Royalty Management Holding Corporation announced that its wholly owned subsidiary, The Vault Holdings Corporation, has filed a Form D with the SEC to begin a private capital round for expansion of its bitcoin, cryptocurrency, and digital strategy platform. The capital raise will be conducted at the subsidiary level, with proceeds primarily used to purchase crypto mining equipment that will generate revenue as part of The Vault's broader strategy of investment within the data center, artificial intelligence, and alternative currency mining sectors.
The Vault has identified two initial sites in Indiana for expansion: Marion and Noblesville. According to the company, these locations have been identified through third-party studies as having favorable electrical utility support. The sites possess both existing structures and industrial outdoor storage features, providing flexibility to deploy various income-producing assets. Management and existing investors in Royalty Management have committed to participate in this funding round, which will have no dilutive effects on the capitalization or shareholders of the parent company since all capital is being raised at the subsidiary level.
Thomas Sauve, Chief Executive Officer of Royalty Management, explained the strategic rationale behind the expansion. "We are excited to have The Vault in a position to embark on a round of private capital investment in order to expand its technology footprint, equipment purchases, and infrastructure investment to support its digital strategy platform," Sauve stated. He emphasized that The Vault can work with adjacent industrial tenants to combine their energy use into one low-cost power contract, utilizing local incentives to negotiate more favorable energy rates that also result in local job creation.
The company's energy strategy involves securing low-cost industrial energy usage rates that incorporate economic riders alongside negotiated power contracts. This approach involves pooling energy usage with other companies to optimize energy use and lower cost structure. This energy optimization is central to The Vault's business model, which targets investment in artificial intelligence, data center, and alternative currency mining sectors by leveraging combined resources of other industrial operations.
Through The Vault, Royalty Management intends to grow its investment focus on datacenter, AI, and alternative currency assets through three primary business lines. First, the company will deploy its own servers and equipment at properties through new equipment purchases and site investment to generate alternative currency income. Second, The Vault will lease controlled assets—including real estate, buildings, infrastructure, and electrical rate contracts—to third parties that will build and deploy datacenters and similar infrastructure. In return, The Vault will receive rental and royalty income, with potential additional consideration in the form of alternative currencies mined using these assets. Third, the company plans to acquire and invest in other properties and assets within this sector, including those that manufacture datacenter, server equipment, and other supporting hardware.
Sauve connected this initiative to Royalty Management's broader corporate strategy. "As the investment thesis around this core Company theme solidified, it made perfect sense to consolidate RMCO's various investments in the datacenter, AI, and alternative currencies space within one company that can provide a focused vehicle for growth and monetization in this sector," he explained. He noted that this initiative, combined with the company's recent rare earth refining IP partnership with ReElement, positions Royalty Management to capitalize on targeted sector growth through low-cost cashflow generation.
The Vault's business model focuses on using cash flow and capital to acquire machines that generate near-term cash flow, leveraging what the company describes as the low entry point of its existing facilities and infrastructure. More information about The Vault Holdings Corporation can be found at https://www.thevaultholdings.com/. The private capital raise represents a strategic move to expand operations while maintaining the parent company's capital structure, with the subsidiary serving as a dedicated vehicle for growth in the rapidly evolving digital infrastructure and cryptocurrency sectors.
