zero carbon footprint, despite the broad availability of credits, trading remains highly inaccessible, opaque, and inefficient.
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These are not only hurting the market’s ability to scale up, but it’s having a direct adverse effect on the carbon credit market’s efficacy as a tool to lower emissions.
DeepMarkit is working to provide a new level of transparency, standardization, and accountability to instill confidence in market participants and unlock desperately needed growth.
DeepMarkit is an early mover, with a proprietary platform and a competitive advantage, via a business model that is driven by a perpetual revenue stream in a market that is primed for ongoing growth
Sources
Source 1: https://www.globenewswire.com/news-release/2021/12/15/2352850/0/en/Renewable-Energy-Certificate-Market-Size-Worth-Around-US-100-96-Bn-by-2030.html
Source 2: https://www.reuters.com/business/energy/global-carbon-markets-value-surged-record-851-bln-last-year-refinitiv-2022-01-31/
Source 3: https://resilientllp.com/2021/06/25/report-indicates-forest-carbon-finance-has-more-the-doubled-in-last-4-years/
Source 4: https://www.reuters.com/business/energy/global-carbon-markets-value-surged-record-851-bln-last-year-refinitiv-2022-01-31/
Source 5: https://www.iea.org/reports/net-zero-by-2050
Source: 6: https://www.deepmarkit.com/ – under MintCarbon section *Anticipated to launch Q2-2022)
Source7: https://www.deepmarkit.com/news/deepmarkit-gains-access-to-global-carbon-credits-via-referral-arrangement
Source 8: https://www.deepmarkit.com/news/deepmarkit-announces-strategic-investment-and-loi-with-malaysia-based-radiance-assets-berhad
Source 9: https://www.iea.org/reports/net-zero-by-2050
Source10: https://www.sec.gov/news/press-release/2022-46
Source 11: https://finance.yahoo.com/
Source12: https://www.deepmarkit.com/news/deepmarkit-achieves-successful-registration-on-gold-standard-and-verra-carbon-registries
Source 13: https://www.bloomberg.com/news/articles/2021-09-22/investors-managing-6-6-trillion-call-for-funding-carbon-removal
Source 14: https://www.spglobal.com/commodityinsights/en/market-insights/latest-news/coal/012721-global-carbon-market-grows-20-to-272-billion-in-2020-refinitiv
Source15: https://www.mckinsey.com/business-functions/sustainability/our-insights/a-blueprint-for-scaling-voluntary-carbon-markets-to-meet-the-climate-challenge
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