Company: CBLO
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001882781-25-000034
Chunk: 4

Company: C2 Blockchain, Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1
Chunk 4
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The Company
maintains a digital asset treasury as a long-term reserve, with a strategy to acquire, manage, and selectively reallocate blockchain-based
assets to support stability, growth, and alignment with its broader treasury objectives.

During the fiscal
year ended June 30, 2025, the Company utilized a portion of its available funds to acquire Cardano (ADA) tokens as part of its initial
digital asset treasury strategy. As of June 30, 2025, the Company did not hold any DOG Coins, and its digital asset treasury consisted
solely of ADA tokens. At that time, management believed ADA represented a viable long-term blockchain asset with potential for growth
and ecosystem development.

Subsequent to
June 30, 2025, the Company fully divested its ADA token holdings. In connection with this divestment, the Company realized an approximate
loss of $12,668. This figure has not been audited or reviewed, and actual results may differ. The proceeds from the divestment were used
to acquire DOG Coins, a Bitcoin-native token built on the Runes protocol, which enables the issuance of new digital assets directly on
the Bitcoin blockchain.

The Company
believes DOG offers unique advantages relative to other digital assets, including:

- Bitcoin Integration:
DOG is issued directly on the Bitcoin blockchain, benefitting from Bitcoin’s security and network effects.

- Scarcity and
Cultural Adoption: DOG has a fixed supply and growing adoption as a meme-driven, community-supported asset, which management believes
enhances its visibility and potential for long-term value.

- Alignment
with Treasury Goals: By concentrating its digital asset strategy in DOG, the Company seeks to simplify its treasury management and align
with a Bitcoin-centric thesis, consistent with the broader industry trend of institutional adoption of Bitcoin-related assets.

This shift reflects
a deliberate move from holding multiple blockchain tokens to focusing on a single Bitcoin-native asset class that management believes
better positions the Company for both stability and growth within its digital asset holdings.

Certain Company
digital assets - including DOG Coin holdings - are stored with or managed by unaffiliated third-party service providers. The Company
has limited ability to monitor or control the cybersecurity measures used by these providers, and any compromise of their systems could
result in the partial or total loss of these assets.

Use of Investor Funds

Investor capital raised to date has primarily been allocated
to operational expenses, including legal, compliance, investor relations, public filings, and