# EDGAR Filing Document

**Accession Number:** 0002007691
**File Stem:** 0001185185-26-001694
**Filing Date:** 2026-5
**Character Count:** 1252033
**Document Hash:** 711dea4e7c4f1ee24bb7e012c4296d09
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001185185-26-001694.hdr.sgml**: 20260629

**ACCESSION NUMBER**: 0001185185-26-001694

**CONFORMED SUBMISSION TYPE**: DRS/A

**PUBLIC DOCUMENT COUNT**: 16

**FILED AS OF DATE**: 20260504

**DATE AS OF CHANGE**: 20260501

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Ionic Digital Inc.
- **CENTRAL INDEX KEY:** 0002007691
- **STANDARD INDUSTRIAL CLASSIFICATION:** FINANCE SERVICES [6199]
- **ORGANIZATION NAME:** 09 Crypto Assets
- **EIN:** 990565447
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1224

**FILING VALUES:**
- **FORM TYPE:** DRS/A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 377-08623
- **FILM NUMBER:** 26934364

**BUSINESS ADDRESS:**
- **STREET 1:** 2332 GALIANO STREET
- **STREET 2:** 2ND FLOOR
- **CITY:** CORAL GABLES
- **STATE:** FL
- **ZIP:** 33134
- **BUSINESS PHONE:** 754-273-6593

**MAIL ADDRESS:**
- **STREET 1:** 2332 GALIANO STREET
- **STREET 2:** 2ND FLOOR
- **CITY:** CORAL GABLES
- **STATE:** FL
- **ZIP:** 33134

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Arbelco Inc
- **DATE OF NAME CHANGE:** 20240110

**As confidentially submitted to the Securities and Exchange Commission on May 1, 2026. <br> This draft registration statement has not been publicly filed with the Securities and Exchange Commission and all information herein remains strictly confidential.**

**Registration No. 333-** 

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549** 

 **Confidential Submission No. 3 <br> FORM S-1**

**REGISTRATION STATEMENT**

***UNDER***

***THE SECURITIES ACT OF 1933***

**Ionic Digital Inc.** 

(Exact Name of Registrant as Specified in Its Charter)

---

| | | |
|:---|:---|:---|
| **Delaware** | **6199** | **99-0565447** |
| (State or Other Jurisdiction of<br> Incorporation or Organization) | (Primary Standard Industrial<br> Classification Code Number) | (I.R.S. Employer<br> Identification Number) |

---

**2332 Galiano Street, 2<sup>nd</sup> Floor**

**Coral Gables, Florida 33134** 

**Tel.: (754) 273-6593** 

(Address, including Zip Code, and Telephone Number, Including Area Code, of Registrant's Principal Executive Offices)

**Andy Stewart**

**Chief Executive Officer**

**Ionic Digital Inc.** 

**2332 Galiano Street, 2<sup>nd</sup> Floor** 

**Coral Gables, Florida 33134** 

**Tel.: (754) 273-6593** 

(Name, Address, Including Zip Code, and Telephone Number, Including Area Code, of Agent for Service)

***Copies to:***

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp; **Daniel Nussen**<br> **White & Case LLP**<br> **555 South Flower Street, Suite 2700**<br> **Los Angeles, California 90071-2433**<br> **Tel.: (213) 620-7795** | &nbsp;&nbsp; **Andrew J. Ericksen**<br> **White & Case LLP**<br> **609 Main Street, Suite 2900**<br> **Houston, Texas 77002**<br> **Tel.: (713) 496-9688** | **Erika L. Weinberg**<br> **Gregory P. Rodgers**<br> **Benjamin J. Cohen**<br> **Brittany D. Ruiz**<br> **Sandy Kugbei** <br> **Latham & Watkins LLP**<br> **1271 Avenue of the Americas**<br> **New York, New York 10020**<br> **Tel.: (212) 906-1200**  |

---

**Approximate date of commencement of proposed sale to the public**: From time to time after the effective date of this registration statement.

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box. ☒

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

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| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer | ☒ | Smaller reporting company | ☐ |
|  |  | Emerging growth company | ☒ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐

**The registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933, as amended, or until the registration statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.** 

**The information in this preliminary prospectus is not complete and may be changed. The securities may not be sold until the registration statement filed with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell these securities and is not soliciting an offer to buy these securities in any state or jurisdiction where the offer or sale is not permitted.** 

**SUBJECT TO COMPLETION, DATED , 2026**

**PRELIMINARY PROSPECTUS**![](image_001.jpg)

**Ionic Digital Inc.** 

**Shares of Class A Common Stock** 

This prospectus relates to the registration of the resale by the selling stockholders named in this prospectus, who we refer to as the Registered Stockholders, of up to shares of our Class A common stock, par value $0.00001 per share, pursuant to a direct listing on the Nasdaq Global Select Market. Prior to the listing of our shares of Class A common stock, there has been no public market for our shares of Class A common stock and there have been no sales of shares of our Class A common stock in private transactions. The resale of the shares of Class A common stock by the Registered Stockholders is not being underwritten by any investment bank, which makes this listing different from an underwritten initial public offering. The shares of Class A common stock covered by this prospectus comprise all of the shares held by the Registered Stockholders. Following the effectiveness of the registration statement of which this prospectus forms a part, the Registered Stockholders may elect to sell these shares, as and to the extent they may determine, through brokerage transactions on the Nasdaq Global Select Market at prevailing market prices. In addition, the remaining outstanding shares of our Class A common stock may be freely sold in the public market in reliance upon exemptions from registration under the Securities Act. If the Registered Stockholders choose to sell their shares of Class A common stock, we will not receive any proceeds from the sale of such shares. For more information, see the section titled "Plan of Distribution."

The direct listing of our Class A common stock on the Nasdaq Global Select Market without underwriters is a relatively novel method for commencing public trading in shares of our Class A common stock, and consequently, the trading volume and price of shares of our Class A common stock may be more volatile than if shares of our Class A common stock were initially listed in connection with an underwritten initial public offering.

J.P. Morgan Securities LLC, or J.P. Morgan, is serving as our designated financial advisor to perform the functions under Nasdaq Rule 4120(c)(8) for our first day of trading on the Nasdaq Global Select Market. BTIG, LLC, or BTIG, is also serving as our financial advisor. We have engaged such financial advisors to advise and assist us with respect to certain matters relating to our listing.

On the day that our shares of Class A common stock are initially listed for trading on the Nasdaq Global Select Market, the Nasdaq Stock Market LLC, or Nasdaq, will begin accepting, but not executing, pre-opening buy and sell orders and Nasdaq will begin to continuously generate the indicative current reference price (as defined below) for our Class A common stock on the basis of such accepted orders.

During a 10-minute "Display Only" period, market participants may enter quotes and orders for our Class A common stock in Nasdaq's systems and Nasdaq will disseminate such information, along with other indicative imbalance information, to J.P. Morgan and certain other market participants (including our other financial advisors) on Nasdaq's NOII and BookViewer tools.

Following such 10-minute "Display Only" period, a "Pre-Launch" period will begin, during which J.P. Morgan, in its capacity as our designated financial advisor, must notify Nasdaq that our shares of Class A common stock are "ready to trade." Once J.P. Morgan has notified Nasdaq that our shares of Class A common stock are ready to trade, Nasdaq will calculate the current reference price for our shares of Class A common stock, in accordance with Nasdaq's rules. If J.P. Morgan then approves proceeding at the current reference price, Nasdaq will conduct price validation checks in accordance with Nasdaq rules. As part of conducting its price validation checks, Nasdaq may consult with J.P. Morgan and certain other market participants (including our other financial advisors).

Upon completion of such price validation checks, the applicable orders for our Class A common stock that have been entered will then be executed at such price and regular trading of our shares of Class A common stock on the Nasdaq Global Select Market will commence.

Under Nasdaq rules, the current reference price means: (i) the single price at which the maximum number of orders to buy or sell our shares of Class A common stock can be matched; (ii) if more than one price exists under clause (i), then the price that minimizes the number of our shares of Class A common stock for which orders cannot be matched; (iii) if more than one price exists under clause (ii), then the entered price (i.e., the specified price entered in an order by a customer to buy or sell) at which our shares of Class A common stock will remain unmatched (i.e., will not be bought or sold); and (iv) if more than one price exists under clause (iii), a price determined by Nasdaq after consultation with J.P. Morgan and BTIG, in their capacities as our financial advisors. J.P. Morgan and BTIG will exercise any consultation rights only to the extent that they may do so consistent with the anti-manipulation provisions of the federal securities laws, including Regulation M (to the extent applicable), or applicable relief granted thereunder.

The Registered Stockholders will not be involved in Nasdaq's price-setting mechanism, including any decision to delay or proceed with trading, nor will they control or influence J.P. Morgan and BTIG in carrying out their roles as our financial advisors. We will not be involved in the price-setting process.

J.P. Morgan will determine when our shares of Class A common stock are ready to trade and approve proceeding at the current reference price primarily based on consideration of trading volume, timing and share price. In particular, J.P. Morgan will determine, based primarily on pre-opening buy and sell orders, when a reasonable amount of volume will cross on the opening trade such that sufficient price discovery has been made to open trading at the current reference price. For more information, see the section titled "Plan of Distribution."

We intend to apply to list our Class A common stock on the Nasdaq Global Select Market under the symbol "IOND." We expect our Class A common stock to begin trading on or about , 2026.

We are an "emerging growth company" as that term is used in the Jumpstart Our Business Startups Act of 2012. As such, in this prospectus we have taken advantage of certain reduced disclosure obligations that apply to emerging growth companies.

**Investing in our Class A common stock involves risks. See the section titled "Risk Factors" beginning on page 9 of this prospectus to read about factors you should consider before buying our Class A common stock.** 

**Neither the U.S. Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.** 

**The date of this prospectus is , 2026**

**TABLE OF CONTENTS**

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| | |
|:---|:---|
| [CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS](#a_002) | iii |
| [PROSPECTUS SUMMARY](#a_003) | 1 |
| [RISK FACTORS](#a_004) | 9 |
| [MARKET AND INDUSTRY DATA](#a_005) | 42 |
| [TRADEMARKS AND TRADE NAMES](#a_006) | 42 |
| [USE OF PROCEEDS](#a_007) | 42 |
| [DIVIDEND POLICY](#a_008) | 42 |
| [CAPITALIZATION](#a_009) | 43 |
| [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#a_010) | 44 |
| [BUSINESS](#a_011) | 62 |
| [MANAGEMENT AND GOVERNANCE](#a_012) | 75 |
| [EXECUTIVE COMPENSATION](#a_013) | 81 |
| [CERTAIN RELATIONSHIPS AND RELATED PERSON TRANSACTIONS](#a_014) | 85 |
| [PRINCIPAL AND REGISTERED STOCKHOLDERS](#a_015) | 88 |
| [SHARES ELIGIBLE FOR FUTURE SALE](#a_016) | 90 |
| [DESCRIPTION OF CAPITAL STOCK](#a_017) | 92 |
| [PLAN OF DISTRIBUTION](#a_018) | 96 |
| [MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES TO NON-U.S. HOLDERS](#a_019) | 98 |
| [LEGAL MATTERS](#a_020) | 102 |
| [CHANGE IN ACCOUNTANTS](#a_021) | 103 |
| [EXPERTS](#a_022) | 104 |
| [WHERE YOU CAN FIND MORE INFORMATION](#a_023) | 105 |
| [INDEX TO CONSOLIDATED FINANCIAL STATEMENTS](#a_024) | F-1 |

---

i

[**Table of Contents**](#C_001)

**ABOUT THIS PROSPECTUS** 

This prospectus is a part of a registration statement on Form S-1 that we filed with the SEC using a "shelf" registration or continuous offering process. Under this process, the Registered Stockholders may, from time to time, sell the Class A common stock covered by this prospectus in the manner described in the section titled "Plan of Distribution." Additionally, we may provide a prospectus supplement to add information to, or update or change information contained in, this prospectus (except for the section titled "Plan of Distribution," which additions, updates, or changes that are material shall only be made pursuant to a post-effective amendment). You may obtain this information without charge by following the instructions under the section titled "Where You Can Find More Information" appearing elsewhere in this prospectus. You should read both this prospectus and any applicable prospectus supplement or post-effective amendment to the registration statement together with the additional information to which we refer you in the sections of this prospectus titled "Where You Can Find More Information."

As used in this prospectus, the term "Registered Stockholders" refers to the stockholders with shares registered hereunder pursuant to the table appearing in the section titled "Registered Stockholders" and their pledgees, donees, transferees, assignees, or other successors-in-interest.

You should rely only on the information contained in this prospectus or contained in any free writing prospectus filed with the Securities and Exchange Commission, or SEC. Neither we nor the Registered Stockholders have authorized anyone to provide any information or to make any representations other than those contained in this prospectus or in any free writing prospectuses we have prepared. Neither we nor the Registered Stockholders take responsibility for and can provide no assurance as to the reliability of, any other information that others may give you. The Registered Stockholders are offering to sell, and seeking offers to buy, shares of their Class A common stock only in jurisdictions where it is lawful to do so. The information contained in this prospectus is accurate only as of the date of this prospectus, regardless of the time of delivery of this prospectus or of any sale of the Class A common stock. Our business, financial condition, operating results, and prospects may have changed since that date.

For investors outside of the United States: Neither we nor any of the Registered Stockholders have done anything that would permit the use or possession or distribution of this prospectus in any jurisdiction where action for that purpose is required, other than in the United States. Persons outside the United States who come into possession of this prospectus must inform themselves about, and observe any restrictions relating to, the offering of Class A common stock by the Registered Stockholders and the distribution of this prospectus outside of the United States.

Unless the context otherwise requires, references in this prospectus to "Ionic Digital," "we," "our," "us" and the "Company" refers to Ionic Digital Inc., a Delaware corporation, and its consolidated subsidiaries, and "Ionic Digital Inc." or the "Parent" refer only to Ionic Digital Inc.

ii

[**Table of Contents**](#C_001)

**CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS**

This prospectus includes forward-looking statements that reflect our plans, beliefs, expectations and current views with respect to, among other things, future events and financial performance. These forward-looking statements are based on the historical financial information and our current plans, estimates and projections in light of information currently available to us, and therefore you should not place undue reliance on them. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. Forward-looking statements made in this prospectus speak only as of its date, and we undertake no obligation to update them in light of new information or future events, except as required by law.

Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and are often characterized by the use of words such as "anticipates," "believes," "estimates," "expects," "intends," "may," "projects," "plans," or by discussions of strategy, plans or intentions. Such forward-looking statements involve known and unknown risks, uncertainties, assumptions and other important factors that could cause our actual results, performance or achievements, or industry results, to differ materially from historical results or any future results, performance or achievements expressed, suggested or implied by such forward-looking statements. Some of the risks, uncertainties and other important factors that could cause results to differ from those currently expected, or that otherwise could impact us, include, but are not limited to:

● our ability to secure and retain customers on commercially reasonable terms or at all in our digital infrastructure business;

● our ability to establish and maintain a customer base for our digital infrastructure business and customer concentration;

● our ability to procure power to power our digital infrastructure solutions and bitcoin mining operations, and to obtain required regulatory approvals to increase energy capacity;

● business interruptions, including due to power outages, shortages, capacity constraints, catastrophic disasters or other events;

● our ability to access sufficient capital for future strategic growth initiatives;

● our facilities and our ability to obtain miners may fail to keep pace with rapidly changing technology and evolving industry standards;

● additional bitcoin mining capacity from competing bitcoin miners decreases our effective network hashrate market share, and if we are unable to grow our hashrate at pace with the global network hashrate, our chance of earning bitcoin from our mining operations will decline;

● our third-party contract manufacturers, pool service providers, component suppliers and energy providers, some of which are sole source and limited source suppliers;

● the price volatility of bitcoin, the digital currency native to the Bitcoin network;

● our financial and business performance, including financial projections and business metrics;

● the ability to initially list and maintain a listing of our Class A common stock on Nasdaq, and the potential liquidity and trading of such securities;

● the dependence of our revenues on general economic conditions and the willingness of enterprises to invest in technology;

● our ability to establish and maintain proper and effective internal control over financial reporting;

● our commercial partnerships and business relationships;

● the effects of competition and regulation on our business;

● breaches of the security of our information systems, products or services or of the information systems of our third-party providers;

iii

[**Table of Contents**](#C_001)

● potential litigation and other claims, including for infringement, which could cause us to incur significant expenses or prevent us from selling our products or services;

● environmental, health and safety, laws, regulations, costs and other liabilities; and

● other factors detailed under the section titled "Risk Factors."

The factors identified above should not be construed as an exhaustive list of factors that could affect our future results and should be read in conjunction with the other cautionary statements that are included in this prospectus. Furthermore, new risks and uncertainties arise from time to time, and it is impossible for us to predict those events or how they may affect us. These risks and uncertainties include, but are not limited to, those factors described under the heading "Risk Factors." If any of these trends, risks or uncertainties actually occurs or continues, our business, revenue and financial results could be harmed, and the trading prices of our Class A common stock could decline. All forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary note.

You should read this prospectus and the documents that we reference in this prospectus and have filed with the SEC as exhibits to the registration statement of which this prospectus is a part with the understanding that our actual future results, levels of activity, performance and events and circumstances may be materially different from what we expect.

iv

[**Table of Contents**](#C_001)

**PROSPECTUS SUMMARY**

*The following summary highlights information contained in greater detail elsewhere in this prospectus. This summary is not complete and does not contain all of the information you should consider in making your investment decision. You should read the entire prospectus carefully before making an investment in our Class A common stock. You should carefully consider, among other things, our financial statements and related notes and the sections titled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" included elsewhere in this prospectus.*

 

*Unless the context otherwise requires, references in this prospectus to "Ionic Digital" or the "Successor," refer to Ionic Digital Inc., the Company that acquired substantially all of the assets and assumed certain liabilities from Celsius Mining LLC ("Celsius Mining" or the "Predecessor") following the Chapter 11 bankruptcy filing of Celsius Network LLC and certain of its subsidiaries and affiliates, including the Predecessor (the "Debtors"). References to the "Company," "we," "us" and "our" refer to Ionic Digital for periods on or after January 31, 2024 and to the Predecessor for periods prior to January 31, 2024.*

**Company Overview** 

Ionic Digital is a digital infrastructure solutions and cryptocurrency mining company. We began as a pure-play cryptocurrency mining company when we were formed in January 2024 to acquire all of the cryptocurrency mining assets of Celsius Mining. From our inception, our core objective has been to monetize our portfolio of powered digital infrastructure assets. Historically, we have monetized these assets by efficiently mining bitcoin. More recently, we have sought to achieve this objective by primarily leasing our digital infrastructure assets to hyperscalers, enterprise customers and other businesses for high-performance computing ("HPC") and artificial intelligence ("AI") cloud infrastructure.

In October 2025, we announced our inaugural participation in the HPC/AI sector with a 126-month "triple net" lease with Nscale Ward County LLC (together, with its affiliates, "Nscale"), a global hyperscaler engineered for sovereign-grade AI infrastructure at our Ward County property in West Texas. Under the lease we committed to providing Nscale with the full amount of the 234 megawatts ("MW") of current energy capacity at our Ward County property. We received our first payment under the lease in November 2025, and monthly fixed lease payments will commence in August 2026. Payments under the lease represent total contracted revenues of approximately $1.95 billion.

In February 2026, we amended the lease, which contractually obligates Nscale to lease an additional 89 MW of capacity, when such capacity becomes available, at the same price per MW as the current 234 MW. In addition, Nscale will receive the tax advantages associated with our qualified data center status. We refer to the lease, as amended, as the "Nscale Agreement."

We expect the Ward County property to energize the additional 89 MW by the second quarter of 2027. We cannot guarantee that the power generation at our Ward County property will be expanded as currently contemplated and there is no penalty under the Nscale Agreement if we are unable to provide Nscale with the additional 89 MW of capacity. The expanded power capacity under the Nscale Agreement is subject to regulatory approval. At the current capacity of 234 MW and the increased capacity of 89 MW, our capital expenditures are currently expected to be approximately $40 million, which we plan to fund with cash on hand as well as with sales of our bitcoin held in treasury, as needed. Assuming we are able to secure the additional 89 MW by the second quarter of 2027, we currently anticipate that the total contracted revenues under the Nscale Agreement would increase to approximately $2.7 billion.

In addition, we are seeking to expand the energy capacity at the Ward County property to 700 MW, which we believe would advance the monetization of our owned powered digital infrastructure assets. We have begun making investments in the Ward County property to support the increased power capacity, including beginning to develop the remaining 86 acres of the property to provide the infrastructure for our effort to support up to approximately 700 MW of total capacity at Ward County. At the fully expanded capacity of 700 MW, our total capital expenditures are expected to be approximately $64 million. We plan to fund these capital expenditures with cash on hand as well as with sales of our bitcoin held in treasury, as needed. We have granted Nscale a right of first refusal on additional energy capacity at the Ward County property, and we may also provide the expanded energy capacity to other AI, enterprise, or cloud infrastructure companies, or use the expanded energy capacity for our own cryptocurrency mining operations.

Entry into the Nscale Agreement is the culmination of a process we began in early 2025 to identify a strong counterparty and develop an attractive contract structure to better monetize our Ward County site. We believe our agreement with Nscale represents a transformative transaction that significantly increases the value of our company. Although we began as a pure-play bitcoin mining operator, we have successfully demonstrated our ability to convert and optimize our infrastructure, including transitioning our Ward County property for use as an HPC/AI data center. This transaction accelerates our strategy to build a diversified digital infrastructure solutions platform, with the flexibility to monetize our sites across data centers and other digital infrastructure applications as market conditions evolve. Our strong balance sheet also gives us the ability to better monetize sites currently mining bitcoin, expand into other markets, and develop additional powered shell data centers. The combination of an existing cryptocurrency mining business, and the Nscale Agreement, provides us with a steady income stream that includes predictable, high-margin cash flows. We believe that those strengths, together with a strong balance sheet, should position us well as an emerging innovator at the intersection of energy, bitcoin mining, and advanced computing infrastructure.

With five facilities in Texas, three of which we own (including the Ward County property) and two of which we lease, as well as a strong balance sheet, we believe we are well-positioned to execute on our long-term strategy of monetizing powered digital infrastructure assets across data centers, bitcoin mining, and other energy-intensive applications.

[**Table of Contents**](#C_001)

The following table provides an overview of our energy and miner capacity at our sites as of December 31, 2025:

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| | | |
|:---|:---|:---|
| **Facility (Location)** | **Energy<br> Consumption<br> Capacity<br> (MW)** | **Estimated<br> Miner<br> Rack Space<br> Capacity** |
| **Ionic Digital Self-Mining Sites<sup>(1)</sup>** | | |
| *Ward County* |  |  |
| &nbsp;&nbsp;&nbsp; Ward County, Texas<sup>(2)(3)</sup> | 234 MW | N/A |
| *Midland* |  |  |
| &nbsp;&nbsp;&nbsp; East Stiles (Reagan County, Texas)<sup>(2)</sup> | 30 MW | 10080 |
| &nbsp;&nbsp;&nbsp; Garden City (Glasscock County, Texas)<sup>(2)</sup> | 12 MW | 3600 |
| &nbsp;&nbsp;&nbsp; Rebel (Glasscock County, Texas)<sup>(4)</sup> | 50 MW | 7920 |
| &nbsp;&nbsp;&nbsp; Stiles (Reagan County, Texas)<sup>(4)</sup> | 20 MW | 6480 |
| **Third-Party Hosted Site<sup>(5)</sup>** |  |  |
| GXD (Oklahoma City, Oklahoma)<sup>(5)</sup> | 60 MW | 17300 |

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(1) We own all miners, equipment, and improvements at all Ionic Digital-operated
sites.

(2) We own the land at our
 Ward County, East Stiles, and Garden City sites.

&nbsp;&nbsp;&nbsp;&nbsp;(3) In
 accordance with the terms of the Nscale Agreement, we have decommissioned all mining assets at the Ward County site as of December
 19, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;(4) We retain long-term leases of the land at our Rebel and Stiles sites.

(5) At
 our third-party hosted site, we provided the miners and the host owns the land, equipment,
 and improvements. While we had miners actively deployed at our hosted site as of December
 31, 2025, the hosting agreement with Global[X]Digital, LLC ("GXD") was terminated
 during the first quarter of 2026 and all mining equipment will be sold or moved to our self-mining
 sites in Midland.

***Competitive Strengths***

 ****

We believe that we possess several competitive strengths, including the following:

 *Flagship, high-performance facility in Ward County.* Our Ward County site serves as the cornerstone of our operations, offering scalable infrastructure, access to cost-efficient power, and operational reliability. Strategically located in a region with favorable energy pricing and infrastructure, the Ward County property currently has 234 MW of installed capacity. The site has the potential, subject to regulatory approvals and infrastructure development, to support up to approximately 700 MW of total capacity. Expansion of this nature could increase the Company's scale and operating leverage and may enhance long-term shareholder value. However, there can be no assurance that such additional capacity will be approved, constructed, or economically developed. Our planned infrastructure is designed with the optionality to support a wide range of compute-intensive applications, including AI inference and HPC workloads. Nscale, a global hyperscaler, recently contracted to lease approximately 50 acres and access to 234 MW of power at the site under a 126-month agreement to use as a hyperscale AI campus beginning in the third quarter of 2026. We have granted Nscale a right of first refusal on additional capacity at the Ward County site, and we may also provide the expanded energy capacity to other AI, enterprise, or cloud infrastructure companies, or utilize it for our own cryptocurrency mining operations. Additionally, Nscale has granted Microsoft an option for additional power at the Ward County property, if it becomes available, starting in late 2027.

We believe that with our flagship Ward County property, we are well-positioned to capture this opportunity. In addition to the 234 MW currently leased to Nscale, the Nscale Agreement contractually obligates Nscale to lease an additional 89 MW of capacity, when such capacity becomes available, at the same price per MW as the current 234 MW. We expect the Ward County property to energize the additional 89 MW by the second quarter of 2027. We cannot guarantee that the power generation at our Ward County property will be expanded as currently contemplated and there is no penalty under the Nscale Agreement if we are unable to provide Nscale with the additional 89 MW of capacity. The expanded power capacity under the Nscale Agreement is subject to regulatory approval. At the current capacity of 234 MW and the increased capacity of 89 MW, our capital expenditures are currently expected to be approximately $40 million, which we plan to fund with cash on hand as well as with sales of our bitcoin held in treasury, as needed. Assuming we are able to secure the additional 89 MW by the second quarter of 2027, we currently anticipate that the total contracted revenues under the Nscale Agreement would increase to approximately $2.7 billion.

As we seek to expand the energy capacity at the Ward Country property to 700 MW, we have begun making investments to support the increased power capacity. At the fully expanded capacity of 700 MW, our total capital expenditures are expected to be approximately $64 million. We plan to fund these capital expenditures with cash on hand as well as with sales of our bitcoin held in treasury, as needed. We have granted Nscale a right of first refusal on additional energy capacity at the Ward County property, and we may also provide the expanded energy capacity to other AI, enterprise, or cloud infrastructure companies, or use the expanded energy capacity for our own cryptocurrency mining operations.

 *Low-cost access to power.* With our strategically located data center sites across Texas, on both owned and leased land, we are able to take advantage of low-cost power. Our cryptocurrency mining operations utilize miner management software and dynamic load management strategies to optimize power consumption based on real-time market pricing and grid conditions, including participation in curtailment programs that are customary in the bitcoin mining industry. As a result, our average cost of power consumed across our Texas sites was approximately 3.6 cents per kilowatt-hour ("c/kWh") for the year ended December 31, 2025.

 *Differentiated management team with deep experience in data center development.* Our management team comprises individuals drawing on diverse knowledge and skill sets acquired through extensive experience in data centers, real estate, managed digital infrastructure and other fields in the technology sector. Our leadership also incorporates extensive strategic expertise in finance and capital markets.

 *Strong balance sheet.* As of December 31, 2025, we had no debt, 2,719 bitcoin in treasury at a fair value of $237.9 million, and approximately $43.5 million in cash and cash equivalents that is being proactively managed. We believe our strong balance sheet provides us operational flexibility in a capital expenditure intensive business and access to immediate liquidity to pursue joint ventures and strategic acquisitions. Additionally, we may liquidate bitcoin to cover operational expenses and strategic investments as necessary.

**Growth Strategy**

Our growth plans over the next 36 months center around monetization of our owned and leased powered digital infrastructure assets, expansion opportunities, and potential acquisitions or joint ventures for data center development. In pursuing these plans, our objective is to generate high margin, incremental cash flows with a predictable dollar-based revenue which complement our longer-term investment strategy. We are actively exploring a range of potential financing alternatives to support core business initiatives such as increasing energy capacity at existing owned sites, expansion to new sites, as well as potential acquisition and/or joint venture opportunities in the HPC and AI sectors. These financing alternatives may include the potential collateralization of a portion of our bitcoin holdings. At this time, no definitive financing arrangements have been entered into, and formal policies governing bitcoin-backed financing have not yet been established. Any such financing, if pursued, may require us to onboard with one or more new custodians in connection with the custody, control, or collateral management of our bitcoin holdings.

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***Monetizing Powered Digital Infrastructure Assets***

We believe that our portfolio of powered digital infrastructure assets are attractive to hyperscalers, enterprise customers, and other businesses for HPC and AI cloud infrastructure. We believe that leasing our assets to such customers can provide attractive opportunities to monetize our assets with predictable cash flows.

 *Ward County* 

In October 2025, we announced our inaugural participation in the HPC/AI sector with a 126-month "triple net" lease with Nscale at our Ward County property in West Texas. In February 2026, we amended the lease. Our Ward County property has a current energy capacity of 234 MW. We received our first payment under the Nscale Agreement in November 2025, and monthly fixed lease payments will commence in August 2026. Payments under the lease represent total contracted revenues of approximately $1.95 billion.

We are seeking to expand the energy capacity at the Ward County property to 700 MW, which we believe would advance the monetization of our owned powered digital infrastructure assets. Nscale has contracted to obtain an additional 89 MW of that additional power, when such capacity becomes available, at the same price per MW as the current 234 MW. We expect the Ward County property to energize the additional 89 MW by the second quarter of 2027. We cannot guarantee that the power generation at our Ward County property will be expanded as currently contemplated and there is no penalty under the Nscale Agreement if we are unable to provide Nscale with the additional 89 MW of capacity. The expanded power capacity under the Nscale Agreement is subject to regulatory approval. At the current capacity of 234 MW and the increased capacity of 89 MW, our capital expenditures are currently expected to be approximately $40 million. At the fully expanded capacity of 700 MW, our total capital expenditures are currently expected to be approximately $64 million. We plan to fund these capital expenditures with cash on hand as well as with sales of our bitcoin held in treasury, as needed. We have granted Nscale a right of first refusal on additional capacity at the Ward County property, and we may also provide the expanded energy capacity to other AI, enterprise, or cloud infrastructure companies, or use the expanded energy capacity for our own cryptocurrency mining operations. Assuming we are able to secure the additional 89 MW by the second quarter of 2027, we currently anticipate that the total contracted revenues under the Nscale Agreement would increase to approximately $2.7 billion.

We expect this lease structure with Nscale will provide us with predictable cash flows while minimizing operating risk at our Ward County site, as we are not responsible for construction or site development. Under our "triple-net" lease, Nscale, as the tenant, is responsible for rental payments and ongoing expenses (including taxes, insurance and maintenance) at the Ward County property, while we are responsible for the management of, but not the cost of, substation maintenance. The Nscale Agreement does not require us to raise additional capital and provides us with significant resources to fund other growth initiatives. We expect this will strengthen our financial foundation and provide a stable source of cash flows, allowing us to monetize these assets while we continue to mine bitcoin at our other facilities.

We are in active discussions with Texas-New Mexico Power ("TNMP") and the Energy Reliability Council of Texas ("ERCOT") to increase electricity capacity from the current 234 MW to 700 MW by the end of 2027. We have submitted all required documentation, and our ability to obtain the additional power will depend primarily on the completion of two utility projects in the surrounding area that are on track to be completed in 2026 and 2027. Our expansion request was submitted during an earlier study phase relative to subsequent applicants, which may benefit sequencing of transmission evaluations; however, approval and allocation of additional capacity remain subject to regulatory and infrastructure considerations. Nothing in the Nscale Agreement requires us to increase the electricity capacity beyond 234 MW. If this expansion is approved, we plan to make the required infrastructure investments to use the increased power when available.

Other potential opportunities at the Ward County property may include building powered shell or full turnkey data centers in an effort to enter the data center development sector, pursuing strategic partnerships with established data center developers to build on our Ward County site, or a combination of these opportunities.

*Midland*

 

We currently operate four bitcoin self-mining sites in Midland, Texas and are currently working to streamline our cryptocurrency mining operations such that these sites will be our only locations used for mining bitcoin. With the digital infrastructure solutions commencing at Ward County, we relocated our fleet of approximately 89,700 miners to Midland and have commenced the disposal of less efficient mining assets in favor of operating the most efficient miners we currently own. In addition, in February 2026, the Company elected not to renew its long-term hosting arrangement with GXD in Oklahoma. The miners at GXD constituted approximately one third of our capacity to generate hashrate as of December 31, 2025. Our mining equipment at GXD was removed from service by March 31, 2026, and management has determined that a majority of the equipment will be disposed and will not be returned to service, while the most efficient miners will be relocated to the Midland sites.

Of the approximately 143,100 miners we owned during 2025, approximately 18,000 were disposed in 2025, approximately 28,100 are or will be deployed and actively hashing at the Midland sites, approximately 19,400 miners will be retained for spare parts, and the remaining approximately 77,600 miners will be sold or scrapped in 2026.

The 50MW capacity at our Rebel site includes 25MW of unused power capacity added in the fourth quarter of 2025. We also anticipate receiving approval for an additional 10MW of capacity at our East Stiles site during 2027, an expansion for which there are no known barriers, material steps, or material costs at this time. We are considering expanding cryptocurrency mining operations at these sites to employ this additional power capacity, as well as acquiring new or refurbished miners with improved efficiency to deploy at the Midland sites. As HPC/AI data center development or joint venture opportunities arise for the Midland sites, we will evaluate the potential profitability against our cryptocurrency mining operations.

***Acquisitions and Partnership Opportunities***

 ****

We are actively evaluating sites in the United States to purchase or lease primarily for potential expansion in the HPC/AI data center sector. As we identify sites that fit these purposes, we may look to partner with an established data center developer in an effort to establish a foothold in the development sector, as well as potentially provide turnkey services to customers. We believe our balance sheet, experienced management team, and contracted revenue stream will enable us to raise capital for site acquisition and/or development.

***Bitcoin Treasury***

During 2025, we sold a portion of our bitcoin holdings to cover operating and capital expenditures and retained the remainder to maintain an adequate ongoing liquidity position. For context, during the year ended December 31, 2025, we mined an average of 111.4 bitcoin per month and sold an average of 84.1 bitcoin per month to cover expenses and preserve liquidity. With the monthly fixed lease payments under the Nscale Agreement beginning in August 2026, we expect to have a steady and increasing stream of cash inflows, which we anticipate will enable us to retain a greater portion of our mined bitcoin, expanding our bitcoin holdings in treasury and supporting broader treasury management initiatives unless we find more compelling investment opportunities that necessitate the liquidation of bitcoin holdings. We do not expect to use cash flows from the Nscale Agreement to fund purchases of bitcoin.

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We may seek to collateralize bitcoin held in treasury to borrow U.S. dollars for capital or operating expenditures. We believe that utilizing bitcoin as collateral may offer an attractive spread between borrowing cost and bitcoin appreciation potential, compared to spot-selling bitcoin to meet short-term funding needs. Our Board of Directors has not adopted any formal policies relating to how much of our bitcoin we hold in treasury or when we purchase, sell or collateralize our bitcoin holdings. Our Board of Directors, together with the members of our management team, periodically manage the amount of bitcoin we hold in treasury and when we sell and collateralize our bitcoin holdings based on, among other things, market conditions and our liquidity needs.

In addition, while our Board of Directors has approved certain parameters within which management is authorized to pursue bitcoin hedging strategies, we are not currently engaged in any hedging transactions. We may deploy derivatives as part of hedging strategies intended to manage the value risk of bitcoin held, considering market liquidity and our treasury objectives. We may also employ other derivative trading strategies, which may include selling bitcoin call options or buying bitcoin put options, as a monetization strategy or, in certain cases, through structured arrangements such as collar options, to manage downside price exposure related to our physical mining operations.

As we continue to shift our business to leasing digital infrastructure assets, we anticipate that our primary operating revenues will be derived from non-mining activities denominated in U.S. dollars. Our approach to bitcoin holdings is a capital allocation strategy, supported by a diversified capital structure and liquidity management framework.

**Corporate Information** 

We were incorporated on January 5, 2024 as a Delaware corporation. Our address is 2332 Galiano Street, 2<sup>nd</sup> Floor, Coral Gables, Florida, 33134. Our telephone number is (754) 273-6593. Our website address is *https://www.ionicdigital.com*. Information contained on our website or connected thereto does not constitute part of, and is not incorporated by reference into, this prospectus or the registration statement of which it forms a part.

**Emerging Growth Company** 

We are an "emerging growth company," as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"). As such, we are eligible to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not "emerging growth companies" including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002 (the "Sarbanes-Oxley Act"), reduced disclosure obligations regarding executive compensation in their periodic reports and proxy statements, and exemptions from the requirements of holding a non-binding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. If some investors find our securities less attractive as a result, there may be a less active trading market for our securities, and the prices of our securities may be more volatile.

Further, section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies, but any such election to opt out is irrevocable. We have elected not to opt out of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, we, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparisons of our financial statements with certain other public companies difficult or impossible because of the potential differences in accounting standards used.

We will remain an emerging growth company until the earlier of: (1) the last day of the fiscal year (a) following the fifth anniversary of the completion of this listing, (b) in which we have total annual gross revenue of at least $1.235 billion, or (c) in which we are deemed to be a large accelerated filer, which means the market value of our common equity that is held by non-affiliates exceeds $700 million as of the end of the prior fiscal year's second fiscal quarter; and (2) the date on which we have issued more than $1.00 billion in non-convertible debt during the prior three-year period.

**Summary Risk Factors**

Our business is subject to numerous risks and uncertainties, including those highlighted in the section titled "Risk Factors" immediately following this prospectus summary, which represent challenges we face in connection with the successful implementation of our business strategy and the growth of our business. In particular, the following considerations, among others, may offset our competitive strengths or have a negative effect on our business strategy, which could cause a decline in the price of shares of our Class A common stock and result in a loss of all or a portion of your investment:

● We have an evolving business model and are at an early stage of development for our digital infrastructure business.

● As a recently formed company with a high degree of executive turnover since we began our operations, there is significant uncertainty regarding our ability to effectively operate our business and implement our strategy.

 *Risks Related to Our Digital Infrastructure Business*

● Our digital infrastructure business has and is expected to continue to have significant customer concentration and failure to attract, grow and retain a diverse and balanced customer base could harm our digital infrastructure business and operating results.

● It may take significant time and expenditures to develop our digital infrastructure solutions through continued development at our existing and future sites, and our efforts may not be successful.

● Our digital infrastructure solutions development depends upon the demand for data centers.

● Any delays or unexpected costs developing our existing space, developable land and newly acquired properties may delay and harm our growth prospects, future operating results and financial condition.

● Our expansion efforts may not drive sufficient customer demand in the future to realize expected returns on these investments.

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 *Risks Related to Our Cryptocurrency Mining Business*

● If the bitcoin reward for solving blocks and the related transaction fees are not sufficiently high, we may not have an adequate incentive to continue mining and may cease mining operations, which would likely result in our failure to achieve profitability in that particular line of business.

● Our cryptocurrency assets may be subject to loss, damage, theft, or restriction on access. Additionally, incorrect or fraudulent cryptocurrency transactions may be irreversible.

● Our success in our cryptocurrency mining business depends on external factors affecting the Bitcoin industry.

● Additional bitcoin mining capacity from competing bitcoin miners will trigger increases in mining difficulty, and if we are unable to grow our hashrate at pace with the global network hashrate, our chance of earning bitcoin from our mining operations will decline over the coming years.

● To the extent that the profit margins of bitcoin mining operations are not sufficiently high, bitcoin mining operators are more likely to immediately sell bitcoins earned by mining or previously held on the balance sheet into the bitcoin exchange markets, resulting in a reduction in the price of bitcoin that could adversely affect us.

● If a malicious actor or botnet obtains control in excess of 50% of the processing power active on the Bitcoin network, it is possible that such actor or botnet could manipulate the blockchain in a manner that adversely affects our business.

● Demand for bitcoin is driven, in part, by it being generally recognized as the most prominent and secure cryptocurrency. Cryptocurrencies other than bitcoin could have features that make them more desirable to a material portion of the cryptocurrency user base, resulting in a reduction in demand for bitcoin, which could have a negative effect on the price of bitcoin and adversely affect an investment in us.

● A material decline in the value of bitcoin could have an adverse effect on our results of operations, our liquidity and the strength of our balance sheet.

● Transaction fees may decrease demand for bitcoin which could adversely affect our business.

*Risks Related to All Our Operations*

● We may be harmed by increased costs to procure power, prolonged power outages, shortages or capacity constraints as well as insufficient access to power (including as a result of failure to obtain necessary approvals).

● Failure of critical systems at the facilities operated by us or third parties could have a material adverse effect on our business, prospects, financial condition, and results of operations.

● Our reliance on a third-party mining pool service provider for our mining revenue payouts may have a negative impact on our operations. For example, should the mining pool operator be subject to cyber-attacks, we may have limited recourse against the mining pool operator with respect to rewards to be paid to us.

● We depend on third parties, including electric grid operators, and electric utility providers and may be harmed by increased costs to procure power, prolonged power outages, shortages or capacity constraints as well as insufficient access to power.

● We have a significant concentration of our operations in Texas and, thus, are particularly exposed to changes in the competitive landscape, regulatory environment, market conditions and natural disasters in that state.

● Our operations and strategic goals are capital-intensive. We may be unable to access sufficient additional capital for future strategic growth initiatives.

● Our operations may be adversely affected by energy shortages and rising energy prices.

● We are required to obtain, and to comply with, government and utility company permits and approvals.

● We are subject to a rapidly evolving regulatory landscape and any adverse changes to our or our co-hosting customers' failure to comply with any laws or regulations could adversely affect our business, prospects or operations.

● If we were deemed to be an investment company under the Investment Company Act, applicable restrictions could make it impractical or impossible for us to continue our business as contemplated and could have a material adverse effect on our business, financial condition and results of operations.

● Since we will not be subject to the Investment Company Act, we will not be subject to its substantive provisions, including but not limited to, provisions requiring diversification of investments, limiting leverage and restricting investments in illiquid assets.

● Blockchain technology may expose us to sanctioned or blocked persons or may result in unintentional or inadvertent violations of trade compliance and economic sanctions laws and regulations.

● Bitcoin's and other cryptocurrencies' status as a "security" or other regulated instrument in any relevant jurisdiction is subject to a high degree of uncertainty and if we are unable to properly characterize a cryptocurrency, we may be subject to regulatory scrutiny, investigations, fines, and other penalties, which may adversely affect our business, prospects, results of operations or financial condition.

● The nature of the cryptocurrency segment of our business requires the application of complex financial accounting rules. Because there has been limited guidance provided and precedent set for financial accounting of bitcoin and other cryptocurrencies, the determination that we have made for how to account for cryptocurrencies transactions may be subject to change.

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● Regulatory developments regarding cryptocurrencies and cryptocurrency markets could have a material adverse effect on our business, prospects, results of operations or financial condition.

● Our business may be subject to substantial energy regulation and may be adversely affected by legislative or regulatory changes, as well as liability under, or any future inability to comply with existing or future energy regulations or requirements. We are required to obtain, and to comply with, government permits and approvals.

● If we fail to establish and maintain proper and effective internal control over financial reporting, our operating results and our ability to operate our business could be harmed.

● The registration and listing of our Class A common stock differ significantly from an underwritten initial public offering.

● An active, liquid, and orderly market for our Class A common stock may not develop or be sustained. You may be unable to sell your shares of Class A common stock at or above the price you bought them for or for the value of the shares agreed upon by the creditors and debtors of the Celsius bankruptcy at the time the shares were issued.

**Summary Consolidated Financial and Other Data**

The following tables summarize our consolidated financial and other data for the periods and as of the dates indicated and are presented on a Predecessor and Successor basis. References to "Successor" or "Company" relate to our results of operations and financial position subsequent to January 31, 2024. References to "Predecessor" relate to the results of operations and financial position of Celsius Mining, LLC prior to and including January 31, 2024. We derived (i) the summary consolidated statement of operations data for the year ended December 31, 2025, the eleven months ended December 31, 2024 and one month ended January 31, 2024 and (ii) the summary consolidated balance sheet data as of December 31, 2025 and 2024 from our audited consolidated financial statements and the notes thereto included elsewhere in this prospectus.

Our historical results are not necessarily indicative of the results that may be expected in any future period. In addition, our consolidated financial and other data for the Successor period are not entirely comparable to the consolidated financial and other data for the Predecessor periods. The information set forth below should be read in conjunction with, and is qualified in its entirety by reference to, the section of this prospectus titled "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our consolidated financial statements and the notes thereto included elsewhere in this prospectus.

***Consolidated Statement of Operations Data***

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| | | | |
|:---|:---|:---|:---|
| | **Successor** | **Successor** | **Predecessor<br> (Debtor-in-<br> Possession)** |
| <br> ***($ in thousands)*** | **Year Ended<br> December 31, <br> 2025** | **Eleven Months Ended<br> December 31,<br> 2024** | **One Month Ended<br> January 31,<br> 2024** |
| Cryptocurrency mining revenues | $135561 | $138428 | $15381 |
| Digital infrastructure leasing revenue | 5837 | - | - |
| &nbsp;&nbsp;&nbsp; **Total revenue** | $**141398** | $**138428** | $**15381** |
| Total operating expenses | 452764 | 96950 | 20172 |
| &nbsp;&nbsp;&nbsp; **Operating income (loss)** | $**(311366)** | $**41478** | $**(4791)** |
| Other income (expense), net | (2418) | 10972 | (5575) |
| &nbsp;&nbsp;&nbsp; Income (loss) before provision for income taxes | $(313784) | $52450 | $(10366) |
| Provision (benefit) for income taxes | (66061) | 12305 | 22 |
| &nbsp;&nbsp;&nbsp; **Net income (loss)** | $**(247723)** | $**40145** | $**(10388)** |
| **Adjusted gross profit** | $**53400** | $**47942** | $**5713** |
| **Adjusted EBITDA<sup>(1)</sup>** | $**(11223)** | $**84960** | $**1425** |

---

(1) Adjusted EBITDA is a financial measure not calculated in accordance
with generally accepted accounting principles in the United States ("GAAP"). See "—Non-GAAP Financial Measure"
below.

***Consolidated Balance Sheet Data***

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| | | |
|:---|:---|:---|
| | **Successor** | **Successor** |
| <br> ***($ in thousands)*** | **As of<br> December 31,<br> 2025** | **As of<br> December 31,<br> 2024** |
| Cash and cash equivalents | $43510 | $48393 |
| Cryptocurrency assets | 237947 | 223438 |
| Other current assets | 21888 | 12005 |
| Total assets | 605004 | 817893 |
| Total liabilities | 61597 | 30263 |

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 **

***Non-GAAP Financial Measure***

 **

We use Adjusted gross profit and Adjusted EBITDA, financial measures not calculated in accordance with GAAP, to supplement our consolidated financial statements, which are presented in accordance with GAAP.

We define Adjusted gross profit as gross profit exclusive of depreciation. Our Chief Operating Decision Maker ("CODM") relies on Adjusted Gross Profit when making decisions regarding the allocation of resources to operating segments.

We define Adjusted EBITDA as net income (loss) before interest, taxes, depreciation, and amortization, further adjusted by certain non-recurring or infrequent costs and income, including the costs and realized gains or losses related to the decommissioning of cryptocurrency mining sites, unrealized gain or loss on energy derivatives and other investments, one-time gains or losses on certain litigation settlements, share-based compensation, impairment on intangible and long-lived assets, and other non-recurring costs incurred. We rely on Adjusted EBITDA to evaluate our business, measure our performance, and make strategic decisions. Our management team uses Adjusted EBITDA to assess our financial performance because it allows us to compare our operating performance on a consistent basis across periods by removing the effects of our capital structure (such as varying levels of interest expense and income), asset base (such as depreciation) and other items (such as one-time costs) that impact the comparability of financial results from period to period. We present Adjusted EBITDA because we believe it provides useful information regarding the factors and trends affecting the business in addition to measures calculated under GAAP.

Likewise, we believe that the presentation of these non-GAAP financial measures will provide useful information to investors and analysts in assessing our historical financial performance and results of operations across reporting periods by excluding items we do not believe are indicative of our core operating performance.

Our non-GAAP financial measures should not be considered as an alternative to the most directly comparable GAAP financial measures. Gross profit is the GAAP measure most directly comparable to Adjusted gross profit. Net income (loss) is the GAAP measure most directly comparable to Adjusted EBITDA. You are encouraged to evaluate each of these adjustments and the reasons our management considers them appropriate for supplemental analysis. In evaluating Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in such presentation. We may also incur unusual or non-recurring items in the future that may affect Adjusted EBITDA, and our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. There can be no assurance that we will not modify the presentation of Adjusted EBITDA in the future, and any such modification may be material. Adjusted EBITDA has important limitations as an analytical tool and you should not consider Adjusted EBITDA in isolation or as a substitute for analysis of our historical results as reported under GAAP. Adjusted EBITDA may be defined differently by other companies in our industry and our definition of this non-GAAP financial measure may not be comparable to similarly titled measures of other companies, thereby diminishing its utility.

For a reconciliation of the most directly comparable financial measures presented in accordance with GAAP to Adjusted gross profit and Adjusted EBITDA, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Trends and Factors Affecting Performance—Adjusted Gross Profit" and "Management's Discussion and Analysis of Financial Condition and Results of Operations—Trends and Factors Affecting Performance—Adjusted EBITDA."

 **Key Operating Indicators<sup>1</sup>**

We also consider the following non-financial metrics in assessing the productivity and efficiency of our cryptocurrency mining operations. The following table presents our key operating indicators as of the dates indicated, as well as information on the Bitcoin network as of such dates.

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| | | | |
|:---|:---|:---|:---|
|  | **Successor** | **Successor** | **Predecessor<br> (Debtor-in- Possession)<sup>(6)</sup>** |
|  | **As of<br> December 31,<br> 2025** | **As of<br> December 31,<br> 2024** | **As of<br> January 31,<br> 2024** |
| Total miners owned<sup>(1)</sup> | 125100 | 127200 | 127800 |
| Total hashrate (Eh/s)<sup>(2)</sup> | 12.6 | 12.7 | 12.7 |
| Active miners<sup>(3)</sup> | 40600 | 106700 | 65800 |
| Hashrate contributed (Eh/s)<sup>(4)</sup> | 2.9 | 9.3 | 6.0 |
| Network hashrate (Eh/s)<sup>(5)</sup> | 1048.5 | 778.5 | 521.3 |

---

(1) "Total miners owned" represents an approximation of the entirety of our fleet of miners, including both miners
 deployed and miners in storage, during the final month of the periods presented.

(2) "Total hashrate" is the combined hashrate of all miners we owned during the final month of the periods presented,
 based on manufacturer's specifications.

(3) "Active miners" represents the approximate total number
of miners hashing at our self-mining and hosted facilities during the final month of the periods presented.

(4) "Hashrate contributed" reflects the average actual hashrate generated by our miners and contributed to a mining pool during the final month of the periods presented. Actual hashrate generated will often be less than manufacturers' specifications due to curtailment or maintenance downtime.

(5) "Network hashrate" is the total computational power of miners used globally in the Bitcoin network during the
 final month of the periods presented. Data sourced from CoinMetrics.io.

(6) Data for the Predecessor is approximated based on available records
and performance data, which may originate from sources different than those currently employed by Ionic Digital.

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***Bitcoin earned***

Our management views total bitcoin earned as a key metric for our cryptocurrency mining business. Trends in total bitcoin earned were previously, and will continue to be, impacted by our ability to deploy additional miners, and by our ability to maintain high miner uptime and efficiency. Management monitors this metric over monthly and quarterly periods. Across all of our self-mining and hosted sites, we earned 1,337 bitcoin, 2,075 bitcoin, and 358 bitcoin, net of pool participation fees, during the year ended December 31, 2025, the eleven months ended December 31, 2024, and the one month ended January 31, 2024, respectively. These values represent the total bitcoin we earned, net of mining pool participation fees and exclusive of the revenue share paid to hosting partners in bitcoin. Bitcoin earned for each quarter is summarized in the table below.

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| | | | |
|:---|:---|:---|:---|
| | **Successor** | **Successor** | **Predecessor<br> (Debtor-in- Possession)** |
| <br> **Quarter** | **Year Ended December 31, <br> 2025** | **Eleven Months Ended<br> December 31,<br> 2024** | **One Month Ended<br> January 31,<br> 2024** |
| First quarter | 440 | 640 | 358 |
| Second quarter | 380 | 610 |  |
| Third quarter | 325 | 374 |  |
| Fourth quarter | 192 | 451 | – |
| **Total** | **1337** | **2075** | **358** |

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**RISK FACTORS**

*Investing in our securities involves risks. You should consider carefully the risks and uncertainties described below, together with all of the other information in this prospectus, including the section titled "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our consolidated financial statements and related notes, before deciding whether to purchase any of our securities. Our business, prospects, results of operations and financial condition could also be harmed by risks and uncertainties that are not presently known to us or that we currently believe are not material. If any of these risks actually occur, our business, prospects, results of operations and financial condition could be materially and adversely affected.* 

**Risks Related to Our Company**

***Due to our limited operating and financial history, our historical financial information may not be indicative of our future results of operations.***

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Ionic was formed in January 2024 and has a limited operating and financial history. Although we acquired the bitcoin mining assets and assumed certain liabilities of Celsius Mining, we operate our business in a different manner than the Predecessor entity. In addition, after terminating our relationship with U.S. Data Management Group, LLC ("Hut 8") in December 2024, we have eliminated certain hosted sites and now manage our self-mining operations. See the section titled "Business – Company History" for more information. Moreover, in 2025 we began a shift from a pureplay bitcoin mining company to a company principally focused on providing digital infrastructure solutions.

Accordingly, our future financial condition and results of operations may not be comparable to Celsius Mining's or our historical financial condition and results of operations.

As a result of our limited operating and financial history, our ability to accurately forecast the future results of our operations is limited and subject to a number of uncertainties, including our ability to plan for and model future growth. The historical financial information contained in this prospectus may not be indicative of our future results of operations. Our ability to generate revenues is principally dependent on our ability to generate rental revenues on our Ward County property and any future facilities that we may lease to third parties for HPC, AI, or other purposes, and to successfully execute our bitcoin mining operations, which we have been undertaking with our current management for a limited period of time. We may be unable to successfully execute on differentiation strategies beyond bitcoin mining, and we cannot assure you that our facilities leasing strategy will be successful.

We also face the types of risks and uncertainties experienced by new and growing companies in rapidly changing industries. If our assumptions regarding these risks, uncertainties, and future growth are incorrect or change, or if we do not address these risks successfully, our operating and financial results could differ materially from our expectations, and our business could suffer.

 ***We have an evolving business model and are at an early stage of development for our digital infrastructure business.***

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We were founded as a pure-play cryptocurrency mining company, but we are evolving our business model to better leverage our digital infrastructure assets. In October 2025, we entered into our first arrangement to lease our Ward County property to a third party for HPC use. Other than a $45.6 million advance payment in November 2025, monthly fixed lease payments to be received under that agreement do not commence until August 2026. Accordingly, we have no history upon which an evaluation of our prospects and future performance in this sector can be made. To stay current with the industry, our business model may continue to evolve as well. From time to time, we may modify aspects of our business model. We are subject to the risks and uncertainties of a new business, including the risk that we may never further develop, complete development of, or successfully market any of our proposed services. We cannot offer any assurance that these or any other modifications will be successful or will not result in harm to the business. We may not be able to manage growth effectively, which could damage our reputation, limit our growth and negatively affect our operating results.

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Our intent in growing and developing this business is to reduce the impact of variability on our revenue and hosting costs by entering into long-term lease arrangements with leading tenants in the AI, HPC and enterprise sector. However, we cannot provide assurance that we will successfully enter into arrangements on acceptable terms or that our tenants will perform their obligations to us. Our ability to achieve our diversified capital strategy depends on a variety of factors, including, but not limited to, our ability to identify suitable tenants and strategic partnership opportunities, optimize our mining capabilities, and obtain rights to additional sites or the capital to develop additional facilities for other leases or for use in our own bitcoin mining operations. We also cannot provide any assurance that our diversified capital strategy will be realized or result in the benefit we hope to achieve. If one or more of our underlying assumptions regarding these initiatives prove to have been incorrect, we may not be able to realize fully, or realize in the anticipated timeframe, the expected benefits from our future growth plans which could, in turn, have a material adverse effect on our business, prospects, results of operations or financial condition.

***As a recently formed company with a high degree of executive turnover since we began our operations, there is significant uncertainty regarding our ability to effectively operate our business and implement our strategy.***

Ionic is a recently formed company with a small number of executive officers and employees. Since we began our operations, we experienced frequent turnover among our executive officers and have enlisted multiple interim senior executives, including our current Interim Chief Financial Officer. A number of budgeted management and operational roles in accounting, finance, and operations that we intend to fill over time are currently vacant. Our success in executing our business strategy is dependent, to a significant degree, on our ability to hire and retain highly qualified personnel with relevant expertise. Competition for qualified employees in the digital infrastructure and cryptocurrency industries in general, and in the bitcoin mining sector in particular, is intense. There can be no assurance we will be able to attract and hire qualified individuals to fill these roles or to fill them within an appropriate time frame, or that we will be able to retain those individuals key to operating our business.

Our limited staff and the short tenure of our management team indicates there is uncertainty regarding our ability to, among other things:

● implement our business and operational strategy;

● identify, hire, and retain the needed personnel to implement our business plan;

● manage growth;

● maintain the accounting and finance functions necessary for a publicly-traded company; and/or

● respond to evolving market and operating conditions.

If our management and employees are unable to effectively achieve or respond to any of the above-mentioned key areas, it could have a material adverse effect on our business, prospects, results of operations, and financial condition.

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**Risks Related to Our Operations**

 <u>Risks Related to Our Digital Infrastructure Solutions Business</u>

 ***Our digital infrastructure business has and is expected to continue to have significant customer concentration.***

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We currently have only one customer in our digital infrastructure business, and we expect to generate a large portion of our digital infrastructure solutions from a small number of customers for the foreseeable future. If we were to lose one or more of our large customers, our operating results could suffer dramatically.

In October 2025, we entered into an agreement with Nscale for a 126-month "triple-net" lease of our Ward County property. Rental payments under the Nscale Agreement are scheduled to commence on August 1, 2026. After an initial 18-month ramp up period, annual fixed rent payable under the lease at 234 MW capacity is $182.5 million (or $250.5 million with the additional 89 MW of capacity secured), with 3% annual increases scheduled to occur after the fifth year of the lease term.

As of the date of this prospectus, this is our only material facility lease. As a result of the risks our customer faces, it is not possible for us to predict the future level of demand for our services that will be generated by this customer or the future demand for the products and services of this customer. Should this customer suffer from harm or loss, its business could be negatively impacted. If our customer failed to perform under the lease for any reason, and we are not able to timely replace this customer with one or more comparable revenue-generating customers or to collect on guarantees from the customers' partners, our ability to generate any revenue from our Ward County property could be materially adversely affected, which in turn would have a material adverse effect on our financial condition, results of operations and cash flows.

Furthermore, we expect that the limited number of customers will continue to account for a high percentage of our digital infrastructure solutions for the foreseeable future. The concentration of our customer base increases risks related to the financial condition of our customers, and the deterioration in financial condition of a single customer or the failure of a single customer to perform its obligations could have a material adverse effect on our results of operations and cash flow.

***As we further pursue a strategy of monetizing our digital infrastructure assets, failure to attract, grow and retain a diverse and balanced customer base, including key anchor customers, could harm our business and operating results.***

Our ability to attract, grow and retain a diverse and balanced customer base, some of which we hope to be anchor customers that attract other customers, may affect our ability to maximize our revenues. Our ability to attract customers to our data centers will depend on a variety of factors, including our ability to secure power, the presence of carriers, the data center's operating reliability and security and our ability to effectively market our product offerings. Our inability to develop, provide, or effectively execute any of these factors may hinder the development, growth, and retention of a diverse and balanced customer base and adversely affect our business, financial condition, and results of operations.

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 ***It may take significant time and expenditure to develop our digital infrastructure solutions through continued development at our existing and planned sites, and our efforts may not be successful.***

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The continued development of our existing and any future facilities is subject to various factors beyond our control. There may be difficulties in integrating new equipment into existing infrastructure, constraints on our ability to connect to or procure the expected electricity supply capacity at our facilities, defects in design, construction or installed equipment, diversion of management resources, insufficient funding or other resource constraints. Actual costs for development may exceed our planned budget.

We intend to expand by acquiring and developing additional sites, taking into account a number of important characteristics such as availability of renewable energy, electrical infrastructure and related costs, geographic location and the local regulatory environment. We may have difficulty finding sites that satisfy our requirements at a commercially viable price or our timing requirements. Furthermore, there may be significant competition for suitable data center sites, and government regulators, including local permitting officials, which may restrict our ability to set up data center operations in certain locations.

Leveraging sites that we have contractually secured may ultimately fail to complete due to factors beyond our control. In addition, the ability to secure connection agreements to access power sources and permits, approvals and/or licenses to construct and operate our facilities could be delayed in regulatory processes, may not be successful or may be cost prohibitive. Actions by government regulators, or the issuance of any new regulations, that restrict our ability to operate HPC/AI data centers or bitcoin mining data centers may reduce the availability and/or increase the cost of electricity in the geographic locations in which our operating facilities are located, or could otherwise adversely impact our business.

Development and construction delays, cost overruns, changes in market circumstances, environmental or community constraints, an inability to continue to find suitable data center locations as part of our expansion and other factors may adversely affect our business, prospects, results of operations and financial condition. We will continue to review our expansion plans in light of evolving market conditions. Any such delays, and any failure to increase our energy or hashrate capacity in the future, could adversely impact our business, prospects, results of operations and financial condition.

***Our digital infrastructure development business depends upon the demand for data centers.***

We are pursuing a strategy of owning, developing and operating data centers. A reduction in the demand for data center space, power or connectivity would have a greater adverse effect on our leasing or business and financial condition than if we owned a portfolio with a less specialized use. These development activities make us particularly susceptible to general economic slowdowns as well as adverse developments in the data center, internet and data communications and broader technology industries, including to any decline in investment in AI. Any such slowdown or adverse development could lead to reduced corporate IT spending or reduced demand for data center space. Reduced demand could also result from business relocations, including to areas that we do not currently serve. Changes in industry practice or in technology could also reduce demand for the physical data center space we provide. Our financial condition, results of operations, cash flow, cash available for distribution, and ability to satisfy any future debt service obligations could be materially adversely affected as a result of any or all of these factors.

***Any delays or unexpected costs developing our existing space, developable land or newly acquired properties may delay and harm our growth prospects, future operating results and financial condition.***

We are currently in the process of repurposing our Ward County property and we may in the future continue to build out additional HPC/AI, enterprise, or other data center facilities on a speculative basis at significant cost. Our successful development of this and future projects is subject to many risks, including those associated with:

● delays in construction or changes to the development plans or specifications;

● financing availability, including our ability to obtain construction financing or permanent financing, or increases in interest rates or credit spreads;

● delays or denials of entitlements or permits, including zoning, siting, utility and other permits, or other delays resulting from requirements of public agencies and utility companies;

● budget overruns, increased prices for raw materials or building supplies, or lack of availability and/or increased costs for specialized data center components, including long lead time items such as transformers or generators;

● construction site accidents and other casualties;

● labor availability, costs, disputes and work stoppages with contractors, subcontractors or others that are constructing the project;

● failure of contractors to perform on a timely basis or at all, or other misconduct on the part of contractors;

● access to sufficient power and related costs of providing such power to our customers;

● environmental issues;

● supply chain constraints;

● fire, flooding, earthquakes and other natural disasters;

● pandemics; and

● geological, construction, excavation and equipment problems.

Development activities, regardless of whether they are ultimately successful, also typically require a substantial portion of our management's time and attention. This may distract our management from focusing on other operational activities of our business. If we are unable to complete development projects successfully, our business may be adversely affected.

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***We may be unable to purchase or lease vacant or development space, renew leases, or re-lease space as leases expire.***

We may continue to add new space to our development inventory and to continue to develop additional space from this inventory. A portion of the space that we develop may be developed on a speculative basis, meaning that we do not have a signed customer agreement for the space when we begin the development process. We cannot assure you that once we have developed space or land we will be able to successfully lease it at all, or at rates we consider favorable or expected at the time we commenced development. Further, once development of a data center facility is complete, we incur certain operating expenses even if there are no customers occupying any space. If we are not able to complete development in a timely manner or successfully lease the space that we develop, if development costs are higher than we currently estimate, or if rental rates are lower than expected when we began the project or are otherwise undesirable, our financial condition, results of operations, cash flow, cash available for distribution and ability to satisfy our debt service obligations could be materially adversely affected.

We may also develop space specifically for customers pursuant to agreements signed prior to beginning of the development process. In those cases, if we fail to meet our development obligations under those agreements, these customers may be able to terminate the agreements and we would be required to find a new customer for this space. In addition, in certain circumstances we may lease data center facilities prior to their completion. If we fail to complete the facilities in a timely manner, the customer may be entitled to terminate its agreement, seek damages or penalties against us or pursue other remedies and we may be required to find a new customer for the space.

***As we continue to pursue expansion efforts and invest in our digital infrastructure assets, there may not be sufficient customer demand in the future to realize expected returns on these investments.***

We expect to seek to expand our digital infrastructure footprint. In connection with our expansion plans, we may be required to commit significant operational and financial resources, but there can be no guarantee we will have sufficient customer demand in those markets to support these assets once they are built. This risk may be greater in a market where we have not operated previously. Consequently, if any of our properties have significant vacancies for an extended period of time, our results of operations and business and financial condition will be adversely affected, the impact of which could be material. In addition, unanticipated technological changes could affect customer requirements for data centers, and we may not have built such requirements into our new facilities. If any of these developments or contingencies were to occur, it could make it difficult for us to realize expected or acceptable returns on our investments.

***Our new services and changes to existing services could fail to attract or retain users or generate revenue and profits, or otherwise adversely affect our business.***

Our ability to retain, increase, and engage our customer base and to increase our revenue depends heavily on our ability to continue to evolve our existing services and to create successful new services, both independently and in conjunction with developers or other third parties. We may introduce significant changes to our existing services or acquire or introduce new and unproven services, including using technologies with which we have little or no prior development or operating experience. These efforts, including the introduction of new services or changes to existing services, may result in new or enhanced governmental or regulatory scrutiny, litigation, ethical concerns, or other complications that could adversely affect our business, reputation, or financial results. If our new services fail to engage users or developers, or if our business plans are unsuccessful, we may fail to attract or retain users or to generate sufficient revenue, operating margin, or other value to justify our investments, and our business may be adversely affected.

***If we incorrectly estimate our capacity requirements and related capital expenditures, our results of operations could be adversely affected.***

We are continuously evaluating our capacity requirements in order to effectively manage our capital expenditures and operating results. However, we may be unable to accurately project our future capacity needs or sufficiently allocate resources to address such needs. If we underestimate these requirements, we may not be able to provide sufficient service to existing customers or may be required to limit new customer acquisition, both of which may materially and adversely impair our results of operations.

***Even if we have additional space available for lease at any one of our data centers, our ability to lease this space to existing or new customers could be constrained by our ability to provide sufficient electrical power.***

As current and future customers increase their power footprint in our data centers over time, the corresponding reduction in available power could limit our ability to increase occupancy rates or network density within our existing data centers. Furthermore, our aggregate maximum contractual obligation to provide power and cooling to our customers may exceed the physical capacity at such data centers if customers were to quickly increase their demand for power and cooling. If we are not able to increase the available power and/or cooling or move the customer to another location within our data centers with sufficient power and cooling to meet such demand, we could lose the customer as well as be exposed to liability under our customer agreements. In addition, our power and cooling systems are difficult and expensive to upgrade. Accordingly, we may not be able to efficiently upgrade or change these systems to meet new demands without incurring significant costs that we may not be able to pass on to our customers. Any such material loss of customers, liability or additional costs could adversely affect our business, financial condition and results of operations.

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 <u>Risks Related to Our Cryptocurrency Mining Business</u>

***We may be unable to purchase miners at scale or face delays or difficulty in obtaining new miners at scale, which could materially and adversely affect our business, financial condition, and results of operations.***

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In some historical periods the industry has experienced, and we expect may experience again in the future, a scarcity of advanced mining machines, as few manufacturers are capable of producing a sufficient number of mining machines of adequate quality to meet demand. We also face competition in acquiring miners from major manufacturers, and at any given time, miners may only be available for pre-order months in advance. There may be periods of shortage in new miners available for purchase or delays in delivery schedules for new miner purchases. There is no assurance that manufacturers of miners or other equipment necessary for our business or our growth will be able to keep pace with demand, or potential surges in demand, for mining equipment. It is uncertain how manufacturers will respond to increased global demand and whether they will be able to fulfill purchase orders fully and in a timely manner. In the event that manufacturers of miners or other suppliers are not able to keep pace with, or fail to satisfy, demand, we may not be able to purchase miners or other equipment in sufficient quantities or on the delivery schedules required to meet our business needs. Similarly, ongoing challenges to the global supply chain, coupled with increased demand for computer chips and semiconductors and resulting shortages, have resulted in production cost increases affecting the miners we employ in our bitcoin mining operations and other digital infrastructure equipment for our data centers, and their manufacturers have passed on increased production costs to purchasers like us. Additionally, should any suppliers default on purchase agreements with us, we may need to pursue recourse under international jurisdictions, which could be costly and time-consuming, with outcomes that are uncertain. Furthermore, there is no guarantee that we would succeed in recovering any deposits paid for such purchases (including advance deposits that may be required), which could have a material adverse effect on our business, prospects, results of operations or financial condition.

***We depend on third party manufacturers of miners, who in turn rely on components and raw materials that may be subject to price fluctuations or shortages, including application-specific integrated circuits ("ASICs") that have been subject to periods of significant shortage and where innovation has made certain models outdated or obsolete.***

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We depend on third parties for equipment necessary to the operation of our business, including for new miners. There continue to be rapid advances (and announcements of coming future advances) in the power, speed, reliability and/or energy efficiency of miners, with the same or lower operating costs than older model miners, from various manufacturers. Some of these advances are in turn being driven by major advances in ASICs which are manufactured by a small number of global companies.

The volatility of ASIC prices has increased in recent years because of the global chip shortage, which began in 2020 and was exacerbated by the COVID-19 pandemic and subsequent supply chain issues, causing ASICs to be in short supply during this same period, according to various press reports. The ASIC is the key component of a mining machine as it determines the efficiency of the device. The production of ASICs typically requires highly sophisticated silicon wafers, which currently only a small number of fabrication facilities in the world are capable of producing. Since we have limited operating history, we may not be able to order ASICs or other equipment or services without advance payments because ASIC manufacturers and suppliers typically do not guarantee reserve capacity or supplies without substantial order deposits. Ongoing or future chip shortages could have a material adverse effect on our business, prospects, results of operations or financial condition.

Our ability to source new miners, ASICs, or other critical components for our facilities in a timely manner and at acceptable prices and quality levels is critical to our potential expansion. We are exposed to the risk of disruptions or other failures in the overall global supply chain for bitcoin mining and related data center hardware. This is particularly relevant to the ASIC production since there is only a small number of fabrication facilities capable of such production, which increases our risk exposure to manufacturing disruptions or other supply chain failures, but it also applies to other infrastructure hardware necessary for operating our facilities, such as transformers, cables, and switch gear.

***Our reliance on a third-party mining pool service provider for our mining revenue payouts may have a negative impact on our operations. For example, should the mining pool operator be subject to cyber-attacks, we may have limited recourse against the mining pool operator with respect to rewards to be paid to us.***

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We receive bitcoin mining rewards by contributing our computing power to a third-party mining pool operator, which uses this computing power to operate nodes and validate blocks on the blockchain. Mining pools allow miners to combine processing power, increasing their chances of solving a block and getting paid by the network. We currently utilize a mining pool that pays us bitcoin rewards based on a contractual "Full-Pay-Per-Share" ("FPPS") formula, which calculates payouts primarily based on the hashrate (i.e., the computing power) we contribute to the mining pool as a percentage of total network hashrate, along with other inputs. Under the FPPS formula, we are entitled to compensation with respect to each block that is mined on the Bitcoin network, even if that block is not successfully validated by the mining pool in which we participate. This payout formula is designed to provide a more predictable stream of income as opposed to a payout formula based only on blocks mined by the pool.

Should a mining pool operator's systems suffer downtime due to a cyber-attack, software malfunction, or other similar issues, these events will negatively impact our ability to mine and receive mining rewards.

Furthermore, we are dependent on the accuracy of the mining pool operator's record-keeping to accurately record the total processing power provided by us and other mining pool participants in order to assess the proportion of that total processing power we provide. While we have internal methods of tracking our contributed processing power, the mining pool operator uses its own recordkeeping to determine our proportion of a given reward. We have little means of recourse against mining pool operators if we determine the proportion of the reward paid out to us by the mining pool operator is incorrect, other than leaving the pool. If we are unable to consistently obtain accurate proportionate rewards from mining pool operators, we may experience reduced reward for our efforts, which could have a material adverse effect on our business, prospects, results of operations or financial condition.

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***Because our miners are designed specifically to mine bitcoin and may not be readily adaptable to other uses, a sustained decline in bitcoin's value could adversely affect our business and results of operations.***

We have invested substantial capital in acquiring miners using ASIC chips designed specifically to mine bitcoin using the 256-bit secure hashing algorithm ("SHA-256") as efficiently and as rapidly as possible on our assumption that we will be able to use them to mine bitcoin and generate revenue from our operations. Therefore, our mining operations focus exclusively on mining bitcoin, and our mining revenue is based on the value of the bitcoin we mine. The value of bitcoin could potentially decline due to the development and acceptance of competing blockchain platforms or technologies, including competing cryptocurrencies which our miners may not be able to mine. Accordingly, if the value of bitcoin declines and fails to recover, the revenue we generate from our bitcoin mining operations will likewise decline. Moreover, because our miners use these highly specialized ASIC chips, we may not be able to successfully repurpose them in a timely manner, if at all, to other uses following a sustained decline in bitcoin's value or if the bitcoin blockchain stops using SHA-256 for solving blocks. This would result in a material adverse effect on our business.

***Bitcoin mining algorithms may transition to proof of stake validation or other alternative validation methods over proof of work, which could make us less competitive and ultimately adversely affect our business.***

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Proof of stake is a possible alternative method for validating blockchain transactions. Should bitcoin's algorithm shift from a proof of work validation method to a proof of stake method, mining would require less energy and may render any company that maintains advantages in the current climate (for example, resulting from lower priced electricity, better mining equipment, or location of facilities) less competitive. Like proof of stake, other alternative consensus algorithms such as delegated proof of stake, proof of space time and proof of capacity are validation methods that require less energy consumption than proof of work. Furthermore, blockchain technologies are rapidly developing resulting in the possibility of innovation and the development of new validation methods. If the method by which bitcoin transactions are validated changes in a way that results in our losing our competitive advantage, we would lose the benefit of our capital investments. The occurrence of any such risk could have a material adverse effect on our business, prospects, results of operations or financial condition.

***We may not adequately respond to rapidly changing technology, which may negatively affect our business.***

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Competitive conditions within the bitcoin mining industry require that we use sophisticated technology in the operation of our business. Blockchain technology generally, and bitcoin mining specifically, is characterized by rapid technological changes, new product introductions, enhancements, and evolving industry standards. New technologies, techniques, or products could emerge that might offer better performance than the software and other technologies that we currently utilize, and we may have to manage transitions to these new technologies to remain competitive. We may not be successful, generally or relative to our competitors in the bitcoin mining industry, in timely implementing new technology into our systems, or doing so in a cost-effective manner. During the course of implementing any such new technology into our operations, we may experience system interruptions and failures during such implementation. Furthermore, there can be no assurances that we will recognize, in a timely manner or at all, the benefits that we may expect as a result of implementing new technology into our operations. Failure to respond to any such rapidly changing technology could have a material adverse effect on our business, prospects, results of operations or financial condition.

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***Bitcoin mining equipment is subject to malfunction, technological obsolescence, and physical degradation.***

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Our miners are subject to malfunctions and normal wear and tear. At any point in time, a certain number of our miners are typically off-line for maintenance or repair. The physical degradation of our miners will require us to replace miners that are no longer functional. Because we utilize many units of the same miner models, if there is a model-wide component malfunction, whether in the hardware or the software that operates these miners, the percentage of offline miners could increase substantially, thereby disrupting our operations. Any major bitcoin miner malfunction out of the typical range of downtime for normal maintenance and repair could cause a significant disruption in our ability to continue mining, which could result in lower yields and harm our reputation and business.

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A hardware replacement or upgrading process may require substantial capital investment and we may face challenges in doing so on a timely and cost-effective basis, which could put us at a competitive disadvantage. We may also be impacted by disruptions in the supply chain for cryptocurrency hardware. See "—We may be unable to purchase miners at scale or face delays or difficulty in obtaining new miners at scale, which could materially and adversely affect our business, financial condition, and results of operations." Any of the risks above could have a material adverse effect on our business, prospects, financial condition, and operating results.

***Any long-term outage or limitation of the internet connection at our sites could materially impact our operations and financial performance.***

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Our ability to validate and verify bitcoin transactions, either directly or through a mining pool, is dependent on our ability to connect to the Bitcoin network or mining pools through the internet. Any extended downtime, limitations in bandwidth, or other constraints may affect our ability to contribute some or all of our computing power to the network or mining pools. We have backup internet connections at our operations, but any backup internet connections may not be sufficient to support all of our mining equipment in an affected location for the duration of the outage under certain network configurations. The effects of any such events could have a material adverse effect on our operating results and financial condition.

***The bitcoin reward for successfully solving a block is expected to halve several times in the future and bitcoin market value may not adjust to compensate us for the reduction in the reward we receive from our mining effort.***

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Halving is a process incorporated into many proof of work consensus algorithms that reduces the reward paid to miners over time according to a pre-determined schedule. This reduction in reward spreads out the release of bitcoin over a long period of time resulting in an even smaller number of bitcoin being mined. At a predetermined block, the mining reward is cut in half, hence the term "halving." For bitcoin, the reward was initially set at 50 bitcoin per block. This was cut in half to 25 on November 28, 2012 at block 210,000, then again to 12.5 on July 9, 2016 at block 420,000, and again to 6.25 on May 11, 2020 at block 630,000, and most recently to 3.125 on April 19, 2024 at block 840,000. This process will recur until the total amount of bitcoin in existence reaches 21 million, which is presently expected to occur around 2140, but could happen before that date. While the price of bitcoin has had a history of price fluctuations around the halving of its rewards, there is no guarantee that the price change will be favorable or would compensate for the reduction in mining reward. If a corresponding and proportionate increase in the trading price of bitcoin or proportionate technological advances making bitcoin mining more efficient does not follow these anticipated halving events, the revenue that we would earn from our bitcoin mining operations would see a corresponding decrease, which could have a material adverse effect on our business, prospects, results of operations or financial condition.

***If the bitcoin reward for solving blocks and the related transaction fees are not sufficiently high, we may not have an adequate incentive to continue mining and may cease mining operations, which would likely result in our failure to achieve profitability.***

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As the number of bitcoin awarded for solving a block in a blockchain decreases and/or if transaction fees for bitcoin mining are not sufficiently high, the ability of miners like us to achieve profitability would be adversely affected. Decreased bitcoin rewards for solving blocks may adversely affect our and other miners' incentive to expend processing power to solve blocks, and ultimately may cause us and other miners to cease mining operations. Mining operators ceasing operations would reduce the collective processing power on the network, which would adversely affect the confirmation process for transactions (i.e., temporarily decreasing the speed at which blocks are added to a blockchain until the next scheduled adjustment in difficulty for block solutions) and make the Bitcoin network more vulnerable to a malicious actor or botnet obtaining control in excess of 50% of the processing power active on a blockchain, potentially permitting such actor or botnet to manipulate a blockchain in a manner that adversely affects our activities or the market value of bitcoin. A reduction in confidence in the confirmation process or processing power of the network could result and might be irreversible. Such events could have a material adverse effect on our ability to continue to pursue our strategy at all, which in turn could have a material adverse effect on our business, prospects, results of operations or financial condition.

***Our bitcoin holdings are less liquid than our existing cash and cash equivalents and may not be able to serve as a source of liquidity for us to the same extent as cash and cash equivalents.***

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Historically, the bitcoin market has been characterized by significant volatility in price, limited liquidity and trading volumes compared to sovereign currencies markets, relative anonymity, a developing regulatory landscape, potential susceptibility to market abuse and manipulation, compliance and internal control failures at exchanges, and various other risks inherent in its entirely electronic, virtual form and decentralized network. During times of market instability, we may not be able to sell our bitcoin at favorable prices or at all. For example, a number of bitcoin trading venues temporarily halted deposits and withdrawals in 2022. As a result, our bitcoin holdings may not be able to serve as a source of liquidity for us to the same extent as cash and cash equivalents. Additionally, we may be unable to enter into term loans or other capital raising transactions collateralized by our unencumbered bitcoin or otherwise generate funds using our bitcoin holdings, including in particular during times of market instability or when the price of bitcoin has declined significantly. If we are unable to sell our bitcoin, enter into capital raising transactions, including capital raising transactions using bitcoin as collateral, or otherwise generate funds using our bitcoin holdings, or if we are forced to sell our bitcoin at a significant loss, in order to meet our working capital requirements, our business and financial condition could be negatively impacted.

***Our cryptocurrency assets may be subject to loss, damage, theft, or restriction on access. Additionally, incorrect or fraudulent cryptocurrency asset transactions may be irreversible.***

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We currently hold custody of our bitcoin with regulated financial institutions that act as qualified custodians under U.S. federal banking oversight. These custodians employ custody frameworks that differ from traditional "cold wallet" storage models by utilizing a combination of biometric authentication, hardware security modules, and multi-party approval processes. In the case of Anchorage Digital Bank, digital assets are held within a federally chartered trust bank structure employing hardware-isolated private key management and multi-party computation approval workflows, while Fidelity Digital Assets holds bitcoin within omnibus wallets under its New York trust company charter, using hardware security modules, multi-person authorization for transactions, and partial offline storage for long-term safekeeping. These architectures are designed to eliminate single points of failure and provide both strong protection and secure access to assets on demand. While these systems enhance operational efficiency and aim to mitigate many of the risks associated with traditional cold wallet storage and single-operator key control, they do not eliminate all risks.

Our cryptocurrency assets may be an appealing target to hackers or malware distributors seeking to destroy, damage, or steal such cryptocurrency assets. Hackers or malicious actors may attempt to steal bitcoin, such as by attacking the Bitcoin network's source code, exchange miners, nodes, third-party platforms, storage locations or software, our general computer systems or networks, by means of phishing or other human-based attacks, or by other means. We may be unable to prevent loss, damage, or theft, whether caused intentionally, accidentally, or by act of God. Access to our cryptocurrency assets could also be restricted by natural events (such as an earthquake or flood causing an outage in connectivity) or human actions (such as a terrorist attack). Any of these events could have a material adverse effect on our business, prospects, results of operations or financial condition. Further, it is possible that, through computer or human error, theft, or criminal action, our digital assets could be transferred in incorrect amounts or to unauthorized third parties or accounts. In general, bitcoin transactions are irrevocable; stolen or incorrectly transferred cryptocurrency assets may be irretrievable, and we may have extremely limited or no effective means of recovering such bitcoin. As a result, any incorrectly executed or fraudulent bitcoin transactions could have a material adverse effect on our business, prospects, results of operations or financial condition.

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***The loss or destruction of private keys required to access any bitcoin held in custody for our own account may be irreversible. If our custodians are unable to access the private keys associated with our bitcoin or if they experience a hack or other data loss relating to their ability to access any bitcoin, it could cause regulatory scrutiny, reputational harm, and other losses.***

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Bitcoin is generally controllable only by the possessor of the unique private key relating to the digital wallet in which the bitcoin is held. While blockchain protocols make public key addresses publicly available, private keys must be safeguarded and kept private to prevent a third party from accessing the associated bitcoin. To the extent that any of the private keys relating to any of the wallets containing our bitcoin is lost, destroyed, or otherwise compromised or unavailable, and no backup of the private key is accessible, our custodians will be unable to access the bitcoin held in the related wallet. Further, we cannot provide assurance that wallets containing our bitcoin will not be hacked or compromised. Cryptocurrency assets and blockchain technologies have been, and may in the future be, subject to security breaches, hacking, or other malicious activities. Any loss of private keys, hack or other compromise of digital wallets used to store our bitcoin could adversely affect our ability to access or sell our bitcoin and subject us to significant financial losses. As such, any loss of private keys due to a hack, employee or service provider misconduct or error, or other compromise by third parties could result in significant losses and could have a material adverse effect on our business, prospects, results of operations or financial condition. The insurance or indemnity provisions of our custody agreements, or other agreements, with a custodian who holds our bitcoin may not cover any such losses.

***We may be subject to various additional risks associated with our bitcoin held by third-party custodians.***

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We have implemented various measures that are designed to secure the bitcoin we hold, including storing substantially all of the bitcoin we own in custody accounts at Anchorage Digital Bank and Fidelity Digital Assets, and negotiating contractual arrangements intended to safeguard our bitcoin and establish that our property interest in custodially-held bitcoin is not subject to claims of our custodians' creditors.

However, it is possible that bitcoin stored with even the most qualified custodians and exchanges may be subject to hacking and thefts. See "—Our cryptocurrency assets may be subject to loss, damage, theft, or restriction on access. Additionally, incorrect or fraudulent cryptocurrency asset transactions may be irreversible." For example, in March 2025 the cryptocurrency asset exchange ByBit was the subject of a hack in which over $1.5 billion of customer cryptocurrency assets were lost. While we do not use ByBit as a custodian or hold our bitcoin on an exchange, and ByBit was ultimately able to make its customers whole through use of reserves and insurance policies, there is no contractual guarantee that our custodians will do the same. The insurance policies of our third-party custodians, which cover losses of bitcoin up to an aggregate amount of $200 million across all of its custodial arrangements may cover only a fraction of the value of the entirety of our cryptocurrency holdings, and there can be no guarantee that such insurance will be maintained as part of the custodial services we have or that such coverage will cover losses with respect to our bitcoin.

In addition, we believe that existing law and the terms and conditions of our contractual arrangements with our custodians would not result in the bitcoin held by our custodians being considered part of the custodian's bankruptcy estate were the custodian to file for bankruptcy. Applicable insolvency law is not fully developed with respect to the holding of cryptocurrencies in custodial accounts, but it is possible that a bankruptcy court or trustee could take the view that we are a general unsecured creditor of the custodian, inhibiting our ability to exercise ownership rights with respect to such cryptocurrency assets. For example, a bankruptcy court in Delaware ruled on July 18, 2025 that the cryptocurrencies held by Prime Trust LLC, a Nevada trust company and a subsidiary of Prime Core Technologies Inc., on behalf of users would be distributed proportionately to all unsecured creditors as such assets were part of the debtors' bankruptcy estate because of commingling between customer accounts and those of debtors. Any such outcome could have a material adverse effect on our business, prospects, results of operations or financial condition.

***Cryptocurrency assets held by us are not subject to FDIC or SIPC protections.***

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Bitcoin we hold with our custodians and transact with our trade execution partners does not enjoy the same protections as are available to cash or securities deposited with or transacted by institutions subject to regulation by the Federal Deposit Insurance Corporation or the Securities Investor Protection Corporation. Thus, in the event of an insolvency of one of our custodians, we will not be protected by these schemes.

***Our bitcoin strategy may subject us to regulatory and other risks.***

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Although our bitcoin holdings do not serve as collateral for any indebtedness as of the date of this prospectus, we may incur indebtedness or enter into other financial instruments in the future that may be collateralized by our bitcoin holdings. We may also consider pursuing strategies to create income streams or otherwise generate funds using our bitcoin holdings. These types of bitcoin-related transactions are the subject of enhanced regulatory oversight. These and any other bitcoin-related transactions we may enter into, beyond simply mining, acquiring and holding bitcoin, may subject us to additional regulatory compliance requirements and scrutiny, including under federal and state money services regulations, money transmitter licensing requirements and various commodity and securities laws and regulations.

On March 17, 2026, the SEC and Commodities Futures Trading Commission ("CFTC") issued a new interpretive release (SEC Interpretive Rel. 33-11412) entitled Application of the Federal Securities Laws to Certain Types of Crypto Assets and Certain Transactions Involving Crypto Assets (the "Interpretive Release"). In the Interpretive Release, the SEC significantly clarified its views on the application of the federal securities laws to certain types of crypto assets and transactions involving crypto assets. The Interpretive Release classifies crypto assets into five categories: digital commodities, digital collectibles, digital tools, stablecoins and digital securities. Applying the traditional Howey test, the Interpretive Release explains that, in the SEC's interpretation, digital commodities, digital collectibles, digital tools, and stablecoins will generally not be considered securities so long as they are not the subject of an "investment contract," which is defined as any contract, transaction, or scheme whereby a person invests money in a common enterprise and reasonably expects profits to be derived from the efforts of others.

Under the Interpretive Release, a digital commodity is a crypto asset that is intrinsically linked to and derives its value from the programmatic operation of a crypto system that is functional, as well as supply and demand dynamics, rather than from the expectation of profits from the essential managerial efforts of others. Specific examples of digital commodities named by the SEC in the Interpretive Release include Bitcoin, Litecoin, and Dogecoin, among several others. The Interpretive Release also addresses several types of digital asset activities, including protocol mining and staking. Protocol mining on a proof-of-work network, either individually or as part of a pool, will generally not require the registration of transactions under the Securities Act, as the miners contribute their own computational resources in exchange for crypto asset rewards.

While the Interpretive Release provides comfort that the SEC does not view Bitcoin and certain other digital assets we hold or plan to hold as securities in and of themselves, certain transactions in such digital assets may nonetheless be considered investment contracts, and thus securities for purposes of the federal securities laws. The Interpretive Release provides further comfort that specific transactions in non-securities digital assets, such as certain staking and mining services, would not be considered investment contracts. However, the Interpretive Release does not discuss all digital asset-related activities and transactions that we may undertake, and it is possible that certain of those activities or transactions could be determined to involve an investment contract, and thus, the holding, offer or sale of a security by us for purposes of federal securities laws. Moreover, the Interpretive Release represents the interpretation of the SEC only, and thus is not binding on any other person (including private litigants) nor dispositive of how a court applying the U.S. federal securities may evaluate the regulatory characterization of any particular digital asset. Accordingly, although it provides improved comfort and clarity, the Interpretive Release is not dispositive and there remains regulatory risk and uncertainty regarding the U.S. regulatory treatment of digital assets, including Bitcoin.

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<u>Risks Related to All of Our Operations</u>

***We may be harmed by increased costs to procure power, prolonged power outages, shortages or capacity constraints as well as insufficient access to power (including as a result of failure to obtain necessary approvals).***

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Any power outages, shortages, capacity constraints or significant increases in the cost of power may have an adverse effect on our business, prospectus, results of operations and financial condition.

We rely on third parties, third party infrastructure, governments, and global supplies to provide a sufficient amount of power to maintain our digital infrastructure solutions and bitcoin mining operations to meet the needs of our current and future digital infrastructure solutions customers. Any limitation on the delivered energy supply could limit our ability to operate our bitcoin mining and HPC/AI data centers. These limitations could have a negative impact or limit our ability to grow our business, which could negatively affect our financial performance and results of operations. HPC/AI data centers require access to significant quantities of electricity. Limitations on generation, transmission and distribution may limit our ability to obtain sufficient power capacity for potential expansion sites or existing markets. Utility companies may impose onerous operating conditions to any approval or provision of power or we may experience significant delays and substantial increased costs to provide the level of electrical service required by our current or future data center designs.

***Failure of critical systems at the facilities operated by us or third parties could have a material adverse effect on our business, prospects, financial condition, and results of operations.***

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The critical systems at the facilities where our miners are located, whether operated by us or third parties, are subject to failure. Any such failure, including a breakdown in critical plant, equipment or services, routers, switches or other equipment, power supplies or network connectivity, power loss, equipment failure, human error and accidents, network connectivity downtime and fiber cuts, security breaches, animal incursions, water damage, extreme temperatures, public health emergencies, terrorism, fire, earthquake, hurricane, tornado, flood and other natural disasters, whether or not within our control, could result in damaged equipment, significant business disruption, and reduced revenue. Frequent or persistent interruptions in our facilities could cause current or potential partners to believe that our systems are unreliable, leading them to switch to our competitors or to avoid or reduce the use of our services, and could permanently harm our reputation and brand. Moreover, to the extent that any system failure or similar event results in damage to our business partners, these partners could seek significant compensation or contractual penalties from us for their losses. Those claims, even if unsuccessful, would likely be time-consuming and costly for us to address. Problems with the reliability or security of our systems would harm our reputation, and damage to our reputation and the cost of remedying these problems could negatively affect our business, prospects, results of operations or financial condition. The destruction or severe impairment of any of the facilities operated by us or third parties could have a material adverse effect on our business, prospects, results of operations or financial condition.

***We depend on third parties, including electric grid operators, and electric utility providers and may be harmed by increased costs to procure power, prolonged power outages, shortages or capacity constraints as well as insufficient access to power.***

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Any power outages, shortages, capacity constraints or significant increases in the cost of power may have an adverse effect on our business and our results of operations. We may be harmed by increased costs to procure power, prolonged power outages shortages or capacity constraints as well as insufficient access to power. Any power outages, shortages, capacity constraints or significant increases in the cost of power may have a material adverse effect on our business, prospects, our results of operations or financial condition.

We depend on third parties, including electric grid operators and electric utility providers, third party infrastructure, governments and global supplies to provide a sufficient amount of power to maintain our HPC data center and bitcoin mining operations to meet the needs of our current and future HPC data center customers. Any limitation on the delivered energy supply could limit our ability to operate our bitcoin mining and HPC data centers. HPC data centers require access to significant quantities of electricity. Limitations on generation, transmission and distribution may limit our ability to obtain sufficient power capacity for potential expansion sites or existing markets. Utility companies may impose onerous operating conditions to any approval or provision of power or we may experience significant delays and substantial increased costs to provide the level of electrical service required by our current or future data center designs. A significant concentration of our current operations are in Texas where ERCOT, a non-profit corporation subject to oversight by the Public Utility Commission of Texas and the Texas Legislature, manages the electric utility grid and therefore, determines the prices of electricity in Texas. Oncor Electric Delivery Company LLC ("Oncor"), and TNMP, for-profit electricity transmission and distribution businesses regulated by the Public Utility Commission of Texas, physically deliver electricity to our sites in Texas. We require approvals from ERCOT, Oncor, and/or TMNP to expand our operations in Texas, which can be onerous to obtain. If either of them were to delay or deny required approvals, our business plans could be disrupted (including to increase the capacity of our Ward County property). We also require approvals from both ERCOT and Oncor to continue to operate our current bitcoin mining operations. If either of them were to change their policies or contracts required to operate bitcoin mining facilities, our operations could be disrupted. Any of these risks could have a material adverse effect on our business, prospects, results of operations or financial condition.

***We have a significant concentration of our operations in Texas and, thus, are particularly exposed to changes in the competitive landscape, regulatory environment, market conditions and natural disasters in that state.***

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We currently operate all of our digital infrastructure site and self-mining facilities in Texas, which represents a significant concentration of our operations. Consequently, we are particularly exposed to changes in the competitive landscape, regulatory environment, market conditions, and natural disasters in that state. Texas, through its regulatory and economic incentives, has encouraged Bitcoin mining companies to locate their operations in the state. As such, we may face increased competition in Texas for suitable Bitcoin mining data center sites and skilled workers. Additionally, if the regulatory and economic environment in Texas were to become less favorable to bitcoin mining companies, including by way of increased taxes, our heavy concentration of sites in Texas means our business, prospects, financial condition, or operating results could be materially adversely affected. Finally, Texas is not connected to a power grid outside of the state. If Texas faces other unforeseen events, such as severe weather, natural disasters, or environmental-related issues, that cause extended periods of disrupted power (as happened during an ice storm in February 2021), our operations may be significantly disrupted. These natural disasters and weather-related disturbances could have a material adverse effect on our business, prospects, results of operations or financial condition.

Our property insurance may cover all or a portion of the replacement cost of any loss or damage to our facilities, including miners, up to a $50 million policy limit but does not cover any business interruption of our activities. Our insurance therefore may not be adequate to cover the losses we suffer as a result of any of these events. In the event of an uninsured loss or a loss in excess of insured limits at any of our facilities, such facilities may not be adequately repaired in a timely manner, or at all, and we may lose some or all of the future revenues anticipated to be derived from such facilities.

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***We participate in energy demand response programs in Texas and may be required to temporarily suspend mining operations prior to or during periods of high energy grid strain, which could materially harm our business.***

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In our bitcoin mining operations, we are a non-mission critical operation under the current rules and policies of ERCOT, TNMP and Oncor and we therefore are eligible to, and do, participate in demand response programs. As a result, we may be required to temporarily shut off operations to reduce demand and stabilize the electrical grid for mission critical operations, when necessary, such as in extreme weather events. The State of Texas currently distributes funds to offset foregone operational revenue to bitcoin miners required to shut off operations as part of demand response programs. Payments or credits from demand response programs are included as a reduction to our cost of revenues in our income statement. If the State of Texas were to restrict benefits to bitcoin miners required to temporarily suspend operations, the resulting periods of lost revenue could have a material adverse effect on our business, prospects, results of operations or financial condition.

 ***We may not be able to compete with other companies, many of whom have greater resources and experience.***

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We may not be able to compete successfully against present or future competitors as our resources may be limited in comparison with larger providers of similar services. The digital infrastructure and cryptocurrency mining industries have attracted various high-profile and well-established operators, some of which have substantially greater liquidity and financial resources than we may have.

Additionally, the number of digital infrastructure and bitcoin and other cryptocurrency mining companies has increased in recent years. With the limited resources that we have available, we may experience difficulties in expanding and improving our network of computers to remain competitive. Competition from existing and future competitors, particularly those that have access to competitively priced energy, including energy providers themselves, could result in our inability to secure acquisitions and partnerships that we may need to expand our business in the future. For example, competitors could offshore their business to, or commence operations in, countries where energy may be significantly less expensive, such as in the Middle East. This competition from other entities with greater resources, experience, and reputations may result in our failure to maintain or expand our business, as we may never be able to successfully execute our business plan. If we are unable to acquire new miners, or if our cost for new miners is excessively high, we may not be able to keep up with our competitors. If we are unable to expand and remain competitive, our business could be negatively affected, which could have a material adverse effect on our business, prospects, results of operations or financial condition.

***Our operations and strategic goals are capital-intensive. We may be unable to access sufficient additional capital for future strategic growth initiatives.***

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Investments in digital infrastructure development and leasing and the expansion of our miner fleet and our existing facilities are capital-intensive projects, and we anticipate that future strategic growth initiatives will likewise continue to be capital-intensive. We expect to be able to raise additional capital to fund these and other future strategic growth initiatives; however, we may be unable to do so in a timely manner, in sufficient quantities, or on terms acceptable to us, if at all. If we are unable to raise the additional capital needed to execute our future strategic growth initiatives, we may be less competitive in our industry and the results of our operations and financial condition may suffer, which may, in turn, materially and adversely affect the market price for our securities.

***Our operations may be adversely affected by energy shortages and rising energy prices.***

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Our mining operations require significant amounts of energy. Increasing regional, national and global demand for energy and the limited growth of new energy sources are affecting the available supply of energy. A variety of factors, including the proliferation of hyperscale facilities and data centers and the widespread adoption of energy intensive technologies like AI, electric vehicles and industrial or manufacturing operations, could result in a limited supply of energy, intensive competition for scarce resources (including renewable sources) of energy and/or sharply escalating energy prices. Additionally, changes in energy laws and regulations in various jurisdictions may impact energy allocation rules and the ability to access energy. These limitations on energy supply and increased energy prices may increase our cost to earn bitcoin to a point that our revenues, cost of doing business, results of operations, and operating cash flows are negatively impacted.

***Our financial performance may be affected by price fluctuations in the power market, as well as other market factors that are beyond our control.***

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Our revenues, cost of doing business, results of operations, and operating cash flows generally may be impacted by price fluctuations in the power market and other market factors beyond our control. Market prices for power, capacity, and other ancillary services are unpredictable and tend to fluctuate substantially. Unlike most other commodities, electric power can only be stored on a very limited basis and for a very limited time, and generally must be produced concurrently with its consumption. As a result, power prices are subject to significant volatility due to supply and demand imbalances, especially in the day-ahead and spot markets.

Long- and short-term power prices may also fluctuate substantially due to other factors outside of our control, including:

● environmental regulations and legislation;

● obtaining required regulatory approvals to increase energy capacity;

● electric supply disruptions, such as plant outages and transmission disruptions;

● changes in power transmission infrastructure;

● fuel transportation capacity constraints or inefficiencies;

● changes in law, including judicial decisions;

● weather conditions, such as extreme weather conditions and seasonal fluctuations, including the effects of climate change;

● changes and volatility in commodity prices and the supply of commodities, including but not limited to natural gas, fuel, coal and oil;

● changes in the demand for power or in patterns of power usage, including the potential development of demand-side management tools and practices, distributed generation, and more efficient end-use technologies;

● development of new fuels, new technologies and new methods for producing power;

● economic and political conditions;

● supply and demand for energy commodities;

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● supply chain disruption of fuel or of electrical components needed to transmit energy;

● availability of competitively priced alternative energy sources; and

● changes in capacity prices and capacity markets.

Such factors and the associated fluctuations in power and prices could affect wholesale power generation profitability and the cost of power for our bitcoin mining.

***Cyber-attacks, data breaches or malware may disrupt our operations and trigger significant liability for us, which could harm our operating results and financial condition, damage our reputation, or otherwise materially harm our business.***

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We rely on our own and third party computer systems, hardware, software, technology infrastructure and online sites and networks for both internal and external operations that are critical to our business (collectively, "IT Systems"). We experience cyber-attacks, such as phishing, and other attempts to gain unauthorized access to our systems on a regular basis, and we anticipate continuing to be subject to such attempts. While to date no incidents have had a material impact on our operations or financial results, we cannot guarantee that material incidents will not occur in the future. We face numerous and evolving cybersecurity risks that threaten the confidentiality, integrity and availability of our IT Systems and confidential information. The volume and sophistication of cyber-attacks may increase, including if AI capabilities are implemented by malicious actors that can circumvent security controls, evade detection and remove forensic evidence, and there is an ongoing risk that some or all of our bitcoin could be lost or stolen as a result of one or more of these incursions.

Any integration of AI in our or any third party's operations, products or services is expected to pose new or unknown cybersecurity risks and challenges. As we increase in size, we may become a more appealing target of hackers, malware, cyber-attacks, or other security threats, and, despite our implementation of strict security measures and frequent security audits, it is impossible to eliminate all vulnerabilities. For instance, we may not be able to ensure the adequacy of the security measures employed by third parties, such as our service providers. Likewise, our IT Systems and confidential information are vulnerable to a range of cybersecurity risks and threats, including malicious code embedded in open-source software, or misconfigurations, "bugs" or other vulnerabilities in commercial software that is integrated into our (or our service providers') IT systems, products or services. Additionally, though we provide cybersecurity training for employees, we cannot guarantee that we will not be affected by further phishing attempts. Efforts to limit the ability of malicious actors to disrupt the operations of the internet or undermine our own security efforts may be costly to implement and may not be successful. Such breaches, whether attributable to a vulnerability in our systems or otherwise, could result in claims of liability against us, damage our reputation, and materially harm our business.

As with any computer code generally, flaws in digital asset cryptographic primitives such as hash functions, Merkle trees, and digital signatures or similar cryptographic methods, and the implementations of any digital asset protocol software, including those used by Bitcoin, have been and may be vulnerable to exploitation by malicious actors. Several such errors and defects have been found in multiple cryptocurrency networks, including Bitcoin, previously, including those that would have allowed attackers to shut down a cryptocurrency network through denial of service, disable functionality for users and expose users' information, or take or create cryptocurrency balances. There can also be no assurance that our cybersecurity risk management program and processes, including our policies, controls or procedures, will be fully implemented, complied with or effective in protecting our IT Systems and confidential information. Our devices, as well as our miners, computer systems, and those of third parties that we use in our operations, may be vulnerable to cyber-security risks, including cyber-attacks such as viruses and worms, phishing attacks, denial-of-service attacks, physical or electronic break-ins, employee theft or misuse, and similar disruptions from unauthorized tampering with our miners and computer systems or those of third parties that we use in our operations. We could be hacked and certain of our assets, including bitcoin, could be stolen. Any adverse impact to the availability, integrity, or confidentiality of our IT Systems or confidential information can result in legal claims or proceedings (such as class actions), regulatory investigations and enforcement actions, fines and penalties, negative reputational impacts that cause us to lose existing or future customers, and/or significant incident response, system restoration or remediation and future compliance costs. Such events could have a material adverse effect on our business, prospects, results of operations or financial condition and potentially the value of any bitcoin that we mine or otherwise acquire or hold.

***We have in the past, and may in the future, engage in derivatives transactions, including for the purpose of hedging our exposure to bitcoin prices, and such transactions may expose us to material risks that could adversely impact our business, operating results, and financial condition.***

Derivative transactions are financial contracts whose value depends on, or is derived from, the price or level of some other underlying product, asset, rate, or index, such as the value of a particular commodity. Derivatives transactions include, but are not limited to, swaps, options, and futures. Derivatives may be employed both for the purpose of obtaining investment exposure and for the purpose of hedging or mitigating exposure to a particular asset or risk. Derivative transactions are complex, carry their own special risks, and may expose us to significant risk of loss.

We have in the past, and may in the future, engage in derivative transactions. For example, we may, but are not obligated to, enter into derivative transactions to seek to protect against reductions in the market price of bitcoin. Where derivative transactions are entered into with the intention of reducing or mitigating our exposure to a particular asset or risk, there is no guarantee that such transactions will be effective to eliminate or reduce our exposure to the risks being hedged, including due to potential imperfect correlation between the derivative instrument and the relevant risk or underlying asset. Moreover, if we do engage in derivative transactions for hedging purposes, such transactions may also limit the opportunity for gain if the risk being hedged does not materialize. Our success in utilizing derivative transactions for hedging purposes will be subject to our ability to correctly predict market fluctuations and movements and our ability to monitor any such transactions that we enter into. Therefore, while we may enter into such transactions to seek to reduce risks, unanticipated market movements and fluctuations may result in a poorer overall performance than if we had not entered into such transactions.

In addition, derivatives may carry a high degree of embedded leverage and consequently, are highly price sensitive to changes in interest rates, government policies, economic forecasts, and other factors which generally have a much less direct impact on the price levels of the underlying instruments. The risks generally associated with derivatives include the risk that: (1) the value of the derivative will change in a detrimental manner; (2) before purchasing a derivative, we will not have the opportunity to observe its performance under all market conditions; (3) counterparty credit risk, in that another party to the derivative (especially where the derivative is entered into on a bilateral or over-the-counter basis) may fail to comply with the terms of the derivative contract; (4) liquidity risk, in that the derivative may be difficult to purchase or sell or we may otherwise encounter difficulties exiting or closing a position; and (5) the derivative may involve leverage, such that adverse changes in the value of the underlying asset could result in a loss substantially greater than the amount invested in the derivative itself or in heightened price sensitivity to market fluctuations. Moreover, derivatives transactions are subject to a range of regulatory requirements which may, in certain circumstances, require the Company to comply with mandatory central clearing and/or margin obligations. Such regulatory requirements may result in additional costs or otherwise affect the viability of Company's use of derivatives, whether for purposes of hedging or monetization strategies, and there can be no assurance that such derivatives activities will not be subject to additional or more stringent regulations in the future.

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**Risks Related to the Bitcoin Industry**

***Our success depends on external factors affecting the Bitcoin industry.***

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The Bitcoin industry has historically been subject to various risks relating to bitcoin, as an asset, which have adversely affected the market price of bitcoin. Ownership of bitcoin has, historically, been concentrated in a relatively small number of persons or entities that, collectively, hold a significant number of bitcoin (referred to as "whales" in the Bitcoin industry). While ownership of bitcoin has diversified significantly in recent years, whales continue to exist whose market activity (for example, sales of large numbers of bitcoin) could have an adverse effect on the demand for, and market price of, bitcoin, which could have an adverse effect on our business and results of operation. In addition, there has been an increase in the number of bitcoin treasury initiatives, where companies hold bitcoin on their balance sheet on a long-term basis in anticipation of price increases and as a reserve asset, and of bitcoin exchange-traded products which hold bitcoin and provide investors with exposure to it without requiring them to hold the bitcoin themselves. The rise of these vehicles, which hold bitcoin on a long-term basis, has reduced the supply of liquid bitcoin in the markets. Further, while larger, increasingly regulated exchanges with greater transparency and oversight have begun to proliferate, the bitcoin economy remains nascent and largely opaque. The venues for bitcoin transactions may experience greater operational problems and be exposed to a greater risk of facilitating unethical, fraudulent or illicit transactions (such as "wash trading"), than traditional financial markets and securities exchanges. Cryptocurrency trading platforms may also be susceptible to "front-running" activity, which is the process by which someone uses technology or market advantage to obtain prior knowledge of upcoming transactions allowing bad actors to take advantage of forthcoming price movement and make economic gains at the cost of those who introduced the transactions. Front-running is a frequent activity on centralized and decentralized cryptocurrency trading platforms. Further, venues for bitcoin transactions do not typically make complete information regarding their ownership structure, management teams, corporate practices, and regulatory compliance available to the public, who are, therefore, unable to verify the impartiality of such venues in respect of the bitcoin transactions they facilitate. As a result of such lack of regulation and transparency, as well as the risk posed by bitcoin whales, wash trading and front-running, the public may lose confidence in bitcoin transactions and the price integrity of the cryptocurrency, which could adversely affect the market price of bitcoin, perhaps materially, which would have an adverse impact on our business and results of operations.

***Additional bitcoin mining capacity from competing bitcoin miners will trigger increases in mining difficulty, and if we are unable to grow our hashrate at pace with the global network hashrate, our chance of earning bitcoin from our mining operations will decline.***

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The barriers to entry for new bitcoin miners are relatively low, which can give rise to additional network capacity from competing bitcoin miners. Generally, a bitcoin miner's chance of solving a block on the bitcoin blockchain and earning a bitcoin reward is a function of the miner's hashrate, relative to the global network hashrate. As greater adoption of bitcoin occurs, we expect that the demand for bitcoin will continue to increase, drawing more mining companies into the industry and thereby increasing the global network hashrate. The bitcoin protocol responds to increasing total hashrate by increasing the difficulty of bitcoin mining. If this difficulty increases at a significantly higher rate than we expect, we would need to increase our hashrate at the higher rate to maintain our market share and generate equivalent block rewards. Accordingly, to maintain our chances of earning new bitcoin rewards and remaining competitive in our industry, we must seek to continually add new miners to grow our hashrate at pace with the growth in the bitcoin global network hashrate. However, as demand has increased and scarcity in the supply of new miners has resulted, the price of new miners has increased sharply, and we expect this process to continue in the future as demand for bitcoin increases. Therefore, if the price of bitcoin is not sufficiently high to allow us to fund our hashrate growth through new miner acquisitions and if we are otherwise unable to access additional capital to acquire these miners, our hashrate may stagnate and we may fall behind our competitors. A decrease in our effective network hashrate market share would result in a reduction in our share of block rewards and transaction fees, which could have a material adverse effect on our business, prospects, results of operations or financial condition.

 ***The impact of geopolitical and economic events, such as armed conflicts and changes in international trade policies, on macroeconomic conditions and our business, including the supply and demand for cryptocurrencies and volatility in energy prices, is uncertain.*** 

 

Geopolitical crises may motivate large-scale purchases of bitcoin and other cryptocurrencies, which could increase the price of bitcoin and other cryptocurrencies rapidly. Our business and the infrastructure on which our business relies is vulnerable to damage or interruption from geopolitical crises and economic downturns such as recessions, rising inflation, tariffs, social, political and economic risks, conflicts and acts of war, sanctions and other restrictive actions by the United States and/or other countries. Changes in legal, regulatory and trade policies and priorities from the U.S. government could increase market volatility and uncertainty, which could have an adverse impact on macroeconomic factors that affect our business. This may increase the likelihood of a subsequent price decrease as crisis-driven purchasing behavior dissipates, adversely affecting the value of our inventory following such downward adjustment. Such risks are similar to the risks of purchasing commodities in general uncertain times, such as the risk of purchasing, holding or selling gold. Alternatively, as an emerging asset class with limited acceptance as a payment system or commodity, global crises and general economic downturn may discourage investment in bitcoin as investors focus their investment on less volatile asset classes as a means of hedging their investment risk.

In addition, armed conflicts, wars, acts of terrorism, and other geopolitical instability may cause significant disruption to global energy markets, resulting in high volatility in fuel and other commodity prices, disruptions in energy supply chains, and constraints on the availability and delivery of fuels and other inputs necessary for electricity generation. The ongoing conflicts in Ukraine and the Middle East could adversely affect the price and availability of the fuels and other commodities we rely upon, as well as the infrastructure through which such fuels are delivered. Disruptions in energy supply or significant increases in energy costs resulting from such conflicts could increase our operating costs, reduce our margins, and impair our ability to deliver electricity to our customers on commercially acceptable terms. Instability and unrest arising from armed conflicts may also lead to economic sanctions, embargoes, and other restrictive measures that could further disrupt commodity markets and supply chains.

Global trade conditions and consumer trends that originated during the COVID-19 pandemic continue to persist and may also have long-lasting adverse impact on us and our industry. There are continued risks arising from new pandemics, epidemics or outbreaks of disease which may exacerbate port congestion and intermittent supplier shutdowns and delays, resulting in additional expenses to expedite delivery of new miners, as well as critical materials needed for our expansion plans. Further, miner manufacturers have been impacted by the constrained supply of the semiconductors used in the production of the highly specialized ASIC chips miners we rely on, and by increased labor costs to manufacture new miners as workforces and global supply chains may further be impacted by global outbreaks of various epidemics or disease, ultimately leading to continually higher prices for new miners. The global supply chain may also be materially impacted by recent significant changes to international trade policies and tariffs affecting imports and exports. A significant majority of the ASIC chips, processors and other advanced computing hardware necessary for our industries and the industries of our business partners are primarily manufactured in Taiwan, South Korea, Japan, and other jurisdictions that are subject to evolving U.S. trade policy. Tariffs or other trade restrictions can be announced with little or no advance notice, making it difficult to anticipate or mitigate their effects. Furthermore, retaliatory measures imposed by other countries in response to U.S. trade actions could further disrupt global supply chains. Thus, until the global supply chain crisis is resolved, and these extraordinary pressures are alleviated, we expect to continue to incur higher than usual costs to obtain and deploy new miners, and we may face difficulties obtaining the new miners we need at prices or in quantities we find acceptable, if at all, and our business and results of operations may suffer as a result.

As an alternative to fiat currencies that are backed by central governments, bitcoin, which is relatively new, is subject to supply and demand forces. How such supply and demand will be impacted by geopolitical and macroeconomic events is largely uncertain but could be harmful to us and investors in our Class A common stock. Political or economic crises may motivate large-scale acquisitions or sales of bitcoin either globally or locally. Such events could have a material adverse effect on our business, prospects, results of operations or financial condition and potentially the value of any bitcoin we mine or otherwise acquire or hold.

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***Enhanced tariff, import/export restrictions, or other trade barriers may have an adverse impact on global economic conditions.***

There have been, and continue to be, uncertainties with respect to the global economy and trade relations between the United States and other countries globally, including trade policies, treaties, tariffs, and customs duties and taxes. Implementation of more restrictive trade policies or the renegotiation of existing U.S. trade agreements or trade agreements of other countries where we procure supplies and materials for our digital infrastructure could negatively impact our business results of operations, cash flows, and financial condition. Tariffs, sanctions and other barriers to trade could adversely affect the business of our customers and suppliers, which could in turn negatively impact our net revenue and results of operations. If tariffs, trade restrictions or trade barriers are expanded or increased, then our exposure to future taxes and duties on imported products and components could be significant and could have a material effect on our financial results.

We cannot predict the extent to which the United States or other countries will impose new or additional quotas, duties, tariffs, taxes, or other similar restrictions upon the import of goods and services in the future, nor can we predict future trade policy or the terms of any renegotiated trade agreements and their impact on our business. The continuing adoption or expansion of trade restrictions, the occurrence of a trade war, or other governmental action related to tariffs or trade agreements or policies has the potential to adversely impact demand for our HPC data centers, our costs, our customers, our suppliers, and the U.S. economy, which in turn could have a material adverse effect on our business, prospects, results of operations or financial condition.

***Banks and financial institutions vary in the services they provide to businesses that engage in blockchain technology or that accept cryptocurrencies as payment.***

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Although a number of significant U.S. banks and financial institutions allow customers to carry and invest in bitcoin, the acceptance and use by banks and other institutions of cryptocurrencies, including bitcoin, varies. This risk may be further exacerbated in the current environment in light of several high-profile bankruptcies in the cryptocurrencies industry, as well as recent bank failures, which have disrupted investor confidence in cryptocurrencies and led to a rapid escalation of oversight of the cryptocurrency industry. For example, certain banks have implemented enhanced know-your-customer and anti-money laundering requirements in connection with potential cryptocurrency customers. These enhanced requirements may make it more difficult or impossible for cryptocurrency-related companies to find banking or financial services. If we are unable to engage in traditional banking and custody arrangements with banking institutions, it would experience increased operating costs which could have a material adverse effect on our business, prospects, results of operations or financial condition.

Additionally, a number of companies and individuals or businesses associated with cryptocurrencies may have had and may continue to have their existing banking services discontinued with financial institutions in response to government action, particularly in China, where regulatory response to cryptocurrencies has been to exclude their use for ordinary consumer transactions. In May 2021, the Chinese government called for a crackdown on bitcoin mining and trading. In September 2021, Chinese regulators instituted the China Ban, which banned all cryptocurrency transactions. In January 2023, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency issued a joint statement on risks associated with cryptocurrency businesses, which, among other regulatory statements, led many U.S. banks to decline to provide banking services to cryptocurrency-related businesses. Although this and other limiting statements have been withdrawn in 2025, there is no guarantee that subsequent administrations could issue similar guidance, or that banks and other financial institutions could determine on their own that cryptocurrency-related businesses pose unsustainable risks.

The usefulness of bitcoin, the only cryptocurrency that we currently mine, as a payment system and the public perception of bitcoin could be damaged if banks or financial institutions were to close the accounts of businesses engaging in bitcoin and/or other cryptocurrency-related activities. This could occur as a result of compliance risk, cost, government regulation or public pressure. The risk applies to securities firms, clearance and settlement firms, national stock and derivatives on commodities exchanges, the over-the-counter market, and The Depository Trust Company, which, if any of such entities adopts or implements similar policies, rules or regulations, could negatively affect its relationships with financial institutions and impede our ability to convert bitcoin to fiat currencies. Such factors could have a material adverse effect on our ability to continue as a going concern or to pursue its strategy at all, which could have a material adverse effect on our business, prospects, results of operations or financial condition.

***The further development and acceptance of cryptocurrencies including bitcoin, which represent a new and rapidly changing industry, are subject to a variety of factors that are difficult to evaluate. The slowing or stopping of the development or acceptance of cryptocurrencies may adversely affect an investment in us.***

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The use of cryptocurrencies to, among other things, buy and sell goods and services and complete transactions, is part of a new and rapidly evolving industry that employs cryptocurrencies, including bitcoin, based upon a computer-generated mathematical or cryptographic protocol. Large-scale acceptance of bitcoin as a means of payment has not, and may never, occur. The growth of this industry in general, and the use of bitcoin in particular, is subject to a high degree of uncertainty, and the acceptance of developing protocols may occur unpredictably and contribute to price volatility that could have a material adverse effect on our business, prospects, results of operations or financial condition.

Banks and other established financial institutions may refuse to process funds for bitcoin transactions, process wire transfers to or from bitcoin miners, bitcoin-related companies or service providers, or maintain accounts for persons or entities transacting in bitcoin or other cryptocurrencies. Conversely, a significant portion of bitcoin demand is generated by investors seeking a long-term store of value or speculators seeking to profit from the short- or long-term holding of the asset. Price volatility undermines the role of bitcoin as a medium of exchange, as retailers are much less likely to accept such a volatile asset as a form of payment. Market capitalization for bitcoin as a medium of exchange and payment method may always remain low. The relative lack of acceptance of bitcoin in the retail and commercial marketplace, or a reduction of such use, limits the ability of end users to use bitcoin to pay for goods and services. Such lack of acceptance or decline in acceptances could have a material adverse effect on our ability to pursue our business plan, which in turn could have a material adverse effect on our business, prospects, results of operations or financial condition.

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To the extent that we hold bitcoin on our balance sheet, a reduction in the value of that bitcoin could have a material adverse effect on our business, prospects, results of operations or financial condition.

Furthermore, between 2022 and 2023, some of the well-known cryptocurrency market participants, including Celsius Network LLC, Voyager Digital Ltd., Three Arrows Capital, Genesis Global Holdco, LLC, FTX Trading Ltd. ("FTX"), BlockFi Inc., Prime Trust and certain of their affiliates declared bankruptcy, which may over time have a significant impact on further development and acceptance of bitcoin and other cryptocurrencies as those bankruptcies exposed how unpredictable and turbulent the cryptocurrencies industry can be. These failures of important institutions in the cryptocurrency and bitcoin asset industry highlight the risk of systemic interconnectedness between major market participants and the effect it could have on the industry as a whole.

The closure or temporary shutdown of major cryptocurrency exchanges and trading platforms due to fraud or business failure, could disrupt investor confidence in bitcoin and other cryptocurrencies and lead to further regulation of bitcoin and/or bitcoin mining. All this in turn could have a negative impact on further development and acceptance of cryptocurrencies and cryptocurrencies, including bitcoin. Other factors that could affect further development and acceptance of cryptocurrencies and bitcoin include, but are not limited to:

● worldwide growth in the adoption and use of bitcoin as a medium to exchange;

● governmental and quasi-governmental regulation of bitcoin and its use, or restrictions on or regulation of access to and operation of the Bitcoin network or similar cryptocurrency systems;

● changes in consumer demographics and public tastes and preferences;

● the maintenance and development of the open-source software protocol of the Bitcoin network;

● the increased consolidation of contributors to the bitcoin blockchain through bitcoin mining pools;

● the availability and popularity of bitcoin and other cryptocurrencies and other forms or methods of buying and selling goods and services, including new means of using fiat currencies;

● the use of the networks supporting bitcoin and other cryptocurrencies for developing smart contracts and distributed applications;

● general economic conditions and the regulatory environment relating to bitcoin and other cryptocurrencies;

● environmental or tax restrictions, excise taxes or other additional costs on the use of electricity to mine bitcoin;

● an increase in bitcoin transaction costs and any related reduction in the use of and demand for bitcoin; and

● negative consumer sentiment and perception of bitcoin or other cryptocurrencies.

***Our operations, investment strategies and profitability may be adversely affected by competition from other methods of investing in bitcoin.***

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We compete with other users and companies that are mining bitcoin and other potential financial vehicles, including securities backed by or linked to bitcoin through entities similar to us. Market and financial conditions, and other conditions beyond our control, may make it more attractive to invest in other financial vehicles, or to invest in bitcoin directly, which could limit the market for our shares and reduce our liquidity. The emergence of other financial vehicles such as exchange traded products ("ETPs") and cryptocurrency treasury companies have been scrutinized by regulators and such scrutiny and the negative impressions or conclusions resulting from such scrutiny could be applicable to us and impact our ability to successfully pursue our strategy or operate at all, or to establish or maintain a public market for our securities. Such circumstances could have a material adverse effect on our ability to continue as a going concern or to pursue our strategy at all, which could have a material adverse effect on our business, prospects, results of operations or financial condition and potentially the value of any bitcoin we mine, or bitcoin we otherwise acquire or hold for our own account.

 ***The rise of cryptocurrency treasury companies and cryptocurrency ETPs could increase price volatility in cryptocurrencies.***

Due to the recent increase in the number of other companies pursuing a cryptocurrency strategy in bitcoin as well as the rise of cryptocurrency ETPs, ownership of bitcoin may become more concentrated. The abandonment of cryptocurrency treasury strategies, the failure by such other companies to satisfy their debt or other financial obligations, market concerns as to the viability or creditworthiness of such companies, the loss or disposition of substantial bitcoin by such other companies, regulatory or legal judgments or actions against such other companies due to their adoption of a cryptocurrency treasury strategy, or any other similar actions or negative outcomes impacting such other companies, whether due to any of the various risk factors described herein or for any other reason, could cause a significant decrease in the price of bitcoin. In addition, cryptocurrency ETPs may be required to sell their holdings of bitcoin in order to fund redemptions. Any sales of large numbers of bitcoin by these other parties could have an adverse effect on the demand for, and market price of, bitcoin, which could have an adverse effect on our business, prospects, results of operations or financial condition.

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 ***Forks in the bitcoin blockchain may occur in the future, which may affect the value of bitcoin held by us.*** 

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To the extent that a significant majority of users and miners on a cryptocurrency network install software that changes the cryptocurrency network or properties of a cryptocurrency, including the irreversibility of transactions and limitations on the mining of new cryptocurrencies, the cryptocurrency network would be subject to new protocols and software. However, if less than a significant majority of users and miners on the cryptocurrency network consent to the proposed modification, and the modification is not compatible with the software prior to its modification, the consequence would be what is known as a "fork" of the network, with one prong running the pre-modified software and the other running the modified software. The effect of such a fork would be the existence of two versions of the cryptocurrency running in parallel that lack interchangeability and necessitate an exchange-type transaction to convert currencies between the two forks. Additionally, it may be unclear following a fork which fork represents the original asset and which is the new asset. Different metrics adopted by industry participants to determine which is the original asset may include: referring to the wishes of the core developers of a cryptocurrency, which blockchains have the greatest amount of hashing power contributed by miners or validators; or which blockchains have the longest chain.

The Ethereum network, another blockchain, previously forked in 2016 as a consequence of a hack by a decentralized autonomous organization. Hard forks can lead to new security concerns. For instance, when the Bitcoin Cash and Bitcoin Cash SV network split in November 2018, "replay" attacks, in which transactions from one network were rebroadcast on the other network to achieve "double-spending," plagued platforms that traded bitcoin, resulting in significant losses to some cryptocurrency trading platforms. Another possible result of a hard fork is an inherent decrease in the level of security due to the splitting of some mining power across networks, making it easier for a malicious actor to exceed 50% of the mining power of that network, thereby making cryptocurrency networks that rely on proof-of-work more susceptible to attack in the wake of a fork. A fork in the Bitcoin network could adversely affect our ability to operate or the market value of bitcoin and therefore, an investment in our securities. The mining pools to which we contribute hashrate would need to decide which fork of the blockchain to support, which may result in interruptions to our rewards and may also decrease the value of these rewards as value is attributed to the other fork. We may not be able to realize the economic benefit of a fork, either immediately or ever, which could have a material adverse effect on our business, prospects, results of operations or financial condition. If we hold bitcoin at the time of a hard fork of bitcoin into two cryptocurrencies, our custodians may not support both assets, and so we may not be able, or it may not be practical, however, to secure or realize the economic benefit of the new asset for various reasons. Additionally, laws, regulation or other factors may prevent us from benefiting from the new asset even if there is a safe and practical way to custody and secure the new asset.

 ***Intellectual property rights claims may adversely affect the operation of some or all cryptocurrency networks.***

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Third parties have asserted and may assert intellectual property claims relating to the holding and transfer of cryptocurrencies and their source code. Regardless of the merit of any intellectual property or other legal action, any threatened action that reduces confidence in some or all cryptocurrency networks' long-term viability or the ability of end-users to hold and transfer cryptocurrencies could have a material adverse effect on our business, prospects, results of operations or financial condition.

Additionally, a meritorious intellectual property claim could prevent us and other end-users from accessing some or all cryptocurrency networks or holding or transferring their cryptocurrencies. As a result, any intellectual property claims against us or other large cryptocurrency network participants could have a material adverse effect on our business, prospects, results of operations or financial condition.

***To the extent that the profit margins of bitcoin mining operations are not sufficiently high, bitcoin mining operators are more likely to immediately sell bitcoins earned by mining or previously held on the balance sheet into the bitcoin exchange markets, resulting in a reduction in the price of bitcoin that could adversely affect us.***

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Bitcoin mining operations have evolved away from individual users mining with computer processors, graphics processing units and first-generation ASIC servers. Currently, new processing power brought onto the Bitcoin network is predominantly added by "professionalized" mining operations. Many professionalized mining operations use proprietary hardware or sophisticated ASIC machines acquired directly from manufacturers of miners. As a result, professionalized mining operations are of a greater scale than prior Bitcoin network miners and have in some cases raised debt capital. Some of these professionalized mining operations immediately sell bitcoins they earn from mining operations into a bitcoin exchange market.

The immediate selling of newly mined bitcoins increases the supply of bitcoins on the bitcoin exchange market (the "float"), which may create downward pressure on the price of bitcoin. The extent to which the value of bitcoin mined by a professionalized mining operation exceeds that operation's cost of capital and operating costs determines the profit margin of such an operation. A professionalized mining operation may be more likely to sell a higher percentage of its newly acquired bitcoin rapidly if it is operating at a low profit margin, and it may partially or completely cease operations if its profit margin is negative. In a low profit margin environment, a higher percentage of output could be sold into the bitcoin exchange markets more rapidly, thereby potentially reducing bitcoin prices. Lower bitcoin prices could result in further tightening of profit margins, particularly for professionalized mining operations with higher costs and more limited access to capital, creating a negative effect that could further reduce the price of bitcoin until mining operations with higher operating costs become unprofitable and remove mining power from the Bitcoin network. The network effect of reduced profit margins resulting in greater sales of newly mined bitcoin could result in a reduction in the price of bitcoin. The occurrence of any such risk could have a material adverse effect on our business, prospects, results of operations or financial condition.

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***Increased scrutiny and changing expectations from stakeholders with respect to our environmental, social, and governance (ESG) practices and the impacts of climate change may result in additional costs or risks.***

Companies across many industries are facing increasing scrutiny related to their ESG practices. Investor advocacy groups, certain institutional investors, investment funds and other influential investors are also increasingly focused on ESG practices and in recent years have placed increasing importance on the non-financial impacts of their investments. Furthermore, increased public awareness and concern regarding environmental risks, including global climate change, has resulted and may continue to result in increased public scrutiny of our business and our industry, and our management team may divert significant time and energy away from our operations and towards responding to such scrutiny and reassuring our employees.

In addition, the physical risks of climate change may impact the availability and cost of materials and natural resources, sources and supply of energy, demand for bitcoin and other cryptocurrencies, and could increase our insurance and other operating costs, including, potentially, to repair damage incurred as a result of extreme weather events or to renovate or retrofit facilities to better withstand extreme weather events. If environmental laws or regulations or industry standards are either changed or adopted and impose significant operational restrictions and compliance requirements on our operations, or if our operations are disrupted due to the physical impacts of climate change, our business, capital expenditures, results of operations, financial condition and competitive position could be negatively impacted.

***We may face risks of internet disruptions, which could have an adverse effect on our ability to operate our business.***

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Our business of mining cryptocurrencies is dependent upon the internet. A significant disruption in internet connectivity could disrupt a cryptocurrency network's operations until the disruption is resolved and have an adverse effect on the price of cryptocurrencies and our ability to mine bitcoins. A broadly accepted and widely adopted decentralized network is necessary for most cryptocurrencies networks, including bitcoin, to function as intended. Features of cryptocurrency networks, such as decentralization, open source protocol, and reliance on peer-to-peer connectivity, are essential to preserve the stability of the network and decrease the risk of fraud or cyber-attacks. A disruption of the internet or a cryptocurrency network would affect our ability to mine cryptocurrencies.

***Our miners may mechanically fail before the end of their expected useful life.***

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Our miners are exposed to extreme environmental conditions and temperature fluctuations. None of our fleet is covered by a manufacturer's warranty, and we routinely purchase previously used, refurbished miners. Widespread fleet failures, even if repairable, will reduce our ability to mine bitcoin at levels and efficiencies we expect.

***The book value of our miners presented in our financials may exceed the value at which they could be sold in a deliberate arms-length transaction (their "fair value").***

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The fair value of a bitcoin miner fluctuates based on market factors such as the price of bitcoin and the global hashrate. As such, there are likely times the Company could not sell its miners for the amount shown on the balance sheet, even factoring in recorded depreciation.

**Risks Related to the Bitcoin Network**

***If a malicious actor or botnet obtains control in excess of 50% of the processing power active on the Bitcoin network, it is possible that such actor or botnet could manipulate the blockchain in a manner that adversely affects our business.***

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If a malicious actor or botnet obtains a majority of the processing power dedicated to mining on the Bitcoin network, it may be able to alter the blockchain by constructing alternate blocks if it is able to solve for such blocks faster than the remainder of the miners on the blockchain can add valid blocks. In such alternate blocks, the malicious actor or botnet could control, exclude or modify the ordering of transactions. Using alternate blocks, the malicious actor could "double-spend" its own cryptocurrencies (i.e., spend the same cryptocurrencies in more than one transaction) and prevent the confirmation of other users' transactions for so long as it maintains control. To the extent that such malicious actor or botnet does not yield its majority control of the processing power or the cryptocurrency community does not reject the fraudulent blocks as malicious, reversing any changes made to the blockchain may not be possible. Further, a malicious actor or botnet could create a flood of transactions in order to slow down confirmations of transactions on the Bitcoin network. Such changes could have a material adverse effect on our business, prospects, results of operations or financial condition.

Although there have been no reports of such activity on the Bitcoin network, certain mining pools may have exceeded the 50% threshold on the Bitcoin network in the past. The possible crossing of the 50% threshold indicates a greater risk that a single mining pool could exert authority over the validation of cryptocurrency transactions, and this risk is heightened if over 50% of the processing power on the Bitcoin network falls within the jurisdiction of a single governmental authority. To the extent that the bitcoin ecosystem, including the core developers and the administrators of mining pools, does not act to ensure greater decentralization of mining processing power, the feasibility of a malicious actor obtaining control of the processing power on the Bitcoin network will increase, which could have a material adverse effect on our business, prospects, results of operations or financial condition.

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***Flaws in the source code of bitcoin or the underlying cryptography could leave the Bitcoin network vulnerable to a multitude of attack vectors.***

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If the source code or cryptography underlying bitcoin proves to be flawed or ineffective, malicious actors may be able to steal bitcoin held by others, which could negatively impact the demand for bitcoin and therefore adversely impact the price of bitcoin. In the past, flaws in the source code for bitcoin have been discovered. Several errors and defects have been publicly found and corrected, including those that disabled some functionality for users and exposed users' personal information. Discovery of flaws in or exploitations of the source code that allow malicious actors to take or create money in contravention of known network rules have occurred. In addition, the cryptography underlying bitcoin could prove to be flawed or ineffective, or developments in mathematics and/or technology, including advances in digital computing, algebraic geometry, and quantum computing, could result in such cryptography becoming ineffective and could allow a malicious actor to obtain control in excess of 50% of the processing power on the Bitcoin network, as further described herein. In any of these circumstances, a malicious actor may be able to steal bitcoin held by others, which could adversely affect the demand for bitcoin and therefore adversely impact the price of bitcoin. Even if the affected cryptocurrency is not bitcoin, any reduction in confidence in the source code or cryptography underlying cryptocurrencies generally could negatively impact the demand for bitcoin and therefore could have a material adverse effect on our business, prospects, results of operations or financial condition.

Furthermore, a malicious actor may also obtain control over the Bitcoin network through its influence over core or influential developers. For example, this could allow the malicious actor to stymie legitimate network development efforts or attempt to introduce malicious code to the network under the guise of a software improvement proposal by such a developer, which could adversely impact the bitcoin ecosystem and subject us to risks of malicious action, which could have a material adverse effect on our business, prospects, results of operations or financial condition.

 ***Demand for bitcoin is driven, in part, by it being generally recognized as the most prominent and secure cryptocurrency. Cryptocurrencies other than bitcoin could have features that make them more desirable to a material portion of the cryptocurrency user base, resulting in a reduction in demand for bitcoin, which could have a negative effect on the price of bitcoin and adversely affect an investment in us.***

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Bitcoin, as an asset, holds "first-to-market" advantages over other cryptocurrencies. This first-to-market advantage is driven in large part by having the largest market capitalization and the largest mining power in use to secure its blockchain and transaction verification system. Having a large mining network results in greater user confidence regarding the security and long-term stability of a cryptocurrency's network and its blockchain; as a result, the advantage of more users and miners makes a cryptocurrency more secure, which makes it more attractive to new users and miners, resulting in a network effect that strengthens the first-to-market advantage. Despite the first-mover advantage of the Bitcoin network over other cryptocurrency networks, it is possible that another cryptocurrency could become materially more popular due to either a perceived or exposed shortcoming of the Bitcoin network protocol that is not immediately addressed by the bitcoin contributor community or a perceived advantage of another cryptocurrency that includes features not incorporated into bitcoin. If a cryptocurrency obtains significant market share (either in market capitalization, mining power or use as a payment technology), this could reduce bitcoin's market share and have a negative effect on the demand for, and price of, bitcoin and could have a material adverse effect on our business, prospects, results of operations or financial condition. It is possible that we could mine alternative cryptocurrencies in the future, but we may not have as much experience mining such assets, which may put us at a competitive disadvantage.

 ***The open-source structure of many cryptocurrency network protocols, including bitcoin, means that the contributors to the protocol are generally not directly compensated for their contributions in maintaining and developing the protocol. A failure to properly monitor and upgrade the protocol could damage the Bitcoin network and our value.***

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The Bitcoin network operates based on an open-source protocol maintained by contributors, largely on the bitcoin Core project on GitHub. As an open-source project, bitcoin is not represented by an official organization or authority and its software is available free of charge in accordance with the terms of open-source licenses, such as the MIT License. As the Bitcoin network protocol is not commercially licensed and its use does not generate revenues for contributors, contributors are generally not compensated for maintaining and updating the Bitcoin network protocol. The lack of guaranteed financial incentives for contributors to maintain or develop the Bitcoin network and the lack of guaranteed resources to adequately address emerging issues with the Bitcoin network may reduce incentives to address the issues adequately or in a timely manner. Changes to the Bitcoin network could have a material adverse effect on our business, prospects, results of operations or financial condition.

***Significant Bitcoin network contributors could propose amendments to the Bitcoin network's protocols and software that, if accepted and authorized by the Bitcoin network, could adversely affect us.***

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Significant Bitcoin network contributors could propose refinements, improvements or other changes to the Bitcoin network's source code through one or more software upgrades that alter the protocols and software that govern the Bitcoin network and the properties of bitcoin, including the irreversibility of transactions and limitations on the mining of new bitcoin. Proposals for upgrades and discussions relating thereto take place on online forums. For example, there is an ongoing debate regarding altering the bitcoin blockchain by increasing the size of blocks to accommodate a larger volume of transactions. Although some proponents support an increase, other market participants oppose an increase to the block size as it may deter miners from confirming transactions and concentrate power into a smaller group of miners. Additionally, the Bitcoin network could change its mining algorithm in a fashion which could render our mining equipment obsolete. To the extent that a significant majority of the users and miners on the Bitcoin network install such software upgrade(s), the Bitcoin network would be subject to new protocols and software that could have a material adverse effect on our business, prospects, results of operations or financial condition. See "Risk Factors—Risks Related to the Bitcoin Industry—Forks in the bitcoin blockchain may occur in the future which may affect the value of bitcoin held by Ionic Digital."

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***Competition from central bank digital currencies ("CBDCs") and stablecoins could adversely affect the value of bitcoin.***

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Central banks in some countries have started to introduce digital forms of legal tender. For example, China's CBDC project was made available to consumers in January 2022, and governments from Russia to the European Union have been discussing potential creation of new digital currencies. A 2021 survey of central banks by the Bank for International Settlements found that 86% are actively researching the potential for CBDCs, 60% were experimenting with the technology and 14% were deploying pilot projects. Whether or not they incorporate blockchain or similar technology, CBDCs, as legal tender in the issuing jurisdiction, could have an advantage in competing with, or replacing, bitcoin and other cryptocurrencies as a medium of exchange or store of value.

Other alternative cryptocurrencies that compete with bitcoin in certain ways include "stablecoins," which are designed to maintain a constant price related to or based on some other asset or traditional currency because of, for instance, their issuers' promise to hold high-quality liquid assets (such as U.S. dollar deposits and short-term U.S. treasury securities) equal to the total value of stablecoins in circulation. On July 18, 2025, President Trump signed into law the Guiding and Establishing National Innovation for US Stablecoins Act (the "GENIUS Act"), establishing a legislative framework for the regulation of payment stablecoins and marking the first federal legislation for the regulation of cryptocurrencies in the U.S. Stablecoins have grown rapidly as an alternative to other cryptocurrencies as a medium of exchange and store of value, particularly on decentralized applications, and their use as an alternative to bitcoin could expand further.

As a result of increased competition from new types of cryptocurrencies such as CBDCs and stablecoins, the value of bitcoin could decrease, which could have a material adverse effect on our business, prospects, results of operations or financial condition.

 ***The decentralized nature of cryptocurrency systems may lead to slow or inadequate responses to crises, which may negatively affect our business.***

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The decentralized nature of the governance and administration of cryptocurrency systems may lead to ineffective decision making that slows development or prevents a network from overcoming emergent obstacles. Governance of many cryptocurrency systems is by voluntary consensus and open competition with no clear leadership structure or authority. To the extent lack of clarity in governance of the Bitcoin network leads to ineffective decision making that slows development and growth of bitcoin or slows a response to a problem such as addressing a critical vulnerability in the cryptographic primitives or software implementation of bitcoin, these events could have a material adverse effect on our business, prospects, results of operations or financial condition.

***The development and market acceptance of competing blockchain platforms or technologies may cause consumers to use alternative distributed ledgers or other alternatives.***

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The development and acceptance of competing blockchain platforms or technologies may cause consumers to use alternative distributed ledgers or an alternative to distributed ledgers altogether. Our business utilizes presently existing digital ledgers and blockchains, and we could face difficulty adapting to emergent digital ledgers, blockchains, or alternatives thereto. This may adversely affect us and our exposure to various blockchain technologies and prevent us from realizing the anticipated profits from our investments. Such circumstances could have a material adverse effect on our ability to continue as a going concern or to pursue our strategy at all, which could have a material adverse effect on our business, prospects, results of operations or financial condition and potentially the value of any bitcoin we mine, or bitcoin we otherwise acquire or hold for our own account.

**Risks Related to the Price of Bitcoin**

***A material decline in the value of bitcoin could have an adverse effect on our results of operations, our liquidity and the strength of our balance sheet.***

Our operating results depend on the value of bitcoin as it is presently the only cryptocurrency that we mine. This means that our operating results will be subject to swings based upon increases or decreases in the value of bitcoin (which has ranged from a high of approximately $124,720 to a low of approximately $39,524 between January 1, 2024 and December 31, 2025, based on the daily quoted spot price of bitcoin at 00:00:00 UTC per Coinbase). These changes in the value of bitcoin will also cause the value assigned to the bitcoin we hold on our balance sheet to fluctuate. Furthermore, any negative impacts on our liquidity as a result of changes in the value of bitcoin may affect our business plans to expand into the digital infrastructure industry and could have a material adverse effect on our business, prospects, results of operations or financial position.

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If other cryptocurrencies were to achieve acceptance at the expense of bitcoin causing the value of bitcoin to decline, or if bitcoin were to switch its proof of work encryption to an algorithm for which our miners are not specialized, or if the value of bitcoin were to decline for other reasons, particularly if such decline were significant or over an extended period of time, our operating results and financial statement presentation would be adversely affected. In such circumstances, there could be balance sheet impairments, a material adverse effect on our ability to continue as a going concern or to pursue our strategy at all, which could have a material adverse effect on our business, prospects, results of operations or financial condition. The market price of bitcoin, which has historically been volatile and is impacted by a variety of factors (including those discussed herein), is determined primarily using data from various exchanges, over-the-counter markets and derivative platforms. Furthermore, such prices may be subject to factors such as those that impact commodities, more so than business activities, which could be subjected to additional influence from fraudulent or illegitimate actors, real or perceived scarcity, and political, economic, regulatory or other conditions. Pricing may be the result of, and may continue to result in, speculation regarding future appreciation in the value of bitcoin, or our share price, inflating and making their market prices more volatile or creating "bubble" type risks for bitcoin and holders of shares of our Class A common stock.

***Transaction fees may decrease demand for bitcoin which could adversely affect our business.***

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As the number of bitcoin rewards awarded for solving a block in a blockchain decreases, the incentive for miners to continue to contribute to the Bitcoin network may transition from a set reward per block to transaction fees. This transition might be accomplished by certain miners independently electing to record in the blocks they solve only those transactions that include payment of a transaction fee. In the event that transaction fees paid for bitcoin transactions become too high, the marketplace might become reluctant to accept bitcoin as a means of payment and existing users may be motivated to switch from bitcoin to another cryptocurrency or to fiat currency. Either the requirement from certain miners of higher transaction fees in exchange for recording transactions in a blockchain or a software upgrade that automatically charges fees for all transactions might decrease demand for bitcoin and prevent the expansion of the Bitcoin network to retail merchants and commercial businesses, resulting in a reduction in the use cases and demand for bitcoin, which might result in a decrease in the price of bitcoin. The occurrence of any such risk could have a material adverse effect on our business, prospects, results of operations or financial condition.

***Bitcoin faces significant scaling obstacles that can lead to high fees or slow transaction settlement times.***

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Bitcoin (and cryptocurrencies, generally) face significant scaling obstacles that can lead to high fees or slow transaction settlement times and attempts to increase the volume of transactions may not be effective. Scaling cryptocurrencies is essential to the widespread acceptance of cryptocurrencies as a means of payment, including bitcoin. Many cryptocurrency networks face significant scaling challenges. For example, cryptocurrencies are limited with respect to how many transactions can occur per second. Participants in the cryptocurrency ecosystem debate potential approaches to increasing the average number of transactions per second that a network can handle and have implemented mechanisms or are researching ways to increase scale, such as increasing the allowable sizes of blocks, and therefore the number of transactions per block, and sharding (a horizontal partition of data in a database or search engine), which would not require every single transaction to be included in every single miner's or validator's block. There is, however, no guarantee that any of the mechanisms in place or being explored for increasing the scale of settlement of cryptocurrency transactions will be effective.

If adoption of bitcoin (and cryptocurrencies, generally) as a means of payment does not occur on the schedule or scale we anticipate, the demand for bitcoin may stagnate or decrease, which could adversely affect future bitcoin prices, and our results of operations and financial condition, which could have a material adverse effect on the market price for our securities.

***Bitcoin holdings are insufficiently decentralized so that individuals can substantially reduce the price of bitcoin in the short term.***

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A significant portion of bitcoin is held by a small number of holders sometimes referred to as "whales." Transactions of these holders may influence the price of bitcoin. For example, in August 2025, a transaction by a single whale to sell 24,000 bitcoin worth approximately $2.7 billion over a weekend triggered a flash crash that erased $200 billion of crypto market capitalization across multiple digital currencies and resulted in forced liquidations over $550 million in leveraged positions. The concentration of bitcoin among whales can make it more susceptible to rapid and significant price swings and market manipulation. Such concentration may also affect bitcoin liquidity.

**Risks Related to Regulatory Framework**

***We are required to obtain, and to comply with, government and utility company permits and approvals.***

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We are required to obtain, and to comply with, numerous permits and licenses from federal, state and local governmental agencies and our electricity providers. The process of obtaining and renewing necessary permits and licenses can be lengthy and complex and can sometimes result in the establishment of conditions that make the project or activity for which the permit or license was sought unprofitable or otherwise unattractive. In addition, such permits or licenses may be subject to denial, revocation or modification under various circumstances. The regulatory environment surrounding such permits and approvals is rapidly evolving, in part due to the power demand from the rapid expansion of demand for data centers and related political considerations. Failure to obtain or comply with the conditions of permits or licenses, or failure to comply with applicable laws or regulations, may result in the delay or temporary suspension of our operations.

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***We are subject to a rapidly evolving regulatory landscape and any adverse changes to our or our customers' failure to comply with any laws or regulations could adversely affect our business, prospects or operations.***

Our and our customers' businesses are subject to extensive laws, rules, regulations, policies and legal and regulatory guidance, including those governing securities, commodities, cryptocurrency custody, exchange and transfer, data governance, data protection, cybersecurity and tax. These legal and regulatory regimes vary widely across U.S. federal, state and local and international jurisdictions and may be modified, interpreted and applied in an inconsistent manner from one jurisdiction to another, and may conflict with one another. In addition, the legal and regulatory regimes related to cryptocurrencies continue to evolve, with laws enacted at the federal level to address specific segments of the digital asset ecosystem, such as payment stablecoins, as well more comprehensive laws and regulations at the state level. Congress is also considering broader market structure legislation intended to clarify regulatory oversight responsibilities with respect to the digital asset markets. U.S. regulatory agencies have continued to evaluate the application of existing securities, commodities, and banking regulations to digital asset activities, including custody, trading, and settlement functions.

Moreover, the complexity and evolving nature of our business and the significant uncertainty surrounding the regulation of the crypto economy requires us to exercise our judgement as to whether certain laws, rules and regulations apply to us or our customers, and it is possible that governmental bodies and regulators may disagree with our or our customers' conclusions. To the extent we or our customers have not complied with such laws, rules and regulations, we could be subject to significant fines and other regulatory consequences, which could adversely affect our business, prospects or operations. As cryptocurrency has grown in popularity and in market size, the Federal Reserve Board, U.S. Congress and certain U.S. agencies (for example, the Commodity Futures Trading Commission, the SEC, the Financial Crimes Enforcement Network and the Federal Bureau of Investigation) have begun to examine the operations of cryptocurrency networks, cryptocurrency users and cryptocurrency exchange markets.

Our customers in our HPC segment may also be subject to laws and regulations relating to artificial intelligence technologies ("AI"). Several jurisdictions around the globe, including Europe and China have already proposed or enacted laws and regulations governing AI, including the EU Artificial Intelligence Act that was enacted in 2024, each of which may impose significant operational costs on our customers. A number of U.S. states have also adopted laws or are considering the passage of laws related to the use and deployment of AI and/or require disclosures in connection with the usage of AI. For example, California enacted more than a dozen new laws that regulate use of AI and automated decision systems and provide consumers with additional protections around companies' use of AI, Texas enacted the Texas Responsible AI Governance Act that prohibits specified harmful uses of AI, Colorado passed the Colorado Artificial Intelligence Act, which will require disclosures and compliance efforts associated with different uses of AI, and Utah passed the Utah Artificial Intelligence Policy Act, which requires certain disclosures to customers and confirms companies' responsibility for legal violations caused by their AI applications. However, the federal government may seek to preempt state laws purporting to regulate AI, as evidenced by the Trump administration's "Ensuring a National Policy Framework for Artificial Intelligence" Executive Order which calls for federal standards and legislation that would preempt conflicting state AI regulations and create a federal litigation task force focused on challenging state AI laws in court. These differing laws and policy objectives would require our HPC customers to expend significant resources to modify their products, services, or operations to ensure compliance or remain competitive.

Ongoing and future regulatory actions could effectively prevent our and our customers' mining operations and our ongoing or planned co-hosting operations, limiting or preventing future revenue generation by us or rendering our operations obsolete. Such actions could severely impact our ability to continue to operate and our ability to continue as a going concern or to pursue our strategy at all, which would have a material adverse effect on our business, prospects or operations.

***If we were deemed to be an investment company under the Investment Company Act, applicable restrictions could make it impractical or impossible for us to continue our business as contemplated and could have a material adverse effect on our business, financial condition and results of operations.***

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Under Sections 3(a)(1)(A) and (C) of the Investment Company Act, a company generally will be deemed to be an "investment company" for purposes of the Investment Company Act if (i) it is, or holds itself out as being, engaged primarily, or proposes to engage primarily, in the business of investing, reinvesting or trading in securities or (ii) it engages, or proposes to engage, in the business of investing, reinvesting, owning, holding or trading in securities and it owns or proposes to acquire investment securities having a value exceeding 40% of the value of its total assets (exclusive of U.S. government securities and cash items) on an unconsolidated basis. We do not believe that we are an "investment company," as such term is defined in either of those sections of the Investment Company Act. We conduct our operations so that we will not be deemed an investment company, including by managing our security holdings to comply with applicable limitations under the Investment Company Act. However, to the extent that bitcoin is determined by regulators to be a security for purposes of the Investment Company Act, we may be subject to additional regulatory requirements and/or additional limitations on our portfolio which could make it impractical or impossible for us to continue our business as contemplated and could have a material adverse effect on our business, prospects, results of operations or financial condition.

We do not believe we are, and do not intend to be, engaged in the business of investing, reinvesting, or trading in securities, and we will not hold ourselves out as being engaged in those activities. Furthermore, we monitor our holdings to ensure continuing and ongoing compliance with the 40% limit described above (or similar limits available under other Investment Company Act exceptions and safe harbors). However, depending on its characteristics, a cryptocurrency may be considered a "security" under the Investment Company Act. If the SEC or its staff were to disagree with our treatment of certain assets (namely bitcoin), we would need to adjust our strategy and our assets in order to continue to comply with such limits. Any such adjustment in our strategy or assets could have a material adverse effect on our business, prospects, results of operations or financial condition. To date, the SEC staff have treated bitcoin as a commodity, and in March 2025, the SEC's Division of Corporation Finance issued guidance clarifying that the Division does not take the view that cryptocurrencies generated through proof-of-work mining are securities for purposes of the Securities Act and the Exchange Act. However, this statement does not apply to the Investment Company Act, and it is possible that the SEC may deem bitcoin and other cryptocurrencies an investment security in the future. We do not believe any of the bitcoin we own, acquire or mine are securities. As a result of our investments and cryptocurrency mining activities, it is possible that the investment securities we hold in the future could exceed applicable limits under the Investment Company Act, particularly if such SEC treatment of bitcoin changes, and, accordingly, we could determine that we have become an inadvertent investment company and do not qualify for any exemption from registration under the Investment Company Act. As of the date hereof, we do not believe that we are an inadvertent investment company. If we do become an inadvertent investment company in the future, we may take actions to cause the investment securities held by us to be less than 40% of our total assets, which may include acquiring assets with the cash or bitcoin on hand or liquidating investment securities or bitcoin or seeking a no-action letter from the SEC if we are unable to acquire sufficient assets or liquidate sufficient investment securities in a timely manner. Liquidating investment securities or bitcoin could result in losses. This may limit our ability to make certain investments or enter into joint ventures that could otherwise have a positive impact on our earnings. In any event, we do not intend to become an investment company engaged in the business of investing and trading securities.

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In general, as a consequence of our seeking to avoid the need to register under the Investment Company Act on an ongoing basis, we may be restricted from acquiring certain assets or may structure investments in a manner that would be less advantageous to us than would be the case in the absence of such requirements. No assurance can be given that the SEC or its staff will concur with our classification of our assets or that the SEC staff will not, in the future, issue further guidance that may require us to reclassify those assets for purposes of qualifying for an exclusion or exemption from registration under the Investment Company Act. Additional guidance from the SEC staff could provide additional flexibility to us, or it could further inhibit our ability to pursue the business strategies we have chosen. If the SEC or its staff take a position contrary to our view with respect to the characterization of any of the assets we hold, we may be deemed an unregistered investment company. Therefore, in order not to be required to register as an investment company, we may need to dispose of a significant portion of our assets or acquire significant other additional assets that may have lower returns than our expected portfolio, or we may need to modify our business plan to register as an investment company, which would result in significantly increased operating expenses. We cannot assure you that we would be able to complete these dispositions or acquisitions of assets on favorable terms, or at all. Consequently, any modification of our business plan could have a material adverse effect on our business, prospects, results of operations or financial condition.

There can be no assurance that we will be able to successfully avoid operating as an unregistered investment company. If the SEC determined that we were an unregistered investment company, there would be a risk that we would be subject to monetary penalties and injunctive relief in an action brought by the SEC, that we would potentially be unable to enforce contracts with third parties and that third parties could seek to obtain rescission of transactions undertaken during the period for which it was established that we were an unregistered investment company. Any of these results could have a material adverse effect on our business, prospects, results of operations or financial condition.

Ultimately, classification as an investment company under the Investment Company Act requires registration with the SEC. If an investment company fails to register, it would have to stop doing almost all business, and its contracts would become voidable. Registration is time-consuming, expensive and restrictive and would require a restructuring of our operations, and we would be very constrained in the kind of business we could do as a registered investment company. Further, we would become subject to substantial regulation concerning management, operations, transactions with affiliated persons and portfolio composition, and would need to file reports under the Investment Company Act regime. The cost of such compliance would result in us incurring substantial additional expenses, and the failure to register if required could have a material adverse effect on our business, prospects, results of operations or financial condition. Furthermore, our classification as an investment company could adversely affect our ability to engage in future combinations, acquisitions or other transactions on a tax-free basis. Finally, there is no guarantee that we would be able to register under the Investment Company Act at such time or take such other actions as may be necessary to ensure our activities comply with applicable law, which could force the us to cease operations and liquidate.

***Since we will not be subject to the Investment Company Act, we will not be subject to its substantive provisions, including but not limited to, provisions requiring diversification of investments, limiting leverage and restricting investments in illiquid assets.***

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We are not registered, and do not intend to register, as an investment company under the Investment Company Act or the similar laws of any other country or jurisdiction and, accordingly, the provisions of the Investment Company Act will not be applicable to us. These provisions require investment companies to have a majority of disinterested directors, require securities held in custody to be individually segregated at all times from the securities of any other person and to be clearly marked to identify such securities as the property of such investment company and regulate the relationship between the advisor and the investment company.

***Blockchain technology may expose us to sanctioned or blocked persons or may result in unintentional or inadvertent violations of trade compliance and economic sanctions laws and regulations.***

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We are subject to economic and trade sanctions laws and regulations, including the rules enforced by the Office of Foreign Assets Control of the U.S. Department of the Treasury ("OFAC"), the U.S. Department of State, the United Nations Security Council, the U.S. Department of Commerce, and other relevant sanctions and export controls authorities. These rules and regulations include prohibitions on conducting direct or indirect business with persons named on, or owned by persons named on, OFAC's various sanctions lists, including the Specially Designated Nationals and Blocked Persons list. We are also prohibited from direct or indirect dealings with persons located in, organized in, or nationals of, jurisdictions subject to U.S. embargos (as of the date of this prospectus, Cuba, Iran, North Korea, the so-called Donetsk People's Republic, the so-called Luhansk People's Republic, and the Crimea region of Ukraine), and may be prohibited from dealing with persons in other jurisdictions subject to targeted U.S. sanctions such as Venezuela, Russia, and Belarus.

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U.S. sanctions compliance obligations apply to transactions in cryptocurrencies and U.S. sanctions authorities have in recent years directed significant attention to sanctions compliance among the cryptocurrency industry. Because of the pseudonymous nature of blockchain transactions, we may inadvertently and without knowledge, directly or indirectly engage in transactions with or for the benefit of prohibited persons. The mining pools to which we contribute power do not screen transactions for sanctioned persons or wallets before including them in a block, and we do not have visibility into the transactions selected by the pool operator for inclusion. Although no regulator has affirmatively stated that such screening is required, OFAC or another regulator may take the view that such screening is required in order to avoid dealing with or facilitating transactions by sanctioned persons. Civil liability for OFAC sanctions violations are typically regarded as "strict liability" violations, meaning we may be held responsible for transacting with prohibited parties even if we have no knowledge that a particular counterparty is a prohibited person under the OFAC sanctions regulations. In addition, we may be subject to non-U.S. economic sanctions laws and regulations to the extent we conduct activity within the jurisdiction of other sanctions regimes, including those of the European Union and United Kingdom. Screening transactions for sanctions concerns may increase the compliance costs associated with the operation of a mining pool, which costs would likely be passed on to the miners themselves by the pool operator.

Although we currently have a Code of Conduct and Ethics that includes policies and procedures to promote compliance with economic sanctions, OFAC and other governmental authorities have significant discretion in the interpretation and enforcement of economic and trade sanctions laws and regulations. Moreover, economic and trade sanctions laws and regulations continue to evolve, often with little or no notice, which could raise operational or compliance challenges. If it is determined that we have transacted with prohibited persons or otherwise violated economic and trade sanctions laws and regulations, even inadvertently, this could result in substantial reputational harm, fines or penalties, and costs associated with governmental inquiries and investigations. Any or all of the foregoing could have a material adverse effect on our business, prospects, results of operations or financial condition. Despite our compliance efforts and activities we cannot assure compliance by our employees or representatives for which we may be held responsible, and any such violation could materially adversely affect our reputation, business, financial condition and results of operations.

 ***Bitcoin's and other cryptocurrencies' status as a "security" or other regulated financial instrument in any relevant jurisdiction is subject to a high degree of uncertainty and if we are unable to properly characterize a cryptocurrency, we may be subject to regulatory scrutiny, investigations, fines, and other penalties, which may adversely affect our business, prospects, results of operations or financial condition.***

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In the United States, the SEC and its staff have taken the position that certain cryptocurrencies fall within the definition of a "security" under the U.S. federal securities laws. The legal tests that are commonly employed for determining whether any given cryptocurrency is a security are established under U.S. Supreme Court case law and require a highly complex and heavily fact-driven analysis. The application of such tests is therefore highly uncertain and the SEC Staff has indicated that the determination of whether or not a cryptocurrency is a security depends on the specific characteristics and use of that particular asset. Moreover, the SEC and its staff generally do not provide advance guidance or confirmation on the status of any particular cryptocurrency as a security, although the SEC's Division of Corporation Finance has recently begun to provide informal guidance on its position regarding whether certain cryptocurrencies (like meme coins and stablecoins) and certain digital asset related activities implicate the offer or sale of a security. For example, the Division of Corporation Finance stated in its March 20, 2025, "Statement on Certain Proof-of-Work Mining Activities" that certain self-mining and mining pool activities, under the circumstances described in the statement, do not involve the offer and sale of securities within the meaning of Section 2(a)(1) of the Securities Act of 1933 and Section 3(a)(10) of the Securities Exchange Act of 1934. Some courts have found that certain cryptocurrencies are securities, while other courts have found that certain other cryptocurrencies under specified circumstances are not securities. Further, the SEC and its staff have taken positions that certain cryptocurrencies are "securities" — often in the context of enforcement actions.

We do not currently hold any cryptocurrencies for which the SEC or its staff has taken the position that such assets are securities and currently only intend to mine, invest in or transact in bitcoin. Prior public statements by senior officials at the SEC indicate that the SEC does not intend to take the position that bitcoin, on its own and in its current form, is a security. However, such statements are not official policy statements by the SEC and reflect only the speakers' personal views, which are not binding on the SEC or any other agency or court, and cannot be generalized to any other cryptocurrency and may evolve. Because we currently only intend to mine, invest in and transact in bitcoin, we do not have processes in place at this time to evaluate whether cryptocurrencies other than bitcoin are "securities" within the meaning of the U.S. federal securities laws. Any such processes, if developed in the future, would be risk-based assessments that do not constitute legal determinations binding on regulators or courts and would not preclude legal or regulatory action. While we believe our holdings are not securities, we cannot assure you that future legislation or regulation could not have a material adverse effect on our business, prospects, results of operations or financial condition.

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To the extent that the SEC, another relevant regulatory agency, court or foreign authority determines that any cryptocurrencies we hold, or choose to hold in the future, constitute a "security" or other form of regulated financial instrument, that determination could prevent us from continuing to hold or mine those cryptocurrencies or subject us to additional regulatory burdens in order to be permitted to do so, which could include costly or onerous registration or reporting requirements. Such a determination could also result in regulatory or enforcement sanctions, penalties and financial losses in the event we are unable to comply with, or are determined not to have previously complied with, relevant regulatory requirements or that we have incurred liability to our customers and need to compensate them for any losses or damages. For example, we could be subject to judicial or administrative sanctions for failing to offer or sell the cryptocurrency in compliance with securities registration requirements. Such an action could result in injunctions and cease and desist orders, as well as civil monetary penalties, fines, disgorgement, criminal liability, and reputational harm.

Moreover, as a result of any such determination, all transactions in such cryptocurrencies may have to be registered with the SEC or other relevant regulatory authority, or conducted in accordance with an exemption from registration, which could severely limit the liquidity, usability and transactability of the relevant cryptocurrencies. The networks on which such cryptocurrencies are used might be required to be regulated as securities intermediaries, and subject to applicable rules, which could effectively render the network impracticable for its existing purposes. Further, any determination that bitcoin is a security or another form of regulated financial instrument could draw negative publicity and cause a decline in the general acceptance of cryptocurrencies. Also, it would make it more difficult for bitcoin to be traded, cleared, and custodied as compared to other cryptocurrencies that are not considered to be securities. Lastly, any determination that a cryptocurrency we hold, or choose to hold in the future, is a "security" may require us to register as an investment company under the Investment Company Act.

 ***The nature of our business requires the application of complex financial accounting rules. Because there has been limited guidance provided and precedent set for financial accounting of bitcoin and other cryptocurrencies, the determination that we have made for how to account for cryptocurrencies transactions may be subject to change.***

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The accounting rules and regulations that we must comply with are complex and subject to interpretation by the Financial Accounting Standards Board ("FASB"), the SEC and various bodies formed to promulgate and interpret appropriate accounting principles. A change in these principles or interpretations could have a significant effect on our reported financial results and may even affect the reporting of transactions completed before the announcement or effectiveness of a change.

In December 2023, FASB issued Accounting Standards Update ("ASU") No. 2023-08, Intangibles — Goodwill and Other — Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets. Under the guidance, an entity is required to: measure cryptocurrencies at fair value with changes recognized in net income each reporting period, present cryptocurrencies and related fair value changes separately in the balance sheet and income statement and include various disclosures in interim and annual periods. The ASU is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2024, with early adoption permitted in any interim or annual period after the issuance of the ASU. The updated guidance is effective January 1, 2025, however, we have chosen to early adopt the amendments as of January 1, 2024.

Many companies' accounting policies are subject to heightened scrutiny by regulators and the public. Further, there has been limited precedents for the financial accounting of cryptocurrencies and related valuation and revenue recognition, and limited interpretative guidance has been provided by the FASB and no official guidance by the SEC. As such, there remains significant uncertainty on how companies can account for cryptocurrency transactions, cryptocurrencies, and related revenue.

Uncertainties in or changes to regulatory or financial accounting standards could result in the need to change our accounting methods and restate our financial statements and impair our ability to provide timely and accurate financial information. Such a restatement could adversely affect the accounting for our newly earned bitcoin and more generally negatively impact our business, prospects, financial condition and results of operations. Such circumstances would have a material adverse effect on our ability to continue as a going concern, which would have a material adverse effect on our business, prospects or results of operations as well as and potentially the value of any cryptocurrencies we hold or expect to acquire for our own account and harm investors.

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 ***Future developments regarding the treatment of cryptocurrencies for U.S. federal, state, local and foreign tax purposes could have a material adverse effect on our business, prospects, results of operations or financial condition.***

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Due to the new and evolving nature of cryptocurrencies and the absence of comprehensive legal guidance with respect to cryptocurrency products and transactions, many significant aspects of the U.S. federal, state, local and foreign tax treatment of transactions involving cryptocurrencies, such as bitcoin, are uncertain, and it is unclear what guidance may be issued in the future regarding the treatment of cryptocurrency transactions, including mining, for such tax purposes. Current U.S. Internal Revenue Service ("IRS") guidance indicates that cryptocurrencies such as bitcoin should be treated and taxed as property, and that transactions involving the payment of cryptocurrencies such as bitcoin for goods and services should be treated as barter transactions. This treatment creates the potential for the recognition of taxable income or gain (and potential information reporting obligations) whenever a bitcoin passes from one person to another (including in off-blockchain transactions).

There can be no assurance that the IRS or any other tax authority will not alter its existing position with respect to cryptocurrencies in the future or that a court would uphold the treatment of bitcoin or other cryptocurrencies as property, rather than currency. Any such alteration of existing U.S. federal, state, local, or foreign tax authority positions or additional guidance regarding cryptocurrency products and transactions could result in adverse tax consequences for holders of cryptocurrencies and could have an adverse effect on the value of cryptocurrencies and the broader cryptocurrencies markets. Future technological and operational developments that may arise with respect to cryptocurrencies may increase the uncertainty of the treatment of cryptocurrencies for U.S. federal, state, local and foreign tax purposes. The uncertainty regarding the tax treatment of cryptocurrency transactions, as well as the potential promulgation of new U.S. federal income, state or foreign tax laws or guidance relating to cryptocurrency transactions, or changes to existing laws or guidance, could have a material adverse effect on our business, prospects, results of operations or financial condition.

 ***Regulatory developments regarding cryptocurrencies and cryptocurrency markets could have a material adverse effect on our business, prospects, results of operations or financial condition.***

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Due to the new and evolving nature of cryptocurrencies, a number of governments or governmental bodies are contemplating legislative and regulatory changes with respect to the treatment of cryptocurrencies and transactions. For example, certain governments have deemed cryptocurrencies illegal or have curtailed the use of cryptocurrencies by prohibiting the acceptance of payment in bitcoin and other cryptocurrencies for consumer transactions and barring banking institutions from accepting deposits of cryptocurrencies. There is a risk that relevant authorities in any jurisdiction may impose more onerous regulation on bitcoin, for example banning its use, regulating its operation, or otherwise changing its regulatory treatment. It is also possible that regulators in the U.S. or foreign countries may interpret or apply existing laws and regulations in a manner that adversely affects the price of bitcoin or the ability of individuals or institutions such as us to own or transfer bitcoin. Any such changes may introduce a cost of compliance and could have a material adverse effect on our business, prospects, results of operations or financial condition.

In the U.S. in particular, the regulation of bitcoin and other cryptocurrencies remains the subject of significant uncertainty and ongoing change. For example, on July 18, 2025, President Trump signed into law the GENIUS Act, establishing a legislative framework for the regulation of payment stablecoins and marking the first federal legislation for the regulation of cryptocurrencies in the U.S. On July 17, 2025, the U.S. House of Representatives passed the Digital Asset Market Clarity Act of 2025 (the "CLARITY Act"), a comprehensive cryptocurrency market structure and regulation bill. The CLARITY Act, and other cryptocurrency market structure and regulation bills, remain under consideration and continue to evolve in the U.S. Senate. It is not possible to predict whether or when new laws and regulations will be enacted or adopted that change the legal framework governing cryptocurrencies or provide additional authorities to the SEC, the CFTC, or other regulators, or whether or when any other federal, state or foreign legislative or regulatory bodies will take any similar actions. It is also not possible to predict the nature of any such additional laws or authorities, how additional legislation or regulatory oversight might impact the ability of cryptocurrency markets to function, the willingness of financial and other institutions to continue to provide services to the cryptocurrencies industry, or how any new laws or regulations, or changes to existing laws or regulations, might impact the value of cryptocurrencies generally and bitcoin specifically. The consequences of any new law or regulation relating to cryptocurrencies and cryptocurrency activities could adversely affect the market price of bitcoin, as well as our ability to hold or transact in bitcoin, and in turn adversely affect the market price of our listed securities.

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***Our business may be subject to substantial energy regulation and may be adversely affected by legislative or regulatory changes, as well as liability under, or any future inability to comply with existing or future energy regulations or requirements. We are required to obtain, and to comply with, government permits and approvals.***

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Our business may be subject to extensive federal, state and local laws. Compliance with, or changes to, the requirements under these legal and regulatory regimes may cause us to incur significant additional costs or could have a material adverse effect on our business, prospects, results of operations or financial condition. Failure to comply with such requirements could result in the shutdown of a non-complying facility, the imposition of liens, fines, and/or civil or criminal liability and/or costly litigation before the agencies and/or in state or federal court.

The regulatory environment has undergone significant changes in the last several years due to state and federal policies affecting wholesale competition and the creation of incentives for the addition of large amounts of new renewable generation and, in some cases, transmission. These changes are ongoing, and we cannot predict the future design of the power markets or the ultimate effect that the changing regulatory environment will have on our business. If competitive restructuring of the electric power markets is reversed, discontinued, delayed or materially altered, our business, financial condition, results of operations and prospects could be negatively impacted.

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***We may become involved in legal proceedings from time to time, which could adversely affect us. We cannot predict the outcome of any legal proceedings with respect to our current and past business activities.***

From time to time, we may be a party to legal and regulatory proceedings, including matters involving governmental agencies or regulators, entities with whom we do business, actions by our stockholders and other proceedings, whether arising in the ordinary course of business or otherwise. We will evaluate our exposure to legal and regulatory proceedings and establish reserves, if required, for the estimated liabilities in accordance with generally accepted accounting principles. Assessing and predicting the outcome of these matters involves substantial uncertainties and contingencies. Such matters can be time-consuming, divert management's attention and resources, cause us to incur significant expenses or liabilities, or require us to change our business practices. In addition, the expenses and liabilities of litigation and other proceedings, and the timing of these expenses from period to period, are difficult to estimate, subject to change, and could adversely affect our business, financial condition and results of operations.

Responding to lawsuits brought against us and governmental inquiries or legal actions that we may initiate, can often be expensive and time-consuming and disruptive to normal business operations. Moreover, the results of complex legal proceedings and governmental inquiries could adversely affect our business, prospects, results of operations or financial condition, and we could incur substantial monetary liability and/or be required to change our business practices.

***We may be at a higher risk of litigation and other legal proceedings due to heightened regulatory scrutiny of the cryptocurrency industry, which could ultimately be resolved against us, requiring material future cash payments or charges, which could impair our financial condition and results of operations.***

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Our business may be susceptible to various claims, both in litigation and binding arbitration proceedings, legal proceedings, and government investigations, due to the heightened regulatory scrutiny following the disruptions in the cryptocurrency markets. We believe that since cryptocurrency mining, and the cryptocurrency industry generally, is a relatively new business sector, it is more likely subject to government investigation and regulatory determination, particularly following the recent cryptocurrency market participant bankruptcies described elsewhere herein. Any claims, regulatory proceedings or litigation that could arise in the course of our business could have a material adverse effect on our business, prospects, results of operations or financial condition.

***Regulatory and legislative developments related to environmental concerns may materially adversely affect our brand, reputation, business, prospects, results of operations and financial position.***

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Given the very significant amount of electrical power required to operate bitcoin mining machines, as well as the environmental impact of mining for the rare earth metals used in the production of bitcoin mining servers, the crypto mining industry may become a target for future environmental and energy regulation. Specifically, imposition of a tax or regulatory fee in a jurisdiction where we operate or on electricity that we purchase could result in substantially higher energy costs, and due to the significant amount of electrical power required to operate mining machines, could in turn put our facilities at a competitive disadvantage.

In addition, there continues to be a lack of consistent climate legislation, which creates economic and regulatory uncertainty for our business because the bitcoin mining industry, with its energy demand, may become a target for future environmental and energy regulation. Legislation and increased regulation regarding climate change and other environmental concerns could impose significant costs on us and our suppliers, including costs related to increased energy requirements, capital equipment, environmental monitoring and reporting, costs to purchase renewable energy credits or allowances and other costs to comply with such regulations. Any future environmental regulations could also negatively impact our ability to compete with companies situated in areas not subject to such limitations.

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Moreover, in the State of Texas, we currently participate in energy demand response programs to curtail operations, return capacity to the electrical grid, and receive funds to offset foregone operational revenue when necessary, such as in extreme weather events. Furthermore, we, as well as other bitcoin miners operating primarily in the State of Texas, have recently received a mandatory survey from the U.S. Energy Information Administration (the "EIA"), seeking extensive information regarding our Facilities' use of electricity, and certain information regarding our operations although such survey was successfully challenged in court and set aside. It is possible that mandatory surveys will be used by the EIA in the future to generate negative reports regarding the bitcoin mining industry's use of power and other resources, which could spur additional negative public sentiment and adverse legislative and regulatory action against us or the bitcoin mining industry as a whole. Surveys and other regulatory actions could increase our cost of operations or otherwise make it more difficult for us to operate at our current locations.

Given the political significance and uncertainty around the impact of climate change and how it should be addressed, we cannot predict how legislation and regulation will affect our financial condition, operating performance and ability to compete. Furthermore, even without such regulation, increased awareness and any adverse publicity in the global marketplace about potential impacts on climate change and the environment by us or other companies in the same industry could harm our reputation. Any of the foregoing could have a material adverse effect on our business, prospects, results of operations or financial condition.

 ***The cryptocurrencies exchanges on which bitcoin trades are relatively new and, in most cases, largely unregulated and have therefore experienced more fraud and failure compared to established, regulated exchanges for other assets. In the event that cryptocurrencies exchanges representing a substantial portion of the volume in bitcoin trading are involved in fraud or experience security failures or other operational issues, such cryptocurrencies exchanges' failures may result in a reduction in the price of bitcoin and can adversely affect us.***

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Cryptocurrencies exchanges on which bitcoin trades are new and, in most cases, largely unregulated. Furthermore, many cryptocurrencies exchanges (including several of the most prominent U.S. dollar denominated exchanges) do not provide the public with significant information regarding their ownership structure, management teams, corporate practices, or regulatory compliance. As a result, the marketplace may lose confidence in, or may experience problems relating to, cryptocurrency exchanges, including prominent exchanges handling a significant portion of the volume of bitcoin trading.

Some large cryptocurrency market participants have already experienced fraud and/or failure. The bankruptcies of FTX, and BlockFi were unexpected and significantly reduced confidence in the cryptocurrencies industry generally and bitcoin specifically. A lack of stability in the cryptocurrencies exchange market and the closure or temporary shutdown of bitcoin exchanges due to fraud, business failure, hackers or malware, or government-mandated regulation may reduce confidence in the Bitcoin network and result in greater volatility in bitcoin value. These potential consequences of a cryptocurrencies exchange's failure could have a material adverse effect on our business, prospects, results of operations or financial condition.

 ***The characteristics of cryptocurrencies have been, and may in the future continue to be, exploited to facilitate illegal activity including, but not limited to, fraud, money laundering, tax evasion and ransomware scams, which could negatively affect us.***

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Digital currencies and the cryptocurrency industry are relatively new and, in many cases, lightly regulated or largely unregulated. Some types of digital currency have characteristics, such as the speed with which digital currency transactions can be conducted, the ability to conduct transactions without the involvement of regulated intermediaries, the ability to engage in transactions across multiple jurisdictions, the irreversible nature of certain digital currency transactions and encryption technology that anonymizes these transactions, that make digital currency particularly susceptible to use in illegal activity including, but not limited to, fraud, money laundering, tax evasion and ransomware scams. Two prominent examples of marketplaces that accepted digital currency payments for illegal activities include Silk Road, an online marketplace on the dark web that, among other things, facilitated the sale of illegal drugs and forged legal documents using digital currencies, and AlphaBay, another darknet market that utilized digital currencies to hide the locations of its servers and identities of its users. Both of these marketplaces were investigated and closed by U.S. law enforcement authorities. U.S. regulators, including the SEC, CTFC, and Federal Trade Commission, as well as non-U.S. regulators, have taken legal action against persons alleged to be engaged in Ponzi schemes and other fraudulent schemes involving digital currencies. In addition, the FBI has noted the increasing use of digital currency in various ransomware scams.

While we believe that our risk management and compliance framework, which includes thorough due diligence reviews of our counterparties and reliance on qualified custodians subject to U.S. federal and state oversight, is reasonably designed to identify and mitigate potential illicit activity, we cannot ensure that we will be able to detect any such illegal activity in all instances. Our custodians maintain segregation of client entitlements and implement controls such as sanctions and anti-money laundering screening, blockchain-analytics monitoring of inbound transfers, address whitelisting and restricted lists, and protocols to quarantine unexpected or non-attributable deposits pending enhanced review. These safeguards are intended to reduce the risk that misdirected or illicit assets are commingled with our holdings. However, because the speed, irreversibility and anonymity of certain digital currency transactions make them more difficult to track, fraudulent transactions may be more likely to occur. We, or our custodians, may be specifically targeted by individuals seeking to conduct fraudulent transfers, and it may be difficult or impossible for us to detect and avoid such transactions in certain circumstances. If one of our counterparties (or in the case of digital currency exchanges, their customers) were to engage in or be accused of engaging in illegal activities using digital currency, we could be subject to various fines and sanctions, including limitations on our activities, which could also cause reputational damage and could have a material adverse effect on our business, prospects, results of operations or financial condition.

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***Regulatory actions in one or more countries could severely affect the right to acquire, own, hold, sell or use certain cryptocurrencies or to exchange them for fiat currency, or could be subject to additional regulatory costs and burdens, which may be material.***

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As cryptocurrencies have grown in both popularity and market size, governments around the world have reacted differently to cryptocurrencies; certain governments have deemed them illegal, and others have allowed their use and trade without restriction, while some jurisdictions, such as the United States, subject the mining, ownership and exchange of cryptocurrencies to extensive, and in some cases overlapping, unclear and evolving regulatory requirements.

It is possible that state or federal regulators may seek to impose harsh restrictions or total bans on bitcoin mining which may make it impossible for us to do business without relocating our mining operations, which could be very costly and time consuming. Further, although bitcoin and bitcoin mining, as well as cryptocurrencies generally, are largely unregulated in most countries (including the United States), regulators could undertake new or intensify regulatory actions that could severely restrict the right to mine, acquire, own, hold, sell, or use cryptocurrency or to exchange it for traditional fiat currency such as the United States Dollar.

In 2021, the Chinese government declared that all digital currency-related business activities are illegal, effectively banning mining and trading in cryptocurrencies, such as bitcoin. Other countries, such as India or Russia, may take similar regulatory actions in the future that could severely restrict the right to acquire, own, hold, sell or use cryptocurrencies or to exchange them for fiat currency. In some nations, it is illegal to accept payment in bitcoin and other cryptocurrencies for consumer transactions and banking institutions are barred from accepting deposits of cryptocurrencies. Such restrictions may adversely affect us as the large-scale use of cryptocurrencies as a means of exchange is presently confined to certain regions.

In January 2025, U.S. President Donald Trump issued an executive order forming a presidential working group to establish a clear regulatory framework for cryptocurrencies, and leaders in both houses of the U.S. Congress have announced a bicameral working group with the objective of passing legislation to provide regulatory clarity for the industry. Committees in both houses of the U.S. Congress have held hearings to ensure fair access to financial services, including for companies operating in the cryptocurrency space. Additionally, President Trump and members of the U.S. Congress announced that they are studying the possibility of creating a national strategic cryptocurrency reserve to include bitcoin, and at least twelve states have introduced legislation to create strategic bitcoin reserves.

Furthermore, in the future, foreign governments may decide to subsidize or in some other way support certain large-scale cryptocurrency mining projects, thus adding hashrate to the overall network. Such circumstances could have a material adverse effect on the amount of bitcoin we may be able to mine, the value of bitcoin and any other cryptocurrencies we may potentially acquire or hold in the future and, consequently could have a material adverse effect on our business, prospects, results of operations or financial condition.

***Changes in regulatory interpretations could require us to register as a money services business or money transmitter, leading to increased compliance costs or operational shutdowns.***

The Financial Crimes Enforcement Network, a division of the U.S. Treasury Department ("FinCEN") regulates providers of certain services with respect to "convertible virtual currency," including bitcoin. Businesses engaged in the transfer of convertible virtual currencies are subject to registration and licensure requirements at the U.S. federal level and also under U.S. state laws. While FinCEN has issued guidance that cryptocurrency mining on your own behalf, without engagement in other activities, does not require registration and licensure with FinCEN, this could be subject to change as FinCEN and other regulatory agencies continue their scrutiny of the Bitcoin network and cryptocurrencies generally.

If regulatory changes or interpretations require us to register as a money services business with FinCEN under the U.S. Bank Secrecy Act, or as a money transmitter under state laws, we may be subject to extensive regulatory requirements, resulting in significant compliance costs and operational burdens. In such a case, we may incur extraordinary expenses to meet these requirements or, alternatively, may determine that continued operations are not viable. Furthermore, we may not be capable of complying with certain federal or state regulatory obligations applicable to "money services businesses" and "money transmitters", such as monitoring transactions and blocking transactions, because of the nature of the bitcoin blockchain. If we are deemed to be subject to and determine not to comply with such additional regulatory and registration requirements, we may act to dissolve and liquidate. If we decide to cease certain operations in response to new regulatory obligations, such actions could occur at a time that is unfavorable to investors.

Multiple states have implemented or proposed regulatory frameworks for cryptocurrency businesses. Compliance with such state-specific regulations may increase costs or impact our business operations. Furthermore, if we or our service providers are unable to comply with evolving federal or state regulations, we may be forced to dissolve or liquidate certain operations, which could materially impact our investors.

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 ***Legislative or regulatory change regarding the regulation of "commodities" by the CFTC and the regulation of bitcoin and other cryptocurrencies as "digital commodities" could subject us to additional regulatory burdens and oversight and could adversely affect the market price of bitcoin and the market price of our listed securities.***

The CFTC has stated and judicial decisions involving CFTC enforcement actions have confirmed that at least some cryptocurrencies, including bitcoin, fall within the definition of a "commodity" under the U.S. Commodity Exchange Act of 1936 (the "CEA") and the rules promulgated by the CFTC thereunder ("CFTC Rules"). While the CFTC has enforcement authority to police against fraud and manipulation in spot commodity markets (including the spot market for cryptocurrencies, such as bitcoin, that are commodities), the CFTC only has regulatory and supervisory jurisdiction with respect to "commodity interest" transactions, such as futures, options, and swaps on a commodity (including a cryptocurrency commodity) and certain leveraged, margined, or financed transactions in commodities involving retail customers. Accordingly, we are not currently regulated or supervised by the CFTC and are not subject to the legal and regulatory obligations that are applicable to CFTC-registered entities under the CEA and CFTC Rules.

As discussed above, the regulation of cryptocurrencies in the U.S. remains uncertain and subject to change, including as a result of the enactment and adoption of new laws and regulations and the pursuit of other regulatory, legislative, enforcement or judicial actions. For example, the proposed CLARITY Act recently passed by the U.S. House of Representatives and other draft cryptocurrency market structure and regulation bills have proposed granting the CFTC additional regulatory and supervisory powers with respect to spot cryptocurrencies as "digital commodities." While it is not possible to predict whether and in what form such proposals will be adopted, changes to or expansion of the jurisdiction of the CFTC with respect to spot market activities in cryptocurrencies, including bitcoin, could result in the imposition of additional regulatory obligations and burdens, which could include registration requirements. Such additional regulatory burdens and oversight could adversely affect the market price of bitcoin and in turn adversely affect the market price of our listed securities.

***Due to lack of clarity of application of commodities laws to digital asset treasury strategies, we may be deemed to be a "commodity pool" under CEA and CFTC Rules as a result of our commodity interest trading which could have a material adverse effect on our business, financial condition and results of operations.***

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As a cryptocurrency mining company, our core business is the development and operation of digital infrastructure and the production of bitcoin through cryptocurrency mining. We employ a long-term bitcoin treasury strategy as part of our longer-term investment and growth plans. As our operating cash flows increase, we expect to maintain a larger portion of mined bitcoin in treasury and may, from time to time, utilize such holdings as collateral in certain risk-managed derivative hedging designed to mitigate liquidity and other potential impacts associated with bitcoin price volatility.

Based on the current framework of the CEA and CFTC Rules, we do not believe our mining activities or the holding of spot bitcoin in our corporate treasury would, on its own, cause us to be considered a "commodity pool". The CEA and CFTC Rules define a "commodity pool" as any investment trust, syndicate, or similar form of enterprise operated for the purpose of trading in "commodity interests," such as swaps, futures, and options on a commodity underlying (including a digital asset that constitutes a commodity). Although as described above we may engage in certain derivatives transactions, we do not believe that we are a "commodity pool" as such term is defined. Accordingly, (i) no person is registered with the CFTC as a commodity pool operator ("CPO") or a commodity trading adviser ("CTA") with respect to our Company; and (ii) our shareholders will not have the regulatory protections provided to investors in a commodity pool operated or advised by a registered CPO or CTA, as applicable.

However, we note that the legal and regulatory landscape is evolving with respect to digital assets, and there is uncertainty regarding how commodity laws may be applied to operating companies that maintain significant bitcoin treasuries or engage in incidental hedging or financing transactions referencing digital commodities. For example, the CFTC has previously interpreted "for the purpose of trading" in the "commodity pool" definition as being triggered where only one swap is executed. In addition, it is possible that if the CLARITY Act were to become law as currently proposed, our holdings of bitcoin could cause us to be deemed a "commodity pool" under the Commodity Exchange Act, which would require us and certain of our associated persons to register with the Commodities Exchange Commission and comply with ongoing regulatory requirements such as reporting and supervisory requirements.

If our Company were determined to be a "commodity pool" as a result of any future change in legislation, regulation, or interpretation, we may be subject to additional regulatory requirements which may be burdensome or costly or that could make it impractical or impossible for us to continue our business as currently contemplated. For example, a commodity pool must generally be operated as a separately cognizable entity from its CPO and any person acting as a CPO or CTA with respect to a commodity pool must be registered with the CFTC and a member of the National Futures Association ("NFA"). Absent an applicable exemption, a registered CPO or CTA must generally provide investors with a "disclosure document" in compliance with the CFTC Rules and the requirements of the NFA and must comply with a range of ongoing reporting and recordkeeping requirements on registered and certain exempt commodity pool operators. Registration can be time-consuming, expensive and restrictive, and compliance with these additional regulatory requirements could result in substantial, non-recurring expenses adversely affecting an investment in our securities. If we determine not to comply with such regulations, we may be forced to cease or modify certain of our operations, which could negatively impact our investors.

In light of the unsettled application of commodity laws to digital asset treasury practices, we continuously monitor regulatory developments and seek to structure any risk management activity in a manner we believe is consistent with our status as an operating company, rather than as an enterprise operated for the purpose of trading in commodity interests. Nevertheless, the lack of clarity in this area presents regulatory risk that could adversely affect us if interpretations evolve in a manner that differs from our expectations.

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***Any actual or perceived failure to comply with new or existing laws, regulations and other requirements relating to the privacy, security and processing of personal information could adversely affect our business, prospects, results of operations or financial condition.***

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In connection with running our business, we receive, store, use and otherwise process information that relates to individuals and/or constitutes "personal data," "personal information," "personally identifiable information," or similar terms under applicable data privacy laws (collectively, "Personal Information"), including from and about actual and prospective users, as well as our employees and business contacts. We are therefore subject to federal, state and foreign laws, regulations and other requirements relating to the privacy, security and handling of Personal Information.

The application and interpretation of such requirements are constantly evolving and are subject to change, creating a complex compliance environment. In some cases, these requirements may be either unclear in their interpretation and application or they may have inconsistent or conflicting requirements with each other. Further, there has been a substantial increase in legislative activity and regulatory focus on data privacy and security in the United States and elsewhere, including in relation to cybersecurity incidents. In addition, some such requirements place restrictions on our ability to process Personal Information across our business or across country borders.

It is possible that new laws, regulations and other requirements, or amendments to or changes in interpretations of existing laws, regulations and other requirements, may require us to incur significant costs, implement new processes, or change our handling of information and business operations, which could ultimately hinder our ability to grow our business by extracting value from our data assets. In addition, any failure or perceived failure by us to comply with laws, regulations and other requirements relating to the privacy, security and handling of information could result in legal claims or proceedings (including class actions), regulatory investigations or enforcement actions. We could incur significant costs in investigating and defending such claims and, if found liable, pay significant damages or fines or be required to make changes to our business. These proceedings and any subsequent adverse outcomes may subject us to significant negative publicity and an erosion of trust. If any of these events were to occur, our business, prospects, results of operations, and financial condition could be materially adversely affected.

**Risks Related to Ownership of Our Class A Common Stock**

 ***We have identified material weaknesses in our internal controls over financial reporting. If we fail to remedy these material weaknesses, we may not be able to accurately report our financial condition or results of operations in the future.***

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Prior to the completion of this registration statement, we have been a private company with limited accounting personnel to adequately execute our accounting processes and limited supervisory resources with which to address our internal control over financial reporting. In connection with the preparation of our financial statements for the years ended December 31, 2025 and December 31, 2024, management identified material weaknesses in the design and operating effectiveness of our internal controls over financial reporting. A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the annual or interim financial statements will not be prevented or detected on a timely basis.

In connection with the preparation of our financial statements as of December 31, 2025, management and its independent registered public accounting firm identified material weaknesses in internal controls: (1) lack of effective controls related to the accounting for mining revenue, bitcoin held, and the related gains and losses, (2) lack of effective IT controls over user access reviews, administrative access, segregation of duties, and change management in the our general ledger system; (3) lack of effective controls over the evaluation of goodwill impairment; and (4) lack of effective controls over the accounting for fixed assets held for use.

We have not identified any material misstatements to our financial statements resulting from the material weaknesses described above. Nevertheless, we recognize that each of the material weaknesses described above could result in misstatements to financial statement accounts and disclosures that could result in a material misstatement to the annual or interim consolidated financial statements that may not be prevented or detected on a timely basis.

We are in the process of implementing a plan to remediate the material weaknesses. Our remediation plan includes implementing additional policies, procedures and controls, all of which have and will continue to cause us to incur additional costs. When we are satisfied that the internal control over financial reporting associated with the material weaknesses has been effectively designed and operated within our Company for a sufficient period of time, we will determine if we have remediated our material weaknesses. We have not been required to provide a management assessment of internal control over financial reporting under the rules and regulations of the SEC regarding compliance with Section 404(a) of the Sarbanes-Oxley Act ("Section 404(a)"). It is possible that if we had a Section 404(a) assessment, additional material weaknesses may have been identified. Additionally, our registered independent public accounting firm has not been engaged to perform an audit of our internal control over financial reporting.

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In the future, it is possible that additional material weaknesses may be identified that we may be unable to remedy before the requisite deadline for those reports. Our ability to comply with the annual internal control over financial reporting requirements will depend on the effectiveness of our financial reporting and relevant information systems and controls across our Company. Any weaknesses or deficiencies or any failure to implement required new or improved controls, or difficulties encountered in the implementation or operation of these controls, could harm our results of operations and cause us to fail to meet our financial reporting obligations or result in material misstatements in our consolidated financial statements, which could adversely affect our business and reduce our stock price.

***If we fail to establish and maintain proper and effective internal control over financial reporting, our operating results and our ability to operate our business could be harmed.***

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We have identified material weaknesses in our financial reporting. If we fail to remedy these material weaknesses, experience additional material weaknesses in the future or otherwise fail to continue to design, implement and maintain effective internal control over financial reporting, we may not be able to accurately report our financial condition or results of operations which may adversely affect investor confidence in us and, as a result, the value of our Class A common stock.

As a result of becoming a public company, we will be required, under the rules and regulations of the SEC regarding compliance with Section 404 of the Sarbanes-Oxley Act ("Section 404"), to furnish a report by management on, among other things, the effectiveness of our internal control over financial reporting beginning with our second Annual Report on Form 10-K. This assessment will need to include disclosure of any material weaknesses identified by our management in our internal control over financial reporting.

To comply with the requirements of being a reporting company under the Exchange Act, including performing the evaluation needed to comply with Section 404, we will need to implement additional internal controls over financial reporting, including but not limited to controls over relevant information systems, and hire additional accounting and finance staff. This will require substantial additional professional fees and internal costs to expand our accounting and finance functions and significant management efforts. We have spent and expect to continue to spend significant time and resources designing, evaluating and testing our accounting procedures and internal controls. Prior to listing, we have never been required to test our internal control over financial reporting within a specified period. We may not be able to complete our evaluation, testing and any required remediation in a timely fashion. During the evaluation and testing process, if we identify one or more material weaknesses in our internal control over financial reporting, we will be unable to assert that our internal control over financial reporting is effective.

If we are unable to conclude that our internal control over financial reporting is effective, or if our independent registered public accounting firm determines we have a material weakness in our internal control over financial reporting, investors may lose confidence in the accuracy and completeness of our financial reports, the market price of our Class A common stock could decline, and we could be subject to sanctions or investigations by the SEC or other regulatory authorities. Failure to remedy any material weakness in our internal control over financial reporting, or to implement or maintain other effective control systems required of public companies, could also restrict our future access to capital markets.

 ***The registration and listing of our Class A common stock differ significantly from an underwritten initial public offering.***

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This listing is not an underwritten initial public offering of our Class A common stock. The registration and listing of our Class A common stock on Nasdaq differs from an underwritten initial public offering in several significant ways, which include the following:

● There are no underwriters. Consequently, prior to the opening of trading of our Class A common stock on Nasdaq, there will be no book building process and no price at which underwriters initially sell shares to the public to help inform efficient and sufficient price discovery with respect to opening trades on Nasdaq. Therefore, buy and sell orders submitted prior to and at the opening of trading of our Class A common stock on Nasdaq will not have the benefit of being informed by a published price range or a price at which the underwriters initially sell shares to the public, as would be the case in an underwritten initial public offering. We will not be involved in the price-setting process. Moreover, there will be no underwriters assuming risk in connection with resales of shares of our Class A common stock. Additionally, because there are no underwriters, there is no underwriters' option to purchase additional shares of our Class A common stock. In an underwritten initial public offering, the underwriters may engage in "covered" short sales in an amount of shares representing the underwriters' option to purchase additional shares. To close a covered short position, the underwriters purchase shares in the open market or exercise the underwriters' option to purchase additional shares. In determining the source of shares to close the covered short position, the underwriters typically consider, among other things, the price of shares available for purchase in the open market as compared to the price at which they may purchase shares through the underwriters' option to purchase additional shares. Purchases in the open market to cover short positions, as well as other purchases underwriters may undertake for their own accounts, may have the effect of preventing a decline in the market price of shares. Given that there will be no underwriters' option to purchase additional shares and no underwriters engaging in stabilizing transactions, there could be greater volatility in the public price of our Class A common stock during the period immediately following the listing.

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● There is not a fixed or determined number of shares of Class A common stock available for sale in connection with the registration and listing of the Class A common stock on Nasdaq. Therefore, there can be no assurance that any Registered Stockholders or other existing stockholders will sell any of their shares of Class A common stock and there may initially be a lack of supply of shares of Class A common stock on Nasdaq. Similarly, there can be no assurance that there will be any demand for our shares of Class A common stock from our Registered Stockholders or other existing stockholders who wish to sell once our shares of Class A common stock are registered and listed. Alternatively, we may have a large number of Registered Stockholders or other existing stockholders who choose to sell their shares of Class A common stock in the near term, which may be likely as all of the shares of Class A common stock held by our existing stockholders have, since issuance, been restricted from being sold, transferred, pledged or otherwise disposed of without written authorization from the Board until the later of effectiveness of a registration statement filed by us with the SEC under the Exchange Act or the listing of the Class A common stock on Nasdaq or another registered securities exchange, which could result in potential oversupply of our Class A common stock, which could materially and adversely impact the price of our Class A common stock.

● None of our Registered Stockholders or other existing stockholders have entered into contractual lock-up agreements or other contractual restrictions on transfer. In an underwritten initial public offering, it is customary for an issuer's officers, directors, and most or all of its other stockholders to enter into a 180-day contractual lock-up arrangement with the underwriters to help promote orderly trading immediately after such initial public offering. Consequently, any of our stockholders, including our directors and officers who own our Class A common stock and other significant stockholders, may sell any or all of their shares of Class A common stock, including immediately upon listing. If such sales were to occur in a significant volume in a short period of time, it may result in an oversupply of our Class A common stock in the market, which could materially and adversely impact the price of our common stock.

● We will not conduct a traditional "roadshow" with underwriters prior to the opening of trading of our Class A common stock on Nasdaq. There can be no guarantee that any investor day presentations, other investor education presentations, and other investor education meetings we may conduct will have the same impact on investor education as a traditional "roadshow" conducted in connection with an underwritten initial public offering. As a result, there may not be efficient or sufficient price discovery with respect to our Class A common stock or sufficient demand among potential investors immediately after our listing, which could result in a more volatile price of our Class A common stock.

● Since we are not conducting an underwritten initial public offering for our Class A common stock, the market price for our Class A common stock may be highly volatile and trading volume may be uncertain, which may adversely affect your ability to sell any shares of Class A common stock that you may purchase. Upon listing on Nasdaq, the public price of our Class A common stock may be more volatile than in an underwritten initial public offering and could decline significantly and rapidly.

● Because of the relatively novel listing process and the large stockholder base of our company, individual investors, retail, or otherwise, may have greater influence in setting the opening public price and subsequent public prices of our Class A common stock on Nasdaq and may participate more in our initial trading than is typical for an underwritten initial public offering. These factors could result in a public price of our Class A common stock that is higher than other investors (such as institutional investors) are willing to pay, which could cause volatility in the trading price of our Class A common stock and an unsustainable trading price if the price of our Class A common stock significantly rises upon listing and institutional investors believe our Class A common stock is worth less than retail investors, in which case the price of our Class A common stock may decline over time. Further, if the public price of our common stock is above the level that investors determine is reasonable for our Class A common stock, some investors may attempt to short our Class A common stock after trading begins, which would create additional downward pressure on the public price of our Class A common stock. Moreover, to the extent that there is a lack of consumer awareness among retail investors, such lack of consumer awareness could reduce the value of our Class A common stock and cause volatility in the trading price of our Class A common stock. These factors may be exacerbated by selling pressure from our existing stockholders as this listing process is the first opportunity any of our stockholders will have for liquidity in our shares of Class A common stock because the restrictions on transfer imposed in connection with the Plan as described under the heading "Description of Capital Stock—Common Stock—Transfer Restrictions" will expire.

***Market volatility may affect the value of an investment in our Class A common stock and could subject us to litigation.***

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In addition to the potential market volatility in connection with our initial listing described immediately above, technology stocks have historically experienced high levels of volatility. The price of our Class A common stock also could be subject to wide fluctuations in response to the risk factors described in this prospectus and others beyond our control, including:

● the number of shares of our Class A common stock publicly owned and available for trading;

● overall performance of the equity markets or publicly-listed financial services and technology companies;

● our actual or anticipated operating performance and the operating performance of our competitors;

● changes in the projected operational and financial results we provide to the public or our failure to meet those projections;

● failure of securities analysts to initiate or maintain coverage of us, changes in financial estimates by any securities analysts who follow our company, or our failure to meet the estimates or the expectations of investors;

● any major change in our Board of Directors, management, or key personnel;

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● if we issue additional shares of capital stock, including in the form of blockchain tokens, in connection with customer reward or loyalty programs;

● rumors and market speculation involving us or other companies in our industry;

● announcements by us or our competitors of significant innovations, new products, services, features, integrations or capabilities, acquisitions, strategic investments, partnerships, joint ventures, or capital commitments; and

● other events or factors, including those resulting from pandemics, war, incidents of terrorism, or responses to these events.

Furthermore, the stock market has recently experienced extreme price and volume fluctuations that have affected and continue to affect the market prices of equity securities of many companies and financial services and technology companies in particular. These fluctuations often have been unrelated or disproportionate to the operating performance of those companies. These broad market and industry fluctuations, as well as general economic, political and market conditions such as recessions, interest rate changes, or international currency fluctuations, may negatively impact the market price of our Class A common stock. These fluctuations may be even more pronounced in the trading market for our Class A common stock shortly following the listing of our Class A common stock on Nasdaq as a result of the supply and demand forces described above. If the market price of our Class A common stock after our listing does not exceed the opening public price, you may not realize any return on your investment in us and may lose some or all of your investment. In the past, companies that have experienced volatility in the market price of their stock have been subject to securities class action litigation. We may be the target of this type of litigation in the future. Securities litigation against us could result in substantial costs and divert our management's attention from other business concerns, which could harm our business.

***An active, liquid, and orderly market for our Class A common stock may not develop or be sustained. You may be unable to sell your shares of Class A common stock at or above the price you bought them for or for the value of the shares agreed upon by the creditors and debtors of the Celsius bankruptcy at the time the shares were issued.***

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We currently expect our Class A common stock to be listed and traded on Nasdaq. Prior to the listing of our Class A common stock on Nasdaq, there has been no public market for our Class A common stock and there have been no sales of shares of our Class A common stock in private transactions. Moreover, consistent with Regulation M and other federal securities laws applicable to our listing, we have not consulted with Registered Stockholders or other existing stockholders regarding their desire or plans to sell shares in the public market following the listing or discussed with potential investors their intentions to buy our Class A common stock in the open market. While our Class A common stock may be sold after our listing of the Class A common stock on Nasdaq by the Registered Stockholders pursuant to this prospectus or by our other existing stockholders, unlike an underwritten initial public offering, there can be no assurance that any Registered Stockholders or other existing stockholders will sell any of their shares of Class A common stock. As a result, there may initially be a lack of supply of, or demand for, Class A common stock on Nasdaq. In the case of a lack of supply of our Class A common stock, the trading price of our Class A common stock may rise to an unsustainable level. Further, institutional investors may be discouraged from purchasing our Class A common stock if they are unable to purchase a block of our Class A common stock in the open market due to a potential unwillingness of our existing stockholders to sell a sufficient amount of Class A common stock at the price offered by such institutional investors and the greater influence individual investors have in setting the trading price. If institutional investors are unable to purchase our Class A common stock, the market for our Class A common stock may be more volatile without the influence of long-term institutional investors holding significant amounts of our Class A common stock. Conversely, there can be no assurance that the Registered Stockholders and other existing stockholders will not sell all of their shares of Class A common stock, resulting in an oversupply of our Class A common stock on Nasdaq. As noted above, we may experience selling pressure from our existing stockholders as this listing process is the first opportunity any of our stockholders will have for liquidity in our shares of Class A common stock because the restrictions on transfer imposed in connection with the Plan as described under the heading "Description of Capital Stock—Common Stock—Transfer Restrictions" will expire and our stockholders are not subject to any contractual lock-ups. In the case of a lack of demand for our Class A common stock, the trading price of our Class A common stock could decline significantly and rapidly after the listing of our Class A common stock on Nasdaq. Therefore, an active, liquid, and orderly trading market for our Class A common stock may not initially develop or be sustained, which could significantly depress and result in significant volatility in the price of our Class A common stock. This could affect your ability to sell your shares of common stock.

***We are an emerging growth company and are able to take advantage of reduced disclosure requirements applicable to "emerging growth companies," which could make our shares of Class A common stock less attractive to investors.***

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We are an "emerging growth company" as defined in the JOBS Act. We will remain an emerging growth company until the earliest of (i) the last day of the fiscal year following the fifth anniversary of the date of this listing; (ii) the last day of the fiscal year in which we have total annual gross revenues of $1.235 billion or more; (iii) the date on which we have issued more than $1 billion in nonconvertible debt during the previous three years; or (iv) the date on which we are deemed to be a large accelerated filer under applicable SEC rules.

We expect that we will remain an emerging growth company for at least a couple of years but cannot retain our emerging growth company status indefinitely and will under current law no longer qualify as an emerging growth company no later than December 31, 2031. References herein to "emerging growth company" has the meaning associated with it in the JOBS Act.

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For so long as we remain an emerging growth company, we are permitted and intend to rely on exemptions from specified disclosure requirements that are applicable to other public companies that are not emerging growth companies. These exemptions include:

● being permitted to provide only two years of audited financial statements, in addition to any required unaudited interim financial statements, with correspondingly reduced "Management's Discussion and Analysis of Financial Condition and Results of Operations" disclosure;

● not being required to comply with the requirement of auditor attestation of our internal controls over financial reporting;

● not being required to comply with any requirement that may be adopted by the Public Company Accounting Oversight Board ("PCAOB") regarding mandatory audit firm rotation or supplement to the auditor's report providing additional information about the audit and the financial statements;

● reduced disclosure obligations regarding executive compensation; and

● not being required to hold a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously adopted.

For as long as we continue to be an emerging growth company, we expect that we will take advantage of the reduced disclosure obligations available to us as a result of that classification.

***We currently do not intend to pay dividends on our Class A common stock.***

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We do not anticipate that we will pay any cash dividends on shares of our Class A common stock for the foreseeable future. Any determination to pay dividends in the future will be at the discretion of our Board of Directors and will depend on results of operations, financial condition, contractual restrictions, restrictions imposed by applicable law and other factors our Board of Directors deems relevant.

***Our Amended and Restated Certificate of Incorporation designates the Court of Chancery of the State of Delaware as the exclusive forum for substantially all disputes between us and our stockholders, which could limit the ability of our stockholders to obtain a favorable judicial forum for disputes with us or our directors, officers, or employees.***

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Our amended and restated certificate of incorporation requires, to the fullest extent permitted by law, that unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware shall be the sole and exclusive forum for (a) any derivative action, suit or proceeding brought on behalf of the Company; (b) any action, suit or proceeding asserting a claim of breach of a fiduciary duty owed or allegedly owed by, or other wrongdoing by, any director, officer, stockholder, employee or agent of the Company to the Company or the Company's stockholders; (c) any action, suit or proceeding asserting a claim against the Company or any director, officer, stockholder, employee or agent of the Company arising pursuant to any provision of the DGCL, the amended and restated certificate of incorporation or the amended and restated bylaws or as to which the DGCL confers jurisdiction on the Court of Chancery of the State of Delaware; (d) any action, suit or proceeding to interpret, apply, enforce or determine the validity of the amended and restated certificate of incorporation or the amended and restated bylaws; (e) any action asserting a claim against the Company or any director, officer, stockholder, employee or agent of the Company governed by the internal affairs doctrine; or (f) any other action, suit or proceeding asserting an "internal corporate claim" as defined in Section 115 of the DGCL.

We note that there is uncertainty as to whether a court would enforce the provision and that investors cannot waive compliance with the federal securities laws and the rules and regulations thereunder. The provision may have the effect of discouraging lawsuits against our directors and officers.

This exclusive choice of forum provision in our amended and restated certificate of incorporation may limit a stockholder's ability to bring a claim in a judicial forum that the stockholder finds favorable for disputes with us or any of our directors, officers or other employees, or could result in increased costs for a stockholder to bring a claim, particularly if the stockholder does not reside in or near Delaware, both of which may discourage such lawsuits against us and our directors, officers and employees. There is uncertainty as to the enforceability of exclusive forum provisions with respect to certain matters arising under the federal securities laws, and if a court were to find these provisions of our amended and restated certificate of incorporation or amended and restated bylaws, as amended, inapplicable to, or unenforceable in respect of, one or more of the specified types of actions or proceedings, we may incur additional costs associated with resolving such matters in other jurisdictions, which could have a material adverse effect on our business, prospects, results of operations or financial condition. The exclusive forum provision in our amended and restated certificate of incorporation is limited to the extent permitted by law.

***If securities or industry analysts do not publish research or reports or publish unfavorable research or reports about our business, our stock price and trading volume could decline.***

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The trading market for our Class A common stock will depend in part on the research and reports that securities or industry analysts publish about us, our business, our market or our competitors. We may not obtain research coverage by securities and industry analysts. If no securities or industry analysts commence coverage of our company, the trading price for our stock could be negatively impacted. In the event we obtain securities or industry analyst coverage, if one or more of the analysts who covers us publishes unfavorable research or reports or downgrades our stock, our stock price would likely decline. If one or more of these analysts ceases to cover us or fails to regularly publish reports on us, interest in our stock could decrease, which could cause our stock price or trading volume to decline.

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**MARKET AND INDUSTRY DATA**

This prospectus includes estimates regarding market and industry data, which are based on publicly available information, industry publications and surveys, reports from government agencies, reports by market research firms or other independent sources and our own estimates based on our management's knowledge of and experience in the market sectors in which we compete.

In presenting this information, we have made certain assumptions that we believe to be reasonable based on such data and other similar sources and on our knowledge of, and our experience to date in, the markets in which we operate. While we believe the estimated market and industry data included in this prospectus is generally reliable, such information is inherently uncertain and imprecise. Market and industry data is subject to change and may be limited by the availability of raw data, the voluntary nature of the data gathering process and other limitations inherent in any statistical survey of such data. In addition, projections, assumptions and estimates of the future performance of the markets in which we operate are necessarily subject to uncertainty and risk due to a variety of factors, including those described in "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements." These and other factors could cause results to differ materially from those expressed in the estimates made by third parties and by us. Accordingly, you are cautioned not to place undue reliance on such market and industry data or any other such estimates.

Certain monetary amounts, percentages and other figures included in this prospectus have been subject to rounding adjustments. Accordingly, figures shown as totals in certain tables or charts may not be the arithmetic aggregation of the figures that precede them, and figures expressed as percentages in the text may not total 100% or, as applicable, when aggregated may not be the arithmetic aggregation of the percentages that precede them.

**TRADEMARKS AND TRADE NAMES**

This prospectus includes our trademarks and trade names, such as Ionic Digital, which are protected under applicable intellectual property laws and are our property. Solely for convenience, trademarks, service marks and trade names referred to in this prospectus may appear without the <sup>®</sup>,™, or SM symbols, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights or the right of the applicable licensor to these trademarks, service marks and trade names. This prospectus may also contain trademarks, service marks, trade names and copyrights of other companies, which are the property of their respective owners. We do not intend our use or display of other parties' trademarks, trade names or service marks to imply, and such use or display should not be construed to imply, a relationship with, or endorsement or sponsorship of us by, these other parties.

**USE OF PROCEEDS**

Registered Stockholders may elect to sell shares of our Class A common stock covered by this prospectus. All shares held by the Registered Stockholders may be freely sold upon effectiveness of this Registration Statement. To the extent any Registered Stockholder chooses to sell shares of our Class A common stock covered by this prospectus, we will not receive any proceeds from any such sales of our Class A common stock.

**DIVIDEND POLICY**

We currently intend to retain all available funds and any future earnings to fund the development and growth of our business, and therefore we do not anticipate paying any cash dividends in the foreseeable future.

Future cash dividends, if any, will be at the discretion of our Board, subject to applicable law, and will depend upon, among other things, our future operations and earnings, capital requirements and surplus, general financial condition, contractual restrictions and other factors the Board may deem relevant.

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**CAPITALIZATION**

The following table sets forth our cash and cash equivalents and capitalization as of December 31, 2025. For additional information, you should read the information set forth below together with our consolidated financial statements and the related notes contained elsewhere in this prospectus and the section titled "Management's Discussion and Analysis of Financial Condition and Results of Operations."

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| | |
|:---|:---|
| | **Successor** |
| <br> *($ in thousands)* | **As of <br> December 31,<br> 2025** |
|  **Cash and cash equivalents** | $43510 |
|  **Long-term debt** | $- |
|  **Stockholders' equity:** |  |
| &nbsp;&nbsp;&nbsp; Preferred stock, $0.00001 par value, 15,000,000 shares authorized, none issued and outstanding |  |
| &nbsp;&nbsp;&nbsp; Class A common stock, $0.00001 par value, 1,000,000,000 shares authorized, 37,374,261 shares issued and outstanding |  |
| &nbsp;&nbsp;&nbsp; Additional paid-in capital | 750985 |
| &nbsp;&nbsp;&nbsp; Accumulated deficit | (207578) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total stockholders' equity | $543407 |
|  **Total capitalization** | $543407 |

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**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

 

*The following discussion and analysis of our financial condition and results of operations should be read together with our audited consolidated financial statements and notes as of December 31, 2025 (Successor) and December 31, 2024 (Successor) and for the year ended December 31, 2025 (Successor), the eleven months ended December 31, 2024 (Successor) and one month ended January 31, 2024 (Predecessor) appearing elsewhere in this prospectus. Some of the information contained in this discussion and analysis or set forth elsewhere in this prospectus, including information with respect to the Company's plans and strategy for its business, includes forward-looking statements that involve risks and uncertainties. As a result of many factors, including those factors set forth in the "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" sections of this prospectus, our actual results could differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis. Certain amounts may not foot due to rounding.*

 

*In this section, references to "Ionic Digital" or the "Successor," refer to Ionic Digital Inc., the Company that acquired substantially all of the assets and assumed certain liabilities from Celsius Mining LLC (the "Predecessor" or "Celsius Mining") following the Chapter 11 bankruptcy filing of Celsius Network LLC and certain of its subsidiaries and affiliates, including the Predecessor (the "Debtors"). References to the "Company," "we," "us" and "our" refer to Ionic Digital for periods on or after January 31, 2024.*

**Overview**

We are a digital infrastructure solutions and cryptocurrency mining company. We began as a pure-play cryptocurrency mining company when we were formed in January 2024 to acquire all of the cryptocurrency mining assets of Celsius Mining. From our inception, our core objective has been to monetize our portfolio of powered digital infrastructure assets. Historically, we have monetized these assets by efficiently mining bitcoin. More recently, we have sought to achieve this objective by primarily leasing our digital infrastructure assets to hyperscalers, enterprise customers and other businesses for high-performance computing ("HPC") and artificial intelligence ("AI") cloud infrastructure.

Although we began as a pure-play bitcoin mining operator, we have successfully demonstrated our ability to convert and optimize our infrastructure, including transitioning our Ward County property for use as an HPC/AI data center. Entry into the Nscale Agreement is the culmination of a process we began in early 2025 to identify a strong counterparty and develop an attractive contract structure to better monetize our Ward County site. We believe our agreement with Nscale represents a transformative transaction, significantly increasing the value of our company and accelerating our strategy to build a diversified digital infrastructure solutions platform with the flexibility to monetize our sites across data centers and other digital infrastructure applications, as market conditions evolve. Our strong balance sheet also gives us the ability to better monetize sites currently mining bitcoin, expand into other markets, and develop additional powered shell data centers. The combination of an existing cryptocurrency mining business, and the Nscale Agreement, provides us with a steady income stream that includes predictable, high-margin cash flows. We believe that those strengths, together with a strong balance sheet, should position us well as an emerging innovator at the intersection of energy, bitcoin mining, and advanced computing infrastructure.

In October 2025, we announced our inaugural participation in the HPC/AI sector with a 126-month "triple net" lease with Nscale Ward County LLC (together, with its affiliates, "Nscale"), a global hyperscaler engineered for sovereign-grade AI infrastructure at our Ward County property in West Texas. In February 2026, we amended the lease. We refer to the lease, as amended, as the "Nscale Agreement." Our Ward County property has a current energy capacity of 234 MW. We received our first payment under the Nscale Agreement in November 2025, and monthly fixed lease payments will commence in August 2026. Payments under the lease represent total contracted revenues of approximately $1.95 billion.

We are seeking to expand the energy capacity at the Ward County property to 700 MW, which we believe would advance the monetization of our owned powered digital infrastructure assets. In addition to the 234 MW currently leased to Nscale, the Nscale Agreement contractually obligates Nscale will lease an additional 89 MW of capacity, when such capacity becomes available, at the same price per MW as the current 234 MW. We expect the Ward County property to energize the additional 89 MW by the second quarter of 2027. We cannot guarantee that the power generation at our Ward County property will be expanded as currently contemplated and there is no penalty under the Nscale Agreement if we are unable to provide Nscale with the additional 89 MW of capacity. The expanded power capacity under the Nscale Agreement is subject to regulatory approval. At the current capacity of 234 MW and the increased capacity of 89 MW, our capital expenditures are currently expected to be approximately $40 million. At the fully expanded capacity of 700 MW, our total capital expenditures are currently expected to be approximately $64 million. We plan to fund these capital expenditures with cash on hand as well as with sales of our bitcoin held in treasury, as needed. We have granted Nscale a right of first refusal on additional capacity at the Ward County property, and we may also provide the expanded energy capacity to other AI, enterprise, or cloud infrastructure companies, or use that power capacity for our own cryptocurrency mining operations.

Our cryptocurrency mining operation utilizes specialized computers, also known as "miners," which use ASIC chips to solve complex cryptographic algorithms to support the bitcoin blockchain in a process known as "solving a block." In exchange for solving the cryptographic problem required to create a new block on the bitcoin blockchain we receive block rewards, or compensation paid in bitcoin that is programmed into the bitcoin software and awarded to a miner, or a group of miners. Block rewards are fixed and the Bitcoin network is designed to reduce them periodically, approximately every four years, through halving. Most recently, in April 2024, the block reward was reduced from 6.25 to 3.125 bitcoin. The next halving event, which will reduce the block reward to 1.5625 bitcoin, is estimated to occur in April 2028.

Bitcoin miners also collect transaction fees for certain transactions they confirm. Miners validate unconfirmed transactions by adding the previously unconfirmed transactions to new blocks in the blockchain. Miners are not forced to confirm any specific transaction, but they are economically incentivized to confirm valid transactions as a means of collecting fees. Miners have historically accepted relatively low transaction fees, but transaction fees vary and it is difficult to predict what transaction fees will be in the future. Bitcoin miners also collect transaction fees for certain transactions they confirm.

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We contribute our computing power, or hashrate, to a third-party mining pool in exchange for a proportionate share of the block rewards and transaction fees earned by the mining pool.

As of December 31, 2025, we have 112 MW available at our self-mining sites and 60 MW of energy capacity at a hosted site for which the contract was terminated during the first quarter of 2026. We acquired 15,000 refurbished miners during 2025 and, as of December 31, 2025, we owned approximately 125,100 miners with an aggregate hashrate capacity of approximately 12.6 EH/s. As of the date of this prospectus, none of our miners serve as collateral in any financing arrangement.

During the year ended December 31, 2025, we mined 1,331.0 bitcoin, net of mining pool participation fees of 6.1 bitcoin and revenue share paid to our hosting partners of 6.4 bitcoin, an average of 3.6 net bitcoin mined per day. During the same period, we sold 1,009 bitcoin at an average price of $100,547, generating aggregate gross proceeds of $101.5 million.

During the eleven months ended December 31, 2024, we mined 1,988.3 bitcoin, net of mining pool participation fees of 3.2 bitcoin and revenue share paid to our hosting partners of 87.2 bitcoin, an average of 5.9 net bitcoin mined per day. During the same period, we sold 150.2 bitcoin at an average price of $67,340, generating aggregate gross proceeds of $10.1 million.

As of December 31, 2025, we held a total of 2,719 bitcoin in treasury.

During the year ended December 31, 2025, our mining operations earned 1,337 bitcoin net of mining pool participation fees, equating to $135.6 million in cryptocurrency mining revenue. Costs of mining revenues primarily consist of energy and facilities management costs at our self-mining sites as we reduced our reliance on our hosted mining sites, thereby reducing hosting fees. Operating costs for the year ended December 31, 2025 were driven by (a) impairment losses on long-lived assets resulting from the declining market conditions during the fourth quarter 2025; (b) impairment loss on goodwill allocated to the cryptocurrency mining business segment; (c) changes in the fair value of our cryptocurrency held in treasury, offset by the realized gain on sales of cryptocurrency made to fund operations during the period; and (d) depreciation expenses, which increased from the eleven months ended December 31, 2024 as the fourth building at Ward Country was energized for cryptocurrency mining and began depreciating in January 2025.

During the eleven months ended December 31, 2024, our mining operations earned 2,075 bitcoin net of mining pool participation fees as we worked to bring our miners online throughout that period, equating to $138.4 million in cryptocurrency mining revenue. Costs of revenue were driven by hosting fees at our three hosted sites, as well as three of the four buildings at our Ward County facility being energized for purposes of cryptocurrency mining. Operating costs for the eleven months ended December 31, 2024 were driven by depreciation expense, offset by a gain in the fair value of our bitcoin held in treasury.

Our financial performance from cryptocurrency mining during the eleven months ended December 31, 2024 reflects a critical foundation-building phase that has set the groundwork for future growth, marked by execution of the Company's strategic transition from hosted sites to a self-mining operation through investment in our operating sites in West Texas, including Ward County. Now, during the year ended December 31, 2025, we are diversifying our revenue streams into other digital infrastructure solutions serving the HPC/AI sector. See "Business—Properties— Ward County." We took on no debt to accomplish these strategic initiatives.

Our future financial operating strategy includes mining and holding bitcoin on our balance sheet, subject to opportunistically liquidating our bitcoin holdings to maintain prudent minimum cash to meet our cash flow requirements. The Company believes this bitcoin treasury strategy provides the greatest opportunity to maximize returns through appreciation in value and long-term growth prospects. We anticipate using the liquidity and appreciated value from our operating activities in excess of working capital requirements to explore future potential opportunities to invest in new digital infrastructure solutions, acquire more efficient miners, develop additional data center sites, and/or pursue other growth-oriented strategic opportunities.

 **Trends and Key Factors Affecting Performance<sup>2</sup>**

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***Ability to Access Power Capacity***

Increases in Bitcoin network hashrate drive greater demand for additional miners. Additional miners require additional power capacity that can be difficult to source at cost-effective prices or within locations that are favorable to bitcoin mining. We aim to continue to leverage our existing relationships and develop new relationships within the energy industry to secure low-cost power capacity.

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***Energy Costs***

Energy costs are the most significant driver of the profitability of our mining business as well as digital infrastructure solutions and can be highly volatile. Network difficulty heavily impacts the amount of energy utilized to earn a bitcoin. We manage our cost of electricity through participation in various demand response programs, power purchase agreements, and curtailment of miners when electricity prices make it unprofitable to mine bitcoin. The Predecessor entered into energy derivatives contracts, which expired in May 2024, and we may do so in the future as well. Geopolitical and macroeconomic factors, such as overseas military or economic conflict between states, can adversely affect electricity costs by raising the cost of power generation inputs such as natural gas. Other events out of our control can also impact electricity costs and availability. In certain power markets, financial hedging can be employed to protect buyers from the financial impact of significant increases in power prices.

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Electricity costs may be adversely affected by macroeconomic or geopolitical events. For example, Russia's invasion of Ukraine in February 2022 exerted pressure on the global energy market, particularly Europe's natural gas supply. Higher liquid natural gas import needs in Europe previously resulted in increased volatility and worldwide supply tensions. The conflict added further pressure to supply chain disruptions and likely supported rising inflation through higher commodity prices. The U.S. experienced elevated electricity pricing possibly due to this conflict, although we have no, and do not intend to have any, direct operations in Russia or Ukraine. The current conflict in Iran has also affected global energy and transportation markets, in particular, the volatility of oil prices due to attacks on infrastructure and blockages of the Strait of Hormuz.

Our energy costs at our self-mining sites totaled $53.6 million for the year ended December 31, 2025 (Successor), compared to $29.1 million for the eleven months ended December 31, 2024 (Successor), and $2.5 million for the one month ended January 31, 2024 (Predecessor). The increase in energy costs was due to an increase in the number of miners that were hashing throughout the year. Of the miners acquired from the Predecessor on January 31, 2024, approximately 27,200 miners were deployed and actively hashing at our self-mining sites at that time, which had a capacity of approximately 87 MW. After the final building at the Ward County facility came online in January 2025, and prior to the decommissioning of the Ward County facility, we had total energy capacity of approximately 321 MW at our self-mining sites. As a result of the decommissioning of the self-mining at Ward County facility during the fourth quarter of 2025, the usable capacity at our self-mining sites was reduced to approximately 87 MW deployed for cryptocurrency mining operations.

During all periods, we also utilized hosting service providers, for which energy costs are included within the total hosting fees. Both energy costs and hosting fees are reported as Costs of mining revenues, exclusive of depreciation in the Consolidated Statements of Operations.

 ***Bitcoin Market Price***

Our business is heavily dependent on the price of bitcoin. The prices of cryptocurrency assets, including bitcoin, have historically experienced substantial volatility. Changes in the market price of bitcoin may have little or no correlation to identifiable market forces and may be subject to rapidly changing investor sentiment. Bitcoin may be valued based on various factors, including its acceptance as a means of exchange by consumers and producers, scarcity, market demand and media reporting.

 ***Halving***

Changes to the quantity of bitcoin rewarded per block could directly impact our operating results. The Bitcoin network is subject to periodic scheduled changes in the quantity of bitcoin rewarded per block, known as the halving ("Halving"). Most recently, on April 19, 2024, the block reward was reduced from 6.25 to 3.125 bitcoin. The next Halving event, which will reduce the block reward to 1.5625 bitcoin per block, is estimated to occur in April 2028. This Halving process will repeat until the total amount of bitcoin rewards issued reaches 21 million and the supply of new bitcoin is exhausted, which is presently expected to occur around 2140. Potential future Halving will decrease the amount of bitcoin rewards that we will receive for the block solved, and there is no guarantee the price of bitcoin will adjust accordingly.

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 ***Network Difficulty***

Additional mining machines deployed onto the Bitcoin network by any participant increase the network hashrate. Increased network hashrate reduces the time spent mining new blocks. To keep the time interval between new blocks fixed at approximately 10 minutes, the Bitcoin network adjusts its "network difficulty" every 2,016 blocks (or roughly every two weeks) such that more hashes are needed to mine a new block. Difficulty is often denoted as the relative difficulty with respect to the genesis block, which requires approximately 2^32 hashes. Changes in network difficulty can adversely affect our mining revenue and margins going forward if the amount of hash time to mine a new block is increased.

 ***Ability to Source Additional Miners***

Our mining business will be directly impacted by our ability to increase our hashrate and our resulting share of network rewards. Our ability to increase our hashrate depends on purchasing or renting additional miners which are competitive, at cost-effective prices and lead times.

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 ***Ability to Access Capital Markets***

Bitcoin mining is highly capital intensive. Our ability to scale infrastructure and expand our fleet of miners may depend on our ability to access the capital markets.

 ***Demand for Digital Infrastructure Solutions***

The planned growth of our digital infrastructure solutions business, through increased investment in HPC/AI infrastructure over the next several years, should gradually reduce our overall exposure to volatility in the spot price of bitcoin as digital infrastructure solutions begins to account for a larger percentage of our financial results. The digital infrastructure solutions business is characterized by implementation of long-term contracts with customers spanning several years and terms and conditions resulting in stable, predictable revenue and cash flows over the contract period.

 ***Our Competition and Customers***

Digital asset mining is increasingly dominated by large-scale industrial operators and, in some cases, sovereign nation-states with substantial resources. Competition spans hardware procurement, capital access, low-cost power, and high-power site development. While sector-wide transparency remains limited, available data indicates that network hashrate has continued to rise as both new entrants and existing competitors deploy additional capacity. We believe our mining fleet and low-cost power portfolio position us competitively as the industry matures.

In addition to factors underlying our mining business growth and profitability, the success of our digital infrastructure solutions business greatly depends on our ability to retain and develop opportunities with our existing customer, to secure additional infrastructure, and to attract new customers. In our digital infrastructure solutions business, we compete with data center REITs, developers, hyperscalers, and other bitcoin miners with facilities suitable for HPC workloads, primarily for high-power sites and the capital to develop them. We believe our operational track record and development expertise position us to effectively capture the strong and growing demand for high-power data center capacity.

***Cost to Earn One Bitcoin***

Our profitability in bitcoin mining was, and will continue to be, heavily dependent upon our cost to earn one bitcoin, which we calculate as Cost of mining revenues, exclusive of depreciation as reported in the Consolidated Statement of Operations, divided by the number of bitcoin earned in the period. Management believes that the cost to earn a bitcoin is a key indicator of gross profitability.

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The following table provides details regarding the productivity and related costs at our self-mining facilities during the periods presented:

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| | | | |
|:---|:---|:---|:---|
| | **Successor** | **Successor** | **Predecessor<br> (Debtor-in- Possession)** |
| <br> ***($ in thousands, other than Cost per kWh)*** | **Year Ended<br> December 31, <br> 2025** | **Eleven<br> Months<br> Ended<br> December 31, <br> 2024** | **One Month<br> Ended<br> January 31,<br> 2024** |
| **Metrics: Self-Mining Sites** | | | |
|  Active miners at self-mining facilities<sup>(1)</sup> | 24900 | 81700 | 27200 |
|  Total kWhs utilized | 1475467917 | 801330632 | 54753694 |
|  Total bitcoin mined at self-mining facilities<sup>(2)</sup> | 1028.8 | 977.4 | 148.2 |
|  Cryptocurrency mining revenue earned at self-mining facilities<sup>(2)</sup> | $104917 | $67335 | $6370 |
|  Total energy costs | $53563 | $29103 | $2517 |
|  Other direct costs of mining | $9290 | $10225 | $460 |
|  Cost per kWh | $0.036 | $0.036 | $0.046 |
|  Energy costs as percentage of cryptocurrency mining revenue, net | 51.1% | 43.2% | 39.5% |

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(1) "Active miners" represents the approximate total number
of miners hashing at our self-mining facilities during the final month of the periods presented. Data for the Predecessor is approximated
based on available records and performance data, which may originate from sources different than those currently employed by Ionic Digital.

(2) Total bitcoin mined is net of mining pool participation fees paid in
bitcoin.

Energy costs are the most significant component of our cost to earn one bitcoin at self-mining sites and are primarily driven by the number of miners deployed, miner uptime, and the underlying price of electricity. At our self-mining sites, energy costs incurred represented 51.1% of cryptocurrency mining revenue earned at those sites during the year ended December 31, 2025 (Successor), compared with 43.2% during the eleven months ended December 31, 2024 (Successor), and 39.5% during the one month ended January 31, 2024 (Predecessor). The average energy cost across our self-mining locations was $0.036 per kilowatt-hour ("kWh") during the year ended December 31, 2025 (Successor), compared with $0.036 per kWh during the eleven months ended December 31, 2024 (Successor) and $0.046 per kWh during the one month ended January 31, 2024 (Predecessor), respectively.

The Company and its Predecessor also had bitcoin mining operations at hosted facilities during the periods presented. The Successor terminated the hosting agreement with USMIO Alpha LLC, a wholly-owned subsidiary of Hut 8, in November 2024, and terminated its hosting agreement with EZ Blockchain in May 2025. As of December 31, 2025, the Company's only remaining hosted bitcoin operations are with GXD in Oklahoma, the contract for which was terminated in the first quarter of 2026. The table below summarizes operating statistics for our hosted bitcoin mining sites during the periods presented.

---

| | | | |
|:---|:---|:---|:---|
| | **Successor** | **Successor** | **Predecessor<br> (Debtor-in- Possession)** |
| <br> ***($ in thousands, other than Cost per kWh)*** | **Year Ended<br> December 31, <br> 2025** | **Eleven<br> Months<br> Ended<br> December 31, <br> 2024** | **One Month<br> Ended<br> January 31,<br> 2024** |
| **Metrics: Hosted Mining Sites** | | | |
|  Active miners at hosted facilities<sup>(1)</sup> | 15700 | 25000 | 38800 |
|  Total kWhs utilized | 429478818 | 805413331 | 80855175 |
|  Total bitcoin mined at hosted facilities<sup>(2)</sup> | 308.6 | 1098.1 | 209.7 |
|  Cryptocurrency mining revenue earned at hosted facilities | $30644 | $71093 | $9011 |
|  Total hosting and revenue share expense | $25123 | $51158 | $6691 |
|  Hosting fees per kWh | $0.058 | $0.064 | $0.083 |
|  Hosting and revenue share expense as percentage of cryptocurrency mining revenue, net | 82.0% | 72.0% | 74.3% |

---

(1) "Active miners" represents the total number of miners hashing at our hosted facilities
 during the final month of the periods presented. Data for the Predecessor is approximated based on
 available records and performance data, which may originate from different sources than those currently
 employed by Ionic Digital.

(2) Total bitcoin mined is net of mining pool participation fees paid in
bitcoin.

For our hosted locations, the largest component of direct costs of mining is the operating fees we pay to the hosting facility. As with our self-mining sites, energy costs are the largest component of the hosting fees. We also pay to each hosting partner a revenue share amount, whether in bitcoin or in U.S. dollars, which fluctuates based on our production of bitcoin at each respective facility. For the year ended December 31, 2025 (Successor), the hosting fees and revenue share expense was 82.0% of cryptocurrency mining revenues earned at our hosted sites. Hosting fees and revenue share expense combined were 72.0% of cryptocurrency mining revenues during the eleven months ended December 31, 2024 (Successor) and 74.3% of cryptocurrency mining revenue for the one month ended January 31, 2024 (Predecessor).

[**Table of Contents**](#C_001)

The table below describes the average cost to earn one bitcoin for the year ended December 31, 2025 (Successor), eleven months ended December 31, 2024 (Successor) and the one month ended January 31, 2024 (Predecessor) and the total energy usage and cost per each kWh utilized within both our self-mining and hosted facilities.

---

| | | | |
|:---|:---|:---|:---|
| | **Successor** | **Successor** | **Predecessor<br> (Debtor-in- Possession)** |
| <br> ***($ in whole numbers, other than cryptocurrency mining revenues)*** | **Year Ended <br> December 31,<br> 2025** | **Eleven<br> Months<br> Ended<br> December 31, <br> 2024** | **One Month<br> Ended<br> January 31,<br> 2024** |
| **Cryptocurrency mining revenues *($ in thousands)*** | $135561 | $138428 | $15381 |
| **Total bitcoin earned, net of pool participation fees** | 1337 | 2075 | 358 |
| **Cost of revenue per one bitcoin earned at self-mining sites:** |  |  |  |
| &nbsp;&nbsp;&nbsp; Cost of energy per one bitcoin earned | $52064 | $29777 | $16982 |
| &nbsp;&nbsp;&nbsp; Other direct costs of mining - non energy utilities per one bitcoin earned | 9030 | 10462 | 3104 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost to mine one bitcoin at self-mining sites | $61094 | $40239 | $20086 |
| **Cost of revenue per one bitcoin earned at hosted sites:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hosting and revenue share expense per one bitcoin | $81397 | $46587 | $31913 |
| **Total cost to earn one bitcoin** |  |  |  |
| &nbsp;&nbsp;&nbsp; Average cryptocurrency mining revenue per one bitcoin earned <sup>(1)</sup> | $101358 | $66697 | $42979 |
| &nbsp;&nbsp;&nbsp; Average cost to earn one bitcoin <sup>(2)</sup> | $65779 | $43597 | $27015 |
| &nbsp;&nbsp;&nbsp; Cost to earn one bitcoin as % of cryptocurrency mining revenue per bitcoin earned | 64.9% | 65.4% | 62.9% |

---

(1) Average revenue of each bitcoin mined is calculated as total cryptocurrency mining revenue, inclusive
 of self-mining and hosted facilities, divided by the total number of bitcoin earned during the respective periods. We use Coinbase
 Global, Inc. as the principal market for valuing bitcoin transactions, and measure our revenue earned based on the quoted spot price
 of bitcoin at 00:00:00 UTC on the date the bitcoin reward is earned.

(2) Average cost to earn one bitcoin is calculated as the Cost of mining revenues, exclusive of depreciation,
 divided by the total number of bitcoin mined during the respective period. This calculation excludes (a) the costs of financing
 as all miner purchases are paid in cash, and (b) the costs of leasing certain facilities which are immaterial to the overall costs.

The average cost to earn one bitcoin excludes depreciation expense, a non-cash expense that we do not consider in determining the economical feasibility of operating our mining equipment. Depreciation expense reflects historical expenditures in mining assets rather than providing a current or future indicator of cash flows. As a result, we exclude depreciation of past capital investments in our historical or forecasted breakeven analysis.

If depreciation costs of our mining equipment were considered, the average cost to earn one bitcoin would increase to $99,540 for the year ended December 31, 2025, compared with $59,021 for the eleven months ended December 31, 2024. If depreciation costs of the Predecessor's mining equipment were considered for the one month ended January 31, 2024, the average cost to earn one bitcoin would increase to $42,831.

**Key Operating and Financial Indicators**

In addition to our US GAAP financial results, we use Adjusted gross profit and Adjusted EBITDA, as well as the following key operating indicators to evaluate the business, identify trends and make strategic decisions.

[**Table of Contents**](#C_001)

The following table presents the Company's key operating indicators for the year ended December 31, 2025 (Successor), the eleven months ended December 31, 2024 (Successor), and the one month ended January 31, 2024 (Predecessor). While Net income (loss) is the primary financial measure that management uses to assess the Company's performance, we also assess performance using Adjusted Gross Profit and Adjusted EBITDA, two non-GAAP measures. For the definitions of Adjusted gross profit and Adjusted EBITDA and reconciliations to the Company's most directly comparable financial measures calculated and presented in accordance with GAAP, see "—Adjusted gross profit" and "—Adjusted EBITDA" below.

---

| | | | |
|:---|:---|:---|:---|
| | **Successor** | **Successor** | **Predecessor<br> (Debtor-in- Possession)** |
| <br> ***($ in thousands)*** | **Year Ended<br> December 31,<br> 2025** | **Eleven<br> Months<br> Ended<br> December 31, <br> 2024** | **One Month<br> Ended<br> January 31,<br> 2024** |
| Quantity of bitcoin earned | 1337 | 2075 | 358 |
| Net income (loss) | $(247723) | $40145 | $(10388) |
| Adjusted gross profit | $53400 | $47942 | $5713 |
| Adjusted EBITDA | $(11223) | $84960 | $1425 |

---

We also consider the following non-financial metrics in assessing the productivity and efficiency of our cryptocurrency mining operations:

---

| | | | |
|:---|:---|:---|:---|
|  | **Successor** | **Successor** | **Predecessor<br> (Debtor-in- Possession)<sup>(6)</sup>** |
|  | **As of<br> December 31, <br> 2025** | **As of<br> December 31,<br> 2024** | **As of<br> January 31,<br> 2024** |
| Total miners owned<sup>(1)</sup> | 125100 | 127200 | 127800 |
| Total hashrate (Eh/s)<sup>(2)</sup> | 12.6 | 12.7 | 12.7 |
| Active miners<sup>(3)</sup> | 40600 | 106700 | 65800 |
| Hashrate contributed (Eh/s)<sup>(4)</sup> | 2.9 | 9.3 | 6.0 |
| Network hashrate (Eh/s)<sup>(5)</sup> | 1048.5 | 778.5 | 521.3 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) "Total miners owned"
 represents an approximation of the entirety of our fleet of miners, including both miners deployed and miners in storage, during
 the final month of the periods presented.

&nbsp;&nbsp;&nbsp;&nbsp;(2) "Total hashrate"
 is the combined hashrate of all miners we owned during the final month of the periods presented, based on manufacturers' specifications.

(3) "Active Miners" represents the approximate total number of miners hashing at our self-mining and hosted facilities during the final month of the periods presented.

(4) "Hashrate contributed" reflects the average actual hashrate generated by our miners and contributed to a mining pool during the final month of the periods presented. Actual hashrate generated will often be less than manufacturers' specifications due to curtailment or maintenance downtime.

(5) "Network hashrate" is the total computational power of miners used globally in the Bitcoin network during the
 final month of the periods presented. Data sourced from CoinMetrics.io.

(6) Data for the Predecessor is approximated based on available records and performance data, which may originate from different sources than those currently employed by Ionic Digital.

***Hashrate***

We operate mining hardware, or "miners," which produce "hash" computations to attempt to solve a new block in the bitcoin blockchain. Hash computations are measured in "hashrate" or "hashes per second."

[**Table of Contents**](#C_001)

"Total hashrate" is the combined hashrate of all miners we owned during the final month of the periods presented based on miners' specifications, including both miners deployed and miners in storage. "Hashrate contributed" reflects the average actual hashrate generated by our miners and contributed to a mining pool during the final month of the periods presented. Actual hashrate generated will often be less due to curtailment or maintenance downtime.

"Network hashrate" is the total hashrate or computing power contributed to the Bitcoin network. Mining pools combine the hashrate for numerous miners across the industry to increase the chances of solving a block on the bitcoin blockchain. The greater the share of a mining pool's hashrate compared to the rest of the network, the greater the probability of success that the mining pool solves a new block and earns the bitcoin reward. We currently utilize a mining pool that pays us bitcoin rewards utilizing a Full-Pay-Per-Share payout model, where miners receive a fixed payout of block rewards and transaction fees based on the hashrate they contribute to the mining pool, regardless of whether the pool successfully mines a block. While the Network hashrate does not directly influence the success of our mining efforts (see "Business—Overview of Bitcoin and the Bitcoin Mining Industry—Hashrate and Difficulty") management considers it, relative to our total hashrate, a very strong indicator of the expected results of our mining efforts.

***Bitcoin earned***

Our management views total bitcoin earned as a key metric for our cryptocurrency mining business. Trends in total bitcoin earned were previously, and will continue to be, impacted by our ability to deploy additional miners, and by our ability to maintain high miner uptime and efficiency. Management monitors this metric over monthly and quarterly periods. Across all of our self-mining and hosted sites, we earned 1,337 bitcoin, 2,075 bitcoin, and 358 bitcoin, net of pool participation fees, during the year ended December 31, 2025, the eleven months ended December 31, 2024, and the one month ended January 31, 2024, respectively. These values represent the total bitcoin earned before hosting fees. Bitcoin earned each quarter is summarized in the table below.

---

| | | | |
|:---|:---|:---|:---|
| | <br> **Successor**  | <br> **Successor**  | **Predecessor<br> (Debtor-in- Possession)** |
| <br> **Quarter** | **Year Ended<br> December 31,<br> 2025** | **Eleven<br> Months<br> Ended<br> December 31, <br> 2024** | **One Month<br> Ended<br> January 31,<br> 2024** |
| First quarter | 440 | 640 | 358 |
| Second quarter | 380 | 610 |  |
| Third quarter | 325 | 374 |  |
| Fourth quarter | 192 | 451 | – |
| **Total** | **1337** | **2075** | **358** |

---

 ***Net income (loss) (Successor)***

For the year ended December 31, 2025, the Company recorded a net loss of $247.7 million. Cryptocurrency mining revenue comprised 95.9% of revenue earned during the year ended December 31, 2025 and was offset by numerous changes to operating factors as compared to the prior eleven months ended December 31, 2024 that are driving the net loss in 2025, including (a) a $24.3 million increase in depreciation expense resulting primarily from the energization of the final building at the Ward County facility in January 2025; (b) a decline in the fair value of bitcoin during the fourth quarter of 2025, which drove the $66.8 million loss on the fair value of bitcoin. This sustained downturn in the value of bitcoin during the fourth quarter of 2025 prompted management to evaluate the recoverability of its long-lived tangible and intangible assets as of December 31, 2025, which resulted in the recognition of an impairment loss of $150.3 million on the long-lived assets used in our mining operations, as well as a $68.2 million impairment of the goodwill allocated to our cryptocurrency mining segment. In addition, we recorded $10.2 million realized loss on the disposal of property and equipment resulting from the sale of mining equipment previously housed at our site hosted by EZB, assets acquired from Celsius Mining determined not to be usable in the Company's future operations, and scrap from the decommissioning of cryptocurrency mining activities at our Ward County facility. Offsetting these significant losses is an increase in the number of bitcoin sold to fund operations during the year ended December 31, 2025, which resulted in $47.4 million gains on the sale of cryptocurrency, a $41.9 million increase from the eleven months ended December 31, 2024.

In comparison, net income totaled $40.1 million for the eleven months ended December 31, 2024 and was comprised primarily of bitcoin earned through mining, offset by fees paid to hosting service providers, project management fees pursuant to the Mining MSA, and energy and labor costs at self-mining facilities. The significant increase in the fair value of bitcoin during the eleven months ended December 31, 2024 resulted in a $71.7 million unrealized gain on the fair value of bitcoin we held. We also realized a gain on our investments in available-for-sale debt securities during the period totaling $2.4 million. See "—Results of Operations" below for a discussion of the underlying drivers of net income (loss) for the year ended December 31, 2025 and the eleven months ended December 31, 2024.

[**Table of Contents**](#C_001)

 ****

 ***Net (loss) (Predecessor)***

For the one month ended January 31, 2024, the Predecessor recognized a net loss of $10.4 million, which consisted of $15.4 million of net bitcoin earned through mining, offset by $9.7 million costs of mining revenue, such as energy costs and hosting fees. The net loss for the period was primarily driven by $5.4 million in reorganization costs allocated from the former affiliate companies, as well as a $6.2 million depreciation expense and a $1.8 million loss on the write-off of miners lost in transit between facilities. See "—Results of Operations" below for a full discussion of the underlying drivers of net loss for the one month ended January 31, 2024.

 ***Adjusted gross profit***

Adjusted gross profit is a non-GAAP financial measure. We define Adjusted gross profit as gross profit exclusive of depreciation. We rely on Adjusted gross profit to evaluate our business, measure our performance, and make strategic decisions. It is used by our Chief Operating Decision Maker ("CODM") when making decisions regarding the allocation of resources to operating segments.

We believe that the presentation of this non-GAAP financial measure will provide useful information to investors and analysts in assessing the Company's financial performance by excluding non-cash depreciation expense which is representative of historical investments and which we do not believe is indicative of our current operating performance. Gross profit is the GAAP measure most directly comparable to Adjusted gross profit. Our non-GAAP financial measures should not be considered as an alternative to the most directly comparable GAAP financial measures. You are encouraged to evaluate each of these adjustments and the reasons our management considers them appropriate for supplemental analysis.

The following table provides a reconciliation of Gross Profit to Adjusted Gross Profit:

---

| | | | |
|:---|:---|:---|:---|
| | **Successor** | **Successor** | **Predecessor<br> (Debtor-in-<br> Possession)** |
| <br> ***($ in thousands)*** | **Year Ended<br> December 31,<br> 2025** | **Eleven<br> Months<br> Ended<br> December 31, <br> 2024** | **One Month<br> Ended<br> January 31,<br> 2024** |
| Revenue | $141398 | $138428 | $15381 |
| Cost of revenue, excluding depreciation | (87998) | (90486) | (9668) |
| Depreciation | (66702) | (42360) | (6216) |
| **Gross profit** | $**(13302)** | $**5582** | $**(503)** |
| Depreciation | 66702 | 42360 | 6216 |
| **Adjusted gross profit** | $**53400** | $**47942** | $**5713** |

---

***Adjusted EBITDA***

Adjusted EBITDA is a non-GAAP financial measure. We define Adjusted EBITDA as net income (loss) before interest, taxes, depreciation, and amortization, further adjusted by certain non-recurring or infrequent costs and income, including the unrealized gain or loss on energy derivatives and other investments, one-time gains or losses on certain litigation settlements, share-based compensation, impairment on intangible and long-lived assets, and other non-recurring costs incurred, as detailed in the table below. We rely on Adjusted EBITDA to evaluate our business, measure our performance, and make strategic decisions. Our management team uses Adjusted EBITDA to assess our financial performance because it allows us to compare our operating performance on a consistent basis across periods by removing the effects of our capital structure (such as varying levels of interest expense and income), asset base (such as depreciation) and other items (such as one-time costs) that impact the comparability of financial results from period to period. We present Adjusted EBITDA because we believe it provides useful information regarding the factors and trends affecting its business in addition to measures calculated under GAAP.

We believe that the presentation of this non-GAAP financial measure will provide useful information to investors and analysts in assessing the Company's historical financial performance and results of operations across reporting periods by excluding items we do not believe are indicative of its core operating performance. Net income (loss) is the GAAP measure most directly comparable to Adjusted EBITDA. Our non-GAAP financial measure should not be considered as an alternative to the most directly comparable GAAP financial measure. You are encouraged to evaluate each of these adjustments and the reasons our management considers them appropriate for supplemental analysis. In evaluating Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in such presentation. We may also incur unusual or non-recurring items in the future that may affect Adjusted EBITDA, and our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. There can be no assurance that we will not modify the presentation of Adjusted EBITDA in the future, and any such modification may be material. Adjusted EBITDA has important limitations as an analytical tool and you should not consider Adjusted EBITDA in isolation or as a substitute for analysis of the Predecessor's historical results as reported under GAAP. Adjusted EBITDA may be defined differently by other companies in our industry and our definition of this non-GAAP financial measure may not be comparable to similarly titled measures of other companies, thereby diminishing its utility.

[**Table of Contents**](#C_001)

The following table provides a reconciliation of Net income (loss) to Adjusted EBITDA:

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| | | | |
|:---|:---|:---|:---|
| | **Successor** | **Successor** | **Predecessor<br> (Debtor-in-<br> Possession)** |
| <br> ***($ in thousands)*** | **Year Ended<br> December 31,<br> 2025** | **Eleven Months<br> Ended<br> December 31, <br> 2024** | **One Month<br> Ended<br> January 31,<br> 2024** |
| **Net income (loss)** | $**(247723)** | $**40145** | $**(10388)** |
| &nbsp;&nbsp;&nbsp; Interest (income) expense | (1215) | (1885) |  |
| &nbsp;&nbsp;&nbsp; Provision (benefit) for income taxes | (66061) | 12305 | 22 |
| &nbsp;&nbsp;&nbsp; Depreciation | 66702 | 42360 | 6216 |
| &nbsp;&nbsp;&nbsp; Amortization | 21 | 15 |  |
| &nbsp;&nbsp;&nbsp; Share-based compensation expense<sup>(1)</sup> | 3500 | 1107 |  |
| &nbsp;&nbsp;&nbsp; Goodwill impairment | 68170 |  |  |
| &nbsp;&nbsp;&nbsp; Impairment of long-lived assets<sup>(2)</sup> | 150325 |  |  |
| &nbsp;&nbsp;&nbsp; Conversion of self-mining site:<sup>(3)</sup> |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Costs incurred to prepare site for leasing | 5916 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Realized loss on the disposal of property and equipment | 5713 |  |  |
| &nbsp;&nbsp;&nbsp; Realized gain on investments<sup>(4)</sup> |  | (2422) |  |
| &nbsp;&nbsp;&nbsp; (Gain) loss on litigation settlement<sup>(5)</sup> | 3429 | (6817) |  |
| &nbsp;&nbsp;&nbsp; Other one-time liability<sup>(6)</sup> |  | 152 |  |
| &nbsp;&nbsp;&nbsp; Unrealized (gain) loss on energy derivatives |  |  | 159 |
| &nbsp;&nbsp;&nbsp; Reorganization items, net | - | - | 5416 |
| **Adjusted EBITDA** | $**(11223)** | $**84960** | $**1425** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Share-based compensation during the year ended December
 31, 2025 relates to restricted stock units and performance restricted stock units issued to employees and board members. Share-based
 compensation during the eleven months ended December 31, 2024 reflects the discount the Hut 8 service provider received on its purchase
 of Class A common stock on January 31, 2024. See further details in Note 8 to the consolidated financial statements included
 elsewhere in this prospectus.

(2) Impairment of the property and equipment held for
 use in our cryptocurrency mining operations was triggered by the sustained decline in bitcoin market conditions during the fourth
 quarter of 2025. This is removed as a non-cash, unusual item that management does not expect to recur.

(3) Represents costs incurred to prepare the Ward County assets for transfer to the tenant under the Nscale Agreement, as well
 as the loss recognized as a result of disposals of property and equipment from the decommissioning of cryptocurrency mining assets
 at the Ward County facility.

(4) Gain recognized on treasury securities held to maturity.
 Management does not expect to have future investment holdings other than bitcoin; thus, this is removed as a one-time gain.

(5) Loss
 on litigation settlement during the year ended December 31, 2025 reflects a settlement to
 resolve shareholder actions. The gain on litigation settlement during the eleven months ended
 December 31, 2024 is resulting from the settlement of an agreement Ionic Digital assumed
 from its Predecessor in the asset acquisition on January 31, 2024. See further details in
 Note 18 to the consolidated financial statements included elsewhere in this prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;(6) This one-time liability represents an additional liability assumed by Ionic from its Predecessor arising from an ongoing contract
 dispute with Mawson Infrastructure Group, which is currently in arbitration. See further details in Note 17 to the consolidated financial
 statements included elsewhere in this prospectus.

**Results of Operations**

The results of operations in this section describe the results of the Company and its Predecessor, for the periods indicated herein. At the close of business on January 31, 2024, the Company acquired substantially all the assets and assumed certain liabilities of Celsius Mining. The Company accounted for the Business Combination in accordance with FASB ASC Topic 805, Business Combinations. Ionic Digital was determined to be the legal and accounting acquirer and Celsius Mining was deemed to be the accounting predecessor. The Business Combination was accounted for using the acquisition method of accounting and the Successor's financial statements reflect a new basis of accounting based on the fair value of the net assets acquired. As a result, the Company's financial information is separated into two distinct periods to indicate the different ownership and accounting bases between the periods presented: the year ended December 31, 2025 (Successor), the eleven months ended December 31, 2024 (Successor), and the one month ended January 31, 2024 (Predecessor), which is the period prior to consummation of the Business Combination.

 ****

[**Table of Contents**](#C_001)

***Comparison of the year ended December 31, 2025 (Successor), the eleven months ended December 31, 2024 (Successor) and the one month ended January 31, 2024 (Predecessor)***

The following tables summarize the Successor's results of operations for the year ended December 31, 2025, the eleven months ended December 31, 2024, and the Predecessor's results of operations for the one month ended January 31, 2024:

---

| | | | |
|:---|:---|:---|:---|
| | **Successor** | **Successor** | **Predecessor<br> (Debtor-in-Possession)** |
| <br> ***($ in thousands)*** | **Year Ended <br> December 31,<br> 2025** | **Eleven Months Ended <br> December 31,<br> 2024** | **One <br> Month Ended <br> January 31,<br> 2024** |
| Revenue: |  |  |  |
| &nbsp;&nbsp;&nbsp; Cryptocurrency mining | $135561 | $138428 | $15381 |
| &nbsp;&nbsp;&nbsp; Digital infrastructure solutions revenue | 5837 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total revenue** | $**141398** | $138428 | $15381 |
|  Costs and operating expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp; Cost of mining revenue, exclusive of depreciation | 87976 | 90486 | 9668 |
| &nbsp;&nbsp;&nbsp; Cost of digital infrastructure solutions revenue, exclusive of depreciation | 22 |  |  |
| &nbsp;&nbsp;&nbsp; Depreciation | 66702 | 42360 | 6216 |
| &nbsp;&nbsp;&nbsp; General and administrative expenses | 49026 | 40600 | 2633 |
| &nbsp;&nbsp;&nbsp; (Gain) loss on fair value of cryptocurrency assets | 66788 | (71744) | 150 |
| &nbsp;&nbsp;&nbsp; Realized gain on sale of cryptocurrency assets | (47404) | (5532) | (485) |
| &nbsp;&nbsp;&nbsp; (Gain) loss on disposal of property and equipment | 10160 | (325) | 1793 |
| &nbsp;&nbsp;&nbsp; Impairment of long-lived assets | 150325 |  |  |
| &nbsp;&nbsp;&nbsp; Goodwill impairment | 68170 |  |  |
| &nbsp;&nbsp;&nbsp; Other operating expenses, net | 999 | 1105 | 197 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 452764 | 96950 | 20172 |
|  **Operating income (loss)** | $**(311366)** | $**41478** | $**(4791)** |
|  Other income (expense): |  |  |  |
| &nbsp;&nbsp;&nbsp; Interest income | 1215 | 1885 |  |
| &nbsp;&nbsp;&nbsp; Realized loss on cryptocurrency derivatives | (204) |  |  |
| &nbsp;&nbsp;&nbsp; Unrealized loss on energy derivatives |  |  | (159) |
| &nbsp;&nbsp;&nbsp; Realized gain on investments |  | 2422 |  |
| &nbsp;&nbsp;&nbsp; Gain (loss) on litigation settlement | (3429) | 6817 |  |
| &nbsp;&nbsp;&nbsp; Other (expense) |  | (152) |  |
| &nbsp;&nbsp;&nbsp; Reorganization items, net | - | - | (5416) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other income (expense), net | (2418) | 10972 | (5575) |
|  Income (loss) before provision for income taxes | $(313784) | $52450 | $(10366) |
|  Provision (benefit) for income taxes | (66061) | 12305 | 22 |
|  **Net income (loss)** | $**(247723)** | $40145 | $(10388) |

---

***Revenue***

 

 *Cryptocurrency mining revenues*

Cryptocurrency mining revenue represents revenue earned from the mining of bitcoin. We participate in a third-party operated mining pool to which we provide the service of performing hash calculations, an output of our ordinary activities, in exchange for bitcoin. Our revenue is determined by the price of bitcoin, the hashrate generated by our miners, the block reward and transaction fee reward established by the Bitcoin network, and the network difficulty.

Cryptocurrency mining revenue for the year ended December 31, 2025 was $135.6 million compared to $138.4 million for the eleven months ended December 31, 2024. The $2.8 million, or 2%, decrease in cryptocurrency mining revenue was primarily attributable to the growth in network difficulty during 2025, which decreased the block rewards we were able to earn with our existing mining fleet. This growth in network difficulty was offset by higher bitcoin prices during much of 2025, as well as by increased mining capacity at our Ward County facility. During the eleven months ended December 31, 2024, we slowly ramped up bitcoin production with the energization of three out of four buildings at our Ward County facility, increasing the number of active miners at our self-mining facilities by approximately 62%. Expansion continued in January 2025 with the energization of the final building at Ward County, a level of activity that was maintained until November 2025 when we began decommissioning our cryptocurrency mining operations at Ward County to enable the strategic repurposing of the facility for our new digital infrastructure business. Total bitcoin mined, net of pool participation fees, was 1,337 and 2,075 for the year ended December 31, 2025 and the eleven months ended December 31, 2024, respectively, which primarily reflected the April 2024 bitcoin halving and the termination of two hosting agreements with Alpha and EZB within a six month timeframe. Our year over year bitcoin production was also negatively impacted by the 45% increase in average network difficulty from 88.7 T during the eleven months ended December 31, 2024 to 128.6 T during the year ended December 31, 2025.

The Predecessor mined 358 bitcoin during the one month ended January 31, 2024, which equated to $15.4 million cryptocurrency mining revenue in that period. This bitcoin was earned prior to the Halving event in April 2024, which cut the bitcoin block reward in half to 3.125 per block solved and contributed to the lower number of bitcoin mined by the Successor.

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The following table provides the key network and mining metrics impacting Cryptocurrency mining revenues, net during the periods presented:

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| | | | |
|:---|:---|:---|:---|
|  | **Successor** | **Successor** | **Predecessor<br> (Debtor-in-<br> Possession)** |
|  | **Year Ended<br> December 31,<br> 2025** | **Eleven<br> Months<br> Ended<br> December 31, <br> 2024** | **One Month<br> Ended<br> January 31,<br> 2024** |
| **Key Network & Mining Metrics** | | | |
| Company: |  |  |  |
| &nbsp;&nbsp;&nbsp; Cryptocurrency mining revenues *($ in thousands)* | $135561 | $138428 | $15381 |
| &nbsp;&nbsp;&nbsp; Average hashrate contributed (EH/s)<sup>(1)</sup> | 7.2 | 6.5 | 6.0 |
| &nbsp;&nbsp;&nbsp; Bitcoin mined, net of pool participation fees | 1337 | 2075 | 358 |
| &nbsp;&nbsp;&nbsp; Average market price of bitcoin<sup>(2)</sup> | $101614 | $67928 | $42911 |
| <u><u>Network:<sup>(3)</sup></u></u> |  |  |  |
| &nbsp;&nbsp;&nbsp; Average network difficulty (in trillions) | 128.6 | 88.7 | 72.0 |
| &nbsp;&nbsp;&nbsp; Weighted average reward per block | 3.1 | 3.9 | 6.3 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) "Average hashrate contributed" is calculated as the average daily hashrate our actively hashing miners in self-mining
 and hosted facilities contributed to our mining pool during the periods presented.

&nbsp;&nbsp;&nbsp;&nbsp;(2) "Average market price of bitcoin" is calculated as the average daily quoted spot price of bitcoin at 00:00:00
 UTC per Coinbase for the periods presented.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Network data is sourced from CoinMetrics.io.

 *Digital infrastructure leasing revenues*

Digital infrastructure leasing revenue consists of revenue earned from leasing arrangements at our owned digital infrastructure site. For the year ended December 31, 2025, we recognized $5.8 million of digital infrastructure leasing revenue, representing the recognition of revenue associated with the Nscale Agreement.

There was no comparable digital infrastructure leasing revenue for the eleven months ended December 31, 2024, as the Ward County site was operated exclusively as a bitcoin mining facility during that period. The commencement of digital infrastructure leasing revenue during 2025 represents an important shift in the Company's revenue mix toward contracted, long term, dollar denominated cash flows, consistent with our strategy of transitioning a portion of our infrastructure portfolio toward HPC/AI focused uses.

 ***Costs of revenues and operating expenses***

 

 *Cost of mining revenues, exclusive of depreciation*

Cost of mining revenues, exclusive of depreciation, consists primarily of energy and labor costs to operate our self-mining facilities and hosting fees to operate our hosted facilities. The following table details the components of Cost of mining revenue, exclusive of depreciation during the periods presented:

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| | | | |
|:---|:---|:---|:---|
| | **Successor** | **Successor** | **Predecessor<br> (Debtor-in-<br> Possession)** |
| <br> ***($ in thousands)*** | **Year Ended<br> December 31, 2025** | **Eleven<br> Months<br> Ended<br> December 31, <br> 2024** | **One Month<br> Ended<br> January 31,<br> 2024** |
| **Cost of mining revenue, exclusive of depreciation at self-mining sites:** | | | |
| &nbsp;&nbsp;&nbsp; Energy costs | $53563 | $29103 | $2517 |
| &nbsp;&nbsp;&nbsp; Other direct costs of mining, non-energy utilities | 9290 | 10225 | 460 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost of mining revenue at self-mining sites | $62853 | $39328 | $2977 |
| **Cost of mining revenue, exclusive of depreciation at hosted sites:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hosting and revenue share expense | $25123 | $51158 | $6691 |
| **Total Cost of mining revenue, exclusive of depreciation** | $**87976** | $**90486** | $**9668** |

---

For the year ended December 31, 2025, costs of mining revenues, exclusive of depreciation totaled $88.0 million compared with $90.5 million for the eleven months ended December 31, 2024. The cost of mining revenues, exclusive of depreciation, remained relatively consistent for the year ended December 31, 2025 as compared to the eleven months ended December 31, 2024. The $26.0 million reduction in hosting and revenue share expense, driven by the decommissioning of our hosted sites with USMIO Alpha LLC and EZB, was offset by a $24.5 million increase in energy costs at our self-mining sites due to the increased number of active miners during 2025 as compared with the prior period.

The Predecessor recognized $9.7 million in costs of mining revenue for the one month ended January 31, 2024, which is greater than an average month of costs of mining revenue during the year ended December 31, 2025 due to the mix of miners active at hosted sites versus self-mining sites during the one-month ended January 31, 2024.

Electricity costs, which are a component of both self-mining and hosting costs of mining revenues, were and remain the most significant direct bitcoin mining expenditure. The price of electricity has historically been and may continue to be volatile.

 

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 *Cost of digital infrastructure leasing revenues*

Cost of digital infrastructure leasing revenue represents the costs incurred to decommission cryptocurrency mining operations at Ward County in preparation for occupation by the tenant in accordance with the Nscale Agreement, as well as amortization of the initial direct costs of the lease contract and costs to maintain the facilities that are largely passed through to the customer. For the year ended December 31, 2025, the inaugural year of the contract, Cost of digital infrastructure leasing revenues was immaterial.

*Depreciation*

Depreciation expense for the year ended December 31, 2025 totaled $66.7 million, compared with $42.4 million for the eleven months ended December 31, 2024. The increase in depreciation expense of 57.5% for the year ended December 31, 2025 was primarily attributable to the cryptocurrency mining equipment at Ward County being placed in service during the entirety of 2025, rather than the partial year of depreciation expense reflected in the eleven months ended December 31, 2024 as assets were placed in service periodically as buildings were energized for bitcoin mining operations.

The Predecessor recognized $6.2 million for the one month ended January 31, 2024, which is primarily due to only one month of cost represented in the Predecessor period.

 

*General and administrative ("G&A") expenses*

G&A expenses consist of service fees, professional fees, insurance, payroll, storage expenses, and sales taxes. The following table details the components of General and administrative expenses during the periods presented:

---

| | | | |
|:---|:---|:---|:---|
| | **Successor** | **Successor** | **Predecessor<br> (Debtor-in-<br> Possession)** |
| <br> *($ in thousands)* | **Year Ended<br> December 31,<br> 2025** | **Eleven<br> Months<br> Ended<br> December 31,<br> 2024** | **One Month<br> Ended<br> January 31,<br> 2024** |
| **General and administrative expenses** |  |  |  |
| &nbsp;&nbsp;&nbsp; Mining MSA fees and other service compensation | $- | $10875 | $- |
| &nbsp;&nbsp;&nbsp; Professional fees | 21859 | 16375 | 62 |
| &nbsp;&nbsp;&nbsp; Insurance expense | 4277 | 3912 | 282 |
| &nbsp;&nbsp;&nbsp; Costs to prepare site for leasing | 5916 |  |  |
| &nbsp;&nbsp;&nbsp; Payroll, director compensation, and related expenses | 7705 | 4567 | 148 |
| &nbsp;&nbsp;&nbsp; Service fees from parent company |  |  | 1791 |
| &nbsp;&nbsp;&nbsp; Provision for credit losses | 5994 | 2445 |  |
| &nbsp;&nbsp;&nbsp; Other G&A expense<sup>(1)</sup> | 3275 | 2426 | 350 |
| &nbsp;&nbsp;&nbsp; **Total general and administrative expenses** | $**49026** | $**40600** | $**2633** |

---

&nbsp;&nbsp;&nbsp;&nbsp;**(1)** **The $3.3 million in Other G&A expense for the year ended December 31, 2025 consisted of $0.8 million in security expense, $0.7 million in technology expenses, and $1.8 million in other miscellaneous expenses. The $2.4 million in Other G&A expense for the eleven months ended December 31, 2024 consisted of $1.1 million in security expense and $1.3 million in other miscellaneous expenses.** 

G&A expenses of $49.0 million for the year ended December 31, 2025 represent an increase of 20.7% compared to $40.6 million for the eleven months ended December 31, 2024. The increase in G&A expenses is primarily attributable to higher professional fees, including $12.5 million legal fees and other advisory and compliance costs associated with preparing to operate as a public company. Increased personnel costs reflect the Company's investment in director and executive leadership to execute on our strategic plans. These increases were offset by $10.9 million in compensation paid to Hut 8 in connection with the Mining MSA.

The Predecessor recorded $2.6 million of G&A expenses for the one month ended January 31, 2024, with the difference to G&A expenses during the year ended December 31, 2025 being the higher professional fees incurred by Ionic Digital as it stood up as new entity and began operations.

(*Gain) loss on fair value of cryptocurrency*

We recorded a loss on the fair value of cryptocurrency for the year ended December 31, 2025 (Successor) totaling $66.8 million, compared with a $71.7 million gain on the fair value of cryptocurrency for the eleven months ended December 31, 2024 (Successor) and a $0.2 million loss during the one month ended January 31, 2024. This activity represents the change in fair value of bitcoin held by us between the time the bitcoin was mined and the fair value of bitcoin as of the respective period-end, and reflects the volatility in the price of a bitcoin, which declined from a closing price of $93,354 as of December 31, 2024 to a closing price of $87,498 as of December 31, 2025.

*Realized gain on sale of cryptocurrency assets*

The realized gain on sales of cryptocurrency assets for the year ended December 31, 2025 (Successor) totaled $47.4 million on the sale of 1,009.0 bitcoin at an average spot price of $100,547 per bitcoin. This activity compares with $5.5 million realized gain on the sale of 150.2 bitcoin during the eleven months ended December 31, 2024 (Successor) at an average spot price of $67,340.

During the one month ended January 31, 2024 (Predecessor), the realized gain on the sale of cryptocurrency of $0.5 million was primarily due to the single month of activity represented.

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(*Gain) loss on disposal of property and equipment*

The realized loss on disposal of property and equipment for the year ended December 31, 2025 totaled $10.2 million, compared with a realized gain of $0.3 million for the eleven months ended December 31, 2024 and a loss of $1.8 million in the one month ended January 31, 2024 (Predecessor). Of the loss recorded during 2025, $6.4 million related to mining equipment and other assets disposed as a result of decommissioning certain cryptocurrency mining sites, including assets previously located at the EZ Blockchain hosted facility as well as certain building and machinery and facilities equipment previously in service at the Ward County site that would no longer be required as we converted that site in accordance with the terms of the Nscale Agreement. We also recognized a loss of $3.8 million on the disposal of equipment we acquired from the Predecessor that was never placed in service by Ionic Digital.

 

*Impairment of long-lived assets*

 

Adverse changes in the economics of mining bitcoin in the fourth quarter of 2025, i.e., the sustained decline in bitcoin price without a corresponding decline in the global network hashrate difficulty, indicated the potential for impairment of the carrying value of the Company's mining-related long-lived assets. After considering our reduced capacity for cryptocurrency mining, the efficiency of our mining fleet, and the projected market conditions of bitcoin mining, we determined that the carrying value of the assets was unlikely to be recoverable. As such, for the year ended December 31, 2025, we recognized impairment losses totaling $150.3 million used in our cryptocurrency mining operations.

For the eleven months ended December 31, 2024, the Company determined that no long-lived assets were impaired. Likewise, the Predecessor determined that no long-lived assets were impaired during the one month ended January 31, 2024.

*Goodwill impairment*

 

Goodwill represents the cost of a business acquisition in excess of the fair value of the net assets acquired. In accordance with ASC 350, *Goodwill and Other Intangible Assets* ("ASC 350"), the Company reviews its goodwill for impairment annually or whenever events or circumstances indicate that the carrying amount of the asset exceeds its fair value and may not be recoverable.

On October 14, 2025, the Company executed a long-term agreement to repurpose the land, land improvements, buildings, and equipment at its Ward County facility and provide digital infrastructure solutions for the HPC and AI sectors. As a result of this change, diverging operational activities with unique economic characteristics, revenue sources, and cost structures emerged, resulting in two separate businesses: digital infrastructure solutions and cryptocurrency mining. Consequently, the Company determined the digital infrastructure solutions and cryptocurrency mining activities independently meet the definition of an operating segment, and each of the two operating segments contain a single reporting unit for the purpose of evaluating the goodwill. An assessment was performed to reassign the carrying value of goodwill as of October 14, 2025 to the reporting units using a relative fair value allocation approach. As a result, $161.8 million of goodwill was assigned to the digital infrastructure solutions reporting unit and $68.2 million of goodwill was assigned to the cryptocurrency mining reporting unit.

Due to adverse changes in bitcoin mining economics, including a rapid decline in the price of bitcoin coupled with the sustained competition among bitcoin miners despite the reduced block rewards, management determined that a quantitative impairment test was triggered for the cryptocurrency mining reporting unit as of December 31, 2025. Based on our projections of future cash flows, we concluded that the goodwill for our cryptocurrency mining reporting unit was fully impaired, and an impairment loss of $68.2 million was recognized for the year ended December 31, 2025. The fair value of the digital infrastructure solutions reporting unit exceeded its carrying value at December 31, 2025, and therefore no goodwill impairment was recognized on the goodwill assigned to that reporting unit.

There was no impairment of goodwill recognized during the eleven months ended December 31, 2024. Likewise, no impairment of goodwill was recognized by the Predecessor during the one month ended January 31, 2024.

 

 

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*Other income (expense), net*

Other income (expense) consists primarily of interest income, gains and losses related to litigation settlements, gains on investments, and realized and unrealized losses related to derivative contracts. Other income (expense) was $(2.4) million for the year ended December 31, 2025 compared to $11.0 million for the eleven months ended December 31, 2024, with the difference of $13.4 million primarily driven by non-recurring gains in the prior period on a litigation settlement and investments of $6.8 million and $2.4 million, respectively, and $3.4 million net loss on litigation settlement in the current year.

During the one month ended January 31, 2024 (Predecessor), other income (expense) totaled $(5.6) million and consisted of an unrealized loss on the Predecessor's energy derivative contract of $0.2 million and bankruptcy reorganization costs of $5.4 million.

 *Provision (benefit) for income taxes* 

For the year ended December 31, 2025 (Successor) we recorded a benefit for income taxes of $66.1 million, compared to a $12.3 million provision for the eleven months ended December 31, 2024 (Successor) and $22 thousand for the one month ended January 31, 2024 (Predecessor). Of the total benefit for the year ended December 31, 2025, $0.5 million represents current state income taxes, and $66.6 million represents deferred income tax benefit. The change in tax expense is primarily attributable to the recognition of deferred tax benefits arising from current net operating losses and book impairments of goodwill and long-lived assets during the year ended December 31, 2025, that are expected to result in future income tax deductions.

The effective income tax rate for the year ended December 31, 2025 was 21.1%, compared to an effective tax rate of 23.4% for the eleven months ended December 31, 2024. The year ended December 31, 2025 effective tax rate differed from the U.S. federal statutory rate of 21% primarily due to state taxes, stock issuance costs, and uncertain tax positions. See Note 16, "Income Taxes" to our consolidated financial statements included elsewhere in this prospectus for further information.

**Liquidity and Capital Resources**

We measure liquidity in terms of our ability to meet cash requirements, primarily for working capital needs, capital expenditures and general corporate purposes. On January 31, 2024, Ionic Digital acquired from Celsius Mining substantially all of its assets, including (a) the bitcoin mining assets; (b) approximately $29 million in prepaid capital investments related to Ward County; (c) $2 million in credits with manufacturers of miners, available until their expiration to purchase additional new or used miners from those vendors; and (d) approximately 540 bitcoin (valued on the Plan Effective Date at $23 million), as well as approximately $195 million in cash contributed by Celsius Network LLC (collectively, the "Acquired Assets"). No cash consideration was paid from Ionic Digital to Celsius Mining for the Acquired Assets. However, Ionic Digital issued 37 million shares of Class A common stock to the former approved creditors of Celsius Network LLC and certain of its subsidiaries and affiliates, including the Predecessor (the "Debtors").

As of December 31, 2025, Ionic Digital had on hand $43.5 million in cash and cash equivalents, and bitcoin valued at $237.9 million at that date. Our current obligations as of December 31, 2025 totaled $60.7 million and consisted primarily of trade payables, deferred revenue related to leasing the Ward County facility, and sales and property taxes. The Company had no debt as of December 31, 2025, and $0.9 million of non-current liabilities, primarily related to payables in dispute with the Predecessor's former hosting partner.

We anticipate having sufficient liquidity on hand for the next twelve months from revenue generated and the sale of accumulated bitcoin to fund operations, the estimated $40 million to $64 million in capital expenditures to upgrade the substation in Ward County, as well as to pursue strategic opportunities. Our ability to liquidate bitcoin earned at future values will be regularly evaluated to generate cash for operations.

Ionic Digital expects, from time to time, to sell a portion of the bitcoin we produce through our custodians' over-the-counter desks to fund operating expenses and capital expenditures. The timing and amount of such sales are determined by management in consultation with our Board of Directors, considering our cash position, anticipated liquidity requirements, market conditions, and the then-prevailing price of bitcoin. While we may sell bitcoin from time to time in the ordinary course of business, we continue to view bitcoin as a core strategic asset on our balance sheet. At this time, we do not expect to convert bitcoin to any other cryptocurrency. In addition, while our Board of Directors has approved certain parameters with regard to bitcoin hedging strategies, we are not currently engaged in any hedging transactions, however, we may deploy derivatives as part of hedging strategies intended to manage the value risk of bitcoin held, considering market liquidity and our treasury objectives.

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The risks to our liquidity outlook include events that materially diminish our access to capital markets and/or the value of our bitcoin holdings and production capabilities, including:

● Challenges in the bitcoin mining space and/or additional contagion events (such as the FTX collapse and subsequent bankruptcies of bitcoin mining companies in 2022 and 2023), which could damage the credibility of, and therefore investor confidence in, companies engaged in the cryptocurrency mining space (see "Risk Factors—Risks Related to the Bitcoin Industry—The further development and acceptance of cryptocurrencies including bitcoin, which represent a new and rapidly changing industry, are subject to a variety of factors that are difficult to evaluate. The slowing or stopping of the development or acceptance of cryptocurrencies may adversely affect an investment in us.").

● Declines in bitcoin prices and/or production, which would impact both the value of our bitcoin holdings and the ongoing profitability of our bitcoin mining operations;

● Significant increases in transaction fees for bitcoin liquidation at cryptocurrency exchanges;

● Significant increases in electricity costs if these cost increases are not accompanied by increases in the price of bitcoin, as this trend would also reduce the profitability of our bitcoin mining operations.

We incurred no debt during the year ended December 31, 2025 or the eleven months ended December 31, 2024, and we seek to optimize our balance sheet, operations, and liquidity position to meet our immediate cash flow requirements, and will evaluate leveraging opportunities to meet expansion opportunities over the next twelve months.

*Predecessor Bankruptcy Proceedings*

On the Petition Date, Celsius Network LLC and some of its affiliates, including Celsius Mining, each filed voluntary petitions (the "Chapter 11 Cases") in the United States Bankruptcy Court for the Southern District of New York (the "Bankruptcy Court") seeking relief under Chapter 11 of the United States code (the "Bankruptcy Code"). The Chapter 11 Cases were jointly administered under the caption In re Celsius Network LLC, et al., Case No. 22-10964. Celsius Mining was included in the Chapter 11 proceedings and continued to operate its business as a "debtor-in-possession" under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court through the closing of the transaction with Ionic Digital. As debtors-in-possession, certain Celsius debtors' activities were subject to review and approval by the Bankruptcy Court, including, among other things, the incurrence of secured indebtedness, material asset dispositions, and other transactions outside the ordinary course of business.

The Predecessor audited consolidated financial statements included herein also reflect the application of ASC 852, Reorganizations ("ASC 852"). ASC 852 requires that the financial statements, for periods subsequent to the Chapter 11 filing, distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the business. Accordingly, certain expenses, gains, and losses that are realized or incurred in the bankruptcy proceedings are recorded in Reorganization items, net on the Consolidated Statements of Operations.

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 **

***Cash Flows***

 

***Comparison of the year ended December 31, 2025, the eleven months ended December 31, 2024 and the one month ended January 31, 2024***

For the year ended December 31, 2025 and the eleven months ended December 31, 2024 we had a net decrease in cash and cash equivalents of $4.8 million and a net increase of $48.4 million, respectively. The following table summarizes our cash flow activity for the periods presented:

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| | | | |
|:---|:---|:---|:---|
|  | **Successor** | **Successor** | **Predecessor<br> (Debtor-in-<br> Possession)** |
|  ***($ in thousands)*** | **Year Ended<br> December 31,<br> 2025** | **Eleven <br> Months <br> Ended <br> December 31,<br> 2024** | **One <br> Month <br> Ended <br> January 31, <br> 2024** |
| Net cash used in operating activities | $(96525) | $(94647) | $(21244) |
| Net cash provided by (used in) investing activities | $91642 | $136662 | $(12405) |
| Net cash provided by financing activities | $- | $6378 | $- |
| &nbsp;&nbsp;&nbsp; Net increase (decrease) in cash and cash equivalents for the period | $(4883) | $48393 | $(33649) |

---

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***Operating Activities***

Net cash used in operating activities results from payments made to operate the mining business, particularly to hosting and energy providers, as well as tax payments, general and administrative expenses, and repairs and maintenance to mining equipment. These expenses are not offset by our revenues, as consideration from the mining pool operator is received in bitcoin rather than cash.

For the year ended December 31, 2025, the Company sold bitcoin held in treasury to fund its mining operations. The $96.5 million net cash used in operating activities during the year ended December 31, 2025 (Successor) represents net loss of $247.7 million adjusted for non-cash items including $135.6 million in cryptocurrency mining revenue received in bitcoin, $66.7 million in depreciation of our miners and other long-lived assets placed in service, a $66.8 million change in the fair value of bitcoin held in treasury, $47.4 million realized gain on bitcoin sold during the period, $10.2 million loss on the disposal of property and equipment, $6.0 million change in the provision for credit losses, $(66.6) million change in the deferred tax benefit, and $3.5 million in stock compensation expense. In addition, the impairment of our long-lived assets held and used was a non-cash item impacting the net loss in the amount of $150.3 million, along with an impairment of goodwill totaling $68.2 million. See "—Results of Operations" for further information about the modifications to our business strategy that are driving these non-cash impacts. Other material changes to our use of cash in operating activities during the year ended December 31, 2025 include a $7.8 million increase related to prepaid expenses and other current assets, and a $39.8 million decrease for lease payments on which revenue has been deferred.

For the eleven months ended December 31, 2024 (Successor), the Company utilized the cash balance acquired in its January 31, 2024 transaction to help fund the building of our Ward County self-mining site and support its existing mining operations. The $94.6 million net cash used in operating activities during the eleven months ended December 31, 2024 (Successor) represents net income of $40.1 million adjusted for non-cash items, including $138.4 million in cryptocurrency mining revenue received in bitcoin, $42.4 million for the depreciation of mining equipment and fixed assets placed in service at our self-mining sites, a $71.7 million change in the fair value of bitcoin held in treasury, $5.5 million realized gains on bitcoin sold during the period, and $12.0 million in deferred tax provision. Other material changes to our use of cash during the eleven months ended December 31, 2024 include a $10.4 million increase related to a reduction of prepaid expenses and other current assets, primarily related to our shift away from mining at hosted sites in favor of energizing our own self-mining facilities during 2024. In addition, we recorded a $12.2 million increase in accounts payable and other accrued liabilities primarily related to construction-in-progress at the Ward County facility, which was awaiting the final phase of energization for the mining operations at that site as of December 31, 2024.

During the one month ended January 31, 2024, the Predecessor's decrease in cash balance is primarily attributable to funding operations from its existing cash balance. The net cash used in operating activities of $21.2 million represents a net loss of $10.4 million, adjusted for non-cash items including $15.4 million cryptocurrency mining revenue received in bitcoin, $6.2 million depreciation of mining equipment, and a $1.8 million loss on the disposal of mining equipment. During the one month ended January 31, 2024, the Predecessor funded operating activity primarily by increasing payables to related parties.

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***Investing Activities***

During the year ended December 31, 2025, the Company sold bitcoin held for net proceeds of $101.5 million, as well as received proceeds on the disposal of property and equipment totaling $1.2 million. Of these investing proceeds, $11.1 million was used to purchase property and equipment for the final phase of construction at the Ward County facility. These investing activities resulted in net cash inflows from investing activities of $91.6 million for the year ended December 31, 2025.

As part of the acquisition of the Predecessor's cryptocurrency mining assets on January 31, 2024, the Company received $195.7 million in cash to fund the ongoing expansion of its bitcoin mining operations in Ward County. During the eleven months ended December 31, 2024, the Company invested its cash in U.S. Treasury securities and money market funds, on which we earned a net of $2.4 million, and also sold bitcoin held for net proceeds of $10.1 million. These investing proceeds were partially offset by cash payments of $71.6 million for the purchase of property and equipment related primarily to construction of the Ward County self-mining site during the same period. These investing activities resulted in net cash inflows from investing activities of $136.7 million for the eleven months ended December 31, 2024.

During the one month ended January 31, 2024, the Predecessor used net cash of $12.4 million for investing activities, which consisted of a $20.9 million outlay for construction at the Ward County self-mining site, partially funded by $8.5 million proceeds from the sale of bitcoin held.

***Financing Activities***

For the year ended December 31, 2025, the Company received $0 net cash from financing activities. For the eleven months ended December 31, 2024 (Successor), net cash provided by financing activities totaling $6.4 million reflects proceeds from the sale of Class A common stock in accordance with the Contribution Agreement with Hut 8.

Historically, the Predecessor was primarily financed with loans from its affiliate, Celsius UK. All loans from affiliates of the Predecessor were forgiven with the execution of the Plan on January 31, 2024.

**Contractual Obligations, Commitments and Contingencies**

Refer to Note 17 to our consolidated financial statements included elsewhere in this prospectus for further information regarding the Company's commitments and contingencies.

**Critical Accounting Policies and Estimates**

The above discussion and analysis of the Company's financial condition and results of operations are based upon its consolidated financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of the Company's consolidated financial statements requires management to make estimates and assumptions about future events that affect the amounts reported in the financial statements and accompanying notes. Future events and their effects cannot be determined with absolute certainty. Therefore, the determination of estimates requires the exercise of judgment. Actual results inevitably will differ from those estimates, and such differences may be material to the financial statements.

See Note 2 to our financial statements included elsewhere in this prospectus for a summary of the Company's significant accounting policies.

The Company believes the following critical accounting policies, estimates, and assumptions may have had a material impact on reported financial condition and operating performance of the Company and may have involved significant levels of judgment to account for highly uncertain matters or are susceptible to significant change.

 

*Long-Lived Assets*

Property and equipment are recorded at cost, net of accumulated depreciation. Judgment is necessary in estimating the Company's various assets' useful lives. This includes evaluating the Company's own usage experience with its currently owned assets, the quality of materials used in construction-related projects and, for its miners, the rate of technological advancement and market-related factors such as the price of bitcoin and the Bitcoin network hashrate, which impact the value of the miners. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Leasehold improvements and electrical equipment are depreciated over the shorter of their estimated useful lives or the lease term. Changes in depreciation and amortization, generally accelerated depreciation, are determined and recorded when estimates of the remaining useful lives or residual values of long-term assets change.

The Company reviews its long-lived assets, including property and equipment, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset, or asset group, may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to undiscounted cash flows expected to be generated by the asset. Significant judgment is used when estimating future cash flows, particularly the price of bitcoin and the network hashrate. Any impairment loss recorded is measured as the amount by which the carrying value of the assets exceeds the fair value of the assets. Should our estimates of useful lives, undiscounted cash flows, or asset fair values change, additional and potentially material impairments may be required, which could have a material impact on our reported financial results.

[**Table of Contents**](#C_001)

 

*Goodwill*

In accordance with ASC Topic 350, *Goodwill and Other Intangible Assets* ("ASC 350"), goodwill will not be amortized but instead will be tested for impairment at least annually or more frequently if certain indicators suggest it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The Company may first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount but also has the option to bypass the qualitative assessment in any period and proceed directly to performing the quantitative analysis. If the Company performs a qualitative test and determines it is more likely than not that the fair value of a reporting unit is less than is carrying amount, the Company performs a quantitative goodwill impairment test.

When quantitatively analyzing goodwill for impairment, management estimates the fair value of a reporting unit compared to the carrying value of the reporting unit, a process which incorporates a combination of the income and market valuation approaches. The income approach is a valuation technique under which the Company estimates discounted future cash flows using the financial forecast from the perspective of an unrelated market participant. In estimating future cash flows of a reporting unit several assumptions are used, including projected bitcoin prices and global hashrate, capital expenditures, operating results, growth rates, regulatory and economic conditions, and the discount rate. The discount rate used for a reporting unit is the value-weighted average of the reporting unit's estimated cost of capital, derived using both known and estimated customary market metrics. The market valuation approach, or the comparable company approach, is a valuation technique under which the Company uses valuation multiples of similar companies to estimate the fair value of a reporting unit.

In the event Management determines that the value of goodwill has become impaired, an accounting charge for impairment during the period in which the determination is made may be recognized.

 *Share-based compensation*

 

The Company accounts for share-based compensation in accordance with ASC 718, *Stock Compensation*. Share-based compensation expense is recognized for stock-based awards granted to employees, directors, consultants, and other service providers based on the grant-date fair value of the awards.

The fair value of share-based compensation awards is amortized over the vesting period, which is defined as the period during which a recipient is required to provide service in exchange for an award. The Company generally uses a graded vesting method for all grants. Awards with both market and service conditions are expensed over the vesting period for each separately vesting tranche. The Company accounts for forfeitures as they occur.

For more complex performance awards, including awards with market conditions, the fair value is estimated using the Black-Scholes-Merton option pricing model or Monte-Carlo simulations, which take into account the exercise price, the term of the option or the restricted stock units ("RSUs"), the impact of dilution, the share price at grant date, expected price volatility of the underlying share, the expected dividend yield and the risk-free interest rate for the term of the option, together with non-vesting conditions that do not determine whether the Company receives the services that entitle the employees to receive payment.

*Income Taxes*

The Company complies with the accounting and reporting requirements of ASC 740, Income Taxes ("ASC 740"), which requires use of the asset and liability method wherein deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, as well as operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to be in effect for the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is required to the extent any deferred tax assets may not be realizable, and the Company has considered the weight of available evidence, including cumulative losses in recent years and expectations of future taxable income.

The Company follows the provision of ASC 740 related to accounting for uncertain income tax positions. When tax returns are filed, it is more likely than not that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. In accordance with the guidance of ASC 740, the benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely that not that the position will be sustained upon examination by taxing authorities. The Company's policy is to record interest and penalties associated with uncertain tax positions through income tax expense.

**Recently Issued and Adopted Accounting Pronouncements**

A description of recently issued and adopted accounting pronouncements that may potentially impact the Company's financial position and results of operations is disclosed in Note 2 to the Company's consolidated financial statements included elsewhere in this prospectus.

**Quantitative and Qualitative Disclosures About Market Risk**

All of our current business is focused on mining bitcoin. The Company's revenue is driven by the value of bitcoin rewards and transaction fees earned by mining. As such, the Company is substantially affected by fluctuations and long-term trends in the value of bitcoin. Bitcoin has its own unique dynamic in terms of valuation, reward rates and similar factors. Any of these factors could lead to material adverse changes in the market for bitcoin, which could in turn result in substantial damage to or even the failure of our business.

A 10% increase or decrease in the weighted average market value of bitcoin for the year ended December 31, 2025 (Successor) would have increased or decreased revenue by $13.6 million and would have had a material effect on total revenue for the current period. A 10% increase or decrease in the weighted average market value of bitcoin for the eleven months ended December 31, 2024 (Successor) would have increased or decreased revenue by $13.8 million and would have had a material effect on total revenue for that prior period. In addition, a 10% increase or decrease in the weighted average market value of bitcoin for the one month ended January 31, 2024 (Predecessor) would have increased or decreased the Predecessor's revenue by $1.5 million for the period and would have had a material effect on its total revenue during that period. Since both Successor and Predecessor sell and hold bitcoin, increases or decreases in the market value of bitcoin would have resulted in gains or losses recognized within Operating expenses in the Consolidated Statements of Operations as well as the fair value of Cryptocurrency assets held at the end of the period and reported in the Company's Consolidated Balance Sheets.

---

| | | | |
|:---|:---|:---|:---|
| | **Impact of Bitcoin Price Changes on Cryptocurrency Mining Revenue, net ($ in millions)** | **Impact of Bitcoin Price Changes on Cryptocurrency Mining Revenue, net ($ in millions)** | **Impact of Bitcoin Price Changes on Cryptocurrency Mining Revenue, net ($ in millions)** |
| | **Successor** | **Successor** | **Predecessor<br> (Debtor-in-Possession)** |
|<br> **Change in Average Bitcoin Price** | **Year Ended <br> December 31, 2025** | **Eleven Months Ended<br> December 31, 2024** | **One Month Ended<br> January 31, 2024** |
| (20%) | $(27.11) | $(27.69) | $(3.08) |
| (10%) | $(13.56) | $(13.84) | $(1.54) |
| 10% | $13.56 | $13.84 | $1.54 |
| 20% | $27.11 | $27.69 | $3.08 |

---

[**Table of Contents**](#C_001)

**BUSINESS**

**Business Overview** 

We are a digital infrastructure solutions and cryptocurrency mining company. We began as a pure-play cryptocurrency mining company when we were formed in January 2024 to acquire all of the cryptocurrency mining assets of Celsius Mining. From our inception, our core objective has been to monetize our portfolio of powered digital infrastructure assets. Historically, we have monetized these assets by efficiently mining bitcoin. More recently, we have sought to achieve this objective by primarily leasing our digital infrastructure assets to hyperscalers, enterprise customers and other businesses for high-performance computing ("HPC") and artificial intelligence ("AI") cloud infrastructure.

In October 2025, we announced our inaugural participation in the HPC/AI sector with a 126-month "triple net" lease with Nscale Ward County LLC (together, with its affiliates, "Nscale"), a global hyperscaler engineered for sovereign-grade AI infrastructure at our Ward County property in West Texas. Under the lease we committed to providing Nscale with the full amount of the 234 megawatts ("MW") of current energy capacity at our Ward County property. We received our first payment under the lease in November 2025, and monthly fixed lease payments will commence in August 2026. Payments under the lease represent total contracted revenues of approximately $1.95 billion.

In February 2026, we amended the lease, which contractually obligates Nscale to lease an additional 89 MW of capacity, when such capacity becomes available, at the same price per MW as the current 234 MW. In addition, Nscale will receive the tax advantages associated with our qualified data center status. We refer to the lease, as amended, as the "Nscale Agreement."

We expect the Ward County property to energize the additional 89 MW by the second quarter of 2027. We cannot guarantee that the power generation at our Ward County property will be expanded as currently contemplated and there is no penalty under the Nscale Agreement if we are unable to provide Nscale with the additional 89 MW of capacity. The expanded power capacity under the Nscale Agreement is subject to regulatory approval. At the current capacity of 234 MW and the increased capacity of 89 MW, our capital expenditures are currently expected to be approximately $40 million, which we plan to fund with cash on hand as well as with sales of our bitcoin held in treasury, as needed. Assuming we are able to secure the additional 89 MW by the second quarter of 2027, we currently anticipate that the total contracted revenues under the Nscale Agreement would increase to approximately $2.7 billion.

In addition, we are seeking to expand the energy capacity at the Ward County property to 700 MW, which we believe would advance the monetization of our owned powered digital infrastructure assets. We have begun making investments in the Ward County property to support the increased power capacity, including beginning to develop the remaining 86 acres of the property to provide the infrastructure for our effort to support up to approximately 700 MW of total capacity at Ward County. At the fully expanded capacity of 700 MW, our total capital expenditures are expected to be approximately $64 million. We plan to fund these capital expenditures with cash on hand as well as with sales of our bitcoin held in treasury, as needed. We have granted Nscale a right of first refusal on additional energy capacity at the Ward County property, and we may also provide the expanded energy capacity to other AI, enterprise, or cloud infrastructure companies, or use the expanded energy capacity for our own cryptocurrency mining operations.

Entry into the Nscale Agreement is the culmination of a process we began in early 2025 to identify a strong counterparty and develop an attractive contract structure to better monetize our Ward County site. We believe our agreement with Nscale represents a transformative transaction that significantly increases the value of our company. Although we began as a pure-play bitcoin mining operator, we have successfully demonstrated our ability to convert and optimize our infrastructure, including transitioning our Ward County property for use as an HPC/AI data center. This transaction accelerates our strategy to build a diversified digital infrastructure solutions platform, with the flexibility to deploy our sites across data centers and other digital infrastructure applications as market conditions evolve. Our strong balance sheet also gives us the ability to better monetize sites currently mining bitcoin, expand into other markets, and develop additional powered shell data centers. The combination of an existing cryptocurrency mining business, and the Nscale Agreement, provides us with a steady income stream that includes predictable, high-margin cash flows. We believe that those strengths, together with a strong balance sheet, should position us well as an emerging innovator at the intersection of energy, bitcoin mining, and advanced computing infrastructure.

With five facilities in Texas, three of which we own (including the Ward County property) and two of which we lease, as well as a strong balance sheet, we believe we are well-positioned at the to execute on our long-term strategy of monetizing powered digital infrastructure assets across data centers, bitcoin mining, and other energy-intensive applications.

During the year ended December 31, 2025, we mined 1,331.0 bitcoin, net of mining pool participation fees of 6.1 bitcoin and revenue share paid to our hosting partners of 6.4 bitcoin, an average of 3.6 net bitcoin mined per day. During the same period, we sold 1,009.0 bitcoin at an average price of $100,547, generating aggregate gross proceeds of $101.5 million.

During the eleven months ended December 31, 2024, we mined 1,988.3 bitcoin, net of mining pool participation fees of 3.2 bitcoin and revenue share paid to our hosting partners of 87.2 bitcoin, an average of 5.9 net bitcoin mined per day. During the same period, we sold 150.2 bitcoin at an average price of $67,340, generating aggregate gross proceeds of $10.1 million.

As of December 31, 2025, we held a total of 2,719 bitcoin in treasury.

In addition, at our self-mining and hosted facilities we had approximately 40,600 specialized ASIC active miners hashing as of December 31, 2025. As of December 31, 2025, our total miners owned have an aggregate potential hashrate capacity of approximately 12.6 EH/s, with our active miners contributing approximately 2.9 EH/s to our mining pool. Our miners do not currently serve as collateral in any financing arrangements.

**Properties**

Our assets position us as an emerging innovator at the intersection of energy, bitcoin mining, and advanced computing infrastructure. Currently, our portfolio includes bitcoin mining operations at five sites, three of which we own, and two of which we lease.

Our owned real property portfolio consists of approximately 166 acres, which we believe are suitable and adequate to support our current business strategy.

[**Table of Contents**](#C_001)

 *Ward County* 

On October 14, 2025, we expanded into the HPC/AI sector. We entered into the Nscale Agreement, a 126-month "triple-net" data center lease of our Ward County property to a subsidiary of Nscale for HPC use. In February 2026, we amended the lease. The Ward County property provides 234 MW of critical IT load for Nscale's hyperscale AI campus. Prior to our entry into the Nscale Agreement, Ward County served as the cornerstone of our bitcoin mining operations. The contracted revenue to be provided to us under the Nscale Agreement is expected to surpass the revenues we had historically earned in our bitcoin mining operations at the Ward County property.

Under the terms of the Nscale Agreement, Nscale paid $45.6 million to us in November 2025 (the "Ward County Option Payment"). The initial contractual term of the Nscale Agreement commenced in December 2025. Fixed rent payments under the Nscale Agreement will begin on August 1, 2026 (the "Rent Commencement Date"), and the Nscale Agreement has an initial term of 10 Lease Years after the Rent Commencement Date. Pursuant to the Nscale Agreement, a "Lease Year" means (i) for the first Lease Year, the 18-month period commencing on August 1, 2026 and ending on January 31, 2028 and (ii) for each of the nine successive Lease Year, the successive period of 12 calendar months, each commencing February 1 and ending January 31.

In addition to the 234 MW currently leased to Nscale, the Nscale Agreement contractually obligates Nscale to lease an additional 89 MW of capacity, when such capacity becomes available, at the same price per MW as the current 234 MW. The expanded power capacity under the Nscale Agreement is subject to regulatory approval, and there is no penalty under the Nscale Agreement if we are unable to provide Nscale with the additional 89 MW of capacity.

The Nscale Agreement will provide approximately $1.95 billion in contracted revenue over the initial term ending on January 31, 2037. After the first five Lease Years, the monthly rent payable by Nscale will increase by 3% annually over the preceding Lease Year. The Nscale Agreement includes one ten-year extension option with monthly rent to be equal to the then-prevailing market rate as determined in accordance with the Nscale Agreement (but not less than the then current monthly rent). The Nscale Agreement also provides Nscale with a right of first refusal to lease all or any portion of additional power capacity that is or becomes available at the Ward County property, and Nscale has granted an option to Microsoft for additional power to become available at the Ward County property, if it becomes available, starting in late 2027.

Under a "triple-net" lease, Nscale, as the tenant, is responsible for rental payments and ongoing expenses at the Ward County property, while we are responsible for the management of, but not the cost of, substation maintenance. The Nscale Agreement includes customary covenants and agreements for a triple-net data center lease, including with respect to (i) utilities, (ii) electricity, (iii) taxes, (iv) legal compliance, including environmental matters, (v) repairs, alterations and equipment, (vi) insurance, (vii) indemnification and (viii) financing. The Nscale Agreement also includes customary events of default.

In connection with the Nscale Agreement, Nscale provided a guarantee from (i) NVIDIA Corporation in the aggregate face amount equal to the rent payable in the first five Lease Years (up to a maximum amount of $860.3 million) and (ii) Nscale's parent company in the aggregate face amount equal to the rent payable from and after the commencement of the sixth Lease Year. In addition, if Nscale were to become insolvent, its anchor customer may elect within 30 days to step-into the Nscale Agreement for the remainder of the term.

Unless it is renewed, the Nscale Agreement will expire ten years after commencement. We may elect to terminate the Nscale Agreement following the occurrence and continuation of a failure to pay, failure to maintain insurance, failure to comply with the terms of the Nscale Agreement or due to a fraudulent transfer by Nscale.

*Midland*

The Rebel lease will terminate if the property is not used for a period of twelve consecutive months. We may transfer the Stiles lease at any time upon providing written notice, and the lessor of the Stiles lease may terminate following a default that remains uncured for a period of sixty days following written notice of such default.

As of December 31, 2025, we have approximately 6,300 and 6,400 active miners hashing at the Rebel and Stiles sites, which are contributing approximately 0.4 and 0.3 EH/s hashrate, respectively, to our mining pool.

As of December 31, 2025, we have approximately 8,700 and 3,500 active miners hashing at our East Stiles and Garden City sites, which are contributing approximately 0.5 and 0.2 EH/s hashrate, respectively, to our mining pool.

During the year ended December 31, 2025, we mined 312.6 bitcoin on site at our Midland facilities.

 **Hosted Sites**

In addition to our owned and leased properties, we mined bitcoin at one hosted facility in Oklahoma until the first quarter of 2026.

[**Table of Contents**](#C_001)

*GXD Hosted Site*

 

We were a party to a master co-location services agreement (the "GXD Hosting Agreement") with GXD, originally entered into between Celsius Mining and GXD on February 12, 2023. The GXD Hosting Agreement was assigned to us pursuant to the MCA (as defined below). Under the GXD Hosting Agreement, GXD provided us with hosting services for over 17,000 total miners across two service orders. Under one such service order, entered into February 12, 2023, GXD agreed to host approximately 17,300 of our miners, subsequently reduced to approximately 11,600 miners in October 2024, providing the electrical power and internet access necessary to operate miners at GXD's Oklahoma facility. Under the other service order, entered into July 6, 2023, GXD will host approximately 5,800 of our miners. The GXD Hosting Agreement also provided us with access to GXD's customer portal to monitor performance and uptime of our mining equipment during the agreement.

The GXD Hosting Agreement provided us with up to approximately 60 MW of electricity based on the expected specifications of the miners located there. Under this arrangement, we were obligated to pay GXD $4.00 per unit per month, as well as power costs, certain repair fees and a 40% profit share paid in US dollar. During the year ended December 31, 2025, we mined 259.7 bitcoin with our miners at GXD, and we paid GXD an aggregate of $20.0 million under the GXD Hosting Agreement during the year ended December 31, 2025.

The GXD Hosting Agreement had an initial term lasting for 18 months, with the option of an 18-month extension at our discretion, and was terminable by either party for cause, or at the Company's request by providing written notice at least 90 days prior to the expiration of the GXD Hosting Agreement. The GXD Hosting Agreement was terminated effective February 12, 2026.

*EZB Hosted Sites in Georgia*

 

We were previously a party to a Bitcoin mining hosting agreement (the "EZ Blockchain Hosting Agreement") with EZ Blockchain Services ("EZB"), originally entered into between Celsius Mining and EZB on November 22, 2023. The EZ Blockchain Hosting Agreement was assigned to us pursuant to the MCA (as defined below). Under the EZ Blockchain Hosting Agreement, EZB provided us with hosting services, including electrical power and internet access necessary to operate miners at EZB's West Point, Georgia and Douglas, Georgia facilities. The EZ Blockchain Hosting Agreement had an initial term lasting for a period of 18 months, subject to extension of up to three additional months in the case of curtailment, which is the temporary suspension of mining operations by either party due to low revenue or high costs. On May 26, 2025, we terminated the EZ Blockchain Hosting Agreement for cause.

**Bitcoin Miners**

As of December 31, 2025, we owned approximately 125,100 miners with an average remaining useful life of nine months.

The following table describes the composition of our miner fleet as of December 31, 2025 by model and manufacturer-specified energy efficiency.

---

| | | |
|:---|:---|:---|
| **Miner Type** | **Approximate<br> Total Miners** | **Approximate<br> Energy<br> Efficiency<br> (J/THs)** |
| Antminer S21 Pro | 663 | 15.0 |
| Antminer S21 | 419 | 17.0 |
| Antminer S19 XP | 4122 | 21.3 |
| Antminer S19j Pro | 87066 | 29.8 |
| Antminer S19 Pro | 13900 | 30.3 |
| Antminer S19 | 18929 | 32.6 |
| &nbsp;&nbsp;&nbsp; **Total miners owned** | **125099** | **29.9** **<sup>(1)</sup>** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Amount
 represents the weighted average approximated nameplate energy efficiency of our total mining fleet.

We maintain several key supplier relationships that are important to our business for securing mining hardware, infrastructure components and other materials. Due to the complexity of developing mining hardware, particularly the ASIC chips that they rely upon, only a few suppliers can produce miners at scale. Our potential purchase orders may have future delivery schedules that extend out many months before those miners are delivered to our facilities. These delivery timeline fluctuations require us to plan to purchase miners well in advance of their anticipated deployment.

The following table provides additional information on our bitcoin miners deployed by site as of December 31, 2025.

---

| | | |
|:---|:---|:---|
| **Facility (Location)** | **Approximate <br> Count of <br> Active<br> Miners<sup>(1)</sup>** | **Hashrate<br> Contributed<sup>(2)</sup>** |
| **Ionic Digital Self-Mining Sites<sup>(3)</sup>** | | |
| *Ward County* |  |  |
| &nbsp;&nbsp;&nbsp; Ward County, Texas<sup>(4)(5)</sup> | N/A | N/A |
| *Midland* |  |  |
| &nbsp;&nbsp;&nbsp; East Stiles (Reagan County, Texas)<sup>(4)</sup> | 8700 | 0.5 EH/s |
| &nbsp;&nbsp;&nbsp; Garden City (Glasscock County, Texas)<sup>(4)</sup> | 3500 | 0.2 EH/s |
| &nbsp;&nbsp;&nbsp; Rebel (Glasscock County, Texas)<sup>(6)</sup> | 6300 | 0.4 EH/s |
| &nbsp;&nbsp;&nbsp; Stiles (Reagan County, Texas)<sup>(6)</sup> | 6400 | 0.3 EH/s |
| **Third Party Hosted Site<sup>(7)</sup>** |  |  |
| GXD (Oklahoma City, Oklahoma) | 15700 | 1.4 EH/s |

---

(1) "Active miners" represent the approximate number
of miners hashing during the month ended December 31, 2025.

(2) "Hashrate contributed" reflects the average actual
hashrate generated by our miners and contributed to a mining pool during December 2025. Actual hashrate generated will often be less
than manufacturer's specifications due to curtailment or maintenance downtime.

(3) We own all miners, equipment, and improvements at all Ionic
Digital-operated sites.

(4) We
 own the land at our Ward County, East Stiles, and Garden City sites.

(5) In
 accordance with the terms of the Nscale Agreement, we have decommissioned all mining assets
 at the Ward County site as of December 19, 2025.

[**Table of Contents**](#C_001)

(6) We lease the land
 at our Rebel and Stiles sites.

(7) At our third-party
 hosted site, we provided the miners and the host owns the land, equipment, and improvements.
 While we had miners actively deployed at GXD as of December 31, 2025, the hosting agreement
 with GXD was terminated during the first quarter of 2026.

*Mining Pools*

We contribute all of our hashing power to bitcoin-only mining pools. We currently utilize mining pools that pay us bitcoin rewards utilizing FPPS payout of bitcoin based on a contractual formula, which calculates payout primarily based on the hashrate provided by us to the mining pool as a percentage of total network hashrate, along with other inputs. We are entitled to compensation even if a block is not successfully validated by the mining pool operator. Mining pool hashrate is highly volatile, changing moment by moment, and thus our particular contribution to the overall network hashrate of any particular mining pool is constantly changing. The mining pools in which we currently participate pay our bitcoin reward once every 24 hours, and the amount of bitcoin reward we receive is confirmed internally against the amount of bitcoin reward we expected to receive, taking into account the transaction fees due to the mining pool operator. Our mining pool contracts are terminable, without conditions or penalties, at any time without notice by either party without substantive compensation to the other party for such termination.

The payouts we receive from Foundry USA ("Foundry"), our third-party mining pool operator, are net of pool operator fees of approximately 0.90% based on our average hashrate contribution. Effective April 1, 2025, Foundry's fees are determined under a tiered schedule ranging from 0.25% to 2.45%, with fees declining as our hashrate increases and rising if our hashrate decreases. Mining pools allow miners to combine their processing power, increasing their chances of solving a block and getting paid by the network. The rewards are distributed by the pool operator, proportionally to our contribution to the pool's overall mining power, after deducting the applicable pool fee, if any, used to solve a block on the bitcoin blockchain. While we have internal methods of tracking both the hashrate we provide and the total used by the network, the mining pool operator uses its own record-keeping to determine our proportion of a given reward, which may not match our own. If we are unable to consistently obtain accurate proportionate rewards from our mining pool operator, we may not receive accurate block rewards from the pool, and we would have limited recourse to correct these inaccuracies. This could lead us to decide against further participation in a mining pool, or mining pools generally, which may affect the predictability of our mining returns, which could have an adverse effect on our business and operations. If we are unable to consistently obtain accurate proportionate rewards from our pools, we may experience reduced rewards for our efforts.

On a daily basis, Foundry calculates our earnings for the previous day and transfers such rewards to our whitelisted wallet addresses between 9AM and 5PM UTC.

Our proportionate rewards that we may receive from Foundry are not insured against theft, loss, or destruction. If an event occurs where we lose cryptocurrency assets in our mining pools, whether due to cyberattacks, fraud, or other malicious activities, we may not have any viable legal recourse or ability to recover the lost assets. If our cryptocurrency assets are lost under circumstances that render another party liable, there is no guarantee that the responsible party will have the financial resources to compensate us.

**PPM Energy Management Agreements**

 ****

Pursuant to the MCA (as defined below), we were assigned an energy management and consulting services agreement (as amended, the "PPM Energy Management Agreement") with Priority Power Management, LLC ("PPM"), originally entered into between Celsius Mining and PPM on September 28, 2021. Pursuant to the PPM Energy Management Agreement, PPM manages our energy usage, supplier agreements and procurement at our Rebel, Garden City, Stiles and East Stiles facilities.

The PPM Energy Management Agreement has an initial term of 60 months and automatically renews for additional one-year terms thereafter. The PPM Energy Management Agreement may be terminated by either party for cause or at the Company's request by providing written notice at least 90 days prior to the expiration of the term of the PPM Energy Management Agreement.

Pursuant to the MCA, we were also assigned an energy management services agreement (the "PPM EMSA Agreement") with PPM, originally entered into between Celsius Mining and PPM on November 17, 2022. Pursuant to the PPM EMSA Agreement, PPM acts as our Qualified Scheduling Entity ("QSE") to enable and facilitate our participation in certain demand-side management programs in respect of our energy procurement at our Rebel, Garden City, Stiles and East Stiles facilities.

The PPM EMSA Agreement has an initial term of 60 months and automatically renews for additional one-year terms thereafter. The PPM EMSA may be terminated by either party for cause or at the Company's request by providing written notice at least 90 days prior to the expiration of the term of the PPM EMSA Agreement.

Under the PPM EMSA Agreement, we are obligated to pay PPM $6,500 for substation monitoring, incidental repair, and maintenance costs. For the year ended December 31, 2025, we have paid PPM an aggregate of $2.3 million under the PPM EMSA Agreement.

[**Table of Contents**](#C_001)

In connection with the assignment of the PPM Energy Management Agreement and the PPM EMSA Agreement to us, we entered into an assignment and assumption agreement with Celsius Mining and PPM (the "PPM Assignment Agreement") whereby (i) we agreed to assume certain contracts and obligations between Celsius Mining and PPM, (ii) Celsius Mining agreed to assign such contracts and obligations to us and (iii) PPM agreed to assign to us certain land, easements and distribution agreements related to the Rebel, Garden City, Stiles and East Stiles facilities and modify the terms applicable to the development of future capacity at those facilities.

**Competitive Strengths**

We believe that we possess several competitive strengths, including the following:

 *Flagship, high-performance facility in Ward County.* Our Ward County site serves as the cornerstone of our operations, offering scalable infrastructure, access to cost-efficient power, and operational reliability. Strategically located in a region with favorable energy pricing and infrastructure, the Ward County property currently has 234 MW of installed capacity. The site has the potential, subject to regulatory approvals and infrastructure development, to support up to approximately 700 MW of total capacity. Expansion of this nature could increase the Company's scale and operating leverage and may enhance long-term shareholder value. However, there can be no assurance that such additional capacity will be approved, constructed, or economically developed. Our planned infrastructure is designed with the optionality to support a wide range of compute-intensive applications, including AI inference and HPC workloads. Nscale, a global hyperscaler, recently contracted to lease approximately 50 acres and access to 234 MW of power at the site under a 126-month agreement to use as a hyperscale AI campus beginning in the third quarter of 2026. We have granted Nscale a right of first refusal on additional capacity at the Ward County site, and we may also provide the expanded energy capacity to other AI, enterprise, or cloud infrastructure companies, or utilize it for our own cryptocurrency mining operations. Additionally, Nscale has granted Microsoft an option for additional power at the Ward County property, if it becomes available, starting in late 2027.

We believe that with our flagship Ward County property, we are well-positioned to capture this opportunity. In addition to the 234 MW currently leased to Nscale, the Nscale Agreement contractually obligates Nscale to lease an additional 89 MW of capacity, when such capacity becomes available, at the same price per MW as the current 234 MW. We expect the Ward County property to energize the additional 89 MW by the second quarter of 2027. We cannot guarantee that the power generation at our Ward County property will be expanded as currently contemplated and there is no penalty under the Nscale Agreement if we are unable to provide Nscale with the additional 89 MW of capacity. The expanded power capacity under the Nscale Agreement is subject to regulatory approval. At the current capacity of 234 MW and the increased capacity of 89 MW, our capital expenditures are currently expected to be approximately $40 million. At the fully expanded capacity of 700 MW, our total capital expenditures are currently expected to be approximately $64 million. We plan to fund these capital expenditures with cash on hand as well as with sales of our bitcoin held in treasury, as needed. We have granted Nscale a right of first refusal on additional energy capacity at the Ward County property, and we may also provide the expanded energy capacity to other AI, enterprise, or cloud infrastructure companies, or use the expanded energy capacity for our own cryptocurrency mining operations. Assuming we are able to secure the additional 89 MW by the second quarter of 2027, we currently anticipate that the total contracted revenues under the Nscale Agreement would increase to approximately $2.7 billion.

*Low-cost access to power.* With our strategically located data center sites across Texas, on both owned and leased land, we are able to take advantage of low-cost power. Our cryptocurrency mining operations utilize miner management software and dynamic load management strategies to optimize power consumption based on real-time market pricing and grid conditions, including participation in curtailment programs that are customary in the bitcoin mining industry. As a result, our average cost of power consumed across our Texas sites was approximately 3.6 c/kWh for the year ended December 31, 2025.

 *Differentiated management team with deep experience in data center development.* Our management team comprises individuals drawing on diverse knowledge and skill sets acquired through extensive experience in data centers, real estate, managed digital infrastructure and other fields in the technology sector. Our leadership also incorporates extensive strategic expertise in finance and capital markets.

 *Strong balance sheet.* As of December 31, 2025, we had no debt, 2,719 bitcoin in treasury at a fair value of $237.9 million, and approximately $43.5 million in cash and cash equivalents that is being proactively managed. We believe our strong balance sheet provides us operational flexibility in a capital expenditure intensive business, as well as access to immediate liquidity to pursue joint ventures and strategic acquisitions. Additionally, we may liquidate bitcoin to cover operational expenses and strategic investments as necessary.

**Growth Strategy**

Our growth plans over the next 36 months center around monetization of our owned and leased powered digital infrastructure assets, expansion opportunities, and potential acquisitions or joint ventures for data center development. In pursuing these plans, our objective is to generate high margin, incremental cash flows with a predictable dollar-based revenue which complement our longer-term investment strategy. We are actively exploring a range of potential financing alternatives to support core business initiatives such as increasing energy capacity at existing owned sites, expansion to new sites, as well as potential acquisition and/or joint venture opportunities in the HPC and AI sectors. These financing alternatives may include the potential collateralization of a portion of our bitcoin holdings. At this time, no definitive financing arrangements have been entered into, and formal policies governing bitcoin-backed financing have not yet been established. Any such financing, if pursued, may require us to onboard with one or more new custodians in connection with the custody, control, or collateral management of our bitcoin holdings.

***Monetizing Powered Digital Infrastructure Assets***

We believe that our portfolio of powered digital infrastructure assets are attractive to hyperscalers, enterprise customers, and other businesses for HPC and AI cloud infrastructure. We believe that leasing our assets to such customers can provide attractive opportunities to monetize our assets with predictable cash flows.

 *Ward County* 

In October 2025, we announced our inaugural participation in the HPC/AI sector by entering into the Nscale Agreement, a "triple-net" lease transaction with Nscale, a global hyperscaler engineered for sovereign-grade AI infrastructure, at our Ward County property. Our agreement with Nscale is a 126-month lease for all 234 MW of capacity at the facility, with contracted revenues of approximately $1.95 billion. The Nscale Agreement provides that we will supply an additional 89 MW to Nscale if such additional power becomes available. After an initial 18-month ramp up period, annual fixed rent payable under the lease is $182.5 million, with 3% annual increases scheduled to occur after the fifth year of the lease term. Unless it is renewed, the Nscale Agreement will expire ten years after commencement. We may elect to terminate the Nscale Agreement following the occurrence and continuation of a failure to pay, failure to maintain insurance, failure to comply with the terms of the Nscale Agreement or due to a fraudulent transfer by Nscale.

We expect this lease structure with Nscale will provide us with predictable cash flows while minimizing operating risk at our Ward County site, as we are not responsible for construction or site development. Under our "triple-net" lease, Nscale, as the tenant, is responsible for rental payments and ongoing expenses at the Ward County property, while we are responsible for the management of, but not the cost of, substation maintenance. The Nscale Agreement does not require us to raise additional capital and provides us with significant resources to fund other growth initiatives. We expect this will strengthen our financial foundation and provide a stable source of cash flows, allowing us to monetize these assets while we continue to mine bitcoin at our other facilities.

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We are in active discussions with Texas-New Mexico Power ("TNMP") and the Energy Reliability Council of Texas ("ERCOT") to increase electricity capacity from the current 234 MW to 700 MW by the end of 2027. We have submitted all required documentation, and our ability to obtain the additional power will depend primarily on the completion of two utility projects in the surrounding area that are on track to be completed in 2026 and 2027. Our expansion request was submitted during an earlier study phase relative to subsequent applicants, which may benefit sequencing of transmission evaluations; however, approval and allocation of additional capacity remain subject to regulatory and infrastructure considerations. Nothing in the Nscale Agreement requires us to increase the electricity capacity beyond 234 MW. If this expansion is approved, we plan to make the required infrastructure investments to use the increased power when available.

The Nscale Agreement provides Nscale a right of first refusal on any additional power that may become available at prevailing market rates. If Nscale elects to not exercise this right, we will have the ability to lease the additional capacity to other parties, or we can use the capacity in our own operations.

Other potential opportunities at the Ward County property may include building powered shell or full turnkey data centers in an effort to enter the data center development sector, pursuing joint ventures with established data center developers to build on our Ward County site, or a combination of these opportunities. We are also exploring natural gas transmission at the site given the proximity of gas lines on the property but have no expectations this will materialize in the near future.

With the repurposing of the Ward County site for digital infrastructure solutions, we discontinued all cryptocurrency mining at this location in December 2025.

 *Midland*

With the termination of our hosting arrangement with GXD, our four Midland self-mining sites are our only locations used for mining cryptocurrency. As a result, we are relocating our most efficient miners to those sites during the first quarter of 2026. Of the approximately 143,100 miners we owned during 2025, approximately 18,000 were sold in 2025, approximately 28,100 are or will be deployed at the Midland sites and are or will be actively hashing, approximately 19,400 miners will be retained for spare parts, and the remaining approximately 77,600 miners will be sold or scrapped in 2026.

The 50MW capacity at our Rebel site includes 25MW of unused power capacity added in the fourth quarter of 2025. We also anticipate receiving approval for an additional 10MW of capacity at the East Stiles site during 2027, an expansion for which there are no known barriers, material steps, or material costs at this time. We are considering expanding cryptocurrency mining operations at these sites to employ this additional power capacity, as well as acquiring new or refurbished miners with improved efficiency to deploy at the Midland sites. As HPC/AI data center development or joint venture opportunities arise for the Midland sites we will evaluate the potential profitability against our cryptocurrency mining operations.

***Acquisitions and Partnership Opportunities***

 ****

We are actively evaluating sites in the United States to purchase or lease primarily for potential expansion in the HPC/AI data center sectors. As we identify sites that fit these purposes, we may look to partner with an established data center developer in an effort to establish a foothold in the development sector, as well as potentially provide turnkey services to customers. We believe our balance sheet, experienced management team, and contracted revenue stream will enable us to raise capital for site acquisition and/or development.

***Bitcoin Treasury***

We have sold a portion of our bitcoin held in treasury to cover operating and capital expenditures and to maintain an adequate ongoing liquidity position. During the twelve months ended December 31, 2025, we mined an average of 111.4 bitcoin per month and sold an average of 84.1 bitcoin per month to cover expenses and preserve liquidity. With the monthly fixed lease payments under the Nscale Agreement beginning in August 2026, we expect to have a steady and increasing stream of cash inflows, which we anticipate will enable us to retain a greater portion of our mined bitcoin, expanding our bitcoin holdings in treasury and supporting broader treasury management initiatives unless we find more compelling investment opportunities that necessitate the liquidation of bitcoin holdings. We do not expect to use cash flows from our digital infrastructure solutions business to fund purchases of bitcoin.

We may seek to collateralize bitcoin held in treasury to borrow U.S. dollars for capital or operating expenditures. We believe that utilizing bitcoin as collateral may offer an attractive spread between borrowing cost and bitcoin appreciation potential, compared to spot-selling bitcoin to meet short-term funding needs. Our Board of Directors has not adopted any formal policies relating to how much of our bitcoin we hold in treasury or when we purchase, sell or collateralize our bitcoin holdings. Our Board of Directors, together with the members of our management team, periodically manage the amount of bitcoin we hold in treasury and when we purchase, sell and collateralize our bitcoin holdings based on, among other things, market conditions and our liquidity needs.

In addition, while our Board of Directors has approved certain parameters within which management is authorized to pursue bitcoin hedging strategies, we are not currently engaged in any hedging transactions. We may deploy derivatives as part of hedging strategies intended to manage the value risk of bitcoin held, considering market liquidity and our treasury objectives. We may also employ other derivative trading strategies, which may include selling bitcoin call options or purchasing bitcoin put options, as a monetization strategy or, in certain cases, through structured arrangements such as collar options, to manage downside price exposure related to our physical mining operations.

As we continue to shift our business to leasing digital infrastructure assets, we anticipate that our primary operating revenues will be derived from non-mining activities denominated in U.S. dollars. Our approach to bitcoin holdings is a capital allocation strategy, supported by a diversified capital structure and liquidity management framework.

**Energy Management**

Oncor and TNMP, for-profit electricity transmission and distribution businesses regulated by the Public Utility Commission of Texas, physically deliver electricity to our sites in Texas. We require approvals from both ERCOT and Oncor to continue to operate our current bitcoin mining operations.

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We optimize our energy usage through participation in demand response programs and employment of energy management systems. For example, in Texas, we currently participate in energy demand response programs that curtail some of our bitcoin mining operations to aid in preserving the stability of the energy grid. Curtailment reduces overall energy demand and allows the grid operator (in this case, ERCOT) more operational flexibility when needed, such as during extreme weather events. A bitcoin mining operator can participate in ERCOT's direct demand response programs by agreeing to curtail its electrical load at the direction of ERCOT in exchange for a rebate from ERCOT. We currently participate in ERCOT's direct Responsive Reserve Service program and receive credits from ERCOT when electrical grid capacity deviates from standard conditions.

Additionally, we may voluntarily reduce our energy usage in response to increasing real-time energy prices in order to prudently operate our facilities, which simultaneously reduces strain on the electrical grid. We are not paid a fee or provided a credit by any energy provider for the reduction in energy consumption for this type of voluntary power management. The energy management teams and systems monitor energy costs in relevant jurisdictions and our miners' EH/s, and our bitcoin mining operations are automatically curtailed when the cost to earn a bitcoin outweighs the reward. Our bitcoin miners are then automatically restarted when the cost to earn recedes to a level below the level of a reward.

**Sustainability**

We are committed to building strong community relationships in the jurisdictions in which our mining operations are located. As a bitcoin miner, we are a non-mission critical operation that can shut off when needed to help stabilize the electrical grid. The ability to toggle our power consumption is expected to be most beneficial in areas with a high proportion of intermittent renewable energy, such as Texas. When demand outpaces supply, we can execute our obligations under the demand response programs to help relieve congestion on the grid. This action reduces demand and allows grid operators more operational flexibility.

**Custody Arrangements**

We are taking steps to safeguard our cryptocurrency assets by using multiple third-party custody solutions for the secure storage of our bitcoin. In the context of bitcoin, custody is a service provided by a custodian who controls and safeguards cryptocurrency assets which legally belong to another party. As of the date of this prospectus, we have entered into custody agreements with Anchorage Digital Bank ("Anchorage") and Fidelity Digital Assets ("Fidelity" and, together with Anchorage, the "Custodians").

We entered into a custodial services agreement with Anchorage effective January 26, 2024 (the "Anchorage Custody Agreement") with an initial term of one year. Under the Anchorage Custody Agreement, Anchorage established and maintains custody accounts for the receipt, safekeeping and maintenance of cryptocurrencies in custodial accounts in exchange for a custodial fee. The Anchorage Custody Agreement requires Anchorage to hold the private keys relating to our bitcoin assets in a secure environment following industry best practices in order to protect our bitcoin assets from theft, loss or other forms of destruction. Under the Anchorage Custody Agreement, Anchorage may not commingle our bitcoin with assets of other customers or Anchorage itself, and Anchorage is responsible for verifying the existence of our bitcoins. Anchorage currently holds a significant majority of our bitcoin in cold wallet storage pursuant to the Anchorage Custody Agreement in several geographically distributed physical data centers throughout the United States. Anchorage also provides insurance coverage of up to $100 million for loss of the cryptocurrencies it holds for us, as well as the cryptocurrencies it holds for others, due to theft, robbery or burglary or third-party computer and funds transfer fraud. This insurance policy covers all of Anchorage's held assets and may only cover a fraction of the value of the entirety of our assets held by Anchorage. The Anchorage Custody Agreement automatically renews on a yearly basis and may be terminated for cause or by either party electing not to renew and providing written notice.

We entered into a custodial services agreement with Fidelity effective June 18, 2024 (the "Fidelity Custody Agreement"). Under the Fidelity Custody Agreement, Fidelity established and maintains custody accounts for the receipt, safekeeping and maintenance of cryptocurrencies in custodial accounts in exchange for a custodial fee. Under the Fidelity Custody Agreement, Fidelity is responsible for holding and managing the private keys associated with our digital assets and is required to exercise the reasonable care of a professional custodian to safeguard those assets. Fidelity maintains discretion over the security measures it employs to protect client assets, which may include offline storage and other controls designed to mitigate risks of loss or theft. Fidelity holds our bitcoin in omnibus wallets along with those of other customers, with Fidelity maintaining separate book-entry records to identify our holdings. Fidelity does not commingle clients' cryptocurrencies with its own assets, and our bitcoin is held separately from Fidelity's own assets held for investment purposes. Fidelity retains responsibility for safeguarding our digital assets and verifying account balances through its own custody reporting. Fidelity currently holds a small portion of our bitcoin pursuant to the Fidelity Custody Agreement. For security reasons, Fidelity is unable to disclose the geographic areas where our bitcoin is stored. Fidelity also provides insurance coverage with limits in excess of $100 million per claim and in the aggregate for loss of cryptocurrencies arising from employee theft and theft committed by third parties and the misappropriation of private information that results or could result in the fraudulent use of that information. This insurance policy covers all of Fidelity's held assets and may only cover a fraction of the value of the entirety of our assets held by Fidelity. The Fidelity Custody Agreement will remain effective until terminated by either party with or without cause.

Applicable insolvency law is not fully developed with respect to the holding of cryptocurrencies in custodial accounts. If our custodied bitcoins were considered to be the property of our Custodians' estates in the event that such Custodian were to enter bankruptcy, receivership or similar insolvency proceedings, there is a risk that we could be treated as a general unsecured creditor of such Custodian, inhibiting our ability to access our bitcoins. Even if we are able to prevent our bitcoins from being considered the property of a Custodian's bankruptcy estate as part of an insolvency proceeding, it is possible that we would still be delayed or may otherwise experience difficulty in accessing our bitcoin held by the affected Custodian during the pendency of the insolvency proceedings. To our knowledge, our Custodians have not petitioned for bankruptcy protection, been declared insolvent or bankrupt, made any assignment for the benefit of creditors, or had a receiver appointed for its assets, at any point while we have been a customer. Further, none of our bitcoins were, as of the date of this prospectus, custodied with any entity that has petitioned for bankruptcy protection, been declared bankrupt or insolvent, made any assignment for the benefit of creditors, or had a receiver appointed for its assets. The recent bankruptcies in the crypto industry and failures of certain financial institutions have not resulted in any loss or misappropriation of any of our bitcoins nor have such events impacted our access to any of our bitcoins.

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Additional custodians and further custody policy and procedures will be determined based on our future needs. We currently do not intend to self-custody any bitcoin, hold bitcoin in a crypto exchange service product or hold any bitcoin or other cryptocurrency for third parties.

**Insurance**

We maintain property insurance coverage for our mining hardware, buildings, and infrastructure. This includes coverage for earthquakes, floods and tornadoes. We also maintain cybersecurity coverage, casualty and general liability and crime insurance policies. We believe our custodian, Anchorage, maintains limited insurance policies covering the pool of cryptocurrencies it custodies against certain events of loss, such as theft. We do not carry additional insurance coverage on our bitcoin holdings. We engage our insurance broker annually to solicit underwriters to provide proposals to renew our current coverage or update our policies to meet our needs, prior to the policies' expiration.

**Government Regulation**

Government regulation of blockchain and cryptocurrencies is being actively considered by the U.S. federal government via a number of agencies and regulatory bodies, as well as similar entities in other countries. For example, the U.S. Congress and a number of U.S. federal agencies, state financial regulatory authorities and self-regulatory organizations (including FinCEN, the SEC, the CFTC, the Financial Industry Regulatory Authority, Inc., the Consumer Financial Protection Bureau, the Department of Justice, the Department of Homeland Security, the Federal Bureau of Investigation ("FBI"), and the IRS) have been examining the operations of cryptocurrency networks, cryptocurrency users and the cryptocurrency exchange markets, all of which may apply to our activities and other activities in which we participate or may participate in the future. Other regulatory bodies which are governmental or semi-governmental have shown an interest in regulating or investigating companies engaged in the blockchain or cryptocurrency business, including state and local entities.

Businesses that are engaged in the transmission and custody of bitcoin and other cryptocurrencies, including brokers and custodians, can be subject to FinCEN regulations as money services businesses as well as state money transmitter licensing requirements. The potential application of these policies to bitcoin mining continues to evolve. Bitcoin and other cryptocurrencies are subject to anti-fraud regulations under federal and state commodity laws, and cryptocurrency derivative instruments are substantively regulated by the CFTC. Certain jurisdictions, including states such as New York and California, and a number of countries other than the U.S., have developed regulatory requirements specifically for cryptocurrencies and companies that transact in them.

Regulations may substantially change in the future, and it is presently not possible to know how regulations will apply to our bitcoin mining business, or when they will be effective. As the regulatory and legal environment evolves, we may become subject to new laws, further regulation by the SEC and other agencies, which may affect mining and other activities. For instance, various bills have been proposed in Congress related to cryptocurrencies, including a regulatory framework advanced by the bipartisan House Financial Services Committee in July 2023 that would define when a cryptocurrency is a security or a commodity and expand the CFTC's oversight of the cryptocurrency industry, while clarifying the SEC's jurisdiction. Other bills may be adopted and have an impact on our bitcoin mining business. For additional discussion regarding the potential risks existing and future regulations pose to our business, see the section titled "Risk Factors."

In addition, since transactions in bitcoin and other cryptocurrencies provide a reasonable degree of pseudo-anonymity, they are susceptible to misuse for criminal activities, such as money laundering. This misuse, or the perception of such misuse (even if untrue), could lead to greater regulatory oversight of cryptocurrency platforms, and there is the possibility that law enforcement agencies could close cryptocurrency or other bitcoin-related infrastructure with little or no notice and prevent users from accessing or retrieving cryptocurrencies held via such platforms. For example, former Treasury Secretary Janet Yellen has previously noted that cryptocurrencies have the potential to improve the efficiency of the financial system but that they can be used to finance terrorism, facilitate money laundering, and support malign activities that threaten U.S. national security interests and the integrity of the U.S. and international financial systems. Former Secretary Yellen requested that federal regulators look closely at how to encourage the use of cryptocurrencies for legitimate activities while curtailing their use for malign and illegal activities.

A number of regulatory proceedings have, and may continue to have, a significant adverse impact on our industry. While we believe our holdings are not a security, we cannot assure you that future legislation or regulation will not have an adverse effect upon us. By way of further example, following the November 2022 Chapter 11 bankruptcy filings of FTX, a leading cryptocurrency exchange, and its affiliated hedge fund, Alameda Research LLC, and the subsequent criminal indictment against senior management, in November 2023 FTX's founder was found guilty on charges of wire fraud, securities fraud and money laundering. While focus on our industry by regulators has increased, it is currently uncertain whether there will be additional legislation or regulation of cryptocurrencies in the near future.

State regulation of bitcoin mining is another important consideration with respect to where we conduct our mining operations. A majority of our bitcoin miners are located in Texas, which historically has been one of the more favorable regulatory environments for bitcoin miners as compared to other states. However, in March 2023, the Texas state senate passed bill SB 1751, which would have limited demand response programs and created additional regulatory reporting requirements for bitcoin miners. However, the bill did not make it through the relevant state legislative committees.

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**Environmental, Health and Safety Matters**

Our operations and properties are subject to extensive laws and regulations governing health and safety, the discharge of pollutants into the environment or otherwise relating to health, safety and environmental protection requirements in countries and localities in which we do and will operate. These laws and regulations may impose numerous obligations that are applicable to us, including but not limited to: acquisition of a permit or other approval before conducting construction or regulated activities; restrictions on the types, quantities and concentration of materials that can be released into the environment; limitation or prohibition of construction and operating activities in environmentally sensitive areas, such as wetlands or areas with endangered plants or species; imposition of specific health and safety standards addressing worker protection; noise or other neighborhood controls; and imposition of significant liabilities for pollution, including investigation, remedial and clean-up costs. Failure to comply with these requirements may expose us to fines, penalties and/or interruptions in our operations, among other sanctions, that could have a material adverse effect on its financial position, results of operations and cash flows.

Certain environmental laws may impose strict, joint and several liability for costs required to clean up and restore sites where hazardous substances have been disposed or otherwise released into the environment, even under circumstances where the hazardous substances were released by prior owners or operators, or the activities conducted and from which a release emanated complied with applicable law. Moreover, it is not uncommon for neighboring landowners and other third parties to file claims for bodily injury and property damage allegedly caused by noise or the release of hazardous substances into the environment.

Concerns have also been raised about the amount of electricity required to secure and maintain the Bitcoin network. In addition to the direct power costs of performing the calculations involved in bitcoin mining, there are indirect costs that impact a cryptocurrency networks' total power consumption, including the costs of cooling the machines that perform these calculations and ancillary energy consumption. Due to these concerns around power consumption, particularly as such concerns related to public utilities companies, various jurisdictions (including certain cities) have implemented, or are considering implementing, moratoriums on cryptocurrency mining in their jurisdictions. Environmental, health and safety laws and regulations are subject to change. The trend in environmental regulation has been to place more restrictions and limitations on activities that may be perceived to impact the environment, and thus there can be no assurance as to the amount or timing of future expenditures for environmental regulation compliance or remediation. New or revised laws and regulations that result in increased compliance costs or additional operating restrictions, or the incurrence of environmental liabilities, could have a material adverse effect on our financial position, results of operations and cash flows.

**Intellectual Property**

We actively use specialized hardware and software for bitcoin mining. In some instances, source code and other software assets may be subject to an open-source license, as much technology development in this sector is open source.

We do not currently own any patents in connection with our existing business.

**Human Capital Resources**

As of December 31, 2025, we had ten full-time employees and officers and five full-time independent contractors. We expect to hire additional full-time employees over the course of 2026, including a permanent chief financial officer, chief development officer and chief legal officer, and additional finance and accounting, operations, human resources, business development and legal staff. We also expect to continue to work with existing vendors to service certain of our facilities as necessary.

**Competition**

In our digital solutions business, we face significant competition from various data center providers in the U.S. Many of our competitors own or operate properties similar to our facilities. We seek to differentiate our services to attract and retain customers.

Many of our competitors offer more locations and are active in more markets. Many of our competitors may have significant advantages over us, including longer operating histories, greater name recognition, pre-existing relationships with current or potential customers, the capacity to provide the same or additional products and services at a lower cost, greater access to capital and other financial and operational resources, and better established, more extensive scale and lower cost suppliers and supplier relationships. Competitors in the digital solutions business include:

● Cipher Mining Inc.

● DataDirect Networks

● Digital Realty Trust

● TeraWulf Inc.

The bitcoin mining space is filled with a range of competitors, each supplying hash power to the Bitcoin network. Competitors include everything from individual hobbyists to large-scale, professionally-run mining operations. Large-scale mining operators are our primary source of competition due to the immense hash power they provide to the network. Within bitcoin mining, we also face significant competition in many aspects of our business, including, but not limited to, the acquisition of new mining equipment, access to capital, obtaining low-cost electricity, obtaining access to energy sites with reliable sources of power and evaluating new technology developments in the industry.

As more miners have recently entered the market, the increased competition for a limited number of blocks added to the bitcoin blockchain has caused a significant increase in the network hashrate. As a result, there have been rising levels of difficulty implemented by the Bitcoin network. Changes in network difficulty can create volatility in cryptocurrency mining revenue.

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Our main competitors in cryptocurrency mining include the following companies:

● Applied Digital Corporation

● Argo Blockchain plc

● Bit Digital, Inc.

● Bitfarms Ltd

● Cipher Mining Inc.

● CleanSpark, Inc.

● Core Scientific, Inc.

● Greenidge Generation Holding Inc.

● HIVE Digital Technologies Ltd.

● Hut 8 Corp.

● Iris Energy Limited

● IREN Limited

● MARA Holdings, Inc.

● Mawson Infrastructure Group Inc.

● Riot Platforms, Inc.

● TeraWulf Inc.

The cryptocurrency mining industry is a highly competitive and evolving industry and new competitors and/or emerging technologies could enter the market and affect our competitiveness in the future.

**Company History**

Ionic Digital was founded in January 2024 to acquire certain bitcoin mining assets from Celsius Mining, pursuant to the bankruptcy plan of reorganization (the "Plan") of Celsius Network LLC and its affiliates (together with its debtor and non-debtor affiliates, "Celsius"), which was approved by a vote of a majority of Celsius creditors and subsequently confirmed by the Bankruptcy Court in November 2023. On January 31, 2024 (the "Plan Effective Date"), we acquired the bitcoin mining assets and assumed certain liabilities of Celsius Mining, an affiliate of Celsius, pursuant to the Plan. On February 1, 2024, we began operations.

The total bitcoin mining fleet that we acquired from Celsius Mining had a hashrate of approximately 12.7 EH/s, of which approximately 6.0 EH/s was actively mining on the Plan Effective Date. Under the Plan, certain of the day-to-day operations of our bitcoin mining business was initially outsourced to Hut 8 under our direction and supervision pursuant to a master services agreement (as amended and restated, the "Mining MSA"). Under the Mining MSA, Hut 8 would also complete and deliver certain related projects, upon our approval of the required funding, including building and energizing up to 100 additional MW of bitcoin mining facilities within twelve months of the Plan Effective Date at a capped construction cost of $395,000 per MW. The capped construction cost also applied to up to 300 MW of additional developments for medium voltage to plug ready infrastructure for a period after 24 months from the Plan Effective Date to the end of the term of the Mining MSA, subject to certain specified cost adjustments. Effective December 10, 2024, we terminated the Mining MSA with Hut 8, providing us with operational control of Ward County and our other bitcoin mining sites in December 2024. In addition, following the termination, we have eliminated certain hosted sites and now manage our own mining operations. See "Risk Factors—Risks Related to Our Company—Due to our limited operating and financial history, our historical financial information may not be indicative of our future results of operations."

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Pursuant to the MCA, we were assigned a bitcoin mining hosting agreement (the "Alpha Hosting Agreement") with USMIO Alpha LLC, a subsidiary of Hut 8 Corp. ("Alpha"), originally entered into between Celsius Mining and Alpha on August 8, 2023. Under the Alpha Hosting Agreement, Hut 8 agreed to provide hosting services, including electrical power and internet access necessary to operate miners at Hut 8's Niagara Falls, New York facility. The Alpha Hosting Agreement had an initial term of twelve months, with our option to renew for four consecutive twelve-month terms. For the eleven months ended December 31, 2024 (Successor), we paid an aggregate of $10.3 million in cash and 60.2 in bitcoin under the Alpha Hosting Agreement. In November 2024, we mutually terminated the Alpha Hosting Agreement in connection with the termination of the Mining MSA with Hut 8.

Ionic Digital is not a successor to Celsius Mining for corporate law purposes, and we did not assume any pre-Plan Effective Date net liabilities of Celsius Mining. Instead, under the terms of the Plan, we entered into a Master Conveyance Agreement (the "MCA") with Celsius Mining, effective as of the Plan Effective Date. The MCA documents the assignment from Celsius Mining to us of: (i) Celsius Mining's bitcoin mining assets (and the books and records related thereto); (ii) approximately $195 million in cash; (iii) approximately $29 million in prepaid capital investments related to Ward County; (iv) approximately $2 million in credits with manufacturers of miners, available until their expiration to purchase additional new or used miners from those vendors; and (v) approximately 540 bitcoin (valued on the Plan Effective Date at $23 million). No cash consideration was paid from Ionic Digital to Celsius Mining for any of such assets. Ionic Digital issued 37 million shares of our Class A common stock for the benefit of the former creditors of the Debtors.

 **Overview of HPC/AI Infrastructure Industry**

We believe that demand for data centers for HPC/AI applications will drive significant demand for digital infrastructure solutions. As businesses prioritize digital transformation, the demand for data center infrastructure is expected to increase substantially. Companies require robust, reliable and scalable solutions, including reliable, affordable access to power and infrastructure, in order to process, analyze and store vast amounts of data, and data centers play a crucial role in meeting these needs.

Energy efficiency and reliability are increasingly important considerations in the data center industry. Companies seek to develop locations with access to reliable, affordable energy sources, and implement advanced cooling and power management technologies to reduce manage their operating costs.

The AI market has experienced significant growth and development in recent years, with the rapid advancement of machine learning, natural language processing, and computer vision. We believe substantial growth in the data center industry will be driven by AI which requires high power density, changing the power and cooling requirements of the data center design.

We believe that providers offering comprehensive power, space and connectivity solutions will be best positioned to capitalize on the increasing demand for digital infrastructure solutions.

**Overview of Bitcoin and the Bitcoin Mining Industry**

Bitcoin is a type of cryptocurrency that is designed to work as a secure and decentralized medium of exchange. Using a blockchain database secured by a proof of work mechanism, value can be sent from one account to another in a matter of minutes, or even seconds, without requiring the involvement of a financial intermediary. Computers that run a bitcoin "full node" verify and store the historical bitcoin blockchain state. A blockchain is a form of database, and blockchain-based projects vary greatly in their levels of centralization and applications.

In the bitcoin protocol, each account is identified by a "public key," the address to and from which funds are sent. A "private key" is needed to access the account, which can be thought of as the key to a safety deposit box. Anyone who possesses the private key for a bitcoin address has full access to the contents within it.

The Bitcoin network infrastructure is collectively maintained by a public user base that runs nodes. Running a node is accessible to anyone who has a steady broadband internet connection as well as the proper computing and storage power. The relatively low barrier to entry of running nodes allows for the network to be verified by a dispersed or "decentralized" network.

Bitcoin mining uses a method called "Proof of Work" to validate the transactions included in the settlement layer. Proof of Work is the method of validating the previous transaction block, which requires computers to run computation-intensive algorithms that attempt to solve a complicated algorithm before verifying the previous transaction block. Recognizing that over time the computing power devoted to mining can increase or decrease, every 2,016 blocks (a cadence of roughly every two weeks assuming a block is produced every 10 minutes) the Bitcoin network re-calibrates the difficulty of the puzzle in order to keep an approximately 10-minute interval between two blocks. This interval between blocks is known as the "block time."

Bitcoin miners use SHA-256 to perform hash calculations to verify transactions for inclusion on the blockchain and receive bitcoin in exchange. They "mine" bitcoin by using ASICs that are generally optimized to compute just a single function or set of related functions. An ASIC miner is a device that uses ASICs for the sole purpose of mining bitcoin and with some equipment, other cryptocurrency. The process begins with an operator running a mining client on their computer, which turns their computer into a "node" on the Bitcoin network and validates the blocks. In return for contributing computing power to the system, miners receive bitcoin as a reward. Bitcoin miner capability is measured in terms of the processing power that the miners contribute to the overall network. This is often referred to as "hash" power, a term for the number of "hashing" algorithms worked on per second. Each newly created and verified block refers and "connects" with the immediately prior solved block, like a new link being added to a chain, which creates the blockchain. It is the software's role to validate the various transactions occurring on the blockchain, and if the mining client is successful in adding a block to the blockchain, the operator is rewarded with a fixed bitcoin award (a "block reward") as well as a variable bitcoin transaction fee. This process is the method by which new bitcoin is awarded to the miner and can enter circulation to the public.

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The market price of bitcoin has been subject to substantial volatility, with prices ranging from a high of approximately $124,720 to a low of approximately $39,524 between January 1, 2024 and December 31, 2025 and was approximately $66,724 as of March 31, 2026, based on the daily quoted spot price of bitcoin at 00:00:00 UTC per Coinbase. The market capitalization of bitcoin as of December 31, 2025 and March 31, 2026 was approximately $1.75 trillion and $1.37 trillion, respectively (based on the U.S. dollar price of bitcoin). The market price of bitcoin is influenced by a number of complex factors, all of which are outside of our control, including market supply and demand, changes in technology or regulation, speculation, availability and cost of credit, fraudulent actors, speculation, and incomplete or inaccurate information being reported in the media. Bitcoin mining companies depend heavily on the price of bitcoin to fund their operations therefore bitcoin's market price volatility can pose a significant challenge to the profitability and plans for future growth for such companies.

Similarly, volatility in the cost of energy — the most significant operational expense for bitcoin mining companies — can have a significant impact on their financial performance. A bitcoin mining company will be profitable only if the costs of mining a bitcoin, including amortization of computer hardware and the electricity costs associated with mining a bitcoin, are less than the market value of the bitcoin generated by the mining operations. Macroeconomic, geopolitical, regulatory and weather events can increase electricity costs and thereby adversely affect the success of a bitcoin mining operation.

As more computing power is added to the Bitcoin network, the network automatically adjusts to account for this increase in "network hashrate" — the combined computing power of all participants on the Bitcoin network — by increasing its level "difficulty" (defined below). This ensures that the time taken to solve a new block and distribute the rewards remains consistent, despite fluctuations in the network's computing power. As a result of these adjustments, the probability of a bitcoin mining operator adding a new block to the bitcoin blockchain per unit of "hash power" — their total computing capability — has decreased over time. This dynamic introduces volatility and some downward pressure over the long term on the anticipated success rate of validating blocks and earning block rewards of block rewards for bitcoin mining operators, as the effort required to mine a block increases with the network's overall computing power. This has led bitcoin mining operators to combine their resources into "mining pools" to smooth out the underlying stream of bitcoin rewards. Bitcoin mining operators use pooling services and contribute their hashrate (defined below) to mining pools, subject to the terms of service of the relevant pool. Participation in such pools is generally terminable at any time by either party at will without prior notice and therefore a participant's risk to a particular mining pool is limited. In exchange for a miner's contributions of processing power into a mining pool, the miner receives a percentage of the bitcoin mined by the collective, consistent with the miner's proportional contribution of hash power to the pool.

A mining pool operator coordinates the computing power for all the participants. The pool uses software to coordinate the pool members' computing power, records how much computing power each participant contributed, and assigns a proportional percentage of the block rewards to each participating member of the pool. The mining pool operator typically takes a fee in the form of a percentage of the overall pool's revenue in return for its services.

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*Blockchain and the Cryptocurrency Industry*

 

The Bitcoin network was launched in 2009. Bitcoin is a cryptocurrency with a market capitalization of approximately $1.75 trillion (based on the U.S. dollar price of bitcoin) as of December 31, 2025. Bitcoin can be traded and converted into major fiat currencies in most major economies around the world.

*Mathematically Controlled Supply*

 

The Bitcoin network has a predetermined creation schedule of blocks being released. When first launched, the reward for miners was set at 50 bitcoin per block, and this was cut in half to 25 in 2012 at block 210,000. Moving forward, the number of bitcoin awarded for solving a new block will be automatically halved every 210,000 blocks, which, at current rates, equates to approximately four years. After 2012, the reward was cut in half again to 12.5 in 2016, to 6.25 in 2020 and to 3.125 on April 19, 2024. This deliberately controlled rate of bitcoin creation means that the number of bitcoin in existence has a hard cap of 21 million, incorporating an inflation schedule that decreases over time from the launch.

*Hashrate and Difficulty*

 

"Difficulty" is a relative measure of how complex the process is to solve the hash calculation and receive the bitcoin reward. Difficulty is controlled by the Bitcoin network and is adjusted every 2,016 blocks (or roughly two weeks) depending on how much hashing power is deployed by all miners worldwide. The difficulty is designed to maintain certain mining results so that, on average, 10 minutes is required to solve a hash calculation and create a block, which currently would result in a reward of 3.125 bitcoin. If the hash calculation difficulty is too great and miners are struggling to solve the problem within 10 minutes, then the network will reduce the difficulty of mining bitcoin (and vice versa if it is too easy).

Hash computations are measured in "hashrate" or "hashes per second." A "hash" is a single computation run by a miner to attempt to create a new block in the bitcoin blockchain. A "hashrate" is the processing speed of a mining computer. A higher total hashrate of a specific miner, or the combined hashrate of an individual company's miners, results in a mathematically higher probability of success in solving the block and receiving a bitcoin reward.

**Seasonality**

Our annual and quarterly operating results have the potential to be affected by seasonality related to weather and the related energy commodity price volatility. The price of electric power typically peaks during the winter and summer months, and more generally during extreme weather events, which can potentially impact our results. Additionally, extreme weather conditions may affect the efficiency and uptime of our mining operations which will have an impact on operating results.

**Legal Proceedings**

From time to time, we may be subject to legal proceedings and claims arising in the ordinary course of business. The outcome of any such claims or proceedings, regardless of the merits, is inherently uncertain. See Notes 17, 18, and 20 to our consolidated financial statements included elsewhere in this prospectus for further information.

Based on current information, the Company does not believe a material loss, if any, can be reasonably estimated from any claims, lawsuits, and proceedings to which the Company is subject, either individually or in the aggregate.

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**MANAGEMENT AND GOVERNANCE**

The following sets forth certain information, as of December 31, 2025, concerning the persons who serve as directors on our Board of Directors (the "Board") and as executive officers of Ionic Digital. No executive officer has any "family relationship" as defined in Item 401 of Regulation S-K) with any other executive officer or any director.

---

| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position** |
| **Executive Officers** |  |  |
| Andy Stewart | 54 | Chief Executive Officer and Director |
| James Gallagher | 68 | Interim Chief Financial Officer |
| Antonio Piraino | 51 | Chief Strategy Officer |
| Mark Lambourne | 65 | Chief Development Officer |
| **Directors** |  |  |
| Elizabeth LaPuma | 46 | Chairperson of the Board |
| Michael Abbate | 46 | Director |
| Thomas DiFiore | 49 | Director |
| Scott Duffy | 45 | Director |
| Scott Flanders | 68 | Director |
| Oliver Wiener | 47 | Director |

---

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***Executive Officers***

***Andy Stewart*** has served as Chief Executive Officer and Director of Ionic Digital since November 2025. Mr. Stewart has more than 25 years of experience in the digital infrastructure industry, most recently serving as an independent advisor and consultant regarding digital infrastructure businesses from 2024 through 2025 and as the Chief Executive Officer of Evoque Data Center Solutions ("Evoque") from 2020 until 2023. At Evoque, he successfully implemented a strategy to optimize its portfolio of data centers and shift sales efforts to hyperscale edge and large enterprise deployments. Prior to his time at Evoque, Mr. Stewart served as Chief Executive Officer of TierPoint, leading the company through a series of eleven acquisitions and over $2 billion of equity and debt financing transactions from 2010 until 2016. He later served as Chief Strategy Officer of TierPoint, with responsibilities encompassing service delivery, product development, and corporate strategy from 2016 until 2018. Prior to TierPoint, he served in various senior leadership roles at Cequel III, where he held roles across finance, corporate development, and operations across several communications infrastructure businesses including Suddenlink (cable), AAT (towers), and Broadwing (fiber) from 2002 until 2010. Mr. Stewart started his career in New York at JP Morgan and later worked for American Express and Charter Communications. He previously served on the Board of Directors of Flexential and as a Senior Advisor at Morgan Stanley Infrastructure Partners from 2024 until 2025. He earned a BA from Denison University and holds an MBA from the Olin School of Business at Washington University in St. Louis. Mr. Stewart was selected to serve as a Director of Ionic Digital based on his extensive background in digital infrastructure and because he is Chief Executive Officer of our company.

***James Gallagher*** has served as Interim Chief Financial Officer of Ionic Digital since September 2025. Prior to Ionic, Mr. Gallagher has served in various Senior C level Executive roles for public, private, PE Backed and pre-IPO/liquidity event companies operating across the technology, e-commerce, fintech, consumer goods, manufacturing, real estate, and media & entertainment sectors. Key strategic qualifications include developing/executing strategic transformations, driving liquidity event execution, LBOs, IPOs, reverse mergers, and M&A transactions (domestically and internationally), restructuring, operational turnarounds, structuring and reporting complex financial transactions, and building infrastructures to scale in high growth and distressed environments.

Most recently, Mr. Gallagher has served as a Partner in TechCXO (C Suite Executives on Demand) since September 2024, and previously as Managing Director of his own Financial Consulting firm (Gallagher Enterprises) for over 20 years, as a Fractional, Interim or Project focused Executive Partner working with growth oriented companies seeking to initiate change to grow their businesses and reach new goals. Mr. Gallagher previously worked for Arthur Andersen & Co. in New York for over 10 years as a Senior Audit Manager, and has also held Senior Executive Management positions with companies like Sony Music, WoWoW Entertainment Pay TV(JAPAN), Xerox Financial Services (spinoffs), Medsite, Vertro/Miva, Viz-RT, and Bluefly, amongst others. Mr. Gallagher received his Bachelor of Business Administration in Financial Accounting from Iona University.

***Antonio Piraino*** has served as Chief Strategy Officer of Ionic Digital since February 2026. Mr. Piraino brings 30 years of experience in digital infrastructure, data centers, cloud computing, and AI-enabled technology platforms. From 2011 to 2020, he served as Chief Technology Officer of ScienceLogic, where he led the company's technology vision and product strategy as it expanded its infrastructure monitoring and AIOps platform for global enterprises, data center operators, and managed service providers. From 2007 to 2011, he served as Vice President of Research at Tier1 Research (a division of 451 Research, now part of S&P Global Market Intelligence), where he led research and advisory coverage of managed hosting, colocation, CDN, and cloud infrastructure markets.

Following his tenure at ScienceLogic, Mr. Piraino served in senior advisory leadership roles at Uptime Institute, including as Global Head of its Technical Advisory Group, leading international engagements focused on data center strategy, site selection, capacity planning, risk mitigation, and technical due diligence. He has also advised private equity firms, including ORIX Capital Partners and Hg Capital, on technology investment strategy and acquisition diligence, and founded early-stage ventures focused on AI-enabled cloud and digital infrastructure solutions. Mr. Piraino holds a Bachelor of Science degree from the University of Natal, an International MBA from Georgetown University, and has completed professional education in Applied Data Science at the Massachusetts Institute of Technology (MIT).

 ***Mark Lambourne*** has served as Chief Development Officer of Ionic Digital since March 2026. Mr. Lambourne brings over 30 years of experience in the digital infrastructure industry. He has worked with numerous data center operating businesses as well as private equity and real estate investment companies, where he has overseen the development of new facilities, acquisitions and transformation of existing assets, and investment opportunities in digital infrastructure operating companies in major markets. Mr. Lambourne has served as the Managing Director and President for DC Capital Group, an independent business advisory, strategy and investment firm, since January 2009. He was also President of Digital Infrastructure Advisors Ltd. from September 2022 until its sale in 2025. Mr. Lambourne has overseen the predevelopment of a Hyperscale Build to Suit project, the commercial due diligence of several successful platform acquisitions for capital funds, completed the packaging of numerous Powered Land development projects and provided investment management advisory services on numerous data center assets. Other roles previously held by Mr. Lambourne include: (i) European Managing Director for Digital Realty Trust from 2006 to 2008, where he was responsible for establishing corporate operations and acquiring existing data center assets and development sites throughout Europe, (ii) Chief Executive Officer of ClearBlue Technologies from 2001 to 2004, where he oversaw the acquisition of eight companies in the data center business although to a reverse merger into Navisite, a publicly traded Nasdaq entity, and (iii) Chief Operating Officer for Global Switch from 1999 to 2001, where he helped develop their data center properties throughout Europe and Asia. Mr. Lambourne received his Bachelor of Arts in Human Movement from the University of Kent and a Masters in Physical Education from the University of California, Berkley.

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***Directors***

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***Elizabeth A. LaPuma*** has served as a Director of Ionic Digital since January 2024 and as Chair since September 2024. Ms. LaPuma brings over two decades of financial advisory and board expertise across diverse industries. With a strong background in originating and structuring complex financial transactions, she is a trusted advisor to numerous business leaders. Ms. LaPuma's principal occupation is serving as a director of several public and private companies, including, from January 2025 through November 2025, Big Lots, Inc., a discount retailer; from April 2024 through April 2025, ContextLogic Inc., an e-commerce platform; from September 2023 through August 2024, Ebix Inc., a software solutions company; from August 2023 through June 2024, WeWork Inc., a workspace provider; and from June 2023 through October 2023, Surgalign Holdings, Inc., a global medical technology company. Ms. LaPuma is a board member for several private businesses within the fintech, AI, healthcare, consumer, and real estate sectors. Prior to these roles, from January 2020 to August 2023, Ms. LaPuma was a Managing Director and Head of Balance Sheet Advisory at UBS, the global investment bank. Prior to UBS, from July 2013 to January 2020, she was a Managing Director and Head of Asset Management Services at Alvarez & Marsal, where Ms. LaPuma advised governments and financial institutions on diverse assets. Ms. LaPuma previously held positions at BlackRock, Lazard Frères & Co. LLC, Credit Suisse and Perella Weinberg Partners L.P. Ms. LaPuma received her M.B.A. in Finance as a Palmer Scholar and B.S. in Finance from The Wharton School at the University of Pennsylvania and her B.A. in International Relations, magna cum laude, from The School of Arts and Sciences at the University of Pennsylvania. Ms. LaPuma has been selected to serve as a Director due to her extensive financial advisory experience (including with complex capital raising and other financial transactions), experience as an advisor to and board director for companies in the AI sector, service as a fiduciary for public and private companies, and her leadership with the Company since its inception. Ms. LaPuma was nominated for election by our stockholders at the 2025 annual meeting in connection with the settlement of pending litigation and pursuant to a cooperation agreement entered into between the Company and Figure Markets Holdings, Inc., GXD Labs LLC, and certain stockholders of Ionic Digital (the "Cooperation Agreement").

 ***Michael Abbate*** has served as a Director of Ionic Digital since July 2025. Mr. Abbate is the Co-Founder and Chief Investment Officer of GreenWulf Asset Management, an opportunistic asset management firm focused on AI infrastructure and financial technology, since July 2025. He also served as an Advisor to Figure Technology Solutions, Inc. ("Figure") through February 2026 following his tenure as Chief Information Officer from January 2024 through February 2025. Mr. Abbate served as Managing Partner of NovaWulf Digital Management, LP ("NovaWulf"), an investment manager focused on distressed cryptocurrencies and energy infrastructure from June 2021 through December 2023. From 2012 through December 2020, Mr. Abbate was a Partner at King Street Capital Management, L.P., a leading global alternative asset manager. Mr. Abbate started his career as an investment banker in global technology at Morgan Stanley and received a Bachelor of Computer Science and Engineering from Dartmouth College. Mr. Abbate was appointed to the Board in connection with the settlement of pending litigation and pursuant to the Cooperation Agreement.

 ***Thomas DiFiore*** has served as a Director of Ionic Digital Inc. since January 2024. Since 2021, Mr. DiFiore has served as President of DOBAC LLC, a business consulting firm providing strategic guidance on operational and management issues. From 2015 to 2021, he was the CEO of Fullerton Auto Group, a franchised automotive dealership network. Since 2015, Mr. DiFiore has also served as President of Fullerton Reinsurance Company, overseeing claims management and investment strategy for the company's reinsurance asset pool. Mr. DiFiore served as the Co-Chair of the Official Committee of Unsecured Creditors (UCC) in the Celsius Network LLC bankruptcy from July 2022 through February 2024, playing a leading role in the reorganization process of one of the largest crypto bankruptcy cases to date. In August 2024, Mr. DiFiore was named an advisor to World Liberty Financial, a cryptocurrency platform focused on decentralized finance and tokenized real-world assets, which just recently launched the stable coin, USD1. Earlier in his career, Mr. DiFiore was among the earliest adopters of bitcoin, beginning to mine in 2010 using custom-built miners and open-source software. His hands-on involvement with the network's foundational infrastructure gave him deep technical insight into the evolution of cryptocurrencies over the past fifteen years. In addition to his business experience, Mr. DiFiore has served for more than eight years as a member of the Advisory Council for the Somerset Patriots, the Double-A affiliate of the New York Yankees. In 1999, Mr. DiFiore graduated from the National Automobile Dealers Association's Dealer Academy. Mr. DiFiore was selected to serve as a Director of Ionic Digital based on his extensive background in cryptocurrencies, bitcoin mining, and operational leadership and appointed to the Board pursuant to the Plan.

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 ***Scott Duffy*** has served as a Director of Ionic Digital since January 2024, bringing deep subject matter expertise in blockchain, bitcoin mining, decentralized finance, and cryptocurrency management. Mr. Duffy served as the Co-Chair of the Official Committee of Unsecured Creditors in the Celsius Network LLC bankruptcy from July 2022 through February 2024, playing a leading role in the reorganization process of one of the largest crypto bankruptcy cases to date. Mr. Duffy oversaw billions of dollars in workload transition to ERP systems at the Defense Finance and Accounting Service (DFAS), facilitating major base realignment and closure initiatives for armed services and defense agency customers. He established and chaired the Columbus Mission Focus Group while at DFAS implementing the first pilot telework program for over 2,000 civilian employees. Since December 2017, he has served as CEO of ICB Solutions, a family investment firm of which he is the sole shareholder. Mr. Duffy's commitment to education and community is reflected in his service on the Ohio Dominican University Finance Advisory Board and, until recently, on the Oakstone Community School Board as a member of the Finance Committee. Mr. Duffy holds a B.S. in Finance and Business Administration from Ohio Dominican University. Mr. Duffy was selected to serve as a Director of Ionic Digital based on his experience in cryptocurrencies, large-scale mining operations, and his financial oversight positions him to help drive Ionic Digital's continued growth and success and appointed to the Board pursuant to the Plan.

 ***Scott Flanders*** has served as a Director of Ionic Digital since July 2024. Mr. Flanders is a seasoned executive with extensive experience in the media, entertainment, and technology industries. His principal occupation is as the Chairman of Fathom Holdings Inc., a publicly listed, national technology driven real-estate platform company since November 2023, and brings a wealth of leadership and governance expertise to the Ionic Digital board. He also served as Chairman of the board of Digital Media Solutions, Inc. a digital performance marketing provider, from June 2023 to February 2025. Mr. Flanders has a distinguished career, having served as the CEO of several prominent companies, including eHealth, Inc, Playboy Enterprises, Freedom Communications, and Columbia House. As the CEO of eHealth, Inc., a position he held from May 2016 until October 2021, Mr. Flanders developed and executed a strategic growth plan that significantly expanded the company's market share in the Medicare Advantage and small business insurance markets. His leadership was also pivotal in transforming Playboy Enterprises (CEO May 2009-May 2016 and Director July 2009-2019) into a brand management company. Mr. Flanders served as the President and Chief Executive Officer of Freedom Communications, Inc., including as a member of its Board of Directors from 2001 to 2009. From September 1999 to July 2005, he served as Chairman and Chief Executive Officer of Columbia House Company, which was acquired by Bertelsmann AG in July 2005 Mr. Flanders is both an attorney and a Certified Public Accountant (CPA), and he holds a B.A. in Economics from the University of Colorado and a J.D. from the Maurer School of Law at Indiana University. Mr. Flanders has been selected to serve as a Director due to his extensive executive leadership experience and his proven ability to drive growth and innovation in complex industries.

 ***Oliver Wiener*** has served as a Director of Ionic Digital since July 2025. Mr. Wiener is the Founder and Managing Partner of Kensington Merchant Partners, a merchant bank, investment management and corporate development advisory business focused on Financials, Fintech, Insurance, Insuretech and Blockchain verticals, since January 2023. Previously, he served as a Portfolio Manager at Standard Investments from May 2021 until December 2022. Prior to that, Mr. Wiener served as Founding Team Member and Partner at BTIG, LLC, a global financial services firm from March 2003 until May 2021. Mr. Wiener has served as a member of the Board of Directors of Chain Bridge I (NASDAQ: CBRGU) since February 2024, and The National Security Group, Inc., an insurance holding company since October 2024. In addition, Mr. Wiener serves as a board observer at Figment Inc., a leading provider of blockchain infrastructure since 2022, an advisory board member at Extend since 2021, as well as advisor to investment firms Figment Capital since July 2021 and Hangar since March 2023. Mr. Wiener served as a founding member and former President of the board of the Association for Digital Asset Markets, a private, non-profit, industry-led, broad-based association of firms operating in the cryptocurrency space from November 2018 until May 2021. He is an active member of the Economic Club of New York and the University of Wisconsin College of Letters and Science Board of Visitors, as well as the UW Technology Entrepreneurship Office Advisory Council. He received a B.A. in Political Science and International Relations from the University of Wisconsin-Madison. Mr. Wiener was appointed to the Board in connection with the settlement of pending litigation and pursuant to the Cooperation Agreement.

***Corporate Governance***

*Composition of the Board of Directors* 

Our business and affairs are managed by or under the direction of our Board. Elizabeth LaPuma serves as the Chair of our Board. Our Board is currently composed of seven directors. In accordance with the terms of our amended and restated certificate of incorporation and amended and restated bylaws, the total number of directors constituting the Board shall be fixed by resolution adopted by a majority of the directors and the Board is a classified board with each director serving a staggered, three-year term. The directors are elected by the holders of the Class A common stock, voting as a separate class.

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Subject to any special rights of the holders of one or more series of preferred stock to elect additional directors, the directors shall be divided, with respect to the time for which they hold office, into three classes designated as Class I, Class II and Class III, respectively (the "Classified Board"). The initial term of office of the Class I directors expired at the Company's first annual meeting of stockholders held during 2025. Ms. LaPuma was reelected to serve as a Class I director for a full three-year term expiring at the third annual meeting of stockholders held following the 2025 annual meeting. The initial term of office of the Class II directors shall expire at the Company's second annual meeting of stockholders; and the initial term of office of the Class III directors shall expire at the Company's third annual meeting of stockholders. Our directors will be divided among the three classes as follows:

● the Class I directors are Elizabeth LaPuma and Michael Abbate whose terms will expire at the annual meeting of stockholders to be held in 2028;

● the Class II directors are Scott Flanders and Oliver Wiener whose terms will expire at the annual meeting of stockholders to be held in 2026; and

● the Class III directors are Thomas DiFiore, Scott Duffy, and Andy Stewart, whose terms will expire at the annual meeting of stockholders to be held in 2027.

At each annual meeting of stockholders, directors elected to succeed those directors of the class whose terms then expire shall be elected for a term of office expiring at the third succeeding annual meeting of stockholders after their election. Each director's term shall continue until the election and qualification of such director's successor, or the director's earlier death, resignation, disqualification or removal. Any additional directorships resulting from an increase in the number of authorized directors will be distributed among the three classes so that, as nearly as possible, each class will consist of approximately one-third of the directors.

The classification of our Board may have the effect of delaying or preventing a change of our management, a change of control or other corporate actions. Under Delaware law and our amended and restated certificate of incorporation, for so long as our Board of Directors is divided into classes, our directors may be removed only for cause.

*Director Independence* 

The rules of Nasdaq require that a majority of our Board be independent at the time of our initial public listing. An "independent director" is defined as a person other than an executive officer or employee of the Company or any other individual having a relationship which, in the opinion of the Board, would interfere with the exercise of independent judgment in carrying out the responsibilities of a director. Our Board considered whether any director has a material relationship with us that could compromise his or her ability to exercise independent judgment in carrying out his or her responsibilities. Based upon information requested from and provided by each director concerning his or her background, employment and affiliations, including family relationships, our Board has determined that each of Ms. LaPuma and Messrs. DiFiore, Duffy, Wiener, Abbate and Flanders do not have a relationship that would interfere with the exercise of independent judgment in carrying out the responsibilities of a director and that each of these directors is "independent" as that term is defined under the Nasdaq Rules.

*Committees of the Board of Directors* 

The standing committees of our Board consist of an audit committee, a compensation committee and a nominating and corporate governance committee with the composition and responsibilities described below. The members of each committee are appointed by the Board and serve until their successor is elected and qualified, unless they are earlier removed or resign. In addition, from time to time, special committees may be established under the direction of the Board when necessary to address specific issues. The Board has also designated two special committees: a shareholder value committee and a strategic committee.

A copy of the charters for each of the respective committees is available on our website at https://ionicdigital.com. Information contained in, and that can be accessed through, our website is not incorporated into and does not form a part of this prospectus.

*Audit Committee* 

Our audit committee consists of Ms. LaPuma and Messrs. Flanders, and DiFiore, with Elizabeth LaPuma serving as the chair of the committee. The Board has determined that each of these individuals meets the independence requirements of the Sarbanes-Oxley Act of 2002, as amended, or the Sarbanes-Oxley Act, Rule 10A-3 under the Exchange Act and the applicable listing standards of Nasdaq. Each member of Ionic's audit committee can read and understand fundamental financial statements in accordance with Nasdaq audit committee requirements. In arriving at this determination, the board has examined each audit committee member's scope of experience and the nature of their prior and/or current employment.

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The Board has determined that Elizabeth LaPuma qualifies as an audit committee financial expert within the meaning of SEC regulations and meets the financial sophistication requirements of the Nasdaq rules. In making this determination, the Board has considered Ms. LaPuma's formal education and previous and current experience in financial and accounting roles. Both Ionic's independent registered public accounting firm and management periodically meet privately with Ionic's audit committee.

The audit committee's responsibilities include, among other things:

● appointing, compensating, retaining, evaluating, terminating and overseeing Ionic's independent registered public accounting firm;

● discussing with Ionic's independent registered public accounting firm their independence from management;

● reviewing with Ionic's independent registered public accounting firm the scope and results of their audit;

● pre-approving all audit and permissible non-audit services to be performed by Ionic's independent registered public accounting firm;

● overseeing the financial reporting process and discussing with management and Ionic's independent registered public accounting firm the interim and annual financial statements that Ionic's files with the SEC;

● reviewing and monitoring Ionic's accounting principles, accounting policies, financial and accounting controls and compliance with legal and regulatory requirements; and

● establishing procedures for the confidential anonymous submission of concerns regarding questionable accounting, internal controls or auditing matters.

The composition and function of the audit committee will comply with all applicable requirements of the Sarbanes-Oxley Act and all applicable SEC rules and regulations. Ionic will comply with future requirements to the extent they become applicable to Ionic.

*Compensation Committee* 

Our compensation committee consists of Messrs. Flanders, Abbate and DiFiore, with Mr. Flanders serving as the chair of the committee. Messrs. Flanders, Abbate and DiFiore are non-employee directors, as defined in Rule 16b-3 promulgated under the Exchange Act. The Board has determined that Messrs. Flanders, Abbate and DiFiore are "independent" as defined under the applicable Nasdaq listing standards, including the standards specific to members of a compensation committee.

The compensation committee's responsibilities include, among other things:

● reviewing and setting or making recommendations to the Board regarding the compensation of Ionic's executive officers;

● making recommendations to the Board regarding the compensation of the Board;

● reviewing and approving or making recommendations to the Board regarding Ionic's incentive compensation and equity-based plans and arrangements; and

● appointing and overseeing any compensation consultants.

The composition and function of the compensation committee will comply with all applicable requirements of the Sarbanes-Oxley Act and all applicable SEC rules and regulations. Ionic will comply with future requirements to the extent they become applicable to Ionic.

*Nominating and Corporate Governance Committee* 

Our nominating and corporate governance committee consists of Mr. Flanders, Ms. LaPuma and Mr. Wiener, with Mr. Flanders serving as the chair of the committee. The Board has determined that Messrs. Flanders and Wiener and Ms. LaPuma are "independent" as defined under the applicable Nasdaq listing standards, including the standards specific to members of a nominating and corporate committee.

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The functions of the nominating and corporate governance committee include:

● identifying and recommending candidates for membership on the Board;

● recommending directors to serve on the Board committees;

● reviewing and recommending to the Board any changes to our corporate governance principles;

● reviewing proposed waivers of the code of conduct for directors and executive officers;

● overseeing the process of evaluating the performance of the Board; and

● advising the Board on corporate governance matters.

The composition and function of the nominating and corporate governance committee will comply with all applicable requirements of the Sarbanes-Oxley Act and all applicable SEC rules and regulations. Ionic will comply with future requirements to the extent they become applicable to Ionic.

 *Strategy Committee*

 

Ms. LaPuma and Messrs. DiFiore, Abbate, Flanders and Wiener are members of this committee, and Mr. DiFiore is the chair.

The functions of the Strategy Committee include:

● making recommendations to the Board regarding the process to select a permanent Chief Executive Officer;

● making recommendations to the Board to increase liquidity for stockholders; and

● making recommendations to the Board regarding engagement of strategic advisors.

*Code of Conduct and Ethics* 

We have a code of conduct and ethics that applies to all of our executive officers, directors and employees, including our principal executive officer, principal financial officer, principal accounting officer or controller or persons performing similar functions. The code of conduct and ethics is available on our website, https://www.ionicdigital.com/corporate-governance. The reference to our website address in this prospectus does not include or incorporate by reference the information on that website into this prospectus. We intend to disclose future amendments to certain provisions of this code of ethics, or waivers of these provisions, on our website or in public filings to the extent required by the applicable rules.

*Compensation Committee Interlocks and Insider Participation* 

None of our executive officers currently serves, and in the past year has not served, as a member of the compensation committee of any entity that has one or more executive officers serving on the Board.

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**EXECUTIVE COMPENSATION**

**Introduction**

This section provides certain information required by the rules of the SEC regarding the compensation of our "named executive officers" (defined as (1) all individuals who served as our Chief Executive Officer during any part of the fiscal year ended December 31, 2025 ("fiscal 2025"), (2) our next most highly compensated executive officer still serving as of the end of fiscal 2025, and (3) an additional former executive officer who would have been the most highly compensated executive officer other than our Chief Executive Officer for fiscal 2025, but for the fact that she was not serving as of the end of that year). As an emerging growth company, we have opted to comply with the executive compensation rules otherwise applicable to "smaller reporting companies," as such term is defined in Rule 12b-2 under the Exchange Act. The primary objective of our executive compensation program is to attract and retain talented executives to manage and lead our Company effectively. The compensation packages for our named executive officers generally include a base salary, annual cash bonuses, equity awards, and other benefits.

In line with the above-described SEC requirements, our named executive officers for fiscal 2025 are:

● Andy Stewart, our Chief Executive Officer (since November 2025);

● James Gallagher, our Interim Chief Financial Officer (since September 2025);

● Anthony McKiernan, our former Interim Chief Executive Officer (from December 2024 until November 2025); and

● Laura Schnaidt, our former Chief Legal Officer and Corporate Secretary (from November 2024 until August 2025).

**Summary Compensation Table**

The following table provides summary information concerning compensation of our named executive officers for services rendered to us during fiscal 2025 and, to the extent they were then serving us, the eleven months ended December 31, 2024 ("fiscal 2024"), in all capacities, including amounts paid before and/or after they were considered "executive officers."

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Name and Principal Position** | **Year** | **Salary<sup>(1)</sup><br> ($)** | **Bonus ($)** | **Stock Awards<sup>(2)</sup><br> ($)** | **All Other<br> Compensation<sup>(3)</sup><br> ($)** | **Total<br> ($)** |
| Andy Stewart |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; *Chief Executive Officer* | 2025 | 38461 |  | 25770000 | 769 | 25809230 |
| Anthony McKiernan |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; *Former Interim Chief Executive Officer* | 2025 | 500000 | 500000 |  | 14000 | 1014000 |
|  | 2024 | 11538 |  |  |  | 11538 |
| James Gallagher |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; *Interim Chief Financial Officer* | 2025 | 177560 |  |  |  | 177560 |
| Laura Schnaidt |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; *Former Chief Legal Officer* | 2025 | 300000 | 192000 |  |  | 492000 |
|  | 2024 | 78139 |  |  |  | 78139 |

---

(1) Amounts reflect the
 following amounts earned during the fiscal year presented: (i) for Messrs. Stewart and McKiernan,
 the base salaries paid to them by us as our employees; (ii) for Mr. Gallagher, fees paid
 to him by a third-party executive search firm, who has a consulting agreement with us to
 provide us with Mr. Gallagher's services; and (iii) for Ms. Schnaidt, fees paid directly
 to her by us pursuant to our professional services agreement with her.

&nbsp;&nbsp;&nbsp;&nbsp;(2) The grant date fair values are computed in accordance with FASB ASC Topic 718,
 based on assumptions in Note 14 to our consolidated financial statements included elsewhere in this prospectus.

(3) Reflects the following
 amounts: for Mr. Stewart, $769.23 in matching contributions by us to the 401(k) account for
 401(k) matching contributions; and for Mr. McKiernan, $14,000 in matching contributions by
 us to the 401(k) account.

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**Narrative Disclosure to Summary Compensation Table**

 ****

***Management Agreements***

We entered into an employment agreement with Mr. Stewart on November 17, 2025. Pursuant to the employment agreement, Mr. Stewart receives an annual base salary of $500,000, paid in accordance with the Company's customary payroll practices and subject to annual review and possible increase (but not decrease) as determined by the Board in its sole discretion, except for any proportionate reduction that applies as part of a reduction to substantially all senior executives of the Company. Mr. Stewart is eligible to receive an annual cash bonus with a target amount of 100% of his annual base salary. Mr. Stewart's 2026 bonus will be no less than $250,000; however, if the Company completes an IPO by June 30, 2026, the 2026 bonus will be no less than $500,000. During the term of his employment agreement and for a 12-month period following the date of any termination, Mr. Stewart is subject to non-competition, non-solicitation, and non-hire restrictions, which prohibit him from directly or indirectly engaging in, providing services to, or having an equity interest in any person or entity engaged in the digital infrastructure and cryptocurrency mining business that competes with the Company, subject to limited carve-outs for passive equity interests not exceeding 5% of the outstanding interest in a competing business and certain post-employment advisory activities. For information about the terms of Mr. Stewart's employment agreement governing payments upon termination, see "Termination and Change in Control Provisions."

We do not have an agreement directly with Mr. Gallagher, whose services are provided to us pursuant to a separate consulting agreement between us and a third-party executive search firm.

Our agreements with Mr. McKiernan and Ms. Schnaidt are no longer in effect. However, for purposes of SEC disclosure, we briefly summarize their material terms here. We entered into an offer letter with Mr. McKiernan on December 9, 2024 providing for the terms of his at-will employment with us, including (i) an annual base salary, (ii) eligibility for an annual performance bonus and in some cases additional special bonuses, and (iii) participation in our benefit plans in accordance with our policies. We entered into a professional services agreement with Ms. Schnaidt on October 26, 2024, as later amended, providing for the terms of her services as an at-will non-employee consultant to us, including (i) a monthly consulting fee, (ii) reimbursement of reasonable out-of-pocket expenses incurred by her in the performance of her duties, and (iii) our indemnification and exculpation obligations to her in connection with her services to us.

***Base Salaries***

Our named executive officers received in fiscal 2025 and those still serving us currently receive a base salary or consulting fee to compensate them for services rendered to us. The base salary or consulting fee for each named executive officer is intended to provide a fixed component of compensation reflecting the executive's skill set, experience, role, and responsibilities. For fiscal 2025, the amounts were as follows: we paid Mr. Stewart an annual base salary of $500,000; we paid a third-party executive search firm a weekly consulting fee of $19,000 for the services of Mr. Gallagher (the "Summary Compensation Table" shows the amount paid to him by such firm); we paid Mr. McKiernan an annual base salary of $500,000; and we paid Ms. Schnaidt a monthly consulting fee of $40,000.

***Annual Bonuses***

We provided in fiscal 2025 and currently provide incentive compensation in the form of annual performance bonuses to certain employees, including our named executive officers Messrs. Stewart and McKiernan. We may also pay sign-on, special retention, or other discretionary bonuses to any of our named executive officers from time to time as a way of attracting and retaining top talent. Mr. Gallagher is not and Ms. Schnaidt was not eligible to receive an annual performance bonus due to their service to us via consulting arrangements, but are or were eligible to receive discretionary bonuses. All bonuses may be paid in cash or equity at the discretion of the board or compensation committee.

Annual performance bonuses are determined by our Board of Directors or compensation committee, based on both individual performance of the eligible named executive officer and our overall corporate performance, generally in accordance with performance milestones established by our board or compensation committee. The performance goals differ from executive to executive, with each executive's target annual bonus opportunity equal to a predetermined percentage of his or her base salary. During the covered year, we select the performance targets, target amounts, target award opportunities and other terms and conditions of annual bonuses for the eligible named executive officers, subject to the terms of their employment agreements. Following the end of each year, the board or compensation committee determines the extent to which the performance targets were achieved and the amount of the award that is payable to the eligible named executive officers.

The target opportunities for the annual performance bonuses for our eligible named executive officers in fiscal 2025 were as follows: for Mr. Stewart, 100%; and for Mr. McKiernan, 100%. Neither of these performance bonuses were paid out for fiscal 2025, due either to performance and/or the named executive officer leaving the Company before the payout date. Otherwise, we paid Mr. McKiernan and Ms. Schnaidt discretionary bonuses of $500,000 and $192,000, respectively, for their services to us during fiscal 2025.

***Equity Awards***

We believe that equity incentives motivate executive officers to achieve exemplary results, reward performance, incentivize retention, and align the interests of our executive officers with those of our stockholders. The Ionic Digital Inc. Omnibus Incentive Plan (the "Omnibus Plan"), which was adopted on the Plan Effective Date, allows us to grant equity and equity-based incentive awards (including non-statutory and incentive stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards, other stock-based awards and cash awards) to eligible employees, consultants, individual contractors and other service providers. As of December 31, 2025, we had reserved 4,841,180 shares (subject to an evergreen) under the Omnibus Plan*.*

 

Mr. Stewart received in 2025 a grant of 186,875 time-vesting restricted stock units ("RSUs") and 560,625 performance-vesting restricted stock units ("PRSUs"). The RSUs vest over a five-year period in equal installments, with one-fifth vesting on each of the first five anniversaries of the grant, provided that Mr. Stewart remains employed through such vesting date. The PRSUs may vest under two scenarios. First, they may vest under a "change in control" (as defined in the Omnibus Plan) of the Company at certain "valuation" thresholds, provided that Mr. Stewart remains employed through the date of the change in control, with (i) one-third vesting where the valuation is at least $2.5 billion, (ii) an additional one-third vesting where the valuation is at least $3.75 billion, and (iii) a final one-third vesting where the valuation is at least $5 billion. Second, they may vest based on the average daily weighted stock price of the Company's common stock over a 60-calendar-day period ("AWDSP") reaching certain thresholds, provided that Mr. Stewart remains employed through the date of the achievement of the applicable threshold and for 6 months afterward, with (i) one-third vesting where the AWDSP creates a valuation at least $2.5 billion, (ii) an additional one-third vesting where the AWDSP creates a valuation at least $3.75 billion, and (iii) a final one-third vesting where the AWDSP creates a valuation of at least $5 billion. For purposes of the PRSUs, "valuation" means the fair market value of the Company, determined by the Board of Directors as of the applicable valuation date, without giving effect to any minority, illiquidity, or similar discounts, and reflecting deductions for outstanding indebtedness and other liabilities, accrued but unpaid expenses, and other amounts that should be deducted to determine the net value distributable to equity holders under GAAP upon a sale, liquidation, or similar transaction.

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 ****

***Pension Benefits and Non-qualified Deferred Compensation Benefits***

Our named executive officers did not in fiscal 2025 and currently do not participate in, or otherwise receive any benefits under, any pension plan or non-qualified deferred compensation plan sponsored by us.

 ****

***Retirement Plan***

We have a qualified contributory retirement plan established to qualify as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code of 1986, as amended. The plan covers all employees, including our named executive officers, who may contribute up to statutory limits imposed by the Internal Revenue Code. We provide matching contributions of 100% for the first three percent of eligible compensation for enrolled employees and 50% of the next two percent of eligible compensation for enrolled employees.

 ****

***Other Benefits***

The health, safety, and well-being of employees is paramount. We provided in fiscal 2025 and currently provide to all our employees, including our named executive officers employed by us, certain broad-based benefits that are intended to attract and retain employees while providing them with health and welfare security. Other than the retirement plan discussed above, broad-based employee benefits include medical, dental and other benefits.

**Outstanding Equity Awards as of December 31, 2025**

The following table provides information concerning outstanding equity awards held by our named executive officers at the end of fiscal 2025.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Stock awards** | **Stock awards** | **Stock awards** | **Stock awards** |
| <br> **Name** | **Number of shares that have not vested (#)** | **Market value of shares that have not vested<sup>(1)</sup><br> ($)** | **Equity incentive plan awards: number of unearned shares that have not vested <br> (#)** | **Equity incentive plan awards: market or payout value of unearned shares that have not vested<br> ($)** |
| Andy Stewart | 186875 | 5326280  | 560625 | 15675281 |
| Anthony McKiernan |  |  |  |  |
| James Gallagher |  |  |  |  |
| Laura Schnaidt |  |  |  |  |

---

**Termination and Change in Control Provisions**

For fiscal 2025 and currently, Mr. Stewart is the only named executive officer with whom we maintain severance or change in control arrangements. In connection with the consummation of our listing, we plan to establish a new severance plan, as described further under "Compensation Arrangements to Be Adopted in Connection with this Listing."

Mr. Stewart's cash and other benefits upon termination or change in control are covered by his employment agreement. If the Company terminates Mr. Stewart's employment without cause, he is entitled, in addition to all accrued obligations, to continued payment of his annual base salary for a severance period beginning on the date of termination and ending on the earlier of the 12-month anniversary of that date or the first date on which Mr. Stewart violates any applicable restrictive covenant. In addition, Mr. Stewart is entitled to receive a prorated portion of his annual bonus with respect to the year of termination, determined based on actual achievement of the applicable performance goals. All severance payments are conditioned upon Mr. Stewart's execution and non-revocation of a general waiver and release of claims in favor of the Company.

With respect to his equity awards granted in 2025, if he is terminated for any or no reason, all such RSUs and PRSUs that remain unvested on the date of termination will be automatically forfeited without payment of any consideration (with the exception of a termination for cause within three months prior to a change in control, which impacts the RSUs as noted below). With respect only to his RSUs granted in 2025, where a change in control (as defined in the Omnibus Plan) occurs within the first 12 months after November 17, 2025, (i) if the valuation of the Company is less than $2.5 billion, then all such outstanding RSUs will vest immediately upon the change in control, and (ii) if the valuation of the Company is more than $2.5 billion, then one-half of such outstanding RSUs will vest immediately upon such change in control, in each case, subject to Mr. Stewart's continuous employment through the date of the change in control. If Mr. Stewart is terminated without cause within the three-month period before the consummation of a change in control, he will be entitled to accelerated vesting as if he was employed through the date of the change in control. For purposes of the RSUs, "valuation" means the fair market value of the Company, determined by the Board of Directors as of the applicable valuation date, without giving effect to any minority, illiquidity, or similar discounts, and reflecting deductions for outstanding indebtedness and other liabilities, accrued but unpaid expenses, and other amounts that should be deducted to determine the net value distributable to equity holders under GAAP upon a sale, liquidation, or similar transaction. For the impact of a change in control on Mr. Stewart's PRSUs, see "Narrative Disclosure to Summary Compensation Table—Equity Awards" above.

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**Director Compensation**

***Director Compensation Table***

Our non-employee directors who served during fiscal 2025 earned the aggregate amounts of compensation for 2025 set forth in the table below. Additionally, we provided in fiscal 2025 and currently provide reimbursement to non-employee directors for their reasonable expenses related to their service on our board.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Fees Earned<br> or Paid in<br> Cash <br> ($)<sup>(1)(2)</sup>** | **Stock**<br> **Awards**<br> **($)<sup>(3)</sup>** | **All<br> Other<br> Compensation<br> ($)<sup>(5)</sup>** | **Total<br> ($)** |
| Michael Abbate | 51639 | 1350361 |  | 1402000 |
| Thomas DiFiore | 286923 | 1350361 |  | 1637284 |
| Scott Duffy | 280247 | 1350361 | 38193 | 1668801 |
| Scott N. Flanders | 345275 | 1350361 |  | 1695636 |
| Elizabeth LaPuma | 476551 | 1350361 |  | 1826912 |
| Oliver Wiener | 51639 | 1350361 |  | 1402000 |

---

(1) Amounts reflect annual cash retainers paid to our non-employee directors for service on our board and/or committees, prorated
 based on the number of days served by each director during fiscal 2025. The amounts are, starting from the second quarter of fiscal
 2025, those paid to our directors under our director compensation program (as described in "Director Compensation Program"),
 with payments in the first quarter of fiscal 2025 as follows: all non-employee directors, $18,750; chairperson of the board, $10,000;
 audit committee chairperson, $10,000; other audit committee member(s), $5,000; compensation committee chairperson, $3,750; other
 compensation committee member(s), $1,875; nominations and governance committee chairperson, $2,500; and other nominations and governance
 committee member(s), $1,250.

(2) Amounts also reflect a cash payment of $82,500 made in January 2025 to the directors then serving (i.e., Messrs. DiFiore,
 Duffy and Flanders and Ms. LaPuma), which was originally promised as RSUs but then converted into cash.

(3) Amounts reflect our
 annual grant of 37,375 RSUs to each of our non-employee directors (as described in "Director
 Compensation Program"). The 37,375 RSUs were the only outstanding equity awards held
 by our non-employee directors as of December 31, 2025.

(4) The grant date
 fair values are computed in accordance with FASB ASC Topic 718, based on assumptions in Note
 14 to our consolidated financial statements included elsewhere in this prospectus.

(5) Amount reflects the
 reimbursement of legal expenses for Mr. Duffy.

***Director Compensation Program***

 ****

Our non-employee directors receive annual cash retainers, prorated based on the number of days served, as well as an annual equity grant. The annual cash retainer amounts are as follows: all non-employee directors, $90,000; chairperson of the board, $150,000; audit committee chairperson, $40,000; other audit committee member(s), $10,000; compensation committee chairperson, $20,000; other compensation committee member(s), $10,000; nominations and governance committee chairperson, $20,000; other nominations and governance committee member(s), $10,000; strategy committee chairperson, $20,000; and other strategy committee member, $10,000. All non-employee directors also receive an equity grant of 37,375 RSUs under our Omnibus Plan, which vest ratably over three years starting on the date of the annual meeting of stockholders held in the year following grant. If a non-employee director is not re-elected or otherwise ceases to be a director prior to the following annual meeting, other than due to death or disability or a change in control, the unvested portion of these RSUs will be forfeited, and upon a change in control, any unvested and non-forfeited portion of these RSUs will be accelerated.

**Compensation Governance**

Executive compensation and related decisions, including the strategic oversight of our compensation and benefit programs, are made by the Board, based on the recommendation of the Compensation Committee with the assistance of our management. Our Board also determines our non-employee director compensation, based on the recommendation of the Compensation Committee. For more information, see "Management and Governance—Corporate Governance—Compensation Committee." For fiscal 2025, the Compensation Committee engaged an independent compensation consultant, Frederic W. Cook & Co., Inc. ("FW Cook"), to assist it in developing its recommendations on non-employee director compensation. FW Cook provided and continues to provide benchmarking services on each element of compensation and the total compensation of our non-employee directors, as well as related guidance and advice, to help the Compensation Committee design a recommended program appropriate for a company of our size, industry, maturity and complexity.

**Compensation Arrangements to Be Adopted in Connection with this Listing**

*Equity Grant Procedures*

As a matter of policy, we do not permit the timed disclosure of material non-public information for the purpose of affecting the value of executive compensation. In connection with the consummation of our listing, to the extent we make equity grants to a broader population than those who have received equity historically, we intend to adopt and implement more developed practices around the grant of equity awards, which will ensure that we continue adhering to this policy.

 

*Severance Plan*

In connection with the consummation of our listing, we plan to adopt a new severance plan. We have not yet determined the terms of the plan.

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**CERTAIN RELATIONSHIPS AND RELATED PERSON TRANSACTIONS**

**Transactions Involving Related Parties**

*The following disclosure summarizes the material provisions of the various agreements currently or formerly with Ionic Digital's related parties and is qualified by the full text of the agreements, a copy of each which is filed as an exhibit to the registration statement of which this prospectus forms a part.*

 

*Mining Management Services Agreement*

 

We entered into the Mining MSA as of the Plan Effective Date with Hut 8. The Mining MSA provided that Hut 8 would manage and oversee certain aspects of the bitcoin mining business operations of the Company and its subsidiaries. The capped construction cost also applied to up to 300 MW of additional developments for medium voltage to plug ready infrastructure for a period after 24 months from the Plan Effective Date to the end of the term of the Mining MSA, subject to certain specified cost adjustments.

The Mining MSA initially provided for an initial term of four years, with an option to extend for an additional year at the discretion of the Board or an automatic extension for an additional year should the Company's EH/s equal to or be greater than 23 EH/s at any point on or prior to the third anniversary of the Mining MSA. Under the terms of the Mining MSA, Hut 8 was entitled to receive an annual management fee of $20.4 million, subject to certain project related adjustments and a consumer price index ("CPI") adjustment during the one-year extension period. Additionally, the Company was required to reimburse Hut 8 for certain related expenses under and consistent with a budget approved by the Board or otherwise approved by the Board. The Mining MSA was subject to customary representations and warranties by both parties, and each of Hut 8 and the Company agreed to indemnify the other for certain losses, subject to customary exclusions. Additionally, the Mining MSA provided that, subject to certain conditions, Hut 8 would not be liable for or responsible to the Company if certain enumerated events outside of Hut 8's control occur, but if such event lasts for more than 180 days and results in miners and/or infrastructure under management by Hut 8 diminishing in capacity to an aggregate name capacity (in MW) below 200 MW, the mining management fee due to Hut 8 was to be proportionately reduced. Furthermore, the Mining MSA provided that it may be terminated by mutual agreement, by the Company for cause or in certain circumstances, or by Hut 8 for cause. On June 19, 2024, the Company and Hut 8 amended and restated the Mining MSA to, among other things, (i) reduce Hut 8's annual management fee to $15.0 million per year, (ii) eliminate an early termination condition tied to the effectiveness of the Company's Form 10 filing, (iii) allow the Company to terminate the Mining MSA for any reason, subject to payment of a reduced termination fee equal to $22.5 million, and (iv) obligate Hut 8 to perform management and construction services for the Ward County site with enhanced performance standards, reporting obligations and milestones, including setting December 17, 2024 as the deadline for Hut 8 to substantially complete construction and energization of a 200 MW bitcoin mining facility at the Ward County property with a penalty to Hut 8 of $1 million per month of delay, up to a maximum penalty of $6 million. A copy of the amended and restated Mining MSA is filed as an exhibit to the registration statement of which this prospectus forms a part.

The Company terminated the Mining MSA effective as of December 10, 2024, pursuant to the terms of the agreement, which did not require the Company to pay a termination fee. Our former Chief Executive Officer was previously an employee of a subsidiary of Hut 8 and two of our initial directors were appointed by Hut 8 before the termination of the Mining MSA.

*Contribution Agreement*

 

We entered into a contribution agreement as of the Plan Effective Date (as amended on June 19, 2024, the "Contribution Agreement") with Hut 8, a copy of which is filed as an exhibit to the registration statement of which this prospectus is part. The Contribution Agreement provides that Hut 8 will purchase from us, for an aggregate purchase price of $6,378,000 (the "Initial Plan Sponsor Investment"), the number of shares of our Class A common stock (the "Initial Plan Sponsor Shares") equal to the product of: (a) (i) the sum of all outstanding shares of our Class A common stock issued or anticipated to be issued at the Plan Effective Date plus (ii) the number of shares of our Class A common stock reserved for issuance in accordance with the Plan or subject to holdbacks as of the Plan Effective Date plus (iii) the number of shares of our Class A common stock reserved for issuance in accordance with any equity incentive plan approved or contemplated under the Plan or approved by the Board at Plan Effective Date and (b) a fraction, the numerator of which is the Initial Plan Sponsor Investment and the denominator of which is the Company Net Asset Value (as defined in the Contribution Agreement). If the Mining MSA was not terminated by the Company prior to the listing of the Company's Common Stock on a national securities exchange, then Hut 8 agreed to purchase from the Company, for an aggregate purchase price of $6,378,000, an additional number of shares of Common Stock equal to the product of: the number of the Effective Date Shares (as adjusted to take into account any stock split, reverse stock split or share consolidation, stock dividend or similar event effected by the Company with respect to the Common Stock) multiplied by a fraction, the numerator of which is $6,378,000, and the denominator of which is the Company Net Asset Value. If the Mining MSA was extended beyond its initial term, then Hut 8 agreed to purchase additional shares of our Class A common stock at a price determined utilizing the Company Net Asset Value for an aggregate purchase price of approximately $3,189,000 for year five, subject to a maximum purchase price of $15,945,000 in the aggregate (inclusive of the Initial Plan Sponsor Investment, subsequent investments pursuant to the Contribution Agreement, and any additional stock purchases made pursuant to an extension of the Mining MSA). The Initial Plan Sponsor Shares plus any additional shares purchased after the Initial Plan Sponsor Investment are referred to collectively as the "Plan Sponsor Shares."

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The Contribution Agreement is subject to customary representations and warranties. From the effective date of the Contribution Agreement through the second anniversary thereof (the "Lock-up Period"), Hut 8 will not, without our prior written consent, either directly or indirectly: (i) offer, sell, contract to sell, hypothecate or pledge, grant any option to purchase or otherwise dispose of, make any short sale or otherwise transfer or dispose of, directly or indirectly, the Initial Plan Sponsor Shares; (ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of the Initial Plan Sponsor Shares, subject to certain customary exclusions. During the last year of the Lock-Up Period, if the trading price of our Class A common stock is equal to or greater than 150% of the NAV per Share (as defined in the Contribution Agreement), Hut 8 may sell up to 30% of the Initial Plan Sponsor Shares, and if the trading price of our Class A common stock is equal to or greater than 200% of the NAV per Share, Hut 8 may sell up to 60% of the Initial Plan Sponsor Shares.

Under the terms of the Contribution Agreement, Hut 8 agreed to vote all Plan Sponsor Shares owned by Hut 8 as of the relevant record date in accordance with the recommendations of our Board at any meeting of stockholders and in connection with any written consent of stockholders for so long as the Mining MSA is in effect. The Plan Sponsor Shares were also subject to the "— Investors' and Registration Rights Agreement" described below.

Pursuant to the Contribution Agreement, on January 31, 2024 Hut 8 made an initial investment in the Company of $6.4 million cash in exchange for 374,261 shares of Ionic Digital Class A common stock. As these shares were issued at a price discounted from the $20.00 per share fair value of Ionic Digital's Class A common shares, the Company recognized stock compensation expense in the amount of the discount of $1.1 million on the date of issuance, which is included within General and administrative expenses on the Consolidated Statement of Operations during the eleven months ended December 31, 2024.

The Company terminated the Contribution Agreement prior to listing its common shares on a national exchange. As such, no additional capital contributions have been made.

*Restricted Stock Agreement*

 

We entered into a restricted stock agreement (the "Restricted Stock Agreement") with Hut 8. Among other things, the Restricted Stock Agreement provided that Hut 8 would receive 670,801 shares of our Class A common stock (the "RSPA Shares") (representing 1.59405% of the Class A common stock on a fully-diluted basis) as partial consideration for entering into the MSA on the Plan Effective Date. The RSPA Shares were to vest in equal proportions on each anniversary of the effective date of the Mining MSA in accordance with the vesting schedule set forth in the Restricted Stock Agreement. In connection with the termination of the Mining MSA, all RSPA shares were cancelled.

*Warrant Agreements*

 

We entered into five separate (but substantively identical) warrant agreements with Hut 8 as of the Plan Effective Date (the "Warrant Agreements"). Among other things, each of the Warrant Agreements provided that Hut 8 was entitled to purchase from us a number of shares of our Class A common stock equal to (a) 0.31881% of the number of shares of our Class A common stock outstanding *minus* (b) the aggregate number of shares of our Class A common stock previously issued as a result of any partial exercise of the warrant at the exercise price for each warrant determined on its annual vesting date and subject to the terms, conditions, and adjustments set forth in the Warrant Agreements. The Warrant Agreements had exercise periods commencing on the first, second, third, and fourth anniversary of the Plan Effective Date, and, if the Mining MSA were to be extended beyond its initial four-year term, the fifth anniversary of the Plan Effective Date. In connection with the termination of the Mining MSA, all outstanding warrants were canceled.

*Investors' and Registration Rights Agreement*

 

We entered into an Investors' and Registration Rights Agreement as of the Plan Effective Date (the "Registration Rights Agreement") with Hut 8.

Among other things, the Registration Rights Agreement provided that Hut 8 could require us to, pursuant to the terms of and subject to the limitations contained in Registration Rights Agreement, prepare and file with the SEC a registration statement registering the offering and sale of the Registrable Securities (as such term is defined in the Registration Rights Agreement) held by Hut 8 and the other holders of Registrable Securities, provided that such Registrable Securities (i) had an aggregate value of at least $7,500,000 based on the VWAP (as defined in the Registration Rights Agreement) or (ii) represented at least 15% of the Registrable Securities eligible for registration. The registration rights were subject to the other limitations contained in the Registration Rights Agreement, including without limitation, that such registration rights were limited to four Demand Registrations (as such term is defined in the Registration Rights Agreement). Additionally, subject to certain customary restrictions, if the Company proposed to file a registration statement under the Securities Act with respect to an offering of Class A common stock by the Company, the Company should have used commercially reasonable efforts to include in such registration statement the Registrable Securities for which it had received written requests for inclusion therein.

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Under the terms of the Registration Rights Agreement, Hut 8 agreed to vote all Covered Shares (as such term is defined in the Registration Rights Agreement) owned by Hut 8 in accordance with the recommendations of our Board at any meeting of stockholders and in connection with any written consent of stockholders for so long as the Mining MSA is in effect. The Mining MSA was terminated effective as of December 10, 2024. All of our obligations under the Registration Rights Agreement other than certain indemnification obligations have terminated.

*Alpha Hosting Agreement*

 

On August 8, 2023, Celsius Mining entered into the Alpha Hosting Agreement with USMIO Alpha LLC, a subsidiary of Hut 8 Corp. Under the Alpha Hosting Agreement, Hut 8 agreed to provide hosting services, including electrical power and internet access necessary to operate miners at Hut 8's Niagara Falls, New York facility. The Alpha Hosting Agreement has an initial term of twelve months, with Celsius Mining's option to renewal for four consecutive twelve month terms. The Alpha Hosting Agreement was assigned to us as of the Plan Effective Date pursuant to the MCA. We mutually terminated the Alpha Hosting Agreement in November 2024.

**Related Party Transaction Policy**

We have adopted a formal policy for the review, approval or ratification of related party transactions. The transactions discussed above were not reviewed, approved or ratified in accordance with any such policy; all of them were negotiated between Celsius and Celsius Mining (as debtors-in-possession) and the Official Committee of Unsecured Creditors in the Bankruptcy and approved by the Bankruptcy Court as part of the Plan. The Mining MSA, Contribution Agreement, Warrant Agreements and Investors' and Registration Rights Agreement involved Hut 8 as a counterparty. Our initial and former CEO, Matt Prusak, and two of our former directors, Asher Genoot and Steven Price, each owned shares in Hut 8 Corp. This created the potential for a conflict of interest in any agreement between Ionic Digital and Hut 8.

We have adopted a code of ethics requiring us to avoid, wherever possible, all conflicts of interests, except under guidelines or resolutions approved by our Board (or the appropriate committee of our Board) or as disclosed in our public filings with the SEC. Under our code of ethics, conflict of interest situations include any financial transaction, arrangement or relationship (including any indebtedness or guarantee of indebtedness) involving the company.

In addition, our audit committee, pursuant to our audit committee's written charter, has the responsibility to review and approve related party transactions to the extent that we enter into such transactions. An affirmative vote of a majority of the members of the audit committee present at a meeting at which a quorum is present is required in order to approve a related party transaction. A majority of the members of the entire audit committee constitutes a quorum. Without a meeting, the unanimous written consent of all of the members of the audit committee is required to approve a related party transaction. We also require each member of our management team to complete a directors' and officers' questionnaire that elicits information about related party transactions.

These procedures are intended to determine whether any such related party transaction impairs the independence of a director or presents a conflict of interest on the part of a director, employee or officer.

We have filed a copy of our code of ethics and our audit committee charter as exhibits to the registration statement of which this prospectus is part. You will be able to review these documents by accessing our public filings at the SEC's web site at www.sec.gov. Following effectiveness of the registration statement of which this prospectus is part, the code of ethics will be available on our website. In addition, a copy of the code of ethics will be provided without charge upon request from us. We intend to disclose any amendments to or waivers of certain provisions of our code of ethics in a Current Report on Form 8-K.

**Director and Officer Indemnification** 

The Governing Documents provide for indemnification and advancement of expenses for our directors and officers to the fullest extent permitted by the DGCL, subject to certain limited exceptions. We entered into indemnification agreements with our current directors and executive officers prior to the completion of this registration and expect to enter into a similar agreement with any new directors or executive officers.

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**PRINCIPAL AND REGISTERED STOCKHOLDERS**

**Principal and Security Ownership of Beneficial Owners and Management**

The following table sets forth information regarding the beneficial ownership of our Class A common stock as of December 31, 2025. The table below sets forth such beneficial ownership for:

● each stockholder that is a beneficial owner of more than 5% of the Class A common stock (based on information that was publicly available or made available to the Company as of December 31, 2025);

● each director or director nominee;

● each named executive officer; and

● all directors, director nominees and executive officers as a group.

The registration statement of which this prospectus forms a part registers for resale shares of Class A common stock held by the Registered Stockholders who are our affiliates. The Registered Stockholders may from time to time offer and sell any or all of the shares of Class A common stock set forth below pursuant to this prospectus and any accompanying prospectus supplement. Such sales, if any, will be made through brokerage transactions on Nasdaq at prevailing trading prices. As such, we will have no input if and when any Registered Stockholder may, or may not, elect to sell their shares of Class A common stock or the prices at which any such sales may occur. See the section titled "Plan of Distribution." The number of shares of Class A common stock being registered does not represent the number of shares of Class A common stock eligible for future sale in the public market following our listing on Nasdaq. See the section titled "Shares Eligible for Future Sale."

Information concerning the Registered Stockholders may change from time to time and any changed information will be set forth in supplements to this prospectus, if and when necessary. Because the Registered Stockholders may sell all, some, or none of the shares of Class A common stock covered by this prospectus, we cannot determine the number of such shares of Class A common stock that will be sold by the Registered Stockholders, or the amount or percentage of shares of Class A common stock that will be held by the Registered Stockholders upon consummation of any particular sale. In addition, the Registered Stockholders listed in the table below may have sold, transferred or otherwise disposed of, or may sell, transfer or otherwise dispose of, at any time and from time to time, our shares of Class A common stock in transactions exempt from the registration requirements of the Securities Act, after the date on which they provided the information set forth in the table below. See "Management and Governance" and "Certain Relationships and Related Party Transactions" for further information regarding the Registered Stockholders.

We currently intend to use our reasonable efforts to keep the registration statement of which this prospectus is part effective for a period of 90 days after the effectiveness of the registration statement of which this prospectus is part. We are not party to any arrangement with any Registered Stockholder or any broker-dealer with respect to sales of shares of Class A common stock by the Registered Stockholders. However, we have engaged financial advisors with respect to certain other matters relating to our listing. See the section titled "Plan of Distribution."

Beneficial ownership of shares is determined under rules of the SEC and generally includes any shares over which a person exercises sole or shared voting or investment power. Under those rules, beneficial ownership includes securities that the individual or entity has the right to acquire, such as through the exercise of warrants or stock options, within 60 days of December 31, 2025. Except as noted by footnote, and subject to community property laws where applicable, we believe based on the information provided to us that the persons and entities named in the table below have sole voting and investment power with respect to all shares of our Class A common stock shown as beneficially owned by them. Unless otherwise noted below, the address of the persons and entities listed in the table is 2332 Galiano Street, 2nd Floor, Coral Gables, Florida 33134.

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---

| | | | |
|:---|:---|:---|:---|
| **Name** | **Class A <br> Common<br> Stock<br> of Ionic<br> Digital<br> Beneficially<br> Owned <sup>(1)</sup>** | **Percentage of<br> Outstanding<br> Shares<br> Beneficially<br> Owned <sup>(1)</sup>** | **Shares of<br> Class A<br> Common<br> Stock <br> Being<br> Registered** |
| **Greater than 5% Stockholders** |  |  |  |
| &nbsp;&nbsp;&nbsp;Celsius Network LLC<sup>(2)</sup> | 4061462 | 10.87% |  |
| **Named Executive Officers and Directors** |  |  |  |
| &nbsp;&nbsp;&nbsp;Elizabeth LaPuma |  | \* |  |
| &nbsp;&nbsp;&nbsp;Michael Abbate |  | \* |  |
| &nbsp;&nbsp;&nbsp;Thomas DiFiore<sup>(3)</sup> | 50973 | \* | 50973 |
| &nbsp;&nbsp;&nbsp;Scott Duffy<sup>(4)</sup> | 108419 | \* | 108419 |
| &nbsp;&nbsp;&nbsp;Scott Flanders |  | \* |  |
| &nbsp;&nbsp;&nbsp;Oliver Wiener |  | \* |  |
| &nbsp;&nbsp;&nbsp;Andy Stewart |  | \* |  |
| &nbsp;&nbsp;&nbsp;James Gallagher |  | \* |  |
| &nbsp;&nbsp;&nbsp;Laura Schnaidt |  | \* |  |
| &nbsp;&nbsp;&nbsp;Anthony McKiernan |  | \* |  |
| Directors and executive officers as a group (12 Persons) | 159392 | \* | 159392 |

---

(1) The percentage of Class A common stock beneficially owned
 by each person is based on 37,374,261 shares of Class A common stock and issued and
 outstanding as of December 31, 2025. Beneficial ownership representing less than one percent
 is denoted with an "\*."

&nbsp;&nbsp;&nbsp;&nbsp;(2) The principal place of business of Celsius Network LLC is c/o The Corporation
Trust Company, registered office of Celsius Network LLC, 1209 Orange Street, Wilmington, DE 19801. Shares held by Celsius Network LLC
are distributed to former creditors of the Debtors as claims are resolved. Christopher Ferraro, as Plan Administrator under the Plan,
has voting and investment authority over the shares. Mr. Ferraro disclaims beneficial ownership of such shares for all purposes.

(3) Consists of (i) 29,673 shares of Class A common stock held of record
 by THOMAS DIFIORE CHILDRENS GST INVESTMENT IRRV TR (the "Children's Trust"),
 (ii) 20,148 shares of Class A common stock held of record by DIFIORE ASA IRREVOCABLE GST
 TRUST (the "ASA Trust"), (iii) 1,099 shares of Class A common stock held of record
 by DIFIORE TSA IRREVOCABLE GST TRUST (the "TSA Trust"), and (iv) 53 shares of
 Class A common stock held of record by Ashley DiFiore, Mr. DiFiore's wife. Mr. DiFiore
 is the settlor/grantor, but not the trustee, of each of the THOMAS DIFIORE CHILDREN'S
 GST INVESTMENT IRREVOCABLE TRUST, the DIFIORE ASA IRREVOCABLE GST TRUST, and the DIFIORE
 TSA IRREVOCABLE GST TRUST. He has no voting or dispositive power over any shares held by
 these trusts. With respect to the DIFIORE TSA IRREVOCABLE GST TRUST, Mr. DiFiore is the sole
 beneficiary and may be deemed to have a pecuniary interest in the shares held by that trust;
 accordingly, he disclaims beneficial ownership of such shares except to the extent of his
 pecuniary interest therein. With respect to the Children's Trust and the ASA Trust,
 Mr. DiFiore is not a beneficiary and disclaims beneficial ownership of the shares held by
 those trusts. The inclusion of any such shares herein shall not be construed as an admission
 by Mr. DiFiore that he is the beneficial owner thereof for purposes of Section 13(d) of the
 Exchange Act or otherwise.

(4) Reported shares are held of record by ICB Solutions Inc. Mr. Duffy
 is the sole shareholder of ICB Solutions Inc.

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**SHARES ELIGIBLE FOR FUTURE SALE**

Future issuances or sales of substantial amounts of our Class A common stock in the public market, or the perception that such issuances or resales may occur, could adversely affect the prevailing market price of our Class A common stock. No prediction can be made as to the effect, if any, future issuances or resales of shares, or the availability of shares for future sales, will have on the market price of our Class A common stock prevailing from time to time.

As of December 31, 2025, we had a total of 37,374,261 shares of Class A common stock issued and outstanding. Our outstanding shares are freely tradable without restriction or further registration under the Securities Act, except that any shares held by any affiliates, as that term is defined under Rule 144 of the Securities Act, will be considered control securities and may be sold only in compliance with the limitations described below.

**Market Information** 

Currently, there is no public market for our Class A common stock and there have been no sales of shares of our Class A common stock in private transactions. We intend to apply to list our Class A common stock on the Nasdaq Global Select Market under the symbol "IOND." As of December 31, 2025, our Class A common stock was held by approximately 82,100 stockholders of record. Such numbers do not include beneficial owners holding our securities through nominee names.

The Registered Stockholders may offer and sell, from time to time, any or all of the shares of Class A common stock being offered for resale by this prospectus, pursuant to a direct listing on the Nasdaq Global Select Market. All shares held by the Registered Stockholders may be freely sold upon effectiveness of this Registration Statement. In addition, the remaining issued and outstanding shares of our Class A common stock may be freely sold in the public market in reliance upon exemptions from registration under the Securities Act, including Section 1145 of the Bankruptcy Code and Rule 144 under the Securities Act. The resale of the shares of Class A common stock by the Registered Stockholders is not being underwritten by any investment bank, which makes this listing different from an underwritten initial public offering.

**Shares of Class A Common Stock Issued at the Plan Effective Date Eligible for Future Sale**

Pursuant to Section 1145 of the Bankruptcy Code, except as noted below, the registration, issuance and distribution of our Class A common stock issued in connection with the satisfaction, settlement, release, and discharge of allowed claims pursuant to the Plan (as defined in the section titled, "Business—History") is exempt from, among other things, the registration requirements of Section 5 of the Securities Act and any other applicable U.S. state or local law requiring registration prior to the registration, issuance, distribution or sale of securities. The shares of our Class A common stock issued in reliance on Section 1145 of the Bankruptcy Code are not "restricted securities" as defined in Rule 144(a)(3) under the Securities Act, and are freely tradable and transferable by any initial recipient thereof that (i) is not an "affiliate" of ours as defined in Rule 144(a)(1) under the Securities Act, (ii) has not been such an "affiliate" within 90 days of such transfer, and (iii) is not an entity that is an "underwriter" as defined in Section 1145(b) of the Bankruptcy Code.

Section 1145(b)(1) of the Bankruptcy Code defines an "underwriter" as any person who:

● purchases a claim against, an interest in, or a claim for an administrative expense against the debtor, if that purchase is with a view to distributing any security received in exchange for such a claim or interest;

● offers to sell securities offered under a plan of reorganization for the holders of those securities;

● offers to buy those securities from the holders of the securities, if the offer to buy is (i) with a view to distributing those securities; and (ii) under an agreement made in connection with the plan of reorganization, the completion of the plan of reorganization, or with the offer or sale of securities under the plan of reorganization; or

● is an issuer with respect to the securities, as the term "issuer" is defined in section 2(a)(11) of the Securities Act.

To the extent that persons who received Class A common stock issued under the Plan that are exempt from registration under the Securities Act or other applicable law by Section 1145 of the Bankruptcy Code are deemed to be "underwriters," resales by those persons would not be exempted from registration under the Securities Act or other applicable law by Section 1145 of the Bankruptcy Code and may only be sold pursuant to a registration statement or pursuant to exemption therefrom, such as the exemption provided by Rule 144 under the Securities Act.

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Whether or not any particular person would be deemed an "underwriter" with respect to our Class A common stock received pursuant to the Plan would depend upon various facts and circumstances applicable to that person. Accordingly, we express no view as to whether any particular person that will receive our Class A common stock pursuant to the Plan will be deemed an "underwriter" with respect to such shares.

**Securities Authorized for Issuance under Equity Compensation Plan** 

On the Plan Effective Date, the Company adopted the Omnibus Plan, pursuant to which it may grant equity and equity-based incentive awards (including non-statutory and incentive stock options, stock appreciation rights, restricted stocks, restricted stock units, performance awards, other stock-based awards and cash awards) to eligible employees, consultants, individual contractors and other service providers. As of December 31, 2025, the Company has reserved 4,841,180 shares (subject to an evergreen) under the Omnibus Plan.

**Rule 144**

***Affiliate Resales***

In general, a person who is an affiliate of ours, or who was an affiliate at any time during the 90 days before a sale, would be entitled to sell in "broker's transactions" or certain "riskless principal transactions" or to market makers, a number of shares within any three-month period that does not exceed the greater of:

● 1% of the number of shares of our Class A common stock then outstanding, which will equal approximately 373,742 shares upon the effectiveness of the registration statement of which this prospectus forms a part; or

● the average weekly trading volume in our common stock on Nasdaq during the four calendar weeks preceding the filing of a notice on Form 144 with respect to such sale.

Sales under Rule 144 by our affiliates or persons selling shares on behalf of our affiliates are also subject to certain manner of sale provisions and notice requirements and to the availability of current public information about us.

***Non-Affiliate Resales***

In general, a person who is not an affiliate of ours at the time of sale, or has not been an affiliate at any time during the three months preceding a sale, is entitled to sell such shares subject only to the availability of current public information about us. If such person has held our shares for at least one year, such person can resell under Rule 144(b)(1) without regard to any Rule 144 restrictions, including the 90-day public company requirement and the current public information requirement.

Non-affiliate resales are not subject to the manner of sale, volume limitation or notice filing provisions of Rule 144.

**Rule 701**

In general, under Rule 701, any of our employees, directors, officers, consultants or advisors who purchases shares from us in connection with a compensatory stock or option plan or other written agreement before the effective date of a registration statement under the Securities Act is entitled to sell such shares 90 days after such effective date in reliance on Rule 144. Securities issued in reliance on Rule 701 are restricted securities and, subject to the contractual restrictions described above, beginning 90 days after the date of this prospectus, may be sold by persons other than "affiliates," as defined in Rule 144, subject only to the manner of sale provisions of Rule 144 and by "affiliates" under Rule 144 without compliance with its one-year minimum holding period requirement.

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**DESCRIPTION OF CAPITAL STOCK**

*The following summary of the material terms of our securities is not intended to be a complete summary of the rights and preferences of such securities, and is qualified by reference to the amended and restated certificate of incorporation (for purposes of this section, the "Certificate of Incorporation") and the amended and restated bylaws (for purposes of this section, the "Bylaws" and together with the Certificate of Incorporation, the "Governing Documents") which are exhibits to the registration statement of which this prospectus is a part. We urge you to read each of the Certificate of Incorporation and the Bylaws in their entirety for a complete description of the rights and preferences of our securities.* 

**General**

The total amount of our authorized capital stock consists of 1,000,000,000 shares of Class A common stock, $0.00001 par value per share, one share of Class B common stock, $1.00 par value per share, and 15,000,000 shares of preferred stock, $0.00001 par value per share (the "preferred stock").

**Common Stock**

We have two classes of authorized common stock: Class A common stock and Class B common stock.

*Voting Rights*

 

Except as otherwise provided, holders of our Class A common stock are entitled to one vote for each share held on all matters submitted to a vote of stockholders.

The holders of Class A common stock will not have cumulative voting rights. Accordingly, holders of a majority of the voting power of the shares of Class A common stock entitled to vote in any election of directors may elect all of the directors standing for election. The election of directors will be determined by a plurality of the votes cast in respect of the shares present in person or represented by proxy at the meeting and entitled to vote, meaning that the nominees with the greatest number of votes cast, even if less than a majority, will be elected.

The rights, preferences and privileges of holders of common stock are subject to, and may be impacted by, the rights of the holders of shares of any series of preferred stock that we may designate and issue in the future.

In connection with the termination of the Mining MSA, we redeemed the sole authorized and outstanding share of Class B common stock for $1.00. The Class B common stock may not be reissued.

*No Preemptive or Similar Rights*

 

Our common stock is not entitled to preemptive or other similar subscription rights to purchase any of our securities. Our Class A common stock is neither convertible nor redeemable, and our Class B common Stock was not convertible. Unless our Board determines otherwise, we will issue all of our capital stock in uncertificated form.

*Dividends and Distributions*

 

Subject to the preferential or other rights that may be applicable to any then-outstanding preferred stock, holders of our Class A common stock are entitled to receive ratably those dividends and distributions, if any, as may be declared by the Board out of legally available funds. The Class B common stock was not entitled to dividends or other distributions.

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*Liquidation, Dissolution and Winding Up*

 

In the event of our liquidation, dissolution or winding up, the holders of Class A common stock are entitled to receive proportionately our net assets available for distribution to stockholders after payment of all debts and other liabilities and subject to the prior rights of any outstanding preferred stock. While the Class B common stock was outstanding, the holder of Class B common stock was not entitled to receive any assets in respect of such share.

*Transfer Restrictions*

 

Until the later of (i) effectiveness of a registration statement filed by us with the SEC under the Exchange Act or (ii) the listing of the Class A common stock on Nasdaq or another registered securities exchange, the Class A common stock may not be sold, transferred, pledged or otherwise disposed of without written authorization from the Board. Board authorization is not required for transfers of shares of Class A common stock required by law or upon the death or disability of a holder, but the transfer restrictions will continue to apply to such shares.

Prior to its redemption, the Class B common stock share was not permitted to be sold, transferred, pledged or otherwise disposed of to any person other than to a successor by way of merger or consolidation of Ionic Digital (or pursuant to a redemption by us).

*Assessment*

 

All shares of common stock were, or will be, when issued, duly authorized, fully paid and nonassessable. The rights, preferences and privileges of holders of common stock are subject to the rights of the holders of shares of any series of preferred stock that we may designate and issue in the future.

**Preferred Stock**

Our Board has the authority to issue shares of preferred stock from time to time on terms it may determine, to divide shares of preferred stock into one or more series and to fix the designation, vesting, powers, preferences and relative, participating, optional or other special rights of preferred stock, including voting powers, dividend rights, liquidation rights, redemption rights and conversion rights and the number of shares constituting any series or the designation of any series to the fullest extent permitted by the DGCL. The issuance of our preferred stock could have the effect of decreasing the trading price of our Class A common stock, restricting dividends on our Class A common stock, diluting the voting power of our Class A common stock, impairing the liquidation rights of our capital stock, or delaying or preventing a change in control of our Company.

**Anti-Takeover Effects of Our Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws**

Our amended and restated certificate of incorporation and our amended and restated bylaws include a number of provisions that could deter hostile takeovers or delay or prevent changes in control of our Board or management team, including the following:

*Advance Notice Requirements for Stockholder Proposals*

 

Our Certificate of Incorporation and our Bylaws require advance notice procedures for stockholder proposals to be brought before an annual meeting or special meeting of the stockholders, including the nomination of directors. Stockholders at an annual meeting or special meeting may only consider the proposals specified in the notice of meeting or brought before the meeting by or at the direction of the Board or by a stockholder of record on the record date for the meeting who is entitled to vote at the meeting and who has delivered a timely written notice in proper form to our secretary of the stockholder's intention to bring such business before the meeting.

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*Amendment to Certificate of Incorporation and Bylaws*

 

The DGCL provides generally that the affirmative vote of a majority of the outstanding stock entitled to vote on amendments to a corporation's certificate of incorporation or bylaws is required to approve such amendment, unless a corporation's certificate of incorporation or bylaws, as the case may be, requires a greater percentage. Our amended and restated bylaws may be amended, altered, or repealed by a majority vote of our Board.

*Board Vacancies*

 

Our amended and restated certificate of incorporation and amended and restated bylaws authorize only our Board to fill vacant directorships, including newly created seats. In addition, the number of directors constituting our Board will be permitted to be set only by a resolution adopted by a majority vote of our entire Board. These provisions would prevent a stockholder from increasing the size of our Board and then gaining control of our Board by filling the resulting vacancies with its own nominees. This will make it more difficult to change the composition of our Board and will promote continuity of management.

*Classified Board*

 

Our amended and restated certificate of incorporation and amended and restated bylaws provide that our Board of Directors will be classified into three classes of directors with staggered three-year terms. A third party may be discouraged from making a tender offer or otherwise attempting to obtain control of us as it is more difficult and time consuming for stockholders to replace a majority of the directors on a classified Board of Directors. See the section titled "Corporate Governance— Composition of the Board of Directors Board Composition and Structure" herein.

*Delaware Anti-Takeover Statute*

 

Section 203 of the DGCL prohibits a publicly held Delaware corporation from engaging in a business combination transaction with an interested stockholder (a stockholder who purchases more than 15% of our common stock) for a period of three years after the interested stockholder became such unless the transaction fits within an applicable exemption, such as board approval of the business combination or the transaction that resulted in such stockholder becoming an interested stockholder. These provisions apply even if the business combination could be considered beneficial by some stockholders and may have the effect of delaying, deferring or preventing a change in control. A Delaware corporation may elect in its certificate of incorporation or bylaws not to be governed by this particular Delaware law.

Under our amended and restated certificate of incorporation, we opted out of Section 203 of the DGCL and therefore are not subject to Section 203.

*Stockholder Action; Special Meeting of Stockholders*

 

Our amended and restated certificate of incorporation provides that our stockholders are not able to take action by written consent for any matter and may only take action at annual or special meetings. As a result, a holder controlling a majority of our capital stock would not be able to amend our amended and restated bylaws or remove directors without holding a meeting of our stockholders called in accordance with our amended and restated bylaws, unless previously approved by our Board. Our amended and restated certificate of incorporation further provides that special meetings of our stockholders may be called only by the chair of our Board, by the Board acting pursuant to a resolution adopted by a majority of the directors then in office or by holders of at least 25% of the outstanding voting stock entitled to vote that have delivered a request to our secretary, thus limiting the ability of a stockholder to call a special meeting. These provisions might delay the ability of our stockholders to force consideration of a proposal or for stockholders controlling a majority of our capital stock to take any action, including the removal of directors.

**Limitations on Liability and Indemnification of Officers and Directors**

Our amended and restated certificate of incorporation limits the liability of our directors to the fullest extent permitted by the DGCL, and our amended and restated bylaws provide that we indemnify them to the fullest extent permitted by such law. We entered into indemnification agreements with our current directors and executive officers prior to the completion of this registration and expect to enter into a similar agreement with any new directors or executive officers.

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Our amended and restated certificate of incorporation requires, to the fullest extent permitted by law, that unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware shall be the sole and exclusive forum for (a) any derivative action, suit or proceeding brought on behalf of the Company; (b) any action, suit or proceeding asserting a claim of breach of a fiduciary duty owed or allegedly owed by, or other wrongdoing by, any director, officer, stockholder, employee or agent of the Company to the Company or the Company's stockholders; (c) any action, suit or proceeding asserting a claim against the Company or any director, officer, stockholder, employee or agent of the Company arising pursuant to any provision of the DGCL, the amended and restated certificate of incorporation or the amended and restated bylaws or as to which the DGCL confers jurisdiction on the Court of Chancery of the State of Delaware; (d) any action, suit or proceeding to interpret, apply, enforce or determine the validity of the amended and restated certificate of incorporation or the amended and restated bylaws; (e) any action asserting a claim against the Company or any director, officer, stockholder, employee or agent of the Company governed by the internal affairs doctrine; or (f) any other action, suit or proceeding asserting an "internal corporate claim" as defined in Section 115 of the DGCL.

We note that there is uncertainty as to whether a court would enforce the provision and that investors cannot waive compliance with the federal securities laws and the rules and regulations thereunder. Although we believe this provision benefits us by providing increased consistency in the application of Delaware law in the types of lawsuits to which it applies, the provision may have the effect of discouraging lawsuits against our directors and officers.

**Transfer Agent and Registrar**

The transfer agent and registrar for our Class A common stock is Odyssey Transfer and Trust Company.

**Listing**

We intend to apply to list our Class A common stock on the Nasdaq Global Select Market under the symbol "IOND."

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**PLAN OF DISTRIBUTION**

The Registered Stockholders and their pledgees, donees, transferees, assignees, or other successors-in-interest may sell their shares of Class A common stock covered hereby pursuant to brokerage transactions on the Nasdaq Global Select Market or any other public exchange or registered alternative trading system at prevailing market prices at any time after the shares of Class A common stock are listed for trading thereon. All shares held by the Registered Stockholders may be freely sold upon effectiveness of this Registration Statement. In addition, the remaining issued and outstanding shares of our Class A common stock may be freely sold in the public market in reliance upon exemptions from registration under the Securities Act.

We are not party to any arrangement with any registered stockholder or any broker-dealer with respect to sales of shares of Class A common stock by the registered stockholders, except we will engage financial advisors with respect to certain other matters relating to our listing, as further described below. As such, we do not anticipate receiving any notice as to if and when any Registered Stockholder may elect to sell their shares of Class A common stock or the prices at which any such sales may occur, and there can be no assurance that any Registered Stockholders will sell any or all of the shares of Class A common stock covered by this prospectus.

We will not receive any proceeds from the sale of shares of Class A common stock by the Registered Stockholders. We expect to recognize certain non-recurring costs as part of our transition to a publicly-traded company, consisting of professional fees and other expenses. As part of our direct listing, these fees will be expensed in the period incurred and not deducted from net proceeds to the issuer as they would be in an initial public offering.

We have engaged J.P. Morgan and BTIG, as our financial advisors to advise and assist us with respect to certain matters relating to our listing. These matters include assisting us in defining our objectives with respect to the filing of the registration statement of which this prospectus forms a part, our preparation of the registration statement of which this prospectus forms a part, our preparation of investor communications and presentations in connection with investor education, and being available to consult with Nasdaq, including on the day that our shares of Class A common stock are initially listed on the Nasdaq Global Select Market.

In addition, J.P. Morgan will determine when our shares of Class A common stock are ready to trade and to approve proceeding with the opening of trading at the current reference price (as defined below). However, the financial advisors have not been engaged to participate in investor meetings or to otherwise facilitate or coordinate price discovery activities or sales of our Class A common stock in consultation with us, except as described herein.

On the day that our shares of Class A common stock are initially listed on the Nasdaq Global Select Market, Nasdaq will begin accepting, but not executing, pre-opening buy and sell orders and will begin to continuously generate the indicative current reference price on the basis of such accepted orders. During a 10-minute "Display Only" period, market participants may enter quotes and orders in Class A common stock in Nasdaq's systems and such information is disseminated, along with other indicative imbalance information, to J.P. Morgan and other market participants (including the other financial advisors) by Nasdaq on its NOII and BookViewer tools. Following the "Display Only" period, a "Pre-Launch" period begins, during which J.P. Morgan, in its capacity as our designated financial advisor to perform the functions under Nasdaq Rule 4120(c)(8), must notify Nasdaq that our shares are "ready to trade." Once J.P. Morgan has notified Nasdaq that our shares of Class A common stock are ready to trade, Nasdaq will calculate the current reference price (as defined below) for our shares of Class A common stock, in accordance with Nasdaq's rules. If J.P. Morgan then approves proceeding at the current reference price, Nasdaq will conduct price validation checks in accordance with Nasdaq rules. As part of conducting its price validation checks, Nasdaq may consult with J.P. Morgan and other market participants (including the other financial advisors). Upon completion of such price validation checks the applicable orders that have been entered will then be executed at such price and regular trading of our shares of Class A common stock on the Nasdaq Global Select Market will commence.

Under Nasdaq's rules, the "current reference price" means: (i) the single price at which the maximum number of orders to buy or sell our shares of Class A common stock can be matched; (ii) if more than one price exists under clause (i), then the price that minimizes the number of our shares of Class A common stock for which orders cannot be matched; (iii) if more than one price exists under clause (ii), then the entered price (i.e. the specified price entered in an order by a customer to buy or sell) at which our shares of Class A common stock will remain unmatched (i.e. will not be bought or sold); and (iv) if more than one price exists under clause (iii), a price determined by Nasdaq after consultation with J.P. Morgan and BTIG in their capacities as financial advisors. J.P. Morgan and BTIG will exercise any consultation rights only to the extent that they may do so consistent with the anti-manipulation provisions of the federal securities laws, including Regulation M (to the extent applicable), or applicable relief granted thereunder. In determining the current reference price, Nasdaq's algorithms will match orders that have been entered into and accepted by Nasdaq's system. This occurs with respect to a potential current reference price when orders to buy shares of Class A common stock at an entered bid price that is greater than or equal to such potential current reference price are matched with orders to sell a like number of shares of Class A common stock at an entered asking price that is less than or equal to such potential current reference price.

The Registered Stockholders will not be involved in Nasdaq's price-setting mechanism, including any decision to delay or proceed with trading, nor will they control or influence J.P. Morgan and BTIG in carrying out their roles as our financial advisors. We will not be involved in the price-setting process.

To illustrate, as a hypothetical example of the calculation of the current reference price, if Nasdaq's algorithms matched all accepted orders as described above, and two limit orders remained — a limit order to buy 500 shares of Class A common stock at an entered bid price of $10.01 per share and a limit order to sell 200 shares of Class A common stock at an entered asking price of $10.00 per share — the current reference price would be determined as follows:

● Under clause (i), if the current reference price is $10.00, then the maximum number of additional shares that can be matched is 200. If the current reference price is $10.01, then the maximum number of additional shares that can be matched is also 200, which means that the same maximum number of additional shares would be matched at the price of either $10.00 or $10.01.

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● Because more than one price under clause (i) exists, under clause (ii), the current reference price would be the price that minimizes the imbalance between orders to buy or sell (i.e. minimizes the number of shares that would remain unmatched at such price). Selecting either $10.00 or $10.01 as the current reference price would create the same imbalance in the limit orders that cannot be matched, because at either price 300 shares would not be matched.

● Because more than one price under clause (ii) exists, then under clause (iii), the current reference price would be the entered price at which orders for shares of Class A common stock at such entered price will remain unmatched. In such case, choosing $10.01 would cause 300 shares of the 500 share limit order with the entered price of $10.01 to remain unmatched, compared to choosing $10.00, where all 200 shares of the limit order with the entered price of $10.00 would be matched, and no shares at such entered price remain unmatched. Thus, Nasdaq would select $10.01 as the current reference price because orders for shares at such entered price will remain unmatched.

The above example (including the prices) is provided solely by way of illustration.

J.P. Morgan, as the designated financial advisor under Nasdaq Rule 4120(c)(8), will determine when our shares of Class A common stock are ready to trade and approve proceeding at the current reference price primarily based on consideration of volume, timing, and price. In particular, J.P. Morgan will determine, based primarily on pre-opening buy and sell orders, when a reasonable amount of volume will cross on the opening trade such that sufficient price discovery has been made to open trading at the current reference price. If J.P. Morgan does not approve proceeding at the current reference price (for example, due to the absence of adequate pre-opening buy and sell interest), J.P. Morgan will request that Nasdaq delay the open until such a time that sufficient price discovery has been made to ensure a reasonable amount of volume crosses on the opening trade.

Similar to a Nasdaq-listed underwritten initial public offering, in connection with the listing of our shares of Class A common stock, the financial advisors and buyers and sellers (or their brokers) who have subscribed will have access to the Nasdaq Stock Market's Order Imbalance Indicator (sometimes referred to as the Net Order Imbalance Indicator), a widely available, subscription-based data feed, prior to submitting buy or sell orders. Nasdaq's electronic trading platform simulates auctions every second to calculate a current reference price, the number of shares that can be paired off the current reference price, the number of shares that would remain unexecuted at the current reference price and whether a buy-side or sell-side imbalance exists, or whether there is no imbalance, in order to disseminate that information continuously to buyers and sellers via the Order Imbalance Indicator data feed.

However, because this is not an underwritten initial public offering, there will be no "book building" process (i.e., an organized process pursuant to which buy and sell interest is coordinated in advance to some prescribed level – the "book"). Moreover, prior to the opening trade, there will not be a price at which underwriters initially sold shares of our Class A common stock to the public as there would be in an underwritten initial public offering. This lack of an initial public offering price could impact the range of buy and sell orders collected by the Nasdaq Global Select Market from various broker-dealers. Consequently, the public price of our shares of Class A common stock may be more volatile than in an underwritten initial public offering and could, upon listing on the Nasdaq Global Select Market, decline significantly and rapidly.

In addition, in order to list on the Nasdaq Global Select Market, we are also required to have at least three registered and active market makers. We understand that J.P. Morgan and BTIG intend (but are not obligated) to act as registered and active market makers, although any such market-making, if commenced, may be discontinued at any time. Further, our financial advisors may assist interested registered stockholders with the establishment of brokerage accounts.

In addition to sales made pursuant to this prospectus, the shares of Class A common stock covered by this prospectus may be sold by the Registered Stockholders in individually negotiated transactions exempt from the registration requirements of the Securities Act. Under the securities laws of some states, shares of Class A common stock may be sold in such states only through registered or licensed brokers or dealers.

The Registered Stockholders may from time to time transfer, distribute (including distributions in kind by Registered Stockholders that are investment funds), pledge, assign, or grant a security interest in some or all the shares of Class A common stock owned by it and, if it defaults in the performance of its secured obligations, the transferees, distributees, pledgees, assignees, or secured parties may offer and sell the shares of Class A common stock from time to time under this prospectus, or under an amendment to this prospectus under Rule 424(b)(3) or other applicable provision of the Securities Act amending the list of the registered stockholders to include the transferee, distributee, pledgee, assignee, or other successors in interest as Registered Stockholders under this prospectus. The Registered Stockholders also may transfer the shares in other circumstances, in which case the transferees, distributes, pledgees, or other successors in interest will be the registered beneficial owners for purposes of this prospectus.

If any of the Registered Stockholders utilize a broker-dealer in the sale of the shares of Class A common stock being offered by this prospectus, such broker-dealer may receive commissions in the form of discounts, concessions, or commissions from such registered stockholder or commissions from purchasers of the shares of Class A common stock for whom they may act as agent or to whom they may sell as principal.

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**MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES TO NON-U.S. HOLDERS**

The following is a discussion of certain material U.S. federal income tax consequences applicable to non-U.S. holders (as defined below) of the acquisition, ownership and disposition of our Class A common stock, but does not purport to be a complete analysis of all potential tax consequences related thereto. This discussion applies only to holders that hold our Class A common stock as a capital asset within the meaning of Section 1221 of the U.S. Internal Revenue Code of 1986, as amended (the "Code") (generally, property held for investment).

This discussion is a summary only and does not describe all of the tax consequences that may be relevant to you in light of your particular circumstances, including but not limited to the alternative minimum tax, the Medicare tax on certain net investment income and the different consequences that may apply if you are subject to special rules that apply to certain types of investors, including but not limited to:

● banks, financial institutions or financial services entities;

● broker-dealers;

● governments or agencies or instrumentalities thereof;

● regulated investment companies;

● real estate investment trusts;

● expatriates or former long-term residents of the United States;

● except as specifically provided below, persons that actually or constructively own five percent or more (by vote or value) of our stock;

● persons that acquired our Class A common stock pursuant to an exercise of employee share options, in connection with employee share incentive plans or otherwise as compensation;

● tax-qualified retirement plans;

● "qualified foreign pension funds" as defined in Section 897(l)(2) of the Code and entities all of the interests of which are held by qualified foreign pension funds;

● insurance companies;

● dealers or traders subject to a mark-to-market method of accounting with respect to our Class A common stock;

● persons holding our Class A common stock as part of a "straddle," constructive sale, hedge, wash sale, conversion or other integrated or similar transaction;

● persons subject to special tax accounting rules as a result of any item of gross income with respect to our Class A common stock being taken into account in an applicable financial statement;

● non-U.S. holders (as defined below) whose functional currency is not the U.S. dollar;

● partnerships (or entities or arrangements classified as partnerships or other pass-through entities for U.S. federal income tax purposes) and any beneficial owners of such partnerships;

● tax-exempt entities;

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● corporations that accumulate earnings to avoid U.S. federal income tax;

● controlled foreign corporations; and

● passive foreign investment companies.

If a partnership (including an entity or arrangement treated as a partnership or other pass-through entity for U.S. federal income tax purposes) holds our Class A common stock, the tax treatment of a partner, member or other beneficial owner in such partnership will generally depend upon the status of the partner, member or other beneficial owner, the activities of the partnership and certain determinations made at the partner, member or other beneficial owner level. If you are a partner, member or other beneficial owner of a partnership holding our Class A common stock, you are urged to consult your tax advisor regarding the tax consequences of the acquisition, ownership and disposition of our Class A common stock.

This discussion is based on the Code, and administrative pronouncements, judicial decisions and final, temporary and proposed Treasury regulations as of the date hereof, which are subject to change, possibly on a retroactive basis, and changes to any of which subsequent to the date of this prospectus may affect the tax consequences described herein. This discussion does not address any aspect of U.S. state or local or foreign taxation, or any U.S. federal taxes other than income taxes (such as gift and estate taxes).

We have not sought, and do not expect to seek, a ruling from the IRS as to any U.S. federal income tax consequence described herein. The IRS may disagree with the discussion herein, and its determination may be upheld by a court. Moreover, there can be no assurance that future legislation, regulations, administrative rulings or court decisions will not adversely affect the accuracy of the statements in this discussion. You are urged to consult your tax advisor with respect to the application of U.S. federal tax laws to your particular situation, as well as any tax consequences arising under the laws of any U.S. state or local or foreign jurisdiction.

**THIS DISCUSSION IS ONLY A SUMMARY OF CERTAIN U.S. FEDERAL INCOME TAX CONSEQUENCES ASSOCIATED WITH THE ACQUISITION, OWNERSHIP AND DISPOSITION OF OUR CLASS A COMMON STOCK. EACH PROSPECTIVE INVESTOR IN OUR CLASS A COMMON STOCK IS URGED TO CONSULT ITS OWN TAX ADVISOR WITH RESPECT TO THE PARTICULAR TAX CONSEQUENCES TO SUCH INVESTOR OF THE ACQUISITION, OWNERSHIP AND DISPOSITION OF OUR CLASS A COMMON STOCK, INCLUDING THE APPLICABILITY AND EFFECT OF ANY U.S. FEDERAL NON-INCOME, STATE AND LOCAL, AND NON-U.S. TAX LAWS**.

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***Definition of Non-U.S. Holder***

As used herein, the term "non-U.S. holder" means a beneficial owner of our Class A common stock (other than a partnership or entity or arrangement classified as a partnership for U.S. federal income tax purposes) that is, for U.S. federal income tax purposes, not a U.S. person.

A "U.S. person" is any person that, for U.S. federal income tax purposes, is or is treated as any of the following:

● an individual citizen or resident of the United States;

● a corporation, or other entity taxable as a corporation for U.S. federal income tax purposes, created or organized under the laws of the United States, any state thereof or the District of Columbia;

● an estate, the income of which is subject to U.S. federal income tax regardless of its source; or

● a trust if (a) a court within the United States is able to exercise primary supervision over the administration of the trust and one or more U.S. persons have the authority to control all substantial decisions of the trust, or (b) it has in effect a valid election under applicable Treasury regulations to be treated as a U.S. person.

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***Taxation of Distributions***

In general, any distributions (including constructive distributions, but not including certain distributions of our stock or rights to acquire our stock) we make to a non-U.S. holder of shares of our Class A common stock, to the extent paid out of our current or accumulated earnings and profits (as determined under U.S. federal income tax principles), will constitute dividends for U.S. federal income tax purposes and, provided such dividends are not effectively connected with the non-U.S. holder's conduct of a trade or business within the United States, we will be required to withhold tax from the gross amount of the dividend at a rate of 30%, unless such non-U.S. holder is eligible for a reduced rate of withholding tax under an applicable income tax treaty and provides proper certification of its eligibility for such reduced rate (usually on an IRS Form W-8BEN or W-8BEN-E). In the case of any constructive dividend, it is possible that this tax would be withheld from any amount owed to a non-U.S. holder by us or the applicable withholding agent, including from other property subsequently paid or credited to such holder.

Any distribution in excess of current and accumulated earnings and profits will constitute a return of capital that will be treated first as reducing (but not below zero) the non-U.S. holder's adjusted tax basis in its shares of our Class A common stock and, to the extent such distribution exceeds the non-U.S. holder's adjusted tax basis, as gain realized from the sale or other disposition of its shares of our Class A common stock, which will be treated as described under "—Gain on Sale, Taxable Exchange or Other Taxable Disposition of Class A Common Stock" below.

The withholding tax generally does not apply to dividends paid to a non-U.S. holder who provides a valid IRS Form W-8ECI, certifying that the dividends are effectively connected with the non-U.S. holder's conduct of a trade or business within the United States. Instead, the effectively connected dividends will be subject to regular U.S. federal income tax as if the non-U.S. holder were a U.S. resident, subject to an applicable income tax treaty providing otherwise. A corporate non-U.S. holder receiving effectively connected dividends may also be subject to an additional "branch profits tax" imposed at a rate of 30% (or a lower applicable treaty rate), as adjusted for certain items.

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***Gain on Sale, Taxable Exchange or Other Taxable Disposition of Class A Common Stock***

Subject to the discussion below regarding backup withholding and FATCA, a non-U.S. holder generally will not be subject to U.S. federal income or withholding tax in respect of gain recognized on a sale, taxable exchange or other taxable disposition of our Class A common stock, unless:

● the gain is effectively connected with the conduct by the non-U.S. holder of a trade or business within the United States (and, under certain income tax treaties, is attributable to a United States permanent establishment or fixed base maintained by the non-U.S. holder);

● the non-U.S. holder is an individual present in the United States for 183 days or more in the taxable year of disposition and certain other requirements are met; or

● we are or have been a "United States real property holding corporation" (as defined below) for U.S. federal income tax purposes at any time during the shorter of the five-year period ending on the date of disposition or the non-U.S. holder's holding period for the applicable Class A common stock, except, in the case where shares of our Class A common stock are "regularly traded on an established securities market" (within the meaning of applicable Treasury regulations, referred to herein as "regularly traded"), and the non-U.S. holder has owned, directly, indirectly, and constructively, 5% or less of our Class A common stock at all times within the shorter of the five-year period preceding such disposition of Class A common stock or such non-U.S. holder's holding period for such Class A common stock. We can provide no assurance as to our future status as a "United States real property holding corporation" (as defined below) or as to whether our Class A common stock will be considered to be regularly traded. Non-U.S. holders should consult their own tax advisors regarding the application of the foregoing rules in light of their particular facts and circumstances.

Unless an applicable treaty provides otherwise, gain described in the first bullet point above will be subject to tax at generally applicable U.S. federal income tax rates as if the non-U.S. holder were a U.S. resident. Any gains described in the first bullet point above of a non-U.S. holder that is treated as a corporation for U.S. federal income tax purposes may also be subject to an additional "branch profits tax" imposed at a 30% rate (or such lower rate as may be specified by an applicable income tax treaty) on a portion of its effectively connected earnings and profits for the taxable year that are attributable to such gain, as adjusted for certain items.

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Gain described in the second bullet point above will be subject to U.S. federal income tax at a 30% rate (or such lower rate as may be specified by an applicable income tax treaty), but may be offset by U.S. source capital losses realized during the same taxable year (even though the individual is not considered a resident of the United States), provided the non-U.S. holder has timely filed U.S. federal income tax returns with respect to such losses. Non-U.S. holders should consult any applicable income tax treaties that may provide for different rules.

If the third bullet point above applies to a non-U.S. holder, gain recognized by such holder on the sale, exchange or other disposition of our Class A common stock will be subject to tax at generally applicable U.S. federal income tax rates as if the non-U.S. holder were a U.S. resident. In addition, a buyer of our Class A common stock from such holder may be required to withhold U.S. federal income tax at a rate of 15% of the amount realized upon such disposition. Any amounts withheld may be refunded or credited against a non-U.S. holder's U.S. federal income tax liability, provided that the required information is timely provided to the IRS.

We would be classified as a "United States real property holding corporation" if the fair market value of our "United States real property interests" equals or exceeds 50% of the sum of the fair market value of our worldwide real property interests plus our other assets used or held for use in a trade or business, as determined for U.S. federal income tax purposes. We believe that we are not currently a United States real property holding corporation. However, since the determination of whether we are a United States real property holding corporation depends on the fair market value of our United States real property interests relative to the fair market value of our non-U.S. real property interests and our other business assets, there can be no assurance that we currently are not a United States real property holding corporation nor can there be any assurance we will not become one in the future.

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***Information Reporting and Backup Withholding***

Information returns will be filed with the IRS in connection with payments to a non-U.S. holder of distributions. A non-U.S. holder may have to comply with certification procedures to establish that it is not a United States person in order to avoid additional information reporting and backup withholding requirements.

Information reporting and, depending on the circumstances, backup withholding will apply to the proceeds of a sale or other disposition of our Class A common stock within the United States or conducted through certain U.S.-related financial intermediaries, unless the beneficial owner complies with certification procedures to establish that it is not a United States person.

The certification requirements referenced in this section generally will be satisfied if the non-U.S. holder furnishes a valid IRS Form W-8BEN, W-8BEN-E, or W-8ECI.

Backup withholding is not an additional tax. The amount of any backup withholding from a payment to a non-U.S. holder will be allowed as a credit against such holder's U.S. federal income tax liability and may entitle such holder to a refund, provided that the required information is timely furnished to the IRS. Non-U.S. holders should consult their tax advisors regarding their qualification for an exemption from backup withholding and the procedures for obtaining such an exemption, as well as any information reporting requirements that may be applicable in their particular circumstances.

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***FATCA Withholding Taxes***

Provisions of the Code commonly referred to as the Foreign Account Tax Compliance Act ("FATCA") impose withholding of 30% on payments of dividends (including constructive dividends) on our Class A common stock to "foreign financial institutions" (which is broadly defined for this purpose and in general includes investment vehicles) and certain other non-U.S. entities unless various U.S. information reporting and due diligence requirements (generally relating to ownership by United States persons of interests in or accounts with those entities) have been satisfied by, or an exemption applies to, the payee (typically certified as to by the delivery of a properly completed IRS Form W-8BEN-E). Foreign financial institutions located in jurisdictions that have an intergovernmental agreement with the United States governing FATCA may be subject to different rules. Under certain circumstances, a non-U.S. holder might be eligible for refunds or credits of such withholding taxes, and a non-U.S. holder might be required to file a U.S. federal income tax return to claim such refunds or credits.

Withholding of 30% under FATCA was scheduled to apply also to payments of gross proceeds from the sale or other disposition of shares of our Class A common stock beginning on January 1, 2019, but on December 13, 2018, the IRS released proposed regulations that, if finalized in their proposed form, would eliminate the obligation to withhold on such gross proceeds. Although these proposed Treasury regulations are not final, taxpayers generally may rely on them until final Treasury regulations are issued. However, there can be no assurance that final Treasury regulations will provide the same exceptions from FATCA withholding as the proposed Treasury regulations. Non-U.S. holders should consult their tax advisors regarding the effects of FATCA on their investment in our Class A common stock.

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**LEGAL MATTERS**

The validity of the securities offered hereby will be passed upon for us by White & Case LLP. Latham & Watkins LLP, New York, New York, is legal advisor to the financial advisors.

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**CHANGE IN ACCOUNTANTS**

On April 30, 2024, RSM US LLP resigned as our independent registered public accountant. RSM US LLP audited the consolidated financial statements the Company for the years ended December 31, 2023 and 2022. The audit report did not contain an adverse opinion or disclaimer of opinion and was not qualified or modified as to uncertainty, audit scope or accounting principles. The decision to change our independent registered public accountant was approved by the audit committee of our Board.

During the years ended December 31, 2023 and 2022, and the subsequent interim period through April 30, 2024, there were no (i) disagreements as defined in Item 304(a)(1)(iv) of Regulation S-K between the Company and RSM US LLP on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to its satisfaction, would have caused RSM US LLP to make reference in connection with its report to the subject matter of the disagreement during the period from RSM US LLP's engagement on February 1, 2024 to its resignation on April 30, 2024. During the years ended December 31, 2023 and 2022, and the subsequent interim period through April 30, 2024, there were no "reportable events" as such term is defined in Item 304(a)(1)(v) of Regulation S-K, except for the material weaknesses in the Company's internal control over financial reporting as of December 31, 2023 related to a lack of segregation of duties within the accounting and financial reporting function and the misapplication of transfer pricing allocation percentages resulting in incorrect costs (i.e., service fees) attributable to Celsius Mining.

We will provide RSM US LLP with a copy of the foregoing disclosure and request that RSM US LLP provide a letter addressed to the SEC stating whether it agrees with the above facts and, if not, stating the respects in which it does not agree. A copy of RSM US LLP's letter will be filed in a future filing as Exhibit 16.1 to the registration statement of which this prospectus forms a part.

On August 27, 2024, the audit committee of our Board approved the engagement of BDO USA, P.C., effective October 17, 2024 as the Company's independent registered public accounting firm.

During the years ended December 31, 2023 and 2022, and the subsequent interim period through April 30, 2024, neither we, nor anyone acting on our behalf, consulted with BDO USA, P.C. on matters that involved the application of accounting principles to a specified transaction, either completed or proposed, the type of audit opinion that might be rendered on our financial statements, or any other matter that was the subject of a disagreement as that term is used in Item 304 (a)(1)(iv) of Regulation S-K and the related instructions to Item 304 of Regulation S-K or a reportable event as that term is used in Item 304(a)(1)(v) and the related instructions to Item 304 of Regulation S-K.

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**EXPERTS**

The consolidated financial statements of Ionic Digital Inc. as of December 31, 2025 (Successor) and 2024 (Successor), and for the year ended December 31, 2025 (Successor), the eleven month period ended December 31, 2024 (Successor), and for the one month ended January 31, 2024 (Predecessor), included in this prospectus and in the registration statement have been so included in reliance on the report of BDO USA, P.C., an independent registered public accounting firm, given on the authority of said firm as experts in auditing and accounting.

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**WHERE YOU CAN FIND MORE INFORMATION**

We have filed with the SEC a registration statement on Form S-1 under the Securities Act with respect to the shares of Class A common stock offered hereby. This prospectus, which constitutes part of the registration statement, does not contain all of the information set forth in the registration statement and the exhibits and schedules thereto. For further information with respect to our company and our Class A common stock, reference is made to the registration statement and the exhibits and any schedules filed therewith. Statements contained in this prospectus as to the contents of any contract or any other document referred to are not necessarily complete, and in each instance, we refer you to the copy of the contract or other document filed as an exhibit to the registration statement. Each of these statements is qualified in all respects by this reference.

You can read our SEC filings, including the registration statement, over the internet at the SEC's website at *www.sec.gov*.

We are subject to the information reporting requirements of the Exchange Act and we are required to file reports, proxy statements and other information with the SEC. These reports, proxy statements, and other information are available for inspection and copying at the SEC's website referred to above. We also maintain a website at *https://www.ionicdigital.com*, at which you may access these materials free of charge as soon as reasonably practicable after they are electronically filed with, or furnished to, the SEC. Information contained on or accessible through our website is not a part of this prospectus, and the inclusion of our website address in this prospectus is an inactive textual reference only.

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 **Ionic Digital Inc.** 

**Consolidated Financial Statements**

**a** **S OF DECEMBER 31, 2025 and 2024**

 **INDEX** 

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| | |
|:---|:---|
|  | **Pages** |
| [Report of Independent Registered Public Accounting Firm](#v_001) | F-2 |
| [Consolidated Balance Sheets as of December 31, 2025 (Successor) and as of December 31, 2024 (Successor)](#fin_001) | F-3 |
| [Consolidated Statements of Operations for the year ended December 31, 2025 (Successor) and the eleven months ended December 31, 2024 (Successor), and for the one month ended January 31, 2024 (Predecessor)](#fin_002) | F-5 |
| [Consolidated Statements of Changes in Equity (Deficit) for the year ended December 31, 2025 (Successor) and the eleven months ended December 31, 2024 (Successor), and for the one month ended January 31, 2024 (Predecessor)](#fin_003) | F-6 |
| [Consolidated Statements of Cash Flows for the year ended December 31, 2025 (Successor) and the eleven months ended December 31, 2024 (Successor), and for the one month ended January 31, 2024 (Predecessor)](#fin_004) | F-7 |
| [Notes to Consolidated Financial Statements](#fin_005) | F-9 |

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 **Report of Independent Registered Public Accounting Firm**

Shareholders and Board of Directors

Ionic Digital Inc.

Coral Gables, Florida

 **Opinion on the Consolidated Financial Statements**

We have audited the accompanying consolidated balance sheets of Ionic Digital Inc. (the "Company") as of December 31, 2025 (Successor) and 2024 (Successor), the related consolidated statements of operations, changes in equity (deficit), and cash flows for the year ended December 31, 2025 (Successor), the eleven months ended December 31, 2024 (Successor), and the one month ended January 31, 2024 (Predecessor), and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 (Successor) and 2024 (Successor), and the results of its operations and its cash flows for the year ended December 31, 2025 (Successor), the eleven months ended December 31, 2024 (Successor), and the one month ended January 31, 2024 (Predecessor)**,** in conformity with accounting principles generally accepted in the United States of America.

 **Basis for Opinion**

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB and in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ BDO USA, P.C.

We have served as the Company's auditor since 2024.

Los Angeles, California

May 1, 2026

[**Table of Contents**](#C_001)

 **IONIC DIGITAL INC.**

 **CONSOLIDATED BALANCE SHEETS** 

 **AS OF DECEMBER 31, 2025 AND 2024**

(in thousands of $ US, except share data)

---

| | | |
|:---|:---|:---|
|  | **Successor** | **Successor** |
|  | **December 31, <br> 2025** | **December 31, <br> 2024** |
| **ASSETS** | | |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp; Cash and cash equivalents | $43510 | $48393 |
| &nbsp;&nbsp;&nbsp; Cryptocurrency assets | 237947 | 223438 |
| &nbsp;&nbsp;&nbsp; Other receivables, current (net of $5.1 million and $0.7 million allowance for credit losses, <br> respectively) | 10460 | 2849 |
| &nbsp;&nbsp;&nbsp; Prepaid expenses and other current assets | 11427 | 9156 |
| Total current assets | 303344 | 283836 |
| Non-current assets: |  |  |
| &nbsp;&nbsp;&nbsp; Property and equipment, net | 76156 | 286835 |
| &nbsp;&nbsp;&nbsp; Deferred initial direct leasing costs | 6803 |  |
| &nbsp;&nbsp;&nbsp; Other receivables, non-current (net of $3.3 million and $1.7 million allowance for credit losses, respectively) | 370 | 13609 |
| &nbsp;&nbsp;&nbsp; Deposits and other non-current assets | 2253 | 3835 |
| &nbsp;&nbsp;&nbsp; Goodwill | 161608 | 229778 |
| &nbsp;&nbsp;&nbsp; Deferred tax assets, net | 54470 | - |
| Total non-current assets | 301660 | 534057 |
| **TOTAL ASSETS** | $**605004** | $**817893** |
|  **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp; Deferred digital infrastructure leasing revenue | 39793 |  |
| &nbsp;&nbsp;&nbsp; Accounts payable | 1720 | 2454 |
| &nbsp;&nbsp;&nbsp; Accrued expenses and other current liabilities | 19159 | 10134 |
| Total current liabilities | 60672 | 12588 |
| Non-current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp; Deferred tax liabilities, net |  | 12080 |
| &nbsp;&nbsp;&nbsp; Non-current portion of lease liability | 170 | 194 |
| &nbsp;&nbsp;&nbsp; Other non-current liabilities | 755 | 5401 |
| Total non-current liabilities | 925 | 17675 |
| **TOTAL LIABILITIES** | $**61597** | $**30263** |
| Commitments and contingencies (Note 17) |  |  |

---

[**Table of Contents**](#C_001)

 **IONIC DIGITAL INC.**

 **CONSOLIDATED BALANCE SHEETS** 

 **AS OF DECEMBER 31, 2025 AND 2024**

(in thousands of US $, except share data)

---

| | | |
|:---|:---|:---|
|  | **Successor** | **Successor** |
|  | **December 31,<br> 2025** | **December 31, <br> 2024** |
| Stockholders' Equity: |  |  |
| &nbsp;&nbsp;&nbsp; Preferred stock, $0.00001 par value, 15,000,000 shares authorized, none issued and outstanding as of December 31, 2025 and 2024 | $- | $- |
| &nbsp;&nbsp;&nbsp; Class A common stock, $0.00001 par value, 1,000,000,000 shares authorized, 37,374,261 shares issued and outstanding as of December 31, 2025 and 2024 |  |  |
| &nbsp;&nbsp;&nbsp; Additional paid-in capital | 750985 | 747485 |
| &nbsp;&nbsp;&nbsp; Retained earnings (Accumulated deficit) | (207578) | 40145 |
| **TOTAL STOCKHOLDERS' EQUITY** | $**543407** | $**787630** |
| **TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY** | $**605004** | $**817893** |

---

 *See Accompanying Notes to Consolidated Financial Statements.*

[**Table of Contents**](#C_001)

 **IONIC DIGITAL INC.**

 **CONSOLIDATED STATEMENTS OF OPERATIONS** 

 **FOR THE PERIODS ENDED** 

(in thousands of US $, except per share data)

---

| | | | |
|:---|:---|:---|:---|
|  | **Successor** | **Successor** | **Predecessor<br> (Debtor-in-<br> Possession)** |
|  | **Year Ended**<br> **December 31, <br> 2025** | **Eleven Months <br> Ended**<br> **December 31,<br> 2024** | **One Month <br> Ended**<br> **January 31,<br> 2024** |
| Revenue: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cryptocurrency mining | $135561 | $138428 | $15381 |
| &nbsp;&nbsp;&nbsp;&nbsp; Digital infrastructure leasing | 5837 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenues | $**141398** | $**138428** | $**15381** |
| Operating expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cost of mining revenues, exclusive of depreciation | 87976 | 90486 | 9668 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cost of digital infrastructure solutions revenues, exclusive of depreciation | 22 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Depreciation | 66702 | 42360 | 6216 |
| &nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses | 49026 | 40600 | 2633 |
| &nbsp;&nbsp;&nbsp;&nbsp; (Gain) loss on fair value of cryptocurrency | 66788 | (71744) | 150 |
| &nbsp;&nbsp;&nbsp;&nbsp; Realized gain on sale of cryptocurrency assets | (47404) | (5532) | (485) |
| &nbsp;&nbsp;&nbsp;&nbsp; (Gain) loss on disposal of property and equipment | 10160 | (325) | 1793 |
| &nbsp;&nbsp;&nbsp;&nbsp; Impairment of long-lived assets | 150325 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Goodwill impairment | 68170 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Other operating expenses, net | 999 | 1105 | 197 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 452764 | 96950 | 20172 |
| **Operating income (loss)** | $**(311366)** | $**41478** | $**(4791)** |
| Other income (expense): |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest income | 1215 | 1885 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Realized loss on cryptocurrency derivatives | (204) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Unrealized loss on energy derivatives |  |  | (159) |
| &nbsp;&nbsp;&nbsp;&nbsp; Realized gain on investments |  | 2422 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Gain (loss) on litigation settlement | (3429) | 6817 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Other expenses |  | (152) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Reorganization items, net | - | - | (5416) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other income (expense), net | (2418) | 10972 | (5575) |
|  Income (loss) before provision for income taxes | $(313784) | $52450 | $(10366) |
| Provision (benefit) for income taxes | (66061) | 12305 | 22 |
| **Net income (loss)** | $**(247723)** | $**40145** | $**(10388)** |
| Basic and diluted net income (loss) per share | $(6.63 ) | $1.07 | $(103880) |
|  Weighted-average number of outstanding shares used in computing net loss per share, basic and diluted | 37374261 | 37374261 | 100 |

---

 *See Accompanying Notes to Consolidated Financial Statements.*

[**Table of Contents**](#C_001)

**Ionic Digital Inc.**

 **Consolidated Statement of Changes in Equity (Deficit)** 

(in thousands of US $, except share data)

---

| | | |
|:---|:---|:---|
|  | **Predecessor (Debtor-in-Possession)** | **Predecessor (Debtor-in-Possession)** |
|  | **Members' Equity** | **Members' Equity** |
|  | **Units** | **Amount** |
| **Balance as of December 31, 2023** | **100** | $**(520976)** |
| &nbsp;&nbsp;&nbsp; Cumulative effect of change in accounting principle |  | 655 |
| &nbsp;&nbsp;&nbsp; Capital contribution from parent |  | 832662 |
| &nbsp;&nbsp;&nbsp; Net loss | - | (10388) |
| **Balance as of January 31, 2024** | **100** | $**301953** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Successor** | **Successor** | **Successor** | **Successor** | **Successor** |
|  | **Common Stock** | **Common Stock** | | | |
|  | **Shares** | **Amount** | **Additional Paid-in**<br> **Capital** | **Retained Earnings (Accumulated**<br> **Deficit)** | **Total Stockholders'**<br> **Equity** |
| **Balance as of January 31, 2024** |  | $**-** | $**-** | $**-** | $**-** |
| &nbsp;&nbsp;&nbsp; Class A shares issued | 37374261 |  | 746378 |  | 746378 |
| &nbsp;&nbsp;&nbsp; Class B share issued | 1 |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Class B share redeemed | (1) |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Share-based compensation expense |  |  | 1107 |  | 1107 |
| &nbsp;&nbsp;&nbsp; Net income | - | - | - | 40145 | 40145 |
| **Balance as of December 31, 2024** | **37374261** | $**-** | $**747485** | $**40145** | $**787630** |
| &nbsp;&nbsp;&nbsp; Share-based compensation expense |  |  | 3500 |  | 3500 |
| &nbsp;&nbsp;&nbsp; Net loss | - | - | - | (247723) | (247723) |
| **Balance as of December 31, 2025** | **37374261** | $**-** | $**750985** | $**(207578)** | $**543407** |

---

 *See Accompanying Notes to Consolidated Financial Statements for further detail.*

[**Table of Contents**](#C_001)

 **IONIC DIGITAL INC.**

 **CONSOLIDATED STATEMENTS OF CASH FLOW** 

(in thousands of US $)

---

| | | | |
|:---|:---|:---|:---|
|  | **Successor** | **Successor** | **Predecessor <br> (Debtor-in-<br> Possession)** |
|  | **Year Ended**<br> **December 31,<br> 2025** | **Eleven Months <br> Ended**<br> **December 31,<br> 2024** | **One Month<br> Ended**<br> **January 31,<br> 2024** |
| **Cash flow from operating activities** | | | |
| Net income (loss) | $(247723) | $40145 | $(10388) |
| <u>Adjustments required to reconcile net income (loss) to net cash used in operating activities:</u> |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Mining revenue received in bitcoin | (135561) | (138428) | (15381) |
| &nbsp;&nbsp;&nbsp;&nbsp; Hosting costs paid in bitcoin | 591 | 5511 | 730 |
| &nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 66723 | 42375 | 6216 |
| &nbsp;&nbsp;&nbsp;&nbsp; (Gain) loss in the fair value of cryptocurrency assets | 66788 | (71744) | 150 |
| &nbsp;&nbsp;&nbsp;&nbsp; Realized gain on sale of cryptocurrency assets | (47404) | (5532) | (485) |
| &nbsp;&nbsp;&nbsp;&nbsp; (Gain) loss on disposal of property and equipment | 10160 | (325) | 1793 |
| &nbsp;&nbsp;&nbsp;&nbsp; Unrealized loss on energy derivatives |  |  | 159 |
| &nbsp;&nbsp;&nbsp;&nbsp; Realized gain on investments |  | (2422) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Non-cash lease expense | 74 | 70 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp; Stock compensation expense | 3500 | 1107 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Impairment of long-lived assets | 150325 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Goodwill impairment | 68170 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Provision for credit losses | 5994 | 2445 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Deferred tax provision (benefit), net | (66550) | 12015 |  |
| <u>Changes in assets and liabilities:</u> |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Other receivables | (623) | (2752) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other current assets | (7804) | 10371 | (6123) |
| &nbsp;&nbsp;&nbsp;&nbsp; Deferred initial direct leasing costs | (2500) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Deposits and other non-current assets | 1503 | (62) | (3130) |
| &nbsp;&nbsp;&nbsp;&nbsp; Deferred digital infrastructure leasing revenue | 39793 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and other accrued liabilities | 2703 | 12178 | (2005) |
| &nbsp;&nbsp;&nbsp;&nbsp; Non-current liabilities | (4684) | 401 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Other payables to related parties | - | - | 7217 |
| **Net cash used in operating activities** | $**(96525)** | $**(94647)** | $**(21244)** |
| **Cash flows from investing activities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash received in the acquisition of Predecessor business | **-** | 195743 | **-** |
| &nbsp;&nbsp;&nbsp;&nbsp; Purchase of property and equipment | (11064) | (71617) | (20864) |
| &nbsp;&nbsp;&nbsp;&nbsp; Proceeds from the disposal of property and equipment | 1246 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Purchases of available-for-sale-securities |  | (90002) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Proceeds from the sale of available-for-sale securities |  | 92424 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sale of cryptocurrency assets | 101460 | 10114 | 8459 |
| **Net cash provided by (used in) investing activities** | $**91642** | $**136662** | $**(12405)** |

---

[**Table of Contents**](#C_001)

 **IONIC DIGITAL INC.**

 **CONSOLIDATED STATEMENTS OF CASH FLOW** 

(in thousands of US $)

---

| | | | |
|:---|:---|:---|:---|
|  | **Successor** | **Successor** | **Predecessor<br> (Debtor-in-<br> Possession)** |
|  | **Year Ended**<br> **December 31,<br> 2025** | **Eleven Months <br> Ended**<br> **December 31,<br> 2024** | **One Month<br> Ended**<br> **January 31,<br> 2024** |
| **Cash flow from financing activities** | | | |
| &nbsp;&nbsp;&nbsp; Proceeds from sale of Class A stock | - | 6378 | - |
|  **Net cash provided by financing activities** | $**-** | $**6378** | $**-** |
| &nbsp;&nbsp;&nbsp; Net increase (decrease) cash and cash equivalents | (4883) | 48393 | (33649) |
| &nbsp;&nbsp;&nbsp; Cash and cash equivalents at the beginning of the period | 48393 | - | 33660 |
|  **Cash and cash equivalents at the end of the period** | $**43510** | $**48393** | $**11** |
|  **Supplemental schedule of non-cash financing and investing activities:** |  |  |  |
| &nbsp;&nbsp;&nbsp; Issuance of Class A common stock in exchange for Predecessor business | **-** | 740000 |  |
| &nbsp;&nbsp;&nbsp; Fair value of net assets acquired in a business combination | **-** | 544257 |  |
| &nbsp;&nbsp;&nbsp; Related party debt extinguishment and capital contribution from parent | **-** |  | 832662 |
| &nbsp;&nbsp;&nbsp; Cumulative effect adjustment due to adoption of ASU 2023-08 | **-** |  | 655 |
| &nbsp;&nbsp;&nbsp; Purchase of mining equipment with supplier credits |  | 2930  |  |
| &nbsp;&nbsp;&nbsp; Assumption of liability for the acquisition of property and equipment | 1974 | 3687 |  |

---

 *See Accompanying Notes to Consolidated Financial Statements.*

 

[**Table of Contents**](#C_001)

**Ionic Digital Inc.**

 **Notes to Consolidated Financial Statements** 

($ in thousands, except per share and cryptocurrency asset amounts)

 **NOTE 1. Organization** 

 **Nature of operations and corporate information** 

Ionic Digital Inc. (together with its consolidated subsidiaries, "Ionic Digital," the "Company," or "Successor") was formed on January 5, 2024 to acquire substantially all of the assets and assume certain liabilities of Celsius Mining, LLC ("Celsius Mining" or "Predecessor") pursuant to the Chapter 11 bankruptcy plan of reorganization (the "Plan"), which was confirmed by the United States Bankruptcy Court for the Southern District of New York (the "Bankruptcy Court") on November 9, 2023. Pursuant to the Plan, at the close of business on January 31, 2024 (the "Plan Effective Date"), the Company, through its wholly owned subsidiary Ionic Digital Treasury Inc., entered into a Master Conveyance Agreement with Celsius Mining and acquired substantially all the assets and assumed certain liabilities from Celsius Mining (the "Business Combination"). As a result of the Business Combination, the Company initiated its cryptocurrency mining operations, generating revenue through the mining of bitcoin, a digital asset operating on a decentralized, open-source blockchain network.

Subsequent to the Business Combination, the Company solely operated a fleet of application-specific integrated circuit ("ASIC") mining machines ("miners") at both hosted and self-mining facilities. However, on October 14, 2025 the Company entered into a lease arrangement for its Ward County facility (previously referred to as "Cedarvale" in Company communications), resulting in a new operating segment which provides digital infrastructure solutions (refer to *Note 9 – Leases* for additional information). The Company's cryptocurrency mining segment continues to operate four self-mining facilities located in Midland, Texas and one hosted mining site located in Oklahoma.

 **Predecessor Bankruptcy Proceedings** 

Prior to the Business Combination, Celsius Mining was a wholly owned subsidiary of Celsius US Holding LLC ("Celsius US Holding"), which was a wholly owned subsidiary of Celsius Network Limited, a Company registered in England and Wales ("Celsius UK"). The issued and outstanding shares of Celsius UK were owned by Celsius Network, Inc. (the "Ultimate Parent").

On July 13, 2022 (the "Petition Date"), the Ultimate Parent and its subsidiaries and affiliates, which include Celsius Network, LLC and Celsius Mining (collectively the "Debtors"), each filed voluntary petitions (the "Chapter 11 Cases") in the United States Bankruptcy Court for the Southern District of New York (the "Bankruptcy Court") seeking relief under Chapter 11 of the United States code (the "Bankruptcy Code"). The Chapter 11 Cases were jointly administered under the caption *In re Celsius Network LLC, et al., Case No. 22-10964*. Celsius Mining was included in the Chapter 11 proceedings and continued to operate its business as a "debtor-in-possession" under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court through the closing of the Business Combination.

On November 9, 2023, the Bankruptcy Court issued an Order confirming the Plan.

As part of its Chapter 11 process, the Debtors ran a marketing and sale process to identify parties to purchase and/or manage the assets of Celsius Mining. On December 27, 2023, the Bankruptcy Court entered an order granting the joint motion of the Debtors and a committee representing the creditors of the Ultimate Parent and its affiliates and authorizing the proposed transaction in which Ionic Digital acquired certain assets and the related liabilities of Celsius Mining, which subsequently occurred on January 31, 2024 (the "Plan Effective Date").

Refer to *Note 2 – Basis of Presentation and Summary of Significant Accounting Policies* for details regarding the presentation of comparative consolidated financial statements of the Predecessor and Successor.

 **Business Combination** 

At the close of business on January 31, 2024, the Company acquired substantially all the assets and assumed certain liabilities of Celsius Mining. The Company accounted for the Business Combination in accordance with the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 805, *Business Combinations*. The Company determined the Business Combination did not meet the criteria for fresh start reporting under ASC 852, *Reorganizations* ("ASC 852"), as the Company was not a debtor in the Plan, was a newly formed entity, and did not assume the liabilities of the debtors beyond those specified in the Plan. See *Note 3 – Business Combination* for a description of the consideration transferred, the assets acquired, and the liabilities assumed.

[**Table of Contents**](#C_001)

 **NOTE 2. Basis of Presentation and Significant Accounting Policies** 

 **Basis of Presentation** 

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP") and the rules and regulations of the SEC.

In connection with the Business Combination, the Company was determined to be the legal and accounting acquirer and Celsius Mining was deemed to be the accounting predecessor. The Business Combination was accounted for using the acquisition method of accounting and the Successor's financial statements reflect a new basis of accounting based on the fair value of the net assets acquired. The Successor had no material activity from its inception on January 5, 2024, through the Plan Effective Date of January 31, 2024. As a result, the Company's consolidated financial statements and certain disclosures are separated into two distinct periods to indicate the different ownership and accounting bases between the periods presented: the current year period January 1, 2025 through December 31, 2025; and the prior year period after consummation of the Business Combination, which includes the period from February 1, 2024 through December 31, 2024 (the "eleven months ended December 31, 2024"); and the prior year period before consummation of the Business Combination, which includes the period from January 1, 2024 through January 31, 2024 (the "one month ended January 31, 2024"). Due to the change in the basis of accounting, the consolidated financial statements for the Predecessor and the Successor are not necessarily comparable. Where applicable, a black line separates the Predecessor and Successor periods to highlight the lack of comparability.

The accompanying Predecessor audited consolidated financial statements for the one month ended January 31, 2024 were prepared using discrete financial information and include assets, liabilities, revenues, and expenses directly identifiable to Celsius Mining, as well as indirect costs attributable to Celsius Mining that are derived from the financial statements of the Ultimate Parent. Indirect costs allocated to Celsius Mining represent the costs of support functions provided on a centralized basis by Celsius UK and its affiliates and include, but are not limited to, professional fees, equipment, facilities, taxes, and other administrative functions. The allocation of indirect costs is based on a proportional cost allocation method, primarily revenues, gross profits, or other allocation methodologies that are considered to be a reasonable reflection of the utilization of services provided or benefit received by Celsius Mining during the periods presented. Celsius Mining considers that such allocations have been made on a reasonable basis consistent with benefits received but may not necessarily be indicative of the costs that would have been incurred if it operated on a standalone basis.

The Predecessor audited consolidated financial statements included herein also reflect the application of ASC 852,which requires that the financial statements, for periods subsequent to the Chapter 11 filing, distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the business. Accordingly, certain expenses, gains, and losses that are realized or incurred in the bankruptcy proceedings are recorded in Reorganization items, net on the Consolidated Statements of Operations.

 **Principles of Consolidation** 

The accompanying consolidated financial statements include the accounts of the Company and its wholly owned and controlled subsidiaries. Intercompany balances and transactions have been eliminated in consolidation.

 ***Reclassifications***

Certain prior period amounts have been reclassified to conform to the current period presentation. Specifically, current and non-current amounts refundable to the Company that were previously included in Prepaids and other current assets and Long-term deposits are now separately reported on the Consolidated Balance Sheets as current and non-current other receivables, with a corresponding change in the Consolidated Statement of Cash Flows. These reclassifications had no effect on previously reported net income, total assets, total liabilities, operating cash flows, or stockholders' equity.

 **Use of Estimates** 

The preparation of the Company's consolidated financial statements in conformity with US GAAP requires management to make estimates, judgements, and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates include estimates used to review the Company's goodwill allocation and impairment, impairment of long-lived assets, allowance for credit losses, income taxes, and share-based compensation.

Management bases its estimates of the carrying value of certain assets and liabilities on historical experience and on various other assumptions that it believes to be reasonable under the circumstances when these carrying values are not readily available from other sources. Making estimates requires management to exercise significant judgment and it is at least reasonably possible that the estimate of the effect of a condition, situation, or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, actual results may differ materially from those estimates.

 **Cash and Cash Equivalents** 

Cash and cash equivalents include all cash balances and highly liquid investments with original maturities of three months or less. These investments may include money market funds, certificates of deposit, and other short-term instruments.

 **Concentrations of Credit Risk** 

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents. At times throughout the year, the Company may maintain cash balances in certain bank accounts in excess of FDIC limits. The cash balance in excess of the FDIC limits was immaterial as of December 31, 2025. The Company's cash equivalents include investments in money market funds, primarily the Fidelity Investments Money Market Government Portfolio - Institutional Class (FRGXX), which invests at least 99.5% of its assets in cash, U.S. government securities, and repurchase agreements collateralized by such securities. At December 31, 2025, the fair value of these investments was $42.1 million. These funds are not insured by the FDIC but maintain a stable net asset value of $1.00 per share and are subject to SEC diversification and liquidity requirements under Rule 2a-7. The Company has no significant concentrations of credit risk from these holdings beyond U.S. sovereign credit exposure.

The accounts offered by the custodian of the Company's bitcoin are not insured by the FDIC. The uninsured fair value of the Company's bitcoin holdings totaled $237.9 million and $223.4 million as of December 31, 2025 and 2024, respectively. The Company has not experienced any losses in such accounts.

[**Table of Contents**](#C_001)

The Company has certain customers and vendors who individually represent 10% or more of the Company's revenue or capital expenditures.

The Predecessor and the Company mined only one cryptocurrency asset, bitcoin, during the periods presented herein. In the year ended December 31, 2025, the eleven months ended December 31, 2024, and the one month ended January 31, 2024, cryptocurrency mining revenue is concentrated with one mining pool operator and substantially all bitcoin resides with one custodian.

The Company's digital infrastructure leasing revenue is also currently concentrated with a single customer, with risk offset by a guarantee from the customer's operating partner for the first five years of fixed lease payments.

In addition, during the eleven months ended December 31, 2024, the Company incurred material operating costs and capital expenditures with Hut 8 Corp.'s affiliate companies. Refer to *Note 12 – Related Party Transactions* for further details.

 **Investments** 

Short-term investments include available-for-sale debt securities, which consist of U.S Treasury securities with original maturities of greater than three months but less than one year when purchased or maturities of one year or less on the reporting date. Investments are recorded at fair value using the specific identification method. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Any unrealized holding gains or losses are reported as accumulated other comprehensive gain or loss, which is a separate component of Stockholders' equity, net of tax, until realized. There were no unrealized gains or losses in the periods presented herein.

The Company assesses available-for-sale securities in an unrealized loss position on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation, to determine whether it intends to sell, or it is more likely than not that it will be required to sell a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as a write down through earnings.

Ionic Digital invested in U.S. Treasury securities during the eleven months ended December 31, 2024, but the Company held no available-for-sale securities as of December 31, 2025 and 2024, respectively.

 **Prepaid Expenses** 

The Company records a prepaid expense for costs paid but not yet incurred. Those expected to be incurred within one year are recognized and shown within Current assets on the Company's Consolidated Balance Sheet. Any costs expected to be incurred outside of one year would be included within Deposits and other non-current assets on the Company's Consolidated Balance Sheet.

 ***Allowance for Credit Losses***

Management estimates an allowance for credit losses using relevant available information from both internal and external sources relating to past events, current conditions, and reasonable and supportable forecasts. Changes in the allowance for credit losses are recorded within Other operating expenses, net, in the Consolidated Statement of Operations.

 **Fair Value Measurements** 

The Company accounts for financial assets and liabilities in accordance with ASC 820, *Fair Value Measurement* ("ASC 820"), which defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy requires an entity to maximize the use of observable inputs when measuring fair value and classifies those inputs into three levels:

● Level 1 - Quoted prices in active markets for identical assets or liabilities. These are typically obtained from real-time quotes for transactions in active exchange markets involving identical assets.

● Level 2 - Quoted prices for similar assets and liabilities in active markets; quoted prices included for identical or similar assets and liabilities that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. These are typically obtained from readily available pricing sources for comparable instruments.

● Level 3 - Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

Observable inputs are based on market data obtained from independent sources, while unobservable inputs are based on market assumptions. Unobservable inputs require significant management judgment or estimation. In some cases, the inputs used to measure an asset or liability may fall into different levels of the fair value hierarchy. In those instances, the fair value measurement is required to be classified using the lowest level of input that is significant to the fair value measurement. Such determination requires significant management judgment.

[**Table of Contents**](#C_001)

The following table presents the Company's financial instruments that are measured and recorded at fair value on a recurring basis, and their level within the fair value hierarchy:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Successor** | **Successor** | **Successor** | **Successor** |
|  | **Fair value as of December 31, 2025** | **Fair value as of December 31, 2025** | **Fair value as of December 31, 2025** | **Fair value as of December 31, 2025** |
|  | **Total carrying value** | **Level 1** | **Level 2** | **Level 3** |
| Cash and cash equivalents – money market funds | $42135 | $42135 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |
| Cryptocurrency assets | $237947 | $237947 | $- | $- |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Successor** | **Successor** | **Successor** | **Successor** |
|  | **Fair value as of December 31, 2024** | **Fair value as of December 31, 2024** | **Fair value as of December 31, 2024** | **Fair value as of December 31, 2024** |
|  | **Total carrying value** | **Level 1** | **Level 2** | **Level 3** |
| Cash and cash equivalents – money market funds | $35941 | $35941 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |
| Cryptocurrency assets | $223438 | $223438 | $- | $- |

---

The carrying amounts of financial assets and liabilities, such as cash and cash equivalents, accounts receivable, and accounts payable, approximate fair value due to the short-term nature of these instruments.

 *Assets and liabilities measured and recorded at fair value on a non-recurring basis*

The Company's non-financial assets, such as goodwill, intangible assets, and property and equipment, are adjusted to fair value when an impairment charge is recognized. In measuring impairment of long-lived assets in accordance with the provisions of ASC 360, *Property, Plant, and Equipment*, the Company estimates the fair value of long-lived assets on a non-recurring basis using Level 2 inputs for similar assets in active markets, including market data regarding the value of our ASIC miners, a limited ability to repurpose certain buildings and related materials, and the marketability (or lack thereof) of certain machinery and facilities equipment considering the condition and customized nature of the assets in accordance with the provisions of ASC 820.

In determining the fair value of the assets and liabilities acquired in the Business Combination and in evaluating the fair value of its reporting unit or units when testing goodwill for impairment, the Company considers a combination of the income and market valuation approaches. The income valuation approach uses unobservable inputs including projections of internal cash flows, future bitcoin prices, and the future global hashrate, as well as derived discount and long-term growth rates. The market valuation approach utilizes observable inputs for similar assets and liabilities to estimate valuation multiples. Refer to *Note 11 – Goodwill* for further details.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Successor** | **Successor** | **Successor** | **Successor** |
|  | **Total<br> carrying** | **Fair value as of December 31, 2025** | **Fair value as of December 31, 2025** | **Fair value as of December 31, 2025** |
|  | **value** | **Level 1** | **Level 2** | **Level 3** |
| Long-lived assets<sup>(1)</sup> | $76585  | $- | $- | $76585  |
| Goodwill | $161608 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | $161608 |

---

(1) Long-lived assets include $76.2 million of
 property and equipment and $0.4 million of ROU assets as of December 31, 2025.

 ***Derivative contracts***

Celsius Mining entered into energy arrangements that resulted in obtaining the right to purchase a fixed amount of energy denominated in megawatt hours at a fixed price. The Company did not extend the energy agreements, which expired in May 2024.

These arrangements were considered derivative contracts under ASC 815, *Derivatives and Hedging* since their value was derived from underlying asset prices, other inputs, or a combination of these factors. The derivative contracts were recognized as either assets or liabilities on the accompanying balance sheets when both the quantity of electricity demand was known and penalties for non-performance under the Mothership Incubator ("MI") Texas Rep Power Agreement became enforceable. The derivative liabilities were offset against prepaid expenses at fair value in accordance with ASC 210-20-45-1. Subsequent changes in fair value were recognized in Other income (expense) in the Consolidated Statement of Operations. Cash flows from derivative contracts were included as Adjustments to reconcile net loss to net cash used in operating activities in the Consolidated Statements of Cash Flow.

Because the Company had the ability to sell its contracted electricity into the Electric Reliability Council of Texas (ERCOT) grid marketplace rather than taking physical delivery for its own use, the Company determined that the scope exception for normal purchases and sales would not be applicable. To establish fair value for energy derivatives, the Company utilized Level 2 inputs, including quoted market prices and forward price curves, to estimate the fair value of energy derivative instruments. Energy derivative valuations are performed using market quotes, adjusted for periods in between quotable periods. Unrealized gains or losses associated with the derivative asset include changes in fair value that were attributable to amendments to the MI Texas Power Agreement, as well as changes to the quoted forward electricity rates. Refer to *Note 7 – Investments and Derivatives* for further information.

A derivative asset or liability related to the MI Texas Rep Power Agreement was recognized in Prepaid expenses and other current assets on the Consolidated Balance Sheet. Subsequent changes in fair value are recorded in Other income (expense) in the Consolidated Statements of Operations. The MI Texas Rep Power Agreement was not designated as a hedging instrument.

[**Table of Contents**](#C_001)

 **Cryptocurrency assets** 

Cryptocurrency assets held by the Company during the year ended December 31, 2025, the eleven months ended December 31, 2024, and by the Predecessor during the one month ended January 31, 2024, consisted entirely of bitcoin. All cryptocurrency asset holdings are classified as current assets in the accompanying balance sheets due to the Company's ability to sell the cryptocurrency assets in a highly liquid marketplace and its intent to liquidate its cryptocurrency assets to support operations or for treasury management as needed during the normal operating cycle of the Company.

Bitcoin received by the Company through its mining activities is accounted for in connection with the Company's revenue recognition policy disclosed below.

As a result of the adoption of ASU 2023-08, *Intangibles — Goodwill and Other — Cryptocurrency Assets (Subtopic 350-60): Accounting for and Disclosure of Cryptocurrency Assets* ("ASC 350-60") on January 1, 2024, cryptocurrency assets are recorded at fair value. The Company determines the fair value of cryptocurrency assets in accordance with ASC 820. The fair value of bitcoin, which is the only cryptocurrency asset held by the Company since the adoption of ASC 350-60, is measured using the period-end closing bitcoin price from its principal market, Coinbase Global, Inc. ("Coinbase"). The Company utilizes the bitcoin spot price as of 23:59:59 UTC. For the year ended December 31, 2025, the eleven months ended December 31, 2024, and the one month ended January 31, 2024, the changes in fair value are recognized as (Gain) Loss on fair value of cryptocurrency assets on the Consolidated Statement of Operations.

The proceeds from sales of cryptocurrency assets are included within investing activities in the accompanying Consolidated Statements of Cash Flows, as the Company intends to liquidate its cryptocurrency assets only as needed to cover operating costs and expenses within its operating cycle. In accordance with ASC 350-60, the Company discloses realized gains and losses from the sale of cryptocurrency assets, and such gains and losses are measured as the difference between the cash proceeds and the cost basis of the asset as determined on a First In-First Out basis.

 **Property and equipment, net** 

Property and equipment is stated at cost less depreciation accumulated using the straight-line method over the estimated useful lives of the assets. Construction-in-progress is the construction or development of assets that have not yet been placed in service for their intended use, and therefore, are not depreciated until the work is completed and the assets are placed in service. Depreciation of mining equipment, machinery and facilities equipment, buildings, and leasehold improvements also commences once assets are placed in service. Land is not depreciated.

Costs of maintenance, repairs, and minor parts replacements are expensed when incurred. Upon the sale or retirement of property and equipment, the cost and accumulated depreciation and amortization are removed from the Company's balance sheets with the resulting gain or loss, if any, reflected in the Company's Consolidated Statements of Operations.

On December 31, 2025, the Company reevaluated the expected useful life of its mining and machinery and facilities equipment based on management's projections of bitcoin price, global hashrate, and cash flows for the mining business. As a result, management adjusted its estimate of the remaining useful lives of the assets to accelerate depreciation on certain equipment. The adjusted estimated useful lives of the assets are as follows:

---

| | |
|:---|:---|
|  | **Years** |
| **Computer equipment** | **3** |
| **Mining equipment<sup>(1)</sup>** | **1 - 3** |
| **Machinery and facilities equipment<sup>(1)(2)</sup>** | **7 - 20** |
| **Building** | **10 - 20** |
| **Land Improvement** | **15** |

---

(1) Considering
 the conversion of the Ward County facility to support digital infrastructure solutions and
 the resulting reduced capacity at the Company's self-mining sites, the Company does
 not expect certain mining and machinery and facilities equipment to be returned to service.
 This equipment has been impaired to its estimated residual value as of December 31, 2025
 and will not continue depreciating in the future. See further discussion in *Note 5 – Property and Equipment, net.* 

(2) Machinery
 and facilities equipment primarily includes substations, containers, electrical parts, cables,
 and transformers.

The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of such asset groups may not be fully recoverable. The asset groups to be held and used that are subject to impairment review represent the lowest level of identifiable cash flows that are largely independent of other groups of assets and liabilities.

Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset group to undiscounted future cash flows expected to be generated by the asset group. If such assets are considered unrecoverable, the impairment loss to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets.

During the year ended December 31, 2025, the Company recognized an impairment loss of $150.3 million related to the long-lived assets used in its mining operations. No impairment of long-lived assets was recorded during the eleven months ended December 31, 2024. Refer to *Note 5 — Property and equipment, net* for further information*.*

[**Table of Contents**](#C_001)

 **Recognition of Cryptocurrency Mining Revenue** 

Ionic Digital participates in a third-party operated mining pool to which the Company provides the service of performing hash calculations, an output of the Company's ordinary activities.

The Company recognizes revenue under ASC 606, *Revenue from Contracts with Customers* ("ASC 606"). The core principle of this standard is that a Company should recognize revenue to depict the transfer of promised goods or services to customers at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle:

Step 1: Identify the contract with the customer

Step 2: Identify the performance obligations in the contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the performance obligations in the contract

Step 5: Recognize revenue when the Company satisfies a performance obligation

 *Step 1:* The Company has identified the third-party mining pool operator as its customer (the "Customer"). The Company enters into a contract with the Customer to provide its hash calculations to the Customer's mining pool. The contracts are terminable without penalty at any time by either party; thus, the contract term is shorter than a 24-hour period and the contracts are continuously renewed.

Applying the criteria per ASC 606-10-25-1, the contract arises at the point that the Company provides hash calculations to the Customer's mining pool, which is considered contract inception, because Customer consumption is in tandem with delivery of the hash calculations.

 *Step 2:* To identify the performance obligations in a contract with a customer, a Company must assess the promised goods or services in the contract and identify each promised good or service that is distinct. A performance obligation meets the definition of a "distinct" good or service (or bundle of goods or services) under ASC 606 if both of the following criteria are met:

● The customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer (i.e., the good or service is capable of being distinct), and

● The entity's promise to transfer the good or service to the customer is separately identifiable from other promises in the contract (i.e., the promise to transfer the good or service is distinct within the context of the contract).

The Company has identified a single performance obligation of providing hash calculations for the mining pool operator. The continuous renewal options does not represent material rights because the Company does not provide the Customer with the right to purchase additional goods or services at a discount. Specifically, the contract is renewed with the same terms, conditions, and rate as the current contract, which is consistent with market rates, and there are no upfront or incremental fees in the initial contract. The Company has full control of the mining equipment used in the mining pool, and if the Company determines it will increase or decrease the hashrate (the speed at which mining equipment can perform hash calculations) of its machines and/or fleet (i.e., for repairs or when power costs are excessive), the hashrate provided to the Customer will correspondingly increase or decrease.

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 *Step 3:* The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer. The consideration promised in a contract with a customer may include fixed amounts, variable amounts, or both. When determining the transaction price, an entity must consider the effects of all the following:

● Variable consideration

● Constraining estimates of variable consideration

● The existence of a significant financing component in the contract

● Noncash consideration

● Consideration payable to a customer

Variable consideration is included in the transaction price only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. There are no other forms of variable consideration such as discounts, rebates, credits, price concessions, incentives, performance bonuses, penalties, or other similar items.

In exchange for providing hash calculations the Company is entitled to receive noncash consideration, payable in bitcoin, from the mining pool operator. Bitcoin earned and recognized is variable from day to day based on the payout model. The amount of compensation due to the Company is determined using the Full Pay Per Share ("FPPS") payout model detailed in the mining pool operator contract. FPPS contains three components, (1) a fractional share of the fixed cryptocurrency asset award from the mining pool operator (referred to as a "network block subsidies"), (2) network transaction fees generated from (paid by) blockchain users to execute transactions and distributed (paid out) to individual miners by the mining pool operator, (3) pool operating fees. The Company's total compensation is calculated as the sum of the Company's share of (1) Network Block Subsidies and (2) Network Transaction Fees, less (3) Pool Operating Fees.

"Network Block Subsidies" means the total amount of block subsidies that are expected to be generated on the Bitcoin network during the 24-hour period beginning at 00:00:00 UTC daily (i.e., the measurement period) and ending at 23:59:59 UTC the same day, regardless of whether the mining pool operator successfully records a block to the blockchain.

The Company's share of Network Block Subsidies earned for each measurement period is determined by dividing (a) the total amount of hashrate Ionic Digital provides to the mining pool operator, by (b) the total Bitcoin network's implied hashrate (as determined by the Bitcoin network difficulty), multiplied by (c) the Network Block Subsidies.

"Network Transaction Fees" means the total amount of transaction fees that are generated on the Bitcoin network during the measurement period.

The Company's share of Network Transaction Fees earned for each measurement period is determined by dividing (a) the total amount of Network Transaction Fees, by (b) the total amount of Network Block Subsidies that are generated on the Bitcoin network, multiplied by (c) Ionic Digital's share of Network Block Subsidies.

"Pool Operating Fees" means the fees charged by the mining pool operator for operating the mining pool as set forth on a rate schedule to the mining pool contract. The Pool Operating Fees reduce the total amount of compensation the Company receives and are only incurred to the extent that it has generated mining revenue during the measurement period.

The Customer provides services solely for bitcoin mining and the fees charged during the most recent fiscal year end were 0.16% of the total daily bitcoin mined. The Pool Operating Fees represent consideration paid to the Customer; therefore, since the Company does not receive a distinct good or service from the mining pool operator in exchange for the fees paid, the Pool Operating Fees are reported as a reduction in revenue.

For each contract, the Company measures the consideration at fair value based on the quoted price of bitcoin at the 00:00:00 UTC spot price on the date of contract inception, as determined by the Company's principal market, Coinbase. The Company recognizes this noncash consideration on the same day that control of the contract service transfers to the mining pool operator, which is the same day as contract inception.

Daily settlements are made to the Company by the Customer based on the hash calculations provided over the contract periods over a 24-hour period and the payout is made the following day.

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There is no significant financing component, deferred revenue, or other obligations in these transactions since there are no payments in advance of the performance, and there are no remaining performance obligations after providing hash calculations.

 *Step 4:* The transaction price is allocated to the single performance obligation of providing hash calculations to the customer.

 *Step 5*: The Company's performance is completed over time as the customer obtains control of the contributed hashrate. The performance obligation of hash calculations is fulfilled over time, as opposed to a point in time, because the Company provides the hash calculations throughout the contract period and the customer simultaneously obtains control of the service and uses it to produce bitcoin.

 ***Recognition of leasing revenue***

The Company generates revenue from an agreement to provide digital infrastructure solutions at its Ward County facility. The arrangement has both lease and non-lease components, and the arrangement will primarily be accounted for in accordance with ASC 842, *Leases* ("ASC 842"), while certain non-lease components will be accounted for in accordance with ASC 606.

See further discussion in *–Leases* herein, as well as in *Note 9 – Leases*.

 **Cost of mining revenues, exclusive of depreciation** 

The Company's cost of mining revenue, exclusive of depreciation, consists primarily of direct costs of earning bitcoin related to mining operations, including electric power costs, hosting costs, occupancy, materials, and labor.

In the year ended December 31, 2023, Celsius Mining entered into four revenue share agreements, which are detailed below. Each of the revenue sharing agreements entitles the counterparty to non-cash consideration for the block rewards and transaction fees paid in bitcoin. The value of the bitcoin paid to the counterparties is determined using a first-in-first-out value of the bitcoin held. As detailed below, certain of these hosting agreements were conveyed to Ionic Digital in connection with the Business Combination.

 *Master Colocation Services Agreement with Global [X] Digital, LLC*

On February 12, 2023, Celsius Mining entered into a master colocation services agreement with Global[X]Digital, LLC ("GXD") to host approximately 17,000 miners owned by Celsius Mining at GXD's Oklahoma City, OK facility. The initial term of the agreement is three years, with the term automatically renewed for six months unless either party provides written notice, without cause, at least ninety days prior to the expiration of the term. On July 6, 2023, Celsius Mining entered into a service order with GXD to host an additional 5,760 miners at the Oklahoma City facility for an initial term of 18 months and an option for Celsius Mining to extend the term for an additional 18 months. Upon the Plan Effective Date, the Company assumed the agreements with GXD for the remaining duration of the term. In October 2024, the service orders were amended to reduce the number of hosted miners by 5,760, and the expiration dates of all remaining service orders were amended and expired in February 2026.

Within the terms of the agreement, the Company is principally responsible for delivery of the service to the customer (the mining pool operator); and therefore, recognizes revenue on a gross basis. The Company's hosting services costs include revenue share amounts paid to GXD in bitcoin daily, as well as other expenses paid in cash monthly.

 

 *Hosting Services Agreement with EZ Blockchain Services, LLC*

On June 2, 2023, Celsius Mining entered a term sheet for hosting services with EZ Blockchain Services, LLC ("EZB") who hosted Celsius Mining miners at its Douglas, GA and West Point, GA facilities, and made up to 32 megawatts ("MW") of energy capacity available at the facilities. On November 22, 2023, Celsius Mining and EZB entered into a definitive hosting agreement (the "EZB Hosting Agreement"), superseding the term sheet. The initial term is eighteen months, which may be extended for each day of curtailment up to a maximum contract length of twenty-one months.

[**Table of Contents**](#C_001)

Under the term sheet and prior to the 2023 EZB Hosting Agreement, EZB was principally responsible for delivery of the service to the customer (the mining pool operator), with Celsius Mining entitled to revenue in cash. Celsius Mining recognized its share of mining revenue received on a net basis, given that EZB was principally responsible for delivery of the service. Since net mining revenues were considered constrained until month-end, revenue was recognized at the month-end when it became probable that a significant reversal would not occur.

Under the EZB Hosting Agreement, the Predecessor, and subsequently the Company, is principally responsible for delivery of the service; therefore, revenue is received from the Customer in bitcoin daily and recognized on a gross basis. The hosting services costs include revenue share amounts paid to EZB in bitcoin, as well as other expenses paid in cash monthly.

Upon the Plan Effective Date, the Company assumed the agreements with EZB for the remaining duration of the term, and the agreement was terminated in May 2025.

 *Hosting Services Agreement with USMIO Alpha LLC / Hut 8 Corp.*

 

On August 8, 2023, Celsius Mining entered into a bitcoin mining hosting agreement (the "Hut 8 Niagara Hosting Agreement") with USMIO Alpha LLC, now a wholly owned subsidiary of Hut 8 Corp. ("Alpha").

Under the Hut 8 Niagara Hosting Agreement, Alpha agreed to provide hosting services, including electrical power and internet access, for at least 8,500 miners owned by the Company at Alpha's Niagara Falls, New York facility. The Hut 8 Niagara Hosting Agreement had an initial term of twelve months, with the Company's option to renew for four consecutive twelve-month terms. Upon the Plan Effective Date, the Company assumed the agreement with Alpha for the remaining duration of the term.

Within the terms of the agreement, the Company was principally responsible for delivery of the service to the Customer (the mining pool operator) and therefore recognizes revenue daily on a gross basis. The Company's hosting services costs include revenue share amounts paid to Alpha in bitcoin, as well as other expenses paid in cash monthly.

The Company terminated the Hut 8 Niagara Hosting Agreement in November 2024 with no incremental costs incurred, at which time the remaining miners were transferred to Ionic Digital-owned facilities.

 

Refer to *Note 4 – Cryptocurrency assets* for additional information related to revenue generated by equipment located with hosting providers.

 ***Cost of digital infrastructure solutions revenues, exclusive of depreciation***

The Company incurs certain maintenance, utility, and other costs to ensure the Ward County facility remains operational. In addition, the Company incurred initial direct costs in connection with obtaining the agreement to provide digital infrastructure solutions at the Ward County facility. These costs are included in Deferred initial direct leasing costs on our Consolidated Balance Sheet as of December 31, 2025. These costs are amortized over the term of the agreement as a cost of the digital infrastructure leasing revenues.

 **Mining Management Services Agreement** 

In accordance with the Plan, portions of the day-to-day operations of Ionic Digital's bitcoin mining business would initially be outsourced to U.S. Data Management Group, LLC, a subsidiary of Hut 8 ("Hut 8"), an arrangement governed by the Mining Management Services Agreement ("Mining MSA"). In accordance with the Mining MSA, the Company agreed to pay Hut 8 cash compensation including a fixed fee, pass-through expenses, and direct project costs. The fixed fee would be paid in quarterly installments and allocated between General and administrative expenses and capitalized construction project costs. Pass-through costs were recorded by the Company within operating expenses depending on the nature of such expenses. Direct project costs were paid at certain pre-defined milestones dependent upon completion of such milestones and capitalized by the Company within Property and equipment, net.

Refer to *Note 12 – Related Party Transactions* and *Note 8 – Mining Management Services Agreement* for more details. Effective December 10, 2024, the Mining MSA was terminated at no incremental cost to the Company.

 **Equity-Based Compensation** 

The Company recognizes share-based compensation expense for all stock-based awards made to employees, directors, consultants, and service providers, if any, based upon the estimated grant-date fair value of the awards.

The fair value of share-based compensation awards is amortized over the vesting period, which is defined as the period during which a recipient is required to provide service in exchange for an award. The Company generally uses a graded vesting method for all grants. Awards with both market and service conditions are expensed over the vesting period for each separately vesting tranche. The Company accounts for forfeitures of stock-based awards as they occur.

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For more complex performance awards, including awards with market conditions, the fair value is estimated using the Black-Scholes-Merton option pricing model or Monte-Carlo simulations, which take into account the exercise price, the term of the option or the restricted stock units ("RSUs"), the impact of dilution, the share price at grant date, expected price volatility of the underlying share, the expected dividend yield and the risk-free interest rate for the term of the option, together with non-vesting conditions that do not determine whether the Company receives the services that entitle the employees to receive payment.

In accordance with ASC 718, *Stock Compensation* ("ASC 718"), share-based compensation for awards with market conditions is recognized over the vesting period, regardless of whether the market condition is ultimately achieved will only be adjusted to the extent the service condition is not met.

If stock-based awards are modified, as a minimum, an expense is recognized as if the modification has not been made. An additional expense is recognized, over the remaining vesting period, for any modification that increases the total fair value of the share-based compensation benefit as at the date of modification.

If stock-based awards are cancelled or settled during the vesting period (other than a grant cancelled by forfeiture when the vesting conditions are not satisfied), this is treated as an acceleration of vesting and the amount that otherwise would have been recognized for services received over the remainder of the vesting period will be recognized immediately through share-based compensation expense in earnings.

The Company classifies its share-based compensation within "General and administrative expenses" on the Consolidated Statements of Operations. Refer to *Note 13 - Share-based compensation* for further information.

 ***Leases***

  ****

Leases are accounted for in accordance with ASC 842, *Leases* ("ASC 842"). The Company has lease arrangements both as a lessor and a lessee. At the inception of an arrangement, the Company determines whether the contract is or contains a lease based on specific facts and circumstances, the existence of an identified asset, if any, and the Company's control over the use of the identified asset, if applicable.

  ****

 *Lessor* 

 

Lease arrangements wherein the Company retains ownership of the underlying asset and grants a customer the right to use its asset are classified by the Company as an operating lease. Lease revenue is recognized on a straight-line basis and the associated leased assets are depreciated.

On October 14, 2025 the Company entered into an arrangement to provide digital infrastructure solutions to a customer at its Ward County facility. The arrangement includes both lease and non-lease components, certain of which are directly related to the lease components and the Company has elected to combine those related lease and non-lease components. The Company will account for the combined lease and non-lease components as Digital infrastructure leasing revenue in the Consolidated Statements of Operations. See further discussion in *Note 9 – Leases*.

 *Lessee*

The Company categorizes leases with contractual terms longer than twelve months as either operating or finance. Finance leases are generally those leases that allow the Company to substantially utilize or pay for the entire asset over its estimated life. All other leases are categorized as operating leases and related expenses are recognized on a straight-line basis over the term of the related contract within General and administrative expenses in the Consolidated Statements of Operations.

The Company records right-of-use ("ROU") assets and lease obligations for its finance and operating leases, which are initially recognized based on the present value of future minimum lease payments over the term of the lease. As the rate implicit in the Company's leases is not easily determinable, in determining the present value of the lease payments the Company uses an incremental borrowing rate based on the estimated rate of interest for collateralized borrowings over a similar term of the lease payments. Lease expenses are recognized on a straight-line basis over the lease term.

The lease term is defined as the non-cancellable period of the lease plus any options to extend or terminate the lease when it is reasonably certain that the Company will exercise the option. The Company has elected not to recognize ROU asset and lease obligations for its short-term leases, which are defined as leases with an initial term of 12 months or less. Some leases include multiple-year renewal options. The Company's decision to exercise these renewal options is based on an assessment of its current business needs and market factors at the time of the renewal.

For all classes of underlying assets, the Company has elected to separate lease and non-lease components.

 **Business Combination** 

On the Plan's Effective Date, Ionic Digital acquired from Celsius Mining substantially all of its assets, including approximately $29 million in prepaid capital investments in Ward County and approximately 540 bitcoin, as well as approximately $195 million in cash contributed by Celsius Network, LLC (together the "Acquired Assets"). The Acquired Assets meet the definition of a business under ASC 805 and were accounted for as a business combination with Ionic Digital as the accounting acquirer.

The Company accounts for business combinations under the acquisition method of accounting in accordance with ASC 805, where the total purchase price is allocated to the identified assets acquired and liabilities assumed based on their estimated fair values. The purchase price is allocated using the information currently available and may be adjusted, for up to one year from the acquisition date, after obtaining more information regarding asset valuations, liabilities assumed, and revisions to preliminary estimates, among other things. The difference between the purchase price, including any contingent consideration, and the fair value of net assets acquired is recorded as goodwill. Acquisition-related costs are recognized separately from the acquisition and are expensed as incurred.

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 **Goodwill** 

Goodwill represents the cost of a business acquisition in excess of the fair value of the net assets acquired. In accordance with ASC 350, *Goodwill and Other Intangible Assets* ("ASC 350"), the Company reviews its goodwill for impairment annually or whenever events or circumstances indicate that the carrying amount of the reporting unit exceeds its fair value and may not be recoverable. Triggering events that may indicate a potential impairment include but are not limited to significant adverse changes in bitcoin prices or business climate and related competitive considerations. The Company may first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount but also has the option to bypass the qualitative assessment in any period and proceed directly to performing the quantitative analysis. If the Company performs a qualitative test and determines it is more likely than not that the fair value of a reporting unit is less than is carrying amount, the Company performs a quantitative goodwill impairment test to compare the estimated fair value of the reporting unit to its carrying amount. Impairment is indicated if the estimated fair value of the reporting unit is less than the carrying amount of the reporting unit, and an impairment charge is recognized for the difference, not to exceed the carrying value of goodwill.

See further discussion of the goodwill impairment testing performed in *Note 11 – Goodwill*.

.

 **Income taxes** 

The Company complies with the accounting and reporting requirements of ASC 740, Income Taxes ("ASC 740"), which requires use of the asset and liability method wherein deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, as well as operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to be in effect for the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is required to the extent any deferred tax assets may not be realizable, and the Company has considered the weight of available evidence, including cumulative losses in recent years and expectations of future taxable income.

The Company also follows US GAAP in accounting for uncertainty in income taxes recognized in an enterprise's financial statements and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company's policy is to record interest and penalties associated with uncertain tax positions through income tax expense. There were no material unrecognized benefits or associated interest or penalties as of the periods provided for in these financial statements.

 **Segment reporting** 

Operating segments are defined as components of an enterprise about which separate financial information is available that is regularly reviewed by the chief operating decision maker ("CODM"). The CODM of the Company is the Chief Executive Officer. The CODM reviews financial performance for the cryptocurrency mining business as well as the digital infrastructure solutions business. Accordingly, the Company has two operating segments, and the Company discloses both segments in its consolidated financial statements.

 **Recent accounting pronouncements** 

The Company continually assesses any new accounting pronouncements to determine their applicability. When it is determined that a new accounting pronouncement affects the Company's financial reporting, the Company undertakes a study to determine the consequences of the change on its consolidated financial statements and assures that there are proper controls in place to ascertain that the Company's consolidated financial statements properly reflect the change.

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In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This pronouncement aims to improve the transparency of income tax disclosures by requiring consistent categories and deeper disaggregation of information in rate reconciliation and income tax payments. It also expands income tax disclosures for these reconciliations by mandating disclosures of specific categories and additional reconciling items that meet quantitative thresholds, as well as requiring a detailed paid tax disaggregation by certain jurisdictions. The Company adopted this ASU on a prospective basis for the year ended December 31, 2025.

In March 2024, the FASB issued ASU 2024-02, *Codification Improvements—Amendments to Remove References to the Concepts Statements*. This ASU removes references to the FASB's Concepts Statements from the Accounting Standards Codification. The amendments are effective for public business entities for fiscal years beginning after December 15, 2024. The Company adopted this standard prospectively, and the adoption did not have a significant impact on the Company's consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, *Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses*. This ASU requires public business entities to provide more detailed disclosures in the notes to their financial statements, both for interim and annual reporting periods, about certain expenses such as purchases of inventory, employee compensation, depreciation, and intangible asset amortization. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently assessing the potential impact of this standard's adoption.

In May 2025, the FASB issued ASU 2025-05*, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets*. This ASU introduces simplifications for estimating credit losses on current accounts receivable and contract assets arising from Topic 606 (Revenue from Contracts with Customers). It provides one key relief for public companies: a practical expedient allowing entities to assume that current economic conditions remain unchanged over the life of these assets. These changes aim to reduce the cost and complexity of applying the credit loss model, especially for assets acquired in business combinations or through consolidation of variable interest entities. The ASU is effective for fiscal years beginning after December 15, 2025, with early adoption permitted. The Company is currently assessing the potential impact of this standard's adoption.

 **NOTE 3. Business Combination** 

As discussed in *Note 1 – Organization*, the Company acquired substantially all the assets and assumed certain liabilities of Celsius Mining (the "Acquired Assets") at the close of business on January 31, 2024. The Acquired Assets meet the definition of a business under ASC 805, *Business Combinations*. The transaction is accounted for as a business combination by applying the acquisition method, with the Company as the accounting acquirer.

The Company issued 37 million shares of Class A common stock to eligible holders of certain claims against Celsius Network and its affiliates in exchange for the Acquired Assets. Management determined the fair value of this consideration transferred to be $740 million, or $20.00 per share of Class A common stock.

The process to estimate the fair value of the Company's common stock utilized the income approach, which requires the use of significant estimates and assumptions, including estimating future cash flows and developing appropriate discount rates. This fair value measurement is based on significant inputs that are not observable in the market and, thus, represents a fair value measurement categorized within Level 3 of the fair value hierarchy. Key assumptions include an implied rate of return of 27.7% and a residual growth rate of 4% after ten years. Use of different estimates and judgments could yield different results.

---

| | |
|:---|:---|
|  | **Fair Value** |
| 37,000,000 shares of Ionic Digital Class A common stock | $740000 |
| **Fair value of consideration transferred** | $**740000** |

---

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The purchase price allocation was as follows:

---

| | |
|:---|:---|
|  | **Allocation<br> as of <br> February 1, <br> 2024** |
| Cash | $195743 |
| Cryptocurrency assets | 23382 |
| Prepaid expenses and other current assets | 21122 |
| Construction-in-progress | 71191 |
| Property and equipment | 188568 |
| ROU assets | 544 |
| Long-term deposits and other non-current assets | 15328 |
| Goodwill | 229778 |
| Accounts payable and other accrued expenses | (375) |
| Long-term liabilities | (4963) |
| Lease liability | (253) |
| Deferred tax liability | (65) |
| &nbsp;&nbsp;&nbsp; **Total** | $**740000** |

---

The goodwill of $230 million arising from the acquisition reflects the value of the assembled workforce and the efficiencies anticipated from repositioning the acquired assets to achieve their highest and best use. All of the goodwill is expected to be deductible for tax purposes.

In addition to Business Combination, the Plan outlined certain arrangements to allow for the successful future operation of the business. In accordance with the Plan, portions of the day-to-day operations of Ionic Digital's bitcoin mining business would initially be outsourced to Hut 8 under the Mining MSA entered into on January 31, 2024. The Company also entered into a Contribution Agreement with Hut 8 wherein Hut 8 made a $6.4 million capital contribution on January 31, 2024 in exchange for shares of Class A common stock at a discounted price. Details of these arrangements are discussed further in *Note 8 – Mining Management Services Agreement*.

Acquisition-related costs incurred by the Company in connection with the acquisition were not material.

 **NOTE 4. Cryptocurrency assets** 

The Company's cryptocurrency assets consists of bitcoin. The following table presents information about cryptocurrency assets activity of the Company and its Predecessor:

---

| | | | |
|:---|:---|:---|:---|
|  | **Successor** | **Successor** | **Predecessor<br> (Debtor-in-<br> Possession)** |
|  | **Year Ended** <br> **December 31, <br> 2025** | **Eleven Months Ended** <br> **December 31, <br> 2024** | **One Month Ended** <br> **January 31, <br> 2024** |
|  Beginning balance | $223438 | $- | $16018 |
|  Cumulative effect of the adoption of ASC 350-60 | - | - | 655 |
| &nbsp;&nbsp;&nbsp; Adjusted beginning balance, at fair value | 223438 | $- | $16673 |
|  Bitcoin acquired |  | 23382 |  |
|  Addition to bitcoin from mining activities<sup>(1)</sup> | 135945 | 138406 | 15564 |
|  Consideration paid to hosting providers | (290) | (3703) | (730) |
|  Carrying value of bitcoin disposed<sup>(2)</sup> | (54358) | (6391) | (7975) |
|  Changes in fair value of bitcoin | (66788) | 71744 | (150) |
| &nbsp;&nbsp;&nbsp; **Ending Balance<sup>(3)</sup>** | $**237947** | $**223438** | $**23382** |
|  Realized gain on sale of cryptocurrency assets<sup>(4)</sup> | $47404 | $5532 | $485 |

---

(1) Net
 of mining pool operating fees, as described in *Note 2 – Basis of Presentation and Significant Accounting Policies*. The addition to bitcoin from mining activities excludes
 bitcoin receivable of $0.1 million, $0.5 million, and $0.5 million for the year ended December
 31, 2025, the eleven months ended December 31, 2024, and the one month ended January 31,
 2024, respectively. Bitcoin receivable is included in Other receivables, net on the Consolidated
 Balance Sheets.

(2) Disposal is
 defined as the sale of bitcoin or payment of certain hosting costs in bitcoin.

(3) The ending
 balance of bitcoin holdings as of December 31, 2025, December 31, 2024 and January 31, 2024
 represents the fair value.

(4) No cumulative
 realized loss was recorded as of December 31, 2025 or December 31, 2024.

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The following table represents the Company's cryptocurrency asset holdings. The cost basis of bitcoin represents the valuation at the time the Company earns bitcoin through mining activities:

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| | | |
|:---|:---|:---|
|  | **Successor** | **Successor** |
|  | **As of**<br> **December 31, <br> 2025** | **As of**<br> **December 31, <br> 2024** |
| Quantity of bitcoin held | 2719 | 2393 |
| Cost basis of bitcoin held | $232982 | $151680 |
| Fair value of bitcoin held | $237947 | $223438 |

---

 **NOTE 5. Property and equipment, net** 

Property and equipment consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **Successor** | **Successor** |
|  | **As of**<br> **December 31, <br> 2025** | **As of**<br> **December 31, <br> 2024** |
| &nbsp;&nbsp;&nbsp; Mining equipment | $79264 | $118904 |
| &nbsp;&nbsp;&nbsp; Machinery and facilities equipment | 55679 | 147478 |
| &nbsp;&nbsp;&nbsp; Computer equipment | 20 | 54 |
| &nbsp;&nbsp;&nbsp; Construction-in-progress | 2513 | 31288 |
| &nbsp;&nbsp;&nbsp; Building | 33992 | 29430 |
| &nbsp;&nbsp;&nbsp; Land | 1620 | 1620 |
| &nbsp;&nbsp;&nbsp; Land Improvement | 383 | 328 |
| **Total cost of property and equipment, net of impairment** | $**173471** | $**329102** |
| Less: Accumulated depreciation | (97315) | (42267) |
| **Property and equipment, net** | $**76156** | $**286835** |

---

Depreciation expense for property and equipment was $66.7 million, $42.4 million, and $6.2 million for the year ended December 31, 2025, for the eleven months ended December 31, 2024, and the one month ended January 31, 2024, respectively.

In October 2025, the Company executed a long-term arrangement to lease its Ward County facility for use in the high-performance computing or artificial intelligence sectors, as further discussed in *Note 9 – Leases*. The repurposing of the buildings and machinery and facilities equipment assets resulted in a partial disposal of assets. Along with the disposal and replacement of certain machinery and facilities equipment in the normal course of business, the Company recognized a loss of $2.8 million on the disposal of buildings and machinery and facilities equipment during the year ended December 31, 2025.

 ***Mining equipment***

The miners owned by the Company use ASIC chips designed around the 256-bit secure hashing algorithm (SHA-256) used by the Bitcoin blockchain, the primary cryptocurrency asset the Company seeks to mine. The Company operates various models of the AntMiner S19, S19 PRO, and S21 PRO, a series of miners manufactured by Bitmain Technologies Limited ("Bitmain"), as well as various models of M30S, a series of miners manufactured by Inchigle Technology Hongkong Limited ("MicroBT").

In July 2024, the Company purchased 663 AntMiner S21 PROs from Bitmain for $2.9 million in a non-cash transaction wherein the Company utilized an insurance claim and credit from lost and stolen miners valued at $2.9 million to finance the purchase. In December 2024, the Company made a $4.8 million down payment on refurbished S19 PRO miners, which were all placed in service during the year ended December 31, 2025.

After the termination of the EZB hosting contract in May 2025, the Company disposed of the miners previously hashing at EZB locations for total consideration of $1.1 million, recognizing a loss on the disposal of $3.6 million.

 ***Construction-in-progress***

On November 1, 2022, Celsius Mining initiated bitcoin mining at four mining sites near Midland, Texas (the "Midland Sites"). The Company recognized the fair value of construction-in-progress at the Midland Sites totaling $3.8 million in connection with the Business Combination. In 2025, Ionic disposed of the acquired construction-in-progress equipment, recognizing a loss on the disposal of $3.8 million, and began work to expand the power capacity at its Rebel facility. Construction-in-progress at the Midland sites totaled $2.3 million and $3.9 million as of December 31, 2025 and 2024, respectively.

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The Company acquired the fair value of construction-in-progress at the Ward County facility totaling $67.4 million in connection with the Business Combination. During the eleven months ended December 31, 2024, the Company incurred costs of $66.2 million related to site development. During that same period, the Company placed into service $106.1 million of property and equipment as a result of the commencement of operations for the warehouse, containers, and three buildings at the Ward County facility. Construction-in-progress at Ward County was $27.2 million as of December 31, 2024.

In January 2025, the final building at Ward County was energized and placed into service. Construction continued throughout the fiscal year at the site including building finishes and site improvements. Ionic Digital placed $31.9 million of property and equipment into service during the period. Following the decision to decommission mining operations at this location, the Company wrote off $2.1 million in construction-in-progress, which is recognized as Impairment of long-lived assets in the Consolidated Statements of Operations. As of December 31, 2025, the remaining construction-in-progress balance for Ward County was $0.2 million.

 ***Impairment of long-lived mining assets***

As discussed in *Note 2 – Basis of Presentation and Significant Accounting Policies*, the carrying value of long-lived assets, inclusive of right-of-use assets, is reviewed by the Company whenever events or changes in circumstances indicate that a potential impairment has occurred. When a potential impairment has occurred, an impairment write-down is recorded if the carrying value of the asset exceeds its fair value.

Adverse changes in the economics of mining cryptocurrency assets during the fourth quarter of 2025 indicated the potential for impairment of the carrying value of the Company's long-lived assets held and used in its mining operations. Management considered a number of factors in determining fair value, including market data regarding the value of our ASIC miners, a limited ability to repurpose the buildings and machinery and facilities equipment at the Midland sites for any use beyond hosting air-cooled ASIC miners, the expected return on investment to replace our mining fleet, the possibility the sites would be repurposed for use as digital infrastructure sites, and our experience in repurposing the Ward County facility

We determined that the estimated fair value of assets used in mining activities was lower than its net carrying amount. As a result, we recognized impairment losses totaling $150.3 million for the year ended December 31, 2025, as detailed in the chart below.

---

| | |
|:---|:---|
| | **Successor** |
| <br>**Asset Type** | **Allocated<br> Impairment**<br> **for the <br> Year Ended**<br> **December 31, <br> 2025** |
| Machinery and facilities equipment | $111341 |
| Computer equipment | 12 |
| Building | 6782 |
| Mining equipment | 30135 |
| Construction-in-progress | 2055 |
| &nbsp;&nbsp;&nbsp; **Total impairment of long-lived assets** | $**150325** |

---

There was no impairment of long-lived assets recorded for the eleven months ended December 31, 2024.

Subsequent to December 31, 2025, the Company determined it will not have the capacity at its self-mining sites to operate a majority of the miners it previously operated at its Ward County facility and hosted by GXD. The Company reviewed its population of mining equipment in total to determine which units would be decommissioned and disposed. In addition, the conversion of the Ward County facility to accommodate the leasing arrangement necessitated the disposal of certain building materials and machinery and facilities equipment at that location. As of February 19, 2026, the Company approved a formal plan of disposal and is pursuing liquidation of various property and equipment that is not expected to be placed back into service at the remaining self-mining Midland sites.

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**NOTE 6. OTHER RECEIVABLES**

The Company contracts with data center operators for hosting its mining equipment and for operational support. These arrangements require advance payments to the operators pursuant to the contractual obligations associated with these services. At the time the contract has terminated, any remaining balances are due to the Company, and such amounts are recorded as Other receivables, either current or non-current, in the Consolidated Balance Sheets, depending upon the term of the contract over which the deposits are expected to be recovered.

Other receivables, current and non-current, consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **Successor** | **Successor** |
|  | **As of**<br> **December 31, <br> 2025** | **As of**<br> **December 31, <br> 2024** |
| **Current assets:** | | |
| &nbsp;&nbsp;&nbsp; Receivable from former hosting partners | $15328 | $2933 |
| &nbsp;&nbsp;&nbsp; Other receivables | 245 | 641 |
| &nbsp;&nbsp;&nbsp; Less: Allowance for credit losses | (5113) | (725) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total Other receivables, current** | $**10460** | $**2849** |
| **Non-current assets:** |  |  |
| &nbsp;&nbsp;&nbsp; Receivable from former hosting partners | 3696 | 15329 |
| &nbsp;&nbsp;&nbsp; Less: Allowance for credit losses | (3326) | (1720) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total Other receivables, non-current** | $**370** | **13609** |

---

Based on the management's assessment of the age of the amounts receivable and the financial viability of the debtor, the Company recorded a provision for credit losses related to its short- and long-term receivables totaling $6.0 million and $2.4 million, during the year ended December 31, 2025, and eleven months ended December 31, 2024, respectively. There was no allowance for credit losses recognized during the one month ended January 31, 2024.

The following table presents the activity in the Company's allowance for credit losses for the year ended December 31, 2025, the eleven months ended December 31, 2024, and the one month ended January 31, 2024:

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| | | | |
|:---|:---|:---|:---|
|  | **Successor** | **Successor** | **Predecessor<br> (Debtor-in<br> - Possession)** |
|  | **Year Ended**<br> **December 31, <br> 2025** | **Eleven Months Ended**<br> **December 31, <br> 2024** | **One Month<br> Ended**<br> **January 31, <br> 2024** |
| Beginning balance | $2445 | $- | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp; Provision for credit losses | 5994 | 2445 |  |
| &nbsp;&nbsp;&nbsp; Write-offs |  |  |  |
| &nbsp;&nbsp;&nbsp; Recoveries | - | - | - |
| &nbsp;&nbsp;&nbsp; Ending balance | $8439 | $2445 | $- |

---

 **NOTE 7. Investments & Derivatives** 

 **Mothership Incubator Texas Rep Power Agreement** 

On October 31, 2022, Celsius Mining and Mothership Incubator Texas REP 2, LLC ("MI Texas") entered into a power purchase agreement (the "MI Texas Agreement") for four Celsius Mining sites near Midland, Texas (the "Midland Sites"). Under the MI Texas Agreement, MI Texas was required to deliver to Celsius Mining a fixed amount of power at a fixed price. The term of the MI Texas Agreement was six months, subject to certain early termination exemptions. Commencing November 1, 2022, MI Texas initiated the sale of the scheduled energy in the ERCOT market under the MI Texas Agreement and agreed upon a ramp-up schedule between MI Texas and Celsius Mining. On May 22, 2023, Celsius Mining and MI Texas entered into a new power purchase agreement on the same basis for an additional six months. A portion of this new power purchase agreement commenced on July 24, 2023, and has since expired. The final portion of the agreement commenced on January 1, 2024. In connection with the Business Combination, the MI Texas Agreement was assumed by the Company per the terms of the Plan. The Company did not extend the power purchase agreement, which expired in May 2024.

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Due to ERCOT's allowance for net settlement, management determined that the MI Texas Agreement met the definition of a derivative under ASC Topic 815, *Derivative and Hedging* ("ASC 815"). Because the Company had the ability to sell its electricity into the ERCOT market rather than take physical delivery, the Company determined the scope exception for normal purchases and sales was not applicable to the MI Texas Agreement. As a result, the MI Texas Agreement was recorded at an estimated fair value as of each reporting period in the balance sheet and any change in fair value was recorded in Costs of mining revenues, exclusive of depreciation in the Consolidated Statements of Operations.

Depending on the current spot market price of electricity, the Company had the opportunity to sell electricity in the ERCOT market in exchange for cash payments instead of utilizing the power for its bitcoin mining at the Midland Sites during peak periods to efficiently manage the operating costs of the Company. In instances where the present spot market price descended below the predetermined price, an unrealized loss was recognized. Conversely, a corresponding unrealized gain was recognized when the present spot market price exceeded the predetermined price.

Celsius Mining initiated bitcoin mining at the Midland Sites on November 1, 2022, and after that date, the costs covered under the MI Texas Agreement are recorded in Cost of mining revenue, exclusive of depreciation in the Consolidated Statements of Operations. For the one month ended January 31, 2024, an unrealized loss of $0.2 million was recognized in the Consolidated Statement of Operations. Refer to *Note 2 – Basis of Presentation and Significant Accounting Policies* for further information.

 **NOTE 8. Mining Management Services Agreement** 

In connection with the Business Combination on January 31, 2024, the Company entered into the Mining MSA, which specified that Hut 8 would manage and oversee certain aspects of the bitcoin mining business, namely supervision of the construction at the Ward County facility. Under the Mining MSA, Hut 8 would complete and deliver certain related projects, upon the Company's approval of the required funding, including building and energizing the Ward County bitcoin mining facility within 12 months of the Plan Effective Date at a capped construction cost of $0.4 million per MW. The capped construction cost would also apply to up to 300 MW of additional developments from medium voltage to plug ready infrastructure for a period of 24 months from the Plan Effective Date to the end of the term of the Mining MSA, subject to certain specified cost adjustments, for a total of up to 400 MW across the specifically identified facilities.

Pursuant to the agreement, Hut 8 was compensated for its services through an annual fixed fee of approximately $20 million, paid quarterly, and the granting of restricted stock options and stock warrants. The agreement included provisions under which the Company would pay agreed upon pass-through expenses and reimburse Hut 8 for other documented costs incurred as part of the agreement.

On June 19, 2024, Ionic Digital amended and restated the Mining MSA. Under the restated agreement, the fixed fee cash compensation was reduced to $15 million annually (or $3.8 million quarterly). The termination provisions were also updated, allowing the Company to terminate the Mining MSA at will with a 30-day notice period. The Company terminated the Mining MSA on December 10, 2024.

For additional information on accounting treatment for Mining MSA, refer to *Note 2 – Basis of Presentation and Summary of Significant Accounting Policies.*

 **Restricted Stock Units** 

The Mining MSA provided that, over a term of five years, Ionic Digital would issue 0.7 million shares of Class A common stock to Hut 8 (the "RSPA Shares") as partial consideration for entering the Mining MSA on the Plan Effective Date. The RSPA Shares would vest in equal proportions on the anniversary of the effective date of the Mining MSA in accordance with the vesting schedule set forth in the Restricted Stock Agreement (i.e., 20% per year over the duration of the Mining MSA). All unvested RSPA Shares will be cancelled immediately if the Mining MSA is terminated by mutual agreement, by the Company for cause, or if the Mining MSA is not extended beyond its initial four-year term; all unvested RSPA Shares will vest immediately if the Mining MSA is terminated for reasons other than the specified conditions. Since the Mining MSA was terminated effective December 10, 2024, prior to the first anniversary date, the unvested RSPA Shares were subsequently cancelled.

The following summarizes the activity for the RSPA Shares for the eleven months ended December 31, 2024:

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| | | | |
|:---|:---|:---|:---|
|  | **Number of <br> Shares** | **Weighted<br> Average<br> Fair Value <br> per Share** | **Aggregate<br> Intrinsic<br> Value<br> (in $ thousands)** |
| Beginning balance, unvested |  | $- | $- |
| Granted | 670801 | 19.80 | 13282 |
| Vested |  |  |  |
| Cancelled | (670801) | 19.80 | (13282) |
| Forfeited | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp; Ending balance, unvested | - | $- | $- |

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 **Stock Warrants** 

In connection with the Mining MSA, the Company entered into five separate tranches of warrant agreements with Hut 8 (the "Warrant Agreements"). The Warrant Agreements entitled Hut 8 to purchase from the Company a number of shares of Class A common stock equal to (a) 0.31881% of the number of shares of Class A common stock outstanding *minus* (b) the aggregate number of shares of Class A common stock previously issued as a result of any partial exercise of the warrant at the exercise price for each warrant determined on its annual vesting date and subject to the terms, conditions, and adjustments set forth in the Warrant Agreements.

The Warrant Agreements had exercise periods commencing on the first, second, third, and fourth anniversary of the Plan Effective Date, and, if the Mining MSA was extended beyond its initial four-year term, the fifth anniversary of the Plan Effective Date. All unvested warrants would be cancelled immediately if the Mining MSA is terminated according to certain of its conditions or not extended beyond its initial four-year term; all unvested warrants would vest immediately if the Mining MSA is terminated other than according to certain of its conditions. Under the terms of the Warrant Agreements, Hut 8 agreed to vote all shares of Class A common stock issued upon the exercise of the warrants in accordance with the recommendations of our Board at any meeting of stockholders and in connection with any written consent of stockholders for so long as the Mining MSA was in effect.

On December 10, 2024, prior to the vesting of any stock warrants held by Hut 8, the Company terminated the Mining MSA, resulting in the cancellation of the unvested warrants.

 **Capital Contribution** 

In connection with the Business Combination, the Company also entered into a contribution agreement (the "Contribution Agreement") with Hut 8. The Contribution Agreement provided that Hut 8 would purchase from the Company, for an aggregate purchase price of $6.4 million (the "Initial Plan Sponsor Investment"), the number of shares of Ionic Digital Class A common stock (the "Initial Plan Sponsor Shares") equal to the product of: (a) (i) the sum of all outstanding shares of Ionic Digital Class A common stock issued or anticipated to be issued at the Plan Effective Date plus (ii) the number of shares of Ionic Digital Class A common stock reserved for issuance in accordance with the Plan or subject to holdbacks as of the Plan Effective Date plus (iii) the number of shares of Ionic Digital Class A common stock reserved for issuance in accordance with any equity incentive plan approved or contemplated under the Plan or approved by the Board of Directors of the Company at the Plan Effective Date and (b) a fraction, the numerator of which was the Initial Plan Sponsor Investment and the denominator of which was the Company Net Asset Value (as defined in the Contribution Agreement).

Under the Contribution Agreement, if the Mining MSA was not terminated by the Company pursuant to Section 1(b)(ii) thereof on or before May 1, 2024 ("Subsequent Closing Date"), then Hut 8 would purchase from the Company, for an aggregate purchase price of $6.4 million, an additional number of shares of Common Stock equal to the product of: the number of the Effective Date Shares (as adjusted to take into account any stock split, reverse stock split or share consolidation, stock dividend or similar event effected by the Company with respect to the Common Stock) multiplied by a fraction, the numerator of which was $6.4 million, and the denominator of which was the Company's net asset value.

On June 19, 2024, the Contribution Agreement was amended to adjust the Subsequent Closing Date of the second Hut 8 capital contribution of $6.4 million to be the first Business Day after the common stock had been listed on a "national securities exchange" within the meaning of the Securities Exchange Act of 1934.

If the Mining MSA was extended beyond its initial term, then Hut 8 agreed to purchase additional shares of Ionic Digital Class A common stock at a price determined utilizing the Company Net Asset Value for an aggregate purchase price of approximately $3.2 million for year five, subject to a maximum purchase price of $15.9 million in the aggregate (inclusive of the Initial Plan Sponsor Investment, subsequent investments pursuant to the Contribution Agreement, and any additional stock purchases made pursuant to an extension of the Mining MSA). The Initial Plan Sponsor Shares plus any additional shares purchased after the Initial Plan Sponsor Investment were referred to collectively as the "Plan Sponsor Shares."

Pursuant to the Contribution Agreement, on January 31, 2024 Hut 8 made an initial investment in the Company of $6.4 million cash in exchange for 374,261 shares of Ionic Digital Class A common stock. As these shares were issued at a price discounted from the $20.00 per share fair value of Ionic Digital's Class A common shares (see further discussion at *Note 3 – Business Combination*), the Company recognized stock compensation expense in the amount of the discount of $1.1 million on the date of issuance, which is included within General and administrative expenses on the Consolidated Statement of Operations during the eleven months ended December 31, 2024.

The Company terminated the Contribution Agreement prior to listing its common shares on a national exchange. As such, no additional capital contributions have been made.

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**NOTE 9. Leases**

 *Lessor Arrangements: Digital Infrastructure Leasing Revenue*

 

On October 14, 2025, the Company entered into a leasing arrangement to provide digital infrastructure solutions to a single tenant at its Ward County facility which is accounted for under ASC 842. The lease commencement date is December 19, 2025, and the lease term extends through January 2037. The lessee has one ten-year option to renew, as well as a right of first refusal on any additional power capacity that comes available at our Ward County site.

The Company is the lessor in this arrangement and identifies the right of the customer to use the land, land improvements, buildings, and equipment as a lease component of the contract. In addition, the Company has a stand-ready obligation to provide maintenance services to ensure the energy step-down transformation assets are operating reliably, which has been identified as a non-lease component of the arrangement. The Company determined that the lease component represents an operating lease, and the timing of Ionic's transfer of the aforementioned lease and non-lease components of the contract are the same. As such, and in accordance with ASC 842, the Company has elected the practical expedient to combine the accounting of the lease and non-lease components of the contract, with the predominant component of the arrangement being the lease component. Thus, the Company accounts for its lease of the Ward County property in accordance with ASC 842. The lease is classified as an operating lease, and leasing revenue is recognized on a straight-line basis over the lease term. Fixed lease payments are allocated to the combined lease components under the arrangement and total $1,949 million. Other variable operating costs are paid for by the Company but consumed by the lessee and will be recognized as incurred. There were no material variable lease payments received during the year ended December 31, 2025.

Utility services to be provided under the arrangement represent a separate non-lease component that will not be combined with the lease component for accounting purposes and instead will be accounted for in accordance with ASC 606. Reimbursements for taxes and insurance are considered non-components of the lease and are accounted for separately.

Initial direct costs of $7.5 million are deferred and recognized over the lease term in accordance with ASC 842. Amortization of initial direct costs is presented in Cost of digital infrastructure solutions revenue, exclusive of depreciation in the Consolidated Statements of Operations.

The following table summarizes the classes of the Company's underlying leased assets as of December 31, 2025, which are included in Property and equipment, net on the Consolidated Balance Sheets:

---

| | |
|:---|:---|
|  | **As of<br> December 31,<br> 2025** |
| &nbsp;&nbsp;&nbsp; Machinery and facilities equipment | $26414 |
| &nbsp;&nbsp;&nbsp; Land | 1020 |
| &nbsp;&nbsp;&nbsp; Building | 32933 |
| &nbsp;&nbsp;&nbsp; Land Improvement | 383 |
| Total cost of underlying leased assets | $60750 |
| &nbsp;&nbsp;&nbsp; Less: accumulated depreciation | (7877) |
| &nbsp;&nbsp;&nbsp; **Underlying leased assets, net** | $52873 |

---

Depreciation expense recognized on the underlying leased assets during the year ended December 31, 2025, subsequent to the lease commencement date, was immaterial.

The amounts presented below represent fixed lease payments to be received by the Company under the lease agreement as of December 31, 2025 and excludes variable lease payments, which are recognized as revenue in the period in which they occur.

---

| | |
|:---|:---|
|  | **Successor** |
|  | **Operating<br> Leases** |
| 2026 | $29250 |
| 2027 | 135233 |
| 2028 | 178718 |
| 2029 | 182520 |
| 2030 | 182520 |
| Thereafter | 1195824 |
| &nbsp;&nbsp;&nbsp; **Total future minimum receipts on lessor arrangement** | $**1904065** |

---

 *Lessee Arrangements*

Ionic Digital's lease arrangements primarily consist of operating leases for land for the purpose of running data center facilities used for cryptocurrency mining. Certain leases include options to renew for periods ranging from one month to ten years, which are included in the measurement of the right-of-use asset and lease liability when the Company determines it is reasonably certain that the renewal option will be exercised. Operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term determinable at the lease commencement date. Variable lease payments include amounts paid by the Company for the right to use an asset that vary because of changes in facts and circumstances occurring after the commencement date, such as energy consumption or revenue generation. Variable lease payments not based on an index or rate, such as those based on usage or performance, are excluded from the measurement of the right-of-use asset and lease liability and are recognized as lease expense in the period incurred. The Company has no finance leasing arrangements.

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The Company leases the land at two of our Midland sites and has identified a lease arrangement embedded within its hosting agreement with EZB, which expired in June 2025. The following table presents the Company's right-of-use assets, which are included within Deposits and other non-current assets in the Consolidated Balance Sheets, and lease liabilities, which are included in Accrued expenses and other current liabilities and Non-current portion of lease liability:

---

| | | |
|:---|:---|:---|
|  | **Successor** | **Successor** |
|  | **As of<br> December 31,<br> 2025** | **As of<br> December 31,<br> 2024** |
| Operating lease right-of-use assets | $429 | $489 |
| Operating lease liabilities, current | $38 | $37 |
| Operating lease liabilities, non-current | 170 | 194 |
| &nbsp;&nbsp;&nbsp; Total lease liabilities | $208 | $231 |

---

Two of the Company's lease agreements are based entirely on variable payments. The lease expense disclosed herein related to the mining facility in Georgia represents an amount allocated between the lease and non-lease components of the Company's hosting agreement with EZB. In addition, the Company has several short-term equipment rental agreements for which it elects the practical expedient not to record the right-of-use asset and lease liability on the balance sheet.

The components of total lease cost recorded in the Consolidated Statements of Operations are as follows:

---

| | | |
|:---|:---|:---|
|  | **Successor** | **Successor** |
|  | **Year End <br> December 31, <br> 2025** | **Eleven Months Ended <br> December 31, <br> 2024** |
| Fixed lease cost | $38 | $37 |
| Variable lease cost | 68 | 185 |
| &nbsp;&nbsp;&nbsp; Operating lease expense | 106 | 222 |
| Short-term lease expense | 541 | 272 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating lease expense | $647 | $494 |

---

Additional supplemental operating lease information is as follows:

---

| | | |
|:---|:---|:---|
|  | **Successor** | **Successor** |
|  | **Year End<br> December 31, <br> 2025** | **Eleven Months Ended <br> December 31, <br> 2024** |
| Cash paid for amounts included in operating lease liabilities | $38 | $37 |
| Weighted average remaining lease term (years) | 6.33 | 7.33 |
| Weighted-average discount rate <sup>(1)</sup> | 7% | 7% |

---

<sup>(1)</sup> *As the rate implicit in the leases was not readily determinable, the incremental borrowing rate at the lease commencement was used to determine the present value of minimum lease payments.*

As of December 31, 2025, maturities of Ionic Digital's operating lease liability, which do not include variable lease payments, are as follows:

---

| | |
|:---|:---|
|  | **Successor** |
|  | **Operating<br> Leases** |
| 2026 | $38 |
| 2027 | 41 |
| 2028 | 42 |
| 2029 | 43 |
| 2030 | 44 |
| Thereafter | 46 |
| &nbsp;&nbsp;&nbsp; Total undiscounted future lease payments | 254 |
| Less: present value discount | (46) |
| &nbsp;&nbsp;&nbsp; Present value of operating lease liabilities | $208 |

---

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**NOTE 10. Accrued ExpenseS AND OTHER CURRENT LIABILITIES**

Accrued expenses and other current liabilities represent management's best estimates of liabilities incurred that are expected to be settled in the normal course of business within twelve months. Actual amounts paid may differ from estimated accruals due to timing of invoice receipt, final contractual terms, or changes in service usage. Differences between accrued amounts and actual payments are recognized in the period in which such information becomes available.

Accrued expenses and other current liabilities consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **Successor** | **Successor** |
|  | **As of <br> December 31, <br> 2025** | **As of <br> December 31, <br> 2024** |
| Accrued professional fees | $1174 | $612 |
| Accrued capital expenditures | 827 | 3023 |
| &nbsp;&nbsp;&nbsp; Taxes payable | 662 | 1148 |
| Payable to former hosting partner | 5115 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued costs to decommission self-mining site | 3384 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Initial direct leasing costs payable | 5000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other accrued expenses | 2997 | 5351 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total accrued expenses and other current liabilities** | $**19159** | $**10134** |

---

 **NOTE 11. Goodwill** 

Goodwill represents the cost of a business acquisition in excess of the fair value of the net assets acquired. The Company reviews its goodwill for impairment annually or whenever events or circumstances indicate that the carrying amount of the asset exceeds its fair value and may not be recoverable.

 ***Allocation of Goodwill to Reporting Units***

During the fourth quarter of 2025, the Company began providing digital infrastructure solutions to third parties. As disclosed in *Note 19 – Operating Segments*, changes in the Company's business during the year ended December 31, 2025 resulted in the identification of two reportable operating segments, each representing one reporting unit for the purpose of evaluating goodwill. As such, as of October 14, 2025, an assessment was performed to allocate the carrying value of goodwill to the two reporting units using a relative fair value allocation approach in accordance with *ASC 350, Intangibles – Goodwill and Other* ("ASC 350").

 **Goodwill Impairment Analyses** 

As of the year ended December 31, 2025 and at various points during the eleven months ended December 31, 2024, circumstances repeatedly arose that the Company viewed as adverse market trends in the bitcoin mining industry, including the halving event in April 2024 as well as declines in the price of bitcoin, increases in the difficulty of mining bitcoin, or a combination of the two, that the Company had not anticipated in its forecasts. Management determined that certain of these market conditions were triggering events requiring the Company to perform quantitative goodwill impairment analyses in accordance with *ASC 350.*

When quantitatively analyzing goodwill for impairment, management estimated the fair value of the reporting unit(s) compared to the carrying value of the reporting unit(s), a process which incorporated a combination of the income and market valuation approaches. The income approach is a valuation technique under which the Company estimates discounted future cash flows using the financial forecast from the perspective of an unrelated market participant. In estimating future cash flows of the reporting units several assumptions were used, including projected bitcoin prices and global hashrate, capital expenditures, operating results, growth rates, regulatory and economic conditions, and the discount rate. The discount rate used for the reporting unit(s) was the value-weighted average of the reporting unit's estimated cost of capital, derived using both known and estimated customary market metrics. The market valuation approach, or the comparable company approach, uses valuation multiples of similar companies to estimate the fair value of the reporting units.

In April 2024, a bitcoin halving event took place, which has historically occurred approximately every four years and reduces the block reward for bitcoin miners by 50%. After the halving event in April 2024, the global network hashprice declined below the levels anticipated in the Company's forecasts, which negatively impacts future operating profit. These circumstances were identified as a triggering event which resulted in the Company performing a quantitative assessment for goodwill impairment as of June 30, 2024. As adverse market conditions continued through the third quarter of 2024, the Company performed a second quantitative assessment of its goodwill as of September 30, 2024. Based on the results of these quantitative assessments, management concluded that the fair value of the Company's single Cryptocurrency Mining reporting unit exceeded its carrying value. In addition to the quantitative impairment analyses performed, the Company also performed its annual goodwill impairment assessment on October 1, 2024 and determined that it was not more likely than not that goodwill was impaired. Accordingly, no goodwill impairment was recognized during the eleven months ended December 31, 2024.

During the year ended December 31, 2025, the Company performed its annual impairment testing as of October 1, 2025, at which time a qualitative analysis was completed. As a result of the qualitative test, the Company determined that it was not more likely than not that goodwill was impaired. Accordingly, no goodwill impairment was recognized at that time.

During the fourth quarter of 2025, management noted the rapid decline in the price of bitcoin coupled with sustained competition among bitcoin miners despite the reduced rewards and determined that these market conditions would significantly impact the Company's bitcoin mining operations in the immediate future. In addition, the Company began the shift to diversify its revenue streams and commenced the repurposing of its Ward County assets to provide digital infrastructure solutions to third parties. These events triggered an evaluation of the Company's goodwill and long-lived assets as of December 31, 2025, and management determined that a quantitative goodwill impairment analysis was appropriate to compare the carrying value of the reporting units, including goodwill, to the reporting units' estimated fair value.

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The Company used a combination of the income approach and the market approach to test the fair value of its reporting units. Under the income approach, the valuation model applied management's cash flow projections as of December 31, 2025 using reporting unit-specific assumptions. The discount rate used for Cryptocurrency Mining and Digital Infrastructure Solutions reporting units were 21.5% and 20.0%, respectively.

Under the market approach, valuation multiples were derived from publicly traded comparable companies in the digital assets and digital infrastructure solutions sectors selected based on relative growth, profitability, and risk profiles. The market approach was not applied to the Mining reporting unit because management's projections indicate the business has a finite life, rendering the application of market multiples to historical or forward-looking data ineffective.

As a result of the quantitative impairment test performed as of December 31, 2025, the Company concluded that the goodwill assigned to its Cryptocurrency Mining reporting unit was fully impaired, and the Company recognized an impairment loss of $68.2 million. The fair value of the Digital Infrastructure Solutions reporting unit exceeded its carrying value as of December 31, 2025; therefore, no goodwill impairment was recognized for that reporting unit.

The following table shows the Company's activity in goodwill, by reporting unit:

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| | | | |
|:---|:---|:---|:---|
|  | **Successor** | **Successor** | **Successor** |
|  | **Cryptocurrency <br> Mining** | **Digital <br> Infrastructure <br> Solutions** | **Total** |
| **Beginning balance, February 1, 2024** | $**229778** | $**-** | $**229778** |
| &nbsp;&nbsp;&nbsp; Acquisitions |  |  |  |
| &nbsp;&nbsp;&nbsp; Impairment | - | - | - |
| **Balance as of December 31, 2024** | $**229778** | $**-** | $**229778** |
| &nbsp;&nbsp;&nbsp; Allocation to new reporting unit | (161608) | 161608 |  |
| &nbsp;&nbsp;&nbsp; Acquisitions |  |  |  |
| &nbsp;&nbsp;&nbsp; Impairment | (68170) | - | (68170) |
| **Balance as of December 31, 2025** | $**-** | $**161608** | $**161608** |

---

 **NOTE 12. Related Party Transactions** 

During the year ended December 31, 2025, the Company did not identify any transactions, arrangements, or relationships with related parties that require disclosure. Furthermore, there were no outstanding balances due to or from related parties as of the balance sheet date.

 **Hut 8** 

In January 2024, the Company entered the Mining MSA with Hut 8. Hut 8's role was to manage and oversee certain aspects of the bitcoin mining operations and the construction of Ward County. In December 2024, Ionic Digital terminated the Mining MSA; as such, there were no costs incurred with Hut 8 during the year ended December 31, 2025. During the eleven months ended December 31, 2024, Ionic Digital paid Hut 8 approximately $36 million, the nature of which is summarized as follows:

---

| | |
|:---|:---|
|  | **Successor** |
|  | **Eleven<br> Months Ended<br> December 31, <br> 2024** |
| Costs of mining revenues, exclusive of depreciation: |  |
| &nbsp;&nbsp;&nbsp; Labor expenses | $13327 |
| &nbsp;&nbsp;&nbsp; Hosting services | 10369 |
| Property and equipment, net: |  |
| &nbsp;&nbsp;&nbsp; Capital expenditures | 5896 |
| &nbsp;&nbsp;&nbsp; Construction management | 6411 |
| &nbsp;&nbsp;&nbsp; **Total Hut 8 related party costs** | $**36003** |

---

As disclosed in *Note 8 – Mining Management Services Agreement*, Hut 8 made a cash contribution to the Company on January 31, 2024 in the amount of $6.4 million in exchange for 374,261 shares of Class A common stock. Since the shares were issued to Hut 8 at a price discounted from the determined fair value of Ionic Digital's Class A common stock, the Company recognized stock compensation expense totaling $1.1 million during the eleven months ended December 31, 2024.

The Plan approved by the Bankruptcy Court also granted Hut 8 one share of Class B common stock, the holder of which had the authority to appoint two of the eight directors to the Company's Board of Directors as of the date of the Business Combination. This share was redeemed by the Company for $1 and cancelled in 2024.

**NOTE 13. Stockholders' Equity**

 ***Successor Equity***

Following the consummation of the Plan, the Company authorized the issuance of three classes of stock – Preferred stock, Class A common stock and Class B common stock.

 **Preferred stock ("Preferred shares")** — 15 million preferred shares at $0.00001 par value per share are authorized and no shares are issued and outstanding. These shares represent the preferred class of equity and entitle the holders to the return of their capital contributions before amounts are distributed with respect to any other shares.

 **Class A common stock ("Class A common shares")** — One billion (1,000,000,000) Class A common shares at $0.00001 par value per share are authorized. These shares represent common equity in that they provide rights to distributions junior to the Preferred shares. These shares reflect an equity interest in the Company and, as of December 31, 2024, approximately 37 million were issued to the creditors of the Ultimate Parent and its subsidiaries and affiliates pursuant to the Plan and to a related party.

 **Class B common stock ("Class B common share")** — One Class B share at $1.00 par value per share was authorized. This share represents common equity in that it does not provide the holder with a right to receive any distributions. This share was to be issued and held only by Hut 8 or its affiliates, entitles the holder to elect two directors to the Company's Board of Directors, and is redeemable at $1.00 per share immediately upon termination of the Mining MSA, which occurred in December 2024. Thus, the Class B share is now retired and cannot be reissued.

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On January 31, 2024, the Company adopted the Ionic Digital Inc. Omnibus Incentive Plan (the "Omnibus Plan"), pursuant to which it may grant equity and equity-based incentive awards (including non-statutory and incentive stock options, stock appreciation rights, restricted stocks, restricted stock units, performance awards, other stock-based awards and cash awards) to eligible employees, consultants, individual contractors and other service providers. As of December 31, 2025, the Company has reserved approximately 4.8 million shares (subject to an evergreen) under the Omnibus Plan*.*

In addition to the Class A common shares issued in the transaction (see *Note 3 – Business Combination*) and in exchange for Hut 8's capital contribution (see *Note 12 – Related Parties*), on January 31, 2024 the Company reserved 0.7 million shares of Class A common stock for Hut 8 in partial consideration for management services through the Mining MSA. The Company also entered five separate (but substantively identical) warrant agreements with Hut 8 as part of the Mining MSA.

On December 10, 2024, the Company terminated the Mining MSA, at which time the RSU Shares were forfeited, the Warrant Agreements terminated, and the Class B common stock became redeemable. All rights of the Class B shareholder ceased when the Company effected redemption of the Class B common stock in December 2024.

 ***Predecessor Equity***

The Company was founded to effectuate the successful acquisition of certain assets of Celsius Mining, pursuant to the Plan. The Ultimate Parent owned all the issued and outstanding shares of Celsius UK, which in turn owned all the issued and outstanding interests of Celsius US Holding, which in turn owned all the issued and outstanding member interests in Celsius Network LLC.

Prior to consummation of the Plan, Celsius US Holding also owned all the issued and outstanding member interests in Celsius Mining. In accordance with the Plan and upon consummation of the Business Combination on January 31, 2024, the Predecessor's net amount due to and from related parties was cancelled and discharged in full as per the terms of the Plan. In accordance with ASC 470-50, the forgiveness of the $188.6 million balance was accounted for by Celsius Mining as a capital transaction. Accordingly, Celsius Mining recorded an increase to Members' Equity in its Consolidated Statement of Changes in Equity (Deficit) during the one month ended January 31, 2024.

 **NOTE 14. Share-Based Compensation** 

On January 31, 2024, the Company adopted the Ionic Digital Inc. Omnibus Incentive Plan (the "Omnibus Plan"), pursuant to which it may grant equity and equity-based incentive awards (including non-statutory and incentive stock options, stock appreciation rights, restricted stocks, restricted stock units, performance awards, other stock-based awards and cash awards) to eligible employees, consultants, individual contractors and other service providers. The number of shares of Common Stock available under the plan was initially limited to 4,317,960 shares. The share limit will automatically increase by 4% of the Company's outstanding shares on January 1 of each calendar year beginning in 2025, unless a smaller number of shares is determined by the Board of Directors. As of December 31, 2025, the Company has approximately 4,841,180 shares reserved (subject to an evergreen) under the Omnibus Plan*.*

The Company has entered into a number of share-based compensation arrangements, the details of which are described below.

 ***Restricted Stock Units***

In October 2025, the Company granted 224,250 share-based awards in the form of restricted stock units ("RSUs") under the Omnibus Plan to members of its Board of Directors, which vest ratably over three years starting on the date of the annual meeting of stockholders held in the year following grant. In November 2025, the Company granted 186,875 share-based awards in the form of RSUs under the Omnibus Plan to its Chief Executive Officer, which vest over a five-year period in equal installments, with one-fifth vesting on each of the first five anniversaries of the grant. These awards are classified as equity awards and are measured at fair value on the grant date. Compensation cost related to the RSUs is recognized on a straight-line basis over the applicable service periods and is recorded within general and administrative expenses, with a corresponding increase to additional paid in capital.

As of January 31, 2024, the Company also issued RSUs to Hut 8 as part of the Mining MSA in exchange for mining management services. The RSUs were classified as equity awards under ASC 718 and were measured at fair value as of the grant date. These awards were issued to non-employees, and the services provided by Hut 8 and its affiliates in exchange for these awards were performed at a uniform rate. As such, compensation cost was recognized on a straight-line basis over the five-year service period to reflect the manner in which the services were performed. Recognition of compensation cost was subject to certain termination clauses which were assessed if and when costs would be deemed probable to occur. Refer to *Note 8 – Mining Management Service Agreement* for more details.

Upon termination of the Mining MSA on December 10, 2024, no shares issued for the RSUs were vested. As such, no compensation costs were recognized for the year ended December 31, 2025 or for the eleven months ended December 31, 2024.

The following table summarizes the Company's RSU activity for the year ended December 31, 2025:

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| | | |
|:---|:---|:---|
|  | **Number of <br> Shares** | **Weighted-<br> Average <br> Grant Date <br> Fair Value** |
|  **Unvested as of December 31, 2024** | **-** | $**-** |
| &nbsp;&nbsp;&nbsp; Granted | 411125 | $35.34 |
| &nbsp;&nbsp;&nbsp; Vested |  | $- |
| &nbsp;&nbsp;&nbsp; Forfeited | - | $- |
|  **Unvested as of December 31, 2025** | **411125** | $**35.34** |

---

The fair value of RSUs was determined using the fair value of the Company's common stock on the grant date, a weighted average market value per common share of $47.98. The market value per common share was adjusted using a discount for lack of marketability calculated using a weighted average expected term of 2.5 years, a weighted average expected volatility of 98.4%, and a dividend yield of 0.0%.

 ***Performance Restricted Stock Units***

In November 2025, the Company also granted to its Chief Executive Officer equity-based awards under the Omnibus Plan in the form of performance restricted stock units ("PRSUs"). These awards are classified as equity awards and vest upon the achievement of a service condition of six months of continuous employment after achievement of market conditions established by the Compensation Committee of the Board as of the grant date, which is based on the achievement of certain market capitalization goals. The number of shares earned total one-third of the awards granted based on achievement of the performance condition. The fair value of these PRSUs was determined using a Monte Carlo simulation incorporating the grant-date market value per common share. The resulting fair values were then adjusted using a discount for lack of marketability that considered a weighted average expected term of 2.0 years, a weighted average expected volatility of 95.3%, and a dividend yield of 0.0%. Compensation expense for these PRSUs is recognized based on the probable outcome of the performance condition with a cumulative catch-up adjustment for prior periods in the period that the probable outcome changes.

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The following table summarizes the Company's PRSU activity for the year ended December 31, 2025:

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| | | |
|:---|:---|:---|
|  | **Number of<br> Shares** | **Weighted-<br> Average <br> Grant Date <br> Fair Value** |
| **Unvested as of December 31, 2024** |  | $**-** |
| &nbsp;&nbsp;&nbsp; Granted | 560625 | 34.50 |
| &nbsp;&nbsp;&nbsp; Vested |  |  |
| &nbsp;&nbsp;&nbsp; Forfeited | - | - |
| **Unvested as of December 31, 2025** | **560625** | $**34.50** |

---

Total share-based compensation expense for the year ended December 31, 2025, was $3.5 million. Unrecognized share-based compensation expense was $30.4 million as of December 31, 2025 and is expected to be recognized over five years.

 ***Stock Warrants***

As part of the Mining MSA, the Company was to issue five tranches of warrants to Hut 8 in exchange for the mining management services provided. The warrants to purchase Class A common stock were classified as equity awards under ASC 718, *Compensation — Stock Compensation* ("ASC 718"). Each tranche of warrants had its own service period and vested over one year until the exercise price was known. Thus, compensation cost is recognized on a straight-line basis over each tranche's one-year service period. As the exercise price would not be determined until the vesting date, the service inception date was determined to precede the grant date under ASC 718. As such, fair value was initially measured at the service inception date and was to be remeasured at each subsequent reporting period until the grant date when the exercise price would be known. Refer to *Note 8 – Mining Management Services Agreement* for additional details.

Upon termination of the Mining MSA on December 10, 2024, no shares issued for the stock warrants were vested. As such, no net compensation costs were recognized for the year ended December 31, 2025 or for the eleven months ended December 31, 2024.

 **NOTE 15. Earnings per Share** 

Basic earnings per share of Class A common stock is calculated by dividing Net income (loss) by the weighted average number of shares of Class A common stock outstanding during the period. Diluted earnings per share is computed similarly except the weighted average shares outstanding are increased to include the assumed exercise of any common stock equivalents using the treasury stock method, if dilutive.

The Company's potentially dilutive equity instruments are primarily instruments that the Company has issued as part of the RSPA shares and Warrant Agreements. The RSPA shares and Warrant Agreements were unvested when the Mining MSA was terminated in December 2024 and were forfeited as a result. In the fourth quarter of 2025 the Company granted share-based awards to members of its Board of Directors and its Chief Executive Officer in the form of RSUs and PRSUs. As of December 31, 2025, outstanding shares of performance restricted stock units and restricted stock units in aggregate of 971,750 have been excluded from the calculation of diluted earnings per share, as such securities were anti-dilutive.

The following table summarizes the calculation of the Company's basic earnings per share of Class A common stock:

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| | | |
|:---|:---|:---|
|  | **Successor** | **Successor** |
|  | **Year End<br> December 31, <br> 2025** | **Eleven Months Ended <br> December 31,<br> 2024** |
|  ***Numerator*** | | |
| &nbsp;&nbsp;&nbsp; Net income (loss) | $(247723) | $40145 |
|  ***Denominator*** |  |  |
| &nbsp;&nbsp;&nbsp; Weighted-average Class A common stock outstanding, basic | 37374261 | 37374261 |
| **Basic earnings per share, Class A common stock** | $**(6.63)** | $**1.07** |
| **Diluted earnings per share, Class A common stock** | $**(6.63)** | $**1.07** |

---

All earnings of the Predecessor were entirely applicable to its members; as a result, EPS information is not applicable for reporting periods prior to the Business Combination.

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 **NOTE 16. Income Taxes** 

For the year ended December 31, 2025, Ionic Digital recorded a loss before a benefit for income taxes totaling $313.8 million. For the eleven months ended December 31, 2024, Ionic Digital recorded income before provision for income taxes totaling $52.5 million. All income and losses are attributable to operations in the United States. The Predecessor was a passthrough entity; as a result, no operating loss transferred to Ionic Digital with the transaction.

The components of the provision (benefit) for income taxes are as follows:

---

| | | |
|:---|:---|:---|
|  | **Successor** | **Successor** |
|  | **Year End <br> December 31, <br> 2025** | **Eleven Months Ended <br> December 31, <br> 2024** |
| **Current** | | |
| &nbsp;&nbsp;&nbsp; Federal | $- | $- |
| &nbsp;&nbsp;&nbsp; State | 489 | 290 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Current | $489 | $290 |
| **Deferred** |  |  |
| &nbsp;&nbsp;&nbsp; Federal | $(65484) | $11261 |
| &nbsp;&nbsp;&nbsp; State | (1066) | 754 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Deferred | $(66550) | $12015 |
| **Total Provision (Benefit)** | $**(66061)** | $**12305** |

---

As of December 31, 2025, the Company has indefinitely lived federal net operating loss carryforwards of $82.4 million. Such net operating loss carryforwards can only offset 80% of taxable income in any individual future tax year. The Company also has state net operating loss carryforwards of $27.4 million, of which $14.7 million is subject to expiration beginning in 2046. The remaining $12.7 million state operating net loss carryforwards is not subject to expiration but can only offset 80% of taxable income in any individual future tax year.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The significant components of the Company's deferred tax liabilities and assets are as follows:

---

| | | |
|:---|:---|:---|
|  | **Successor** | **Successor** |
|  | **December 31, <br> 2025** | **December 31, <br> 2024** |
| **Deferred tax assets:** | | |
| &nbsp;&nbsp;&nbsp; Property and equipment | $29265 | $205 |
| &nbsp;&nbsp;&nbsp; Accrued expenses | 1816 | 693 |
| &nbsp;&nbsp;&nbsp; Leases | 44 | 52 |
| &nbsp;&nbsp;&nbsp; Net operating loss and credit carryforwards | 18745 | 6934 |
| &nbsp;&nbsp;&nbsp; Stock compensation | 727 |  |
| &nbsp;&nbsp;&nbsp; Goodwill | 8202 | - |
| &nbsp;&nbsp;&nbsp; Gross non-current deferred tax assets | 58799 | 7884 |
| &nbsp;&nbsp;&nbsp; Valuation allowance for non-current deferred tax assets | (1371) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net non-current deferred tax assets | $57428 | $7884 |
| **Deferred tax liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp; Goodwill |  | $(3140) |
| &nbsp;&nbsp;&nbsp; Prepaid expenses | (515) | (606) |
| &nbsp;&nbsp;&nbsp; Unrealized gains | (1075) | (16108) |
| &nbsp;&nbsp;&nbsp; ROU assets | (91) | (110) |
| &nbsp;&nbsp;&nbsp; Deferred rent | (1277) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross non-current deferred tax liabilities | (2958) | (19964) |
| **Net deferred tax assets (liabilities)** | $**54470** | $**(12080)** |

---

The Company periodically evaluates the realizability of its deferred tax assets based on all available evidence, both positive and negative. Based on the weight of available evidence, including cumulative losses in recent years and expectations of future taxable income, as of December 31, 2025 management determined that it was more likely than not that the Company would not realize the benefit associated with most of its state net operating losses subject to expiration and a portion of its indefinite lived state net operating losses. As a result, a partial valuation allowance totaling $1.4 million was recorded to the extent state net operating losses are not expected to be used in the future as of December 31, 2025. As of December 31, 2024, no valuation allowance was recorded.

Changes in the valuation allowance were as follows:

---

| | | |
|:---|:---|:---|
|  | **Successor** | **Successor** |
|  | **Year Ended<br> December 31, <br> 2025** | **Eleven<br> Months<br> Ended <br> December 31, <br> 2024** |
| Beginning balance | $- | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp; Charged to income tax expense | 1371 | - |
| Ending balance | $**1371** | $**-** |

---

The net increase in the valuation allowance during the year ended December 31, 2025, was $1.4 million and was recorded as a charge to income tax expense. There was no net change during the eleven months ended December 31, 2024.

[**Table of Contents**](#C_001)

The difference between the tax expense (benefit) derived by applying the federal statutory income tax rate to net losses and the expense recognized in the consolidated financial statements is as follows:

---

| | | |
|:---|:---|:---|
|  | **Successor** | **Successor** |
|  | **Year Ended<br> December 31,<br> 2025** | **Year Ended<br> December 31,<br> 2025** |
|  | **Amount** | **Percentage** |
| U.S. Federal taxes at statutory rate | $(65853) | 21.0% |
| State tax provision, net<sup>(1)</sup> | (1049) | 0.3% |
| Nontaxable or nondeductible items: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Permanent differences | 15 | (0.0)% |
| &nbsp;&nbsp;&nbsp;&nbsp; Legal costs | 363 | (0.1)% |
| Total nontaxable or nondeductible items | 378 | (0.1)% |
| Changes in uncertain recognized tax benefits | 470 | (0.1)% |
| Other | (7) | 0.0% |
| **Provision (Benefit) for Income Taxes** | $**(66061)** | **21.1%** |

---

(1) State
 taxes in California, New York, and Texas made up the majority (greater than 50 percent) of
 the tax effect in the state tax provision category.

---

| | | |
|:---|:---|:---|
|  | **Successor** | **Successor** |
|  | **Eleven Months Ended<br> December 31, <br> 2024** | **Eleven Months Ended<br> December 31, <br> 2024** |
|  | **Amount** | **Percentage** |
| U.S. Federal taxes at statutory rate | $11015 | 21.0% |
| State tax provision, net | 758 | 1.4% |
| Permanent differences | 5 | 0.0% |
| Legal costs | 241 | 0.5% |
| Uncertain tax positions | 286 | 0.5% |
|  **Provision (Benefit) for Income Taxes** | $**12305** | **23.4%** |

---

The total amount of unrecognized tax benefits, as of December 31, 2025, and 2024, was $0.7 million and $0.3 million, respectively, and if recognized these tax benefits would affect the Company's effective tax rate. The reconciliation of unrecognized tax benefits at the beginning and end of the year is as follows:

---

| | | |
|:---|:---|:---|
|  | **Successor** | **Successor** |
|  | **Year Ended<br> December 31,<br> 2025** | **Eleven Months Ended <br> December 31, <br> 2024** |
| **Beginning Balance** | $**286** | **-** |
| Additions based on tax positions related to current year | 436 | 286 |
| Additions based on tax positions related to prior year | 34 | - |
| **Ending Balance** | $**756** | **286** |

---

The Company's practice is to recognize interest and/or penalties related to income tax matters in income tax expense. During the year ended December 31, 2025, the Company recognized an immaterial amount of interest and penalties. During the eleven months ending December 31, 2024, the Company did not recognize any interest or penalties.

The Company files tax returns in the U.S. federal jurisdiction and several state jurisdictions. The Company is subject to U.S. federal and state income tax examinations for the year ended December 31, 2025 and for the eleven months ended December 31, 2024. The Company is not currently under audit for federal or state jurisdictions.

On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law. This legislation includes changes to U.S. federal tax law, which may be subject to further clarification and the issuance of interpretive guidance. The enactment of the OBBBA did not have a material impact on our effective tax rate for the year ended December 31, 2025.

 **NOTE 17. Commitments and Contingencies** 

 **Commitments – Purchase agreements** 

In the normal course of business, the Company may enter into non-cancellable purchase commitments with various parties. As of December 31, 2025 and December 31, 2024, the Company had no outstanding non-cancellable purchase commitments.

 **Contingencies** 

The Company is subject to legal proceedings arising in the ordinary course of business. The Company accrues losses for a legal proceeding when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. However, the uncertainties inherent in legal proceedings make it difficult to reasonably estimate the costs and effects of resolving these matters. Accordingly, actual costs incurred may differ materially from amounts accrued and could materially adversely affect the Company's business, cash flows, results of operations, financial condition, and prospects. Unless otherwise indicated, the Company is unable to estimate reasonably possible losses in excess of any amounts accrued.

[**Table of Contents**](#C_001)

Mawson Infrastructure Group

On February 23, 2022, Celsius Mining entered into a Co-Location Agreement with Luna Squares LLC, a subsidiary of Mawson Infrastructure Group., Inc., a bitcoin miner and public Company listed on the NASDAQ (collectively, "Mawson"), under which Mawson hosted miners owned by Celsius Mining at Mawson's facility in Midland, Pennsylvania. On August 23, 2023, the agreement expired. Following expiration, Mawson failed to return Celsius Mining's $15.3 million deposit to Celsius Mining and Celsius Mining failed to pay $5.1 million in Mawson invoices. Celsius Mining initiated an adversary complaint against Mawson in the Bankruptcy Court seeking return of the amounts owed to it under the Co-Location Agreement, to offset the unpaid invoices against the deposit, and other damages suffered by Celsius Mining due to breaches of the contract. The Mawson matter was concluded in February 2026. See further discussion within *Note 20 – Subsequent Events*.

Based on current information, the Company does not believe a material loss, if any, can be reasonably estimated from any claims, lawsuits, and proceedings to which the Company is subject, either individually or in the aggregate. Therefore, no contingent liabilities have been recorded by the Company as of December 31, 2025 or December 31, 2024 in respect to the ongoing legal proceedings.

**NOTE 18. Litigation settlement** 

Effective June 27, 2025, the Company entered into a cooperation agreement with certain third parties and stockholders of the Company (the "Plaintiff parties") to appoint two new directors to the Board of Directors and settle open litigation matters that arose during 2025. As part of the agreements and as compensation to the Plaintiff parties for expenses incurred in 2025, the Company paid amounts to the Plaintiffs or on the Plaintiffs' behalf totaling $8.3 million, which is offset by insurance proceeds of $4.7 million. There are no remaining contingencies or conditions related to this matter.

In connection with the Business Combination, the Company assumed a discontinued agreement between the Predecessor and a third party that required the third party to construct a virtual currency mining facility for the Predecessor. On December 1, 2024, the Company and the Predecessor entered into a settlement agreement to resolve the outstanding litigation claims, resulting in a cash payment of $6.8 million to the Company. There are no remaining contingencies or conditions related to this gain.

Litigation settlements are recognized as Realized gain (loss) on litigation settlement within Other income (expenses) in the Consolidated Statement of Operations.

 **NOTE 19. Business segment data** 

Selected financial and descriptive information is provided about reportable operating segments, considering a "management approach" concept as the basis for identifying reportable segments. The management approach is based on the way that management organizes the segments within the Company for making operating decisions, allocating resources, and assessing performance. Consequently, the segments are evident from the structure of the Company's internal organization, focusing on financial information that the Company's Chief Executive Officer ("CEO"), who is the Chief Operating Decision Maker ("CODM"), uses to make decisions about the Company's operating matters.

With the execution of the agreement to lease the Ward County facility, the CODM began considering resource allocations and investments in Company operations separately between the historical cryptocurrency mining business and the prospects of leasing the Company's powered land and assets for use in the high-powered computing and artificial intelligence sectors. As such, the Company has determined it has two reportable segments: Cryptocurrency Mining and Digital Infrastructure Solutions. Each are individually managed and provide separate services. Revenues by segment represent revenues earned from the services offered within each segment. The Company does not report results by geographic region, as all of its operations are domestic. All revenues are generated through external customers, and the accounting policies applied to each reportable segment are consistent with those policies described in Note 2.

The primary metric reviewed by the CODM is adjusted gross profit, and this metric is reviewed to evaluate the Company's operating results, its business strategies, and to determine resource allocation for digital asset purchases and other expenditures. The Company defines adjusted gross profit as revenues less cost of revenues applicable to each reportable segment, exclusive of depreciation.

[**Table of Contents**](#C_001)

The following tables present financial information for the Company's reportable segments for the periods indicated (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  | **Successor** | **Successor** | **Predecessor<br> (Debtor-in-<br> Possession)** |
|  | **Year End<br> December 31,<br> 2025** | **Eleven<br> Months Ended<br> December 31,<br> 2024** | **One Month Ended<br> January 31,<br> 2024** |
| **Cryptocurrency Mining Segment** | | | |
| &nbsp;&nbsp;&nbsp; Cryptocurrency mining revenue | $135561 | $138428 | $15381 |
| &nbsp;&nbsp;&nbsp; Less significant segment expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Energy costs | 53563 | 29103 | 2517 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Labor expense | 7481 | 5443 | 449 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hosting and revenue share expense | 25123 | 51158 | 6691 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Maintenance and other facility expenses | 1809 | 4782 | 11 |
| &nbsp;&nbsp;&nbsp; Cost of cryptocurrency mining revenue, exclusive of depreciation | 87976 | 90486 | 9668 |
|  Cryptocurrency mining adjusted gross profit | $47585 | $47942 | $5713 |
|  **Digital Infrastructure Segment** |  |  |  |
| &nbsp;&nbsp;&nbsp; Digital infrastructure lease revenue | $5837 |  |  |
| &nbsp;&nbsp;&nbsp; Cost of digital infrastructure solutions revenue, exclusive of depreciation | 22 | - | - |
|  Digital infrastructure solutions adjusted gross profit | $5815 |  |  |
|  **Consolidated** |  |  |  |
| &nbsp;&nbsp;&nbsp; Cryptocurrency mining revenue | $135561 | $138428 | $15381 |
| &nbsp;&nbsp;&nbsp; Digital infrastructure lease revenue | 5837 | - | - |
|  Consolidated total revenue | $141398 | 138428 | 15381 |
|  **Reportable segments' total adjusted gross profit** | $**53400** | $**47942** | $**5713** |
| &nbsp;&nbsp;&nbsp; Depreciation | 66702 | 42360 | 6216 |
| &nbsp;&nbsp;&nbsp; General and administrative expenses | 49026 | 40600 | 2633 |
| &nbsp;&nbsp;&nbsp; (Gain) loss on fair value of cryptocurrency | 66788 | (71744) | 150 |
| &nbsp;&nbsp;&nbsp; Realized (gain) on sale of cryptocurrency assets | (47404) | (5532) | (485) |
| &nbsp;&nbsp;&nbsp; (Gain) loss on disposal of property and equipment | 10160 | (325) | 1793 |
| &nbsp;&nbsp;&nbsp; Impairment of long-lived assets | 150325 |  |  |
| &nbsp;&nbsp;&nbsp; Goodwill impairment | 68170 |  |  |
| &nbsp;&nbsp;&nbsp; Other operating expenses, net | 999 | 1105 | 197 |
| &nbsp;&nbsp;&nbsp; Interest (income) | (1215) | (1885) |  |
| &nbsp;&nbsp;&nbsp; Realized loss on cryptocurrency derivatives | 204 |  |  |
| &nbsp;&nbsp;&nbsp; Unrealized loss on energy derivatives |  |  | 159 |
| &nbsp;&nbsp;&nbsp; Realized (gain) on investments |  | (2422) |  |
| &nbsp;&nbsp;&nbsp; (Gain) loss on litigation settlement | 3429 | (6817) |  |
| &nbsp;&nbsp;&nbsp; Other expenses |  | 152 |  |
| &nbsp;&nbsp;&nbsp; Reorganization items, net | - | - | 5416 |
| &nbsp;&nbsp;&nbsp; **Income (loss) before provision for income taxes** | $**(313784)** | $**52450** | $**(10366)** |

---

[**Table of Contents**](#C_001)

For the year ended December 31, 2025, depreciation expense was $66.7 million for the Cryptocurrency Mining segment and was immaterial for the Digital Infrastructure Solutions segment.

Capital expenditures for long-lived assets totaled $11.1 million during the year ended December 31, 2025, $7.7 million of which are attributable to the Cryptocurrency Mining segment and $3.3 million to the Digital Infrastructure Solutions segment. For the eleven months ended December 31, 2024, capital expenditures of $71.6 million are attributable entirely to the Cryptocurrency Mining segment, which represented the Company's sole reportable segment during that period. Capital expenditures incurred during the eleven months ended December 31, 2024 related to the Digital Infrastructure Solutions segment are included in the total assets allocated to that segment.

The following table presents total assets for the Company's reportable segments, all of which are held in the United States, for the periods indicated:

---

| | | |
|:---|:---|:---|
|  | **Successor** | **Successor** |
|  | **December 31, <br> 2025** | **December 31, <br> 2024** |
| Cryptocurrency mining segment | $345313 | $817893 |
| Digital infrastructure solutions segment | 259691 | - |
| &nbsp;&nbsp;&nbsp; **Total Assets** | $**605004** | $**817893** |

---

**NOTE 20. Subsequent Events** 

Management has evaluated subsequent events through May 1, 2026, the date the financial statements were available to be issued.

In February 2026, the Company entered into a settlement that finalized the Mawson matter and resulted in a $5.1 million payment to the Company. The Company recorded an allowance as of December 31, 2025 for amounts determined to be uncollectible as a result of the settlement agreement, see further discussion within *Note 17 – Commitments and Contingencies*.

In February 2026, the Company elected not to renew its hosting arrangement with GXD. As a result, our mining equipment at that location was removed from service on or before March 31, 2026. The miners at GXD constituted approximately one third of our capacity to generate hashrate as of December 31, 2025, and management has determined that a majority of the equipment will be disposed and will not return to service. No incremental expenses were incurred in exiting the GXD arrangement.

In February 2026, the Company reached an agreement to amend the lease of its Ward County facility. The amended agreement obligates the tenant to lease an additional 89 MW of capacity when such capacity becomes available, and requires the Company to add the tenant as a qualified occupant for Texas data center tax incentive purposes. Total expected revenues under the amended lease agreement would increase to approximately $2.7 billion over the contract term if the company is able to access the additional capacity as planned.

[**Table of Contents**](#C_001)

**PART II** 

**INFORMATION NOT REQUIRED IN THE PROSPECTUS** 

**Item 13. Other Expenses of Issuance and Distribution.** 

The following is an estimate of the expenses that Ionic Digital Inc. (the "Registrant") may incur in connection with the securities being registered hereby (all of which are to be paid by the Registrant).

---

| |
|:---|
| SEC registration fee |
| Nasdaq Global Select Market Listing Fee \* |
| Printing Fees and expenses \* |
| Legal fees and expenses \* |
| Accounting fees and expenses \* |
| Transfer agent and registrar fees and expenses \* |
| Other advisors' fees \* |
| Financial printing and miscellaneous expenses \* |
| Total \* |

---

\* To be provided by amendment

**Item 14. Indemnification of Directors and Officers** 

Section 102(b)(7) of the DGCL allows a corporation to provide in its certificate of incorporation that a director of the corporation will not be personally liable to the corporation or its stockholders for monetary damages for breach of fiduciary duty as a director, except where the director breached the duty of loyalty, failed to act in good faith, engaged in intentional misconduct or knowingly violated a law, authorized the payment of a dividend or approved a stock repurchase in violation of Delaware corporate law or obtained an improper personal benefit. Our amended and restated certificate of incorporation provides for this limitation of liability.

Section 145 of the DGCL provides that a Delaware corporation may indemnify any person who was, is or is threatened to be made, party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the right of such corporation), by reason of the fact that such person is or was an officer, director, employee or agent of such corporation or is or was serving at the request of such corporation as a director, officer, employee or agent of another corporation or enterprise. The indemnity may include expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection with such action, suit or proceeding, provided such person acted in good faith and in a manner he reasonably believed to be in or not opposed to the corporation's best interests and, with respect to any criminal action or proceeding, had no reasonable cause to believe that his or her conduct was illegal. Where an officer or director is successful on the merits or otherwise in the defense of any action referred to above, the corporation must indemnify him against the expenses which such officer or director has actually and reasonably incurred.

Section 145 further authorizes a corporation to purchase and maintain insurance on behalf of any person who is or was a director, officer, employee or agent of the corporation or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation or enterprise, against any liability asserted against him and incurred by him in any such capacity, or arising out of his or her status as such, whether or not the corporation would otherwise have the power to indemnify him under Section 145.

Our amended and restated certificate of incorporation and amended and restated bylaws provide that we must indemnify our directors and officers to the fullest extent authorized by the DGCL and must also pay expenses incurred in defending any such proceeding in advance of its final disposition upon delivery of an undertaking, by or on behalf of an indemnified person, to repay all amounts so advanced if it should be determined ultimately that such person is not entitled to be indemnified under this section or otherwise.

We entered into indemnification agreements with each of our current directors and executive officers. These agreements require us to indemnify these individuals to the fullest extent permitted under Delaware law against liabilities that may arise by reason of their service to us and to advance expenses incurred as a result of any proceeding against them as to which they could be indemnified.

[**Table of Contents**](#C_001)

The indemnification rights set forth above shall not be exclusive of any other right that an indemnified person may have or hereafter acquire under any statute, provision of our amended and restated certificate of incorporation, our amended and restated bylaws, agreement, vote of stockholders or disinterested directors or otherwise.

We maintain standard policies of insurance that provide coverage (1) to our directors and officers against loss rising from claims made by reason of breach of duty or other wrongful act and (2) to us with respect to indemnification payments that we may make to such directors and officers.

**Item 15. Recent Sales of Unregistered Securities**

Since January 31, 2024, the Plan Effective Date, the Company has issued and sold the following unregistered securities:

● 37 million shares of Class A common stock for eligible holders of certain claims against Celsius;

● 374,261 shares of Class A common stock to Hut 8 pursuant to the Contribution Agreement;

● one share of Class B common stock to Hut 8 pursuant to the MSA;

● warrants to purchase up to an aggregate of 670,801 shares of common stock to Hut 8, which were cancelled in connection with the termination of the Mining MSA. For more information on the warrants, see the section titled "Certain Relationships and Related Person Transactions—Transactions Involving Related Parties — Warrant Agreements" above; and

● 670,801 RSPA Shares, which were cancelled in connection with the termination of the Mining MSA. For more information on the terms of the restricted stock, see the section titled "Certain Relationships and Related Person Transactions—Transactions Involving Related Parties — Restricted Stock Agreement" above.

Based upon the exemption provided by Section 1145 of the U.S. Bankruptcy Code, on November 9, 2023, the Bankruptcy Court entered an order confirming the Plan, which, among other things, provides that the issuance of the shares of common stock described in the first bullet point above conducted in accordance with the procedures described in the Plan, is, and shall be deemed to be, pursuant to Section 1145 of the U.S. Bankruptcy Code or Section 4(a)(2) of the Securities Act, or any other applicable state or U.S. federal securities law, exempt from the registration requirements of Section 5 of the Securities Act and any state or local law requiring registration for offer or sale of a security or registration or licensing of an issuer of, underwriter of, or broker dealer in, a security. The issuance of the shares of common stock and warrants described in the second through fifth bullet points above was pursuant to Section 4(a)(2) of the Securities Act, exempt from the registration requirements of Section 5 of the Securities Act.

[**Table of Contents**](#C_001)

**Item 16. Exhibits and Financial Statement Schedules**

&nbsp;&nbsp;&nbsp;&nbsp;(a) **Exhibits** 

---

| | |
|:---|:---|
| **Number** | **Description** |
| 2.1 | Master Conveyance Agreement, dated effective January 31, 2024, between Celsius Mining LLC, Ionic Digital Treasury Inc. and Ionic Digital Inc. |
| **3.1** | **Amended and Restated Certificate of Incorporation of Ionic Digital Inc.** |
| **3.2** | **Amended and Restated Bylaws of Ionic Digital Inc. (Effective February 13, 2025)** |
| **5.1\*** | **Opinion of White & Case LLP** |
| **10.1** | **Amended and Restated Management Services Agreement, dated June 19, 2024, between the Company and U.S. Data Management Group LLC** |
| **10.2** | **Plan Sponsor Contribution Agreement, dated January 31, 2024, between the Company and U.S. Data Management Group LLC** |
| **10.3** | **Amendment, dated June 19, 2024, to Plan Sponsor Contribution Agreement** |
| **10.4** | **Form of Indemnification Agreement of Ionic Digital Inc.** |
| **10.5+** | **Ionic Digital Inc. Omnibus Incentive Plan** |
| **10.6** | **[Energy Management Services Agreement, dated November 17, 2022, between Celsius Mining LLC and Priority Power Management, LLC](ionicdigiex10-6.htm)** |
| **10.7** | **[Energy Management and Consulting Services Agreement, dated September 28, 2021, between Celsius Core LLC and Priority Power Management, LLC](ionicdigiex10-7.htm)** |
| **10.8** | **[Amendment to Energy Management and Consulting Services Agreement, dated August 2, 2022, between Celsius Mining LLC and Priority Power Management LLC](ionicdigiex10-8.htm)** |
| **10.9** | **[Assignment and Assumption Agreement, dated January 31, 2024, between Celsius Mining LLC, Priority Power Management, LLC and Ionic Digital Inc.](ionicdigiex10-9.htm)** |
| **10.10\*** | **EZ Blockchain Hosting Agreement with EZ Blockchain Services** |
| **10.11+** | **Offer Letter, dated as of December 9, 2024, between Ionic Digital Inc. and Anthony McKiernan** |
| **10.12** | **[Master Custody Service Agreement, dated January 26, 2024, between Anchorage Digital Bank N.A. and Ionic Digital Treasury Inc.](ionicdigiex10-12.htm)** |
| **10.13** | **[Custodial Services Agreement, dated June 18, 2024, between Ionic Digital Treasury Inc. and Fidelity Digital Asset Services, LLC](ionicdigiex10-13.htm)** |
| **10.14\*** | **Employment Agreement, dated as of November 17, 2025, between Ionic Digital Inc. and Andy Stewart** |
| **10.15\*** | **Performance Restricted Stock Unit Award Grant Notice, dated as of November 17, 2025, between Ionic Digital Inc. and Andy Stewart** |
| **10.16\*** | **Restricted Stock Unit Award Grant Notice, dated as of November 17, 2025, between Ionic Digital Inc. and Andy Stewart** |
| **10.17\*** | **Net Lease Agreement, dated as of October 14, 2025, between Ionic Digital Cedarvale LLC and Nscale Ward County LLC, as amended by Amendment No. 1 to Net Lease Agreement, dated February 27, 2026** |
| 10.18 | **Second Amended and Restated Professional Services Agreement, dated November 24, 2024, between Ionic Digital and Laura Schnaidt** |
| **16.1\*** | **Letter regarding change in accountants** |
| **21.1\*** | **List of subsidiaries of Ionic Digital** |
| **23.1\*** | **Consent of BDO USA, P.C.** |
| **23.2\*** | **Consent of White & Case LLP (included in Exhibit 5.1)** |
| **24.1\*** | **Power of Attorney (included on the signature page of the initial filing)** |
| **99.1** | **[Code of Ethics](ionicdigiex99-1.htm)** |
| **99.2\*** | **Audit Committee Charter** |
| **107\*** | **Filing Fee Table** |

---

---

| | |
|:---|:---|
| \* | To be filed by amendment. |
| + | Indicates a management contract or compensatory plan. |
| ++ | Certain confidential portions (indicated by brackets and asterisks) have been omitted from this exhibit because such information is both (i) non-material and (ii) would be competitively harmful if publicly disclosed. |

---

&nbsp;&nbsp;&nbsp;&nbsp;(b) **Financial Statement Schedules.** None.

[**Table of Contents**](#C_001)

**Item 17. Undertakings.** 

The undersigned registrant hereby undertakes:

&nbsp;&nbsp;&nbsp;&nbsp;(1) to file, during any period in which offers or sales are being
made, a post-effective amendment to this registration statement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. to include any prospectus required by Section 10(a)(3) of
the Securities Act of 1933, as amended (the "Securities Act");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. to reflect in the prospectus any facts or events arising after
the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the
aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing,
any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which
was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus
filed with the Commission pursuant to Rule 424(b) (§ 230.424(b) of this chapter) if, in the aggregate, the changes in volume and
price represent no more than 20% change in the maximum aggregate offering price set forth in the "Calculation of Filing Fee Tables"
or "Calculation of Registration Fee" table, as applicable, in the effective registration statement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. to include any material information with respect to the plan
of distribution not previously disclosed in the registration statement or any material change to such information in the registration
statement;

provided, however, that paragraphs (i), (ii) and (iii) do not apply if the registration statement is on Form S-1 and the information required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the Commission by the registrant pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the registration statement, or is contained in a form of prospectus filed pursuant to Rule 424(b) that is part of the registration statement;

Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers, and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission, such indemnification is against public policy as expressed in the Securities Act of 1933 and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer, or controlling person of the registrant in the successful defense of any action, suit, or proceeding) is asserted by such director, officer, or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act of 1933 and will be governed by the final adjudication of such issue.

The undersigned registrant hereby undertakes that:

&nbsp;&nbsp;&nbsp;&nbsp;(1) For purposes of determining any liability under the Securities
Act, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and
contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall
be deemed to be part of this registration statement as of the time it was declared effective.

&nbsp;&nbsp;&nbsp;&nbsp;(2) For the purpose of determining any liability under the Securities
Act, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to
the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering
thereof.

[**Table of Contents**](#C_001)

**SIGNATURES** 

Pursuant to the requirements of the Securities Act of 1933, as amended, the Registrant has duly caused this registration statement on Form S-1 to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Coral Gables, State of Florida, on the , 2026.

---

| | |
|:---|:---|
| **IONIC DIGITAL INC.** | **IONIC DIGITAL INC.** |
| By: |  |
| Name: | Andy Stewart |
| Title: | Chief Executive Officer |

---

**POWER OF ATTORNEY** 

KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below hereby constitutes and appoints Andy Stewart, as his or her true and lawful attorneys-in-fact, proxies and agents, each with full power of substitution and resubstitution and full power to act without the other, for him in any and all capacities, to sign any and all amendments to this registration statement (including post-effective amendments or any abbreviated registration statement and any amendments thereto filed pursuant to Rule 462(b) increasing the number of securities for which registration is sought), and to file the same, with all exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact, proxies and agents full power and authority to do and perform each and every act and thing requisite and necessary to be done in connection therewith, as fully for all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact, proxies and agents, or their or his or her substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, as amended, this registration statement on Form S-1 has been signed by the following persons in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| **Signature** | **Title** | **Date** |
|  | **Chief Executive Officer and Director** | **, 2026** |
| **Andy Stewart** | ***(Principal Executive Officer)*** |  |
|  | **Interim Chief Financial Officer** | **, 2026** |
| **James Gallagher** | ***(Principal Accounting and Financial Officer)*** |  |
|  | **Chairperson of the Board** | **, 2026** |
| **Elizabeth LaPuma** |  |  |
|  | **Director** | **, 2026** |
| **Michael Abbate** |  |  |
|  | **Director** | **, 2026** |
| **Thomas DiFiore** |  |  |
|  | **Director** | **, 2026** |
| **Scott Duffy** |  |  |
|  | **Director** | **, 2026** |
| **Scott Flanders** |  |  |
|  | **Director** | **, 2026** |
| **Oliver Wiener** |  |  |

---

## Exhibit 10.6

**Exhibit 10.6**

---

| | |
|:---|:---|
| **Energy Management Services Agreement** | ![](ex10-6_001.jpg) |

---

**Energy Management Services Agreement**

This Energy Management Services Agreement together with any Transaction Confirmation as may be hereafter mutually agreed to (the "Agreement"), is entered into by and between **Celsius Mining LLC** ("Customer") and **Priority Power Management, LLC ("PPM")**, a limited liability company duly organized under the laws of Texas, on **November 17, 2022** (the "Effective Date"). PPM and Customer are also referred to herein individually as a "Party" and collectively as the "Parties."

WHEREAS, Customer consumes Energy and has the capability to reduce consumption in response to an Instruction and thus participate in various demand side management programs ("DSM Programs");

WHEREAS, PPM is a Level 4 Qualified Scheduling Entity ("QSE") in ERCOT and is in the business of providing Energy Management Services ("EMS") to customers that desire to participate in demand side management programs ("DSM Programs");

WHEREAS, Customer's participation in each DSM Program will be mutually agreed and documented with a Transaction Confirmation ("TC") signed by both Parties;

WHEREAS, PPM shall provide EMS to Customer subject to the terms and conditions set forth herein;

NOW THEREFORE, in consideration of the foregoing, the mutual Agreements set forth herein and other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:

**Section 1. Initial and Extended Term.** The initial term of this Agreement shall commence upon the Effective Date and shall continue through the later of either (i) 60-months from the Effective Date, or (ii) the ending date specified on any particular TC (the "Term"). Upon expiration of the initial Term, this Agreement shall automatically renew for successive one-year periods (each renewal period, an "Extended Term") unless either Party gives notice to terminate this Agreement no later than ninety (90) days prior to the then applicable Term or Extended Term. Notwithstanding the foregoing, the initial Term and any Extended Term shall always extend through the end date reflected on any TC.

**Section 2. EMS to be provided by PPM.** In the course of providing EMS to Customer, PPM will:

&nbsp;&nbsp;&nbsp;&nbsp;a. consider the availability, flexibility and constraints of the DSM Assets and, depending on the time of
 year and giving consideration to expected values from participating in the different DSM Programs, recommend Customer's
 participation in the DSM Programs in an effort to maximize the value of the DSM Assets;

&nbsp;&nbsp;&nbsp;&nbsp;b. in conformity with the ERCOT Protocols, provide the Level 4 QSE services necessary for Customer's
 participation in the applicable DSM Program(s), including issuing Instructions received from ERCOT to Customer in accordance with
 the procedures attached hereto as Exhibit A (the "Procedures");

&nbsp;&nbsp;&nbsp;&nbsp;c. meet and maintain necessary certification and performance standards
for a Level 4 QSE in ERCOT;

&nbsp;&nbsp;&nbsp;&nbsp;d. receive from ERCOT and/or a bilateral counterparty as applicable,
revenues earned from Customer's participation in the DSM Programs;

&nbsp;&nbsp;&nbsp;&nbsp;e. on or about the 25th day following the month that revenues are
received by PPM from ERCOT (or an applicable bilateral counterparty) relative to Customer's participation in a DSM Program, produce
and send to Customer a settlement statement. Each settlement statement shall include sufficient and auditable detail to confirm the validity
and accuracy of the information represented therein. Further, each settlement statement shall set forth any payment owed by one Party
to the other Party, and all such amounts shall be settled via wire transfer, to the account specified in the Notices section below, within
ten (10) business days of the date that the settlement statement is sent by PPM to Customer;

&nbsp;&nbsp;&nbsp;&nbsp;f. from time to time, provide Customer with public market information related to the identification of
 issues, trends, developments and forecasts of forward markets for both Energy and Ancillary Services;

&nbsp;&nbsp;&nbsp;&nbsp;g. from time to time, identify market design and regulatory developments
that may impact Customer; and

&nbsp;&nbsp;&nbsp;&nbsp;h. from time to time, identify incremental opportunities for Customer
to minimize their Energy costs and maximize their DSM Program value.

**Section 3. Compensation.** The compensation structure related to Customer's participation in a DSM Program shall be as reflected on the applicable TC.

---

| | |
|:---|:---|
| **Energy Management Services Agreement** | ![](ex10-6_001.jpg) |

---

**Section 4. Customer Obligations.** During the Term Customer will do the following:

&nbsp;&nbsp;&nbsp;&nbsp;a. Minimum
 Hedge Threshold. At all times during the Term, prior to any DSM Asset operating as a Controllable
 Load Resource, Customer shall enter into and maintain, for each such DSM Asset, wholesale
 hedges such that eighty-five percent (85%) of Customer's Peak Load for such DSM Asset
 is fully hedged or is otherwise on a fixed rate power purchase contract (the "Minimum
 Hedge Threshold"). Prior to execution and on the 15th day of each month (or on the
 nearest Business Day prior to the 15th day of the month if the 15th day of the month falls
 on a non-Business Day) during the Term, Customer shall provide PPM written documentation
 proving to PPM's satisfaction (which satisfaction shall be determined in PPM's sole
 reasonable discretion) that Customer has met the Minimum Hedge Threshold for its Peak Load
 for each applicable DSM Asset for the upcoming calendar month. For any DSM Asset that is
 operating as a Controllable Load Resource, in the event that either i) PPM determines that
 the Minimum Hedge Threshold has not been met or is not maintained, or ii) Customer requests
 a waiver of the Minimum Threshold Requirement, then Customer shall post Deposit for any such
 DSM Asset with PPM within three (3) Business Days of PPM's demand for Deposit. "Deposit"
 means for each such DSM Asset, cash in an amount equal to (x) the difference between eighty-five
 percent (85%) of Customer's Peak Load for the applicable DSM Asset and the amount of
 Customer's Peak Load for the applicable DSM Asset actually hedged *multipled by* (y) one hundred sixty-eight (168) hours *multiplied by* the highest weekly average around-the-clock price
 for the Customer's Delivery Point for the upcoming calendar month. Upon the applicable
 DSM Asset meeting the Minimum Hedge Threshold or Customer opting to not operate such DSM
 Asset as a Controllable Load Resource, within a commercially reasonable time, PPM shall return
 the applicable Deposit to Customer.

&nbsp;&nbsp;&nbsp;&nbsp;b. notify PPM of any operational changes or constraints regarding
the DSM Assets and the associated infrastructure and telemetry. To the extent that the DSM Assets fail to perform and such failure results
in a cost or fine imposed upon PPM (each, a "Penalty"), then Customer will reimburse PPM for the Penalty. The Penalty will
be reflected on a settlement statement as a debit to Customer and Customer authorizes PPM to immediately reimburse PPM out of the revenue
received by PPM from ERCOT (or other counterparty) related to Customer's participation in a DSM Program;

&nbsp;&nbsp;&nbsp;&nbsp;c. at all times maintain such certificates, permits, licenses,
authorizations, compliance programs or other similar regulatory or legal credentials with regard to the DSM Assets or otherwise to ensure
Customer's performance hereunder and to ensure compliance with the requirements of all applicable governmental, judicial and regulatory
bodies;

&nbsp;&nbsp;&nbsp;&nbsp;d. in the event that ERCOT or the TDSP require certain telemetry
from the DSM Assets, Customer will work with PPM to jointly arrange for the installation and testing of the interconnect infrastructure
to ERCOT's and/or the TDSP's satisfaction ("Interconnect Infrastructure"). Customer will pay for and own such
Interconnect Infrastructure;

&nbsp;&nbsp;&nbsp;&nbsp;e. unless otherwise agreed upon in writing, directly operate its
facilities to achieve Customer's load reduction when scheduled for dispatch as part of the DSM Program; and

&nbsp;&nbsp;&nbsp;&nbsp;f. for each DSM Asset, provide the name and current contact information for Customer's contact
 person who will receive the Instructions in accordance with the Procedures (the "Contact Person"). Contact information
 for the Contact Person shall include the cell phone number, email address, and any other relevant information necessary for PPM to
 contact the Contact Person. Customer is responsible for providing PPM with timely updates to this information.

**Section 5. Force Majeure**. "Force Majeure" shall mean an event that is beyond the reasonable control of the affected Party, including, but not limited to: acts of God, explosions, lightning, earthquakes, fires, storms, tornadoes, floods, epidemics, pandemics, system-wide failure of transmission or distribution or the ERCOT ISO, acts of a public enemy, riot, insurrection, acts of terrorism, or the direct or indirect effect of governmental orders, actions or interferences. If either Party is rendered unable by Force Majeure to perform, in whole or part, its obligations under this Agreement, such Party shall give verbal notice to the other Party as soon as reasonably possible following the beginning of the Force Majeure event. Thereafter, and within three (3) business days, the affected Party shall provide, in writing, full details of the Force Majeure event to the other Party. During any such Force Majeure period, the obligations of the Parties (other than the obligation to make payments with respect to performance rendered prior to such Force Majeure event and the obligation to provide or pay for the replacement of Customer's obligated DSM Asset capacity) shall be suspended to the extent reasonably required by the effects of the Force Majeure. The Party claiming Force Majeure shall make all reasonable attempts to remedy its effects, including replacing Customer's currently obligated DSM Asset capacity that may be lost as a result of the event of Force Majeure (as further set forth in the applicable Transaction Confirmation), and resuming or continuing, as the case may be, performance under this Agreement with all reasonable dispatch. Force Majeure shall not include (a) any Party's decision to shut down, sell or relocate its facilities; or (b) economic loss due to either Party's loss of market(s) or supplier(s).

**Section 6. Events of Default and Termination; Remedies and Early Termination.**

&nbsp;&nbsp;&nbsp;&nbsp;**6.1**  **<u>Events of Default</u>.** Any
one or more of the following events shall constitute an event of default by the applicable Party hereunder (each, an "Event of
Default"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. failure by a Party to make any payment required hereunder or
under any TC when due if such failure is not remedied within five (5) days after receipt by the defaulting Party of written notice of
such failure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. failure by a Party to perform any other material obligation
hereunder or under any TC and such failure is not remedied within ten (10) days after receipt by defaulting Party of written notice of
such failure by the non-defaulting Party;

---

| | |
|:---|:---|
| **Energy Management Services Agreement** | ![](ex10-6_001.jpg) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. any representation or warranty made by a Party pursuant to this
Agreement or in a TC that shall have been false in any material respect when made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Customer assigns or seeks to assign the Agreement in the event
of a sale of substantially all of its assets to another entity without the consent of PPM in violation of Section 23 herein; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Other than Customer's pending chapter 11 cases, a Party: (i) commences a voluntary case or
 proceeding under any applicable bankruptcy, insolvency, reorganization or other similar law or consents to the filing of a petition
 to such effect or to the appointment of or taking possession by a custodian, receiver or similar official of such party of all or
 substantially all its property or assets, or admits in writing its inability to pay its debts generally as they become due, or takes
 corporate action in furtherance of any such action, or is the subject of an entry by a Court having jurisdiction of a decree or
 order for relief in an involuntary case or proceeding under any such law or decree or order making such an appointment; (ii) has a
 receiver or receiver manager or a court appointed official appointed for all or substantially all its proprietary assets; or institutes any proceedings for the cessation of its business or corporate existence; (iii) makes an
 assignment or attempted assignment for the benefit of its creditors; or consolidates, reorganizes, reincorporates or reconstitutes
 into or as, amalgamates with, or merges into or with a transfer substantially all of its assets to another entity and the
 resulting entity fails to assume all of such Party's obligations hereunder by operation of law or pursuant to an agreement
 reasonably satisfactory to the other Party; or (iv) with respect to Customer, (A) Customer's pending chapter 11 case is
 converted to a case under chapter 7 of the Bankruptcy Code, (B) there is appointed in
 Customer's pending chapter 11 case a chapter 11 trustee or an examiner with expanded powers beyond those set forth in section
 1106(a) of the Bankruptcy Code is appointed; or (C) Customer's pending chapter 11 case is dismissed without a plan being
 confirmed.

&nbsp;&nbsp;&nbsp;&nbsp;**6.2**  **<u>Events of Immediate Termination</u>.** The following
occurrence shall constitute an Event of Termination for which this Agreement may be immediately terminated by either Party upon written
notice to the other Party: failure of either Party to perform its obligations under this Agreement or any TC due to an event of Force
Majeure for a period exceeding ninety (90) days.

&nbsp;&nbsp;&nbsp;&nbsp;**6.3**  **<u>Early Termination</u>.** If an Event of
 Default occurs, the non-defaulting Party (as the terminating Party) may terminate this Agreement
 by written notice to the defaulting Party designating the date of early termination and delivered
 to the defaulting Party no less than ten (10) Business Days before such early termination
 date.

**Section 7. Remedies Upon an Event of Default or Early Termination.** If an Event of Default occurs, without prejudice to any other right or remedy it may have under this Agreement, the non-defaulting Party may, in its discretion, terminate this Agreement and pursue all remedies available at law or in equity, subject however, to any limitations of remedies otherwise provided in this Agreement.

**Section 8. Limitations of Remedies, Liability and Damages.**

&nbsp;&nbsp;&nbsp;&nbsp;**8.1** The
Parties agree that the remedies and measure of damages provided in this Agreement satisfy the essential purposes hereof and where this
Agreement expressly provides for an exclusive remedy in favor of any party for breach, default or failure to perform hereunder, such
remedy shall constitute the sole and exclusive remedy of the non-breaching party for the liabilities of such breaching party arising
out of or in connection with this Agreement, notwithstanding any remedy otherwise available at law or equity. If no measure of damages
or other remedy is expressly provided herein, the obligor's liability shall be limited to direct actual damages only, which direct
actual damages shall be the sole and exclusive remedy and all other remedies or damages at law or in equity are waived. **NOTWITHSTANDING ANYTHING IN THIS AGREEMENT OR ANY TRANSACTION CONFIRMATION TO THE CONTRARY, IN NO EVENT SHALL ANY PARTY BE LIABLE UNDER ANY THIS AGREEMENT OR ANY TRANSACTION CONFIRMATION TO ANY OTHER PARTY OR ANY THIRD PARTY FOR ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT, EXEMPLARY, SPECIAL OR PUNITIVE DAMAGES, INCLUDING ANY DAMAGES FOR BUSINESS INTERRUPTION OR LOSS OF REVENUE OR PROFIT, WHETHER ARISING OUT OF BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY OR OTHERWISE, REGARDLESS OF WHETHER SUCH DAMAGES WERE FORESEEABLE AND WHETHER OR NOT THE PARTY WAS ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.** 

---

| | |
|:---|:---|
| **Energy Management Services Agreement** | ![](ex10-6_001.jpg) |

---

&nbsp;&nbsp;&nbsp;&nbsp;**8.2**  **<u>Duty to Mitigate</u>.** Each Party agrees that it has a duty to mitigate damages, and covenants
 and that it will use commercially reasonable efforts to minimize any damages it may incur as
 a result of the other Party's default or non-performance under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**8.3** Customer shall be liable for any and all charges, fees, penalties,
or claims to which PPM is subject resulting from PPM's performance of the obligations hereunder, including but not limited to charges
assessed by ERCOT, incurred by PPM, Customer, or otherwise assessed to Customer's load, and shall keep PPM whole with respect to any
and all such charges, fees, penalties or claims.

**Section 9. Indemnification.** In addition to the other obligations for indemnification set forth in this Agreement, and except as such obligations may be limited hereunder, each Party shall indemnify, defend and hold the other Party, its parents, Affiliates, officers, partners, parent companies, directors, employees, and agents (the "Party Indemnitees") harmless from Claims asserted against the Party Indemnitees by any Person arising from or out of any breach of its obligations under this Agreement. It is the intent of the Parties that the indemnity and release provided for herein shall be broadly construed and shall apply regardless of whether the Party Indemnitees' strict liability, statutory liability or actual or alleged negligence including, without limitation, the Party Indemnitees' own negligence, is a concurring or contributing cause of the injury, death or damage that is the subject of the Claim, demand, or cause of action asserted against the Party Indemnitees.

**Section 10. Taxes.** Each Party shall be responsible for its own Taxes. Each Party indemnifies releases, defends and agrees to hold harmless the other Party from and against any and all liabilities for Taxes imposed or assessed by any taxing authority with respect to the EMS provided under this Agreement.

**Section 11. Representations and Warranties.** As a material inducement to entering into this Agreement, each Party, with respect to itself, represents and warrants to the other Party, as of the Effective Date of the Agreement and each TC entered hereunder, as follows: (a) it is duly organized, validly existing and in good standing under the laws of the jurisdiction of its formation and is qualified to conduct its business in those jurisdictions necessary to perform this Agreement; (b) it has and will maintain all regulatory authorizations, permits and licenses necessary for it to legally perform its obligations under this Agreement; (c) the execution, delivery and performance of this Agreement are within its powers, have been duly authorized by all necessary action and do not violate any of the terms or conditions in its governing documents or any contract to which it is a party or any law, rule, regulation, order, writ, judgment, decree or other legal or regulatory determination applicable to it; and (d) this Agreement and each other document executed and delivered in accordance with this Agreement constitutes its legally valid and binding obligation enforceable against it in accordance with its terms, subject to any equitable defenses.

**Section 12. Confidentiality.** Neither Party shall disclose, unless authorized in writing by the other Party, the fees paid under the terms of this Agreement or any of the details of the methods, plans and practices utilized by PPM in the performance of the EMS which information, disclosed by the disclosing Party, is hereinafter collectively referred to as "Confidential Information," to a third party (other than the receiving Party's lenders, counselors, advisors, or accountants who have agreed to keep such terms and information confidential) except in order to comply with any applicable law, order, regulation or exchange rule or to obtain transmission, distribution, ancillary or other regulated services; provided, however, that each Party will, to the extent legally permissible, notify the other Party of any proceeding of which it is aware of that may result in non-routine disclosure of the disclosing Party's Confidential Information. Further, each Party, when acting as a receiving Party, shall use the Confidential Information solely for the purpose of implementing this Agreement. This confidentiality provision shall not apply to information (a) that was known to the receiving Party prior to its being obtained from the disclosing Party, (b) that is in, or comes into, the public domain, (c) obtained by a Party from a third party who did not, directly or indirectly, receive the information from the disclosing Party or from an entity who was under an obligation of confidentiality to the disclosing Party, or (d) developed by the receiving Party or its Affiliates, independent of any Confidential Information. The obligations set forth in this Section shall survive the termination of this Agreement for a period of two (2) years.

**Section 13. Change in Law.** If there is a change in law or administrative regulation or material change in market design that prohibits the participation of Customer's DSM Assets in the DSM Programs, the Parties shall meet as soon as practicable to attempt to renegotiate the Agreement to comply with such change. If the Parties are not able to reach agreement or there is no way for the Agreement to be modified to alleviate the prohibition within a reasonable time, then either Party may terminate this Agreement upon reasonable written notice to the other Party. In no event shall PPM be obligated to continue this Agreement with respect to Customer's DSM Assets if doing so jeopardizes in any way its market licenses.

**Section 14. Governing Law.** THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, WITHOUT REGARD TO ITS CONFLICT OF LAW PROVISIONS, THE VALIDITY OF THIS AGREEMENT, THE CONSTRUCTION OF ITS TERMS, AND THE INTERPRETATION OF THE RIGHTS AND DUTIES ARISING HEREUNDER.

---

| | |
|:---|:---|
| **Energy Management Services Agreement** | ![](ex10-6_001.jpg) |

---

**Section 15. Waiver; Amendments.** Any term or condition of this Agreement may be waived at any time by the Party that is entitled to the benefit thereof, but no such waiver shall be effective unless set forth in a written instrument duly executed by or on behalf of the Party waiving such term or condition. No waiver by any Party of any term or condition of this Agreement, in any one or more instances, shall be deemed to be or construed as a waiver of the same or any other term or condition of this Agreement on any future occasion. Subject to the limitations in this Agreement, all remedies, either under this Agreement or by law or otherwise afforded, shall be cumulative and not alternative. No delay or omission by the Parties hereto in exercising any right or remedy provided for herein shall constitute a waiver of such right or remedy nor shall it be construed as a bar to or waiver of any such right or remedy on any future occasion. This Agreement may be amended, supplemented or modified only by a written instrument duly executed by each Party hereto.

**Section 16. Severability.** The terms and provisions of this Agreement shall be deemed severable. If any term or provision or part thereof contained in this Agreement is held by a court of competent jurisdiction to be contrary to law or public policy or otherwise unenforceable, then (i) the remaining provisions of this Agreement will remain in full force and effect, and the application of such term or provision in any other situation or respect shall not be affected, and (ii) the Parties shall use their good faith efforts to agree to a suitable and equitable term or provision to be substituted therefor in order to carry out, so far as may be legal, valid and enforceable the original intent and purpose of such illegal, invalid or unenforceable provisions.

**Section 17. Survival.** All confidentiality, indemnity and audit rights set forth herein will survive the termination of this Agreement for two (2) years from the effective date of such termination.

**Section 18. Entire Agreement.** This Agreement constitutes the sole and entire agreement of the Parties to this Agreement with respect to the subject matter contained herein and therein, and supersede all prior and contemporaneous understandings and agreements, both written and oral, with respect to such subject matter.

**Section 19. No Partnership Created.** Nothing contained in this Agreement shall be construed as constituting a joint venture or partnership between PPM and Customer or any other Person, or otherwise authorize a Party to represent or bind the other Party.

**Section 20. Counterparts.** This Agreement may be executed in several counterparts, each of which will be an original and all of which constitute the same instrument. A signed copy of this Agreement and any TC delivered by PDF, facsimile, electronic mail (e-mail), or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

**Section 21. Setoff.** PPM is hereby authorized, to the fullest extent permitted by law, to set off and apply any and all obligations at any time owing by Customer to PPM under this Agreement against any obligations now or hereafter owing by PPM to Customer. The rights of PPM under this Section 20 are in addition to other rights and remedies (including other rights of setoff) that PPM may have.

**Section 22. Third Party Beneficiaries.** This Agreement is for the sole benefit of the Parties hereto and their respective successors and permitted assigns and nothing herein, express or implied, is intended to or shall confer upon any other Person any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.

**Section 23. Assignment.** This Agreement shall be binding upon and shall inure to the benefit of, and may be performed by, the successors and assigns of the Parties, except that, no assignment by either Party shall operate to release the assignor from any of its obligations under this Agreement, unless the other Party consents in writing to such assignment and releases, in writing, the assignor from any of its obligations hereunder (such consent not to be unreasonably withheld or delayed).

Notwithstanding the foregoing, and without the consent of the other Party, either Party may assign (i) any of its rights, obligations and duties hereunder to (A) if applicable, subcontractors engaged by it and/or (B) an entity who purchases all or substantially all of the assets of such Party, and/or (C) an affiliate of such Party and/or (D) in connection with Customer's Chapter 11 case.

**Section 24. Definitions.** In addition to the definitions contained in parentheticals throughout the Agreement, the following definitions shall apply hereunder whether stated in the singular or plural. Capitalized terms not otherwise defined in this Agreement shall have the respective meanings set forth in the ERCOT Protocols and/or the PUCT Rules and Regulations.

"4CP" means the Four Coincidental Peaks and is a value measured by the regulated utilities and coops in Texas that is used to directly or indirectly capture regulated transmission and transmission cost recovery factor rates from end-use customers. It is calculated based upon ERCOT system peak demand during the months of June, July, August and September in coincidence with client loads, as measured over a 15-minute interval time period.

---

| | |
|:---|:---|
| **Energy Management Services Agreement** | ![](ex10-6_001.jpg) |

---

"Affiliate" means, with respect to any Person, any other Person (other than an individual) that, directly or indirectly, through one or more intermediaries, controls, or is controlled by, or is under common control with, such Person. For this purpose, "control" means the direct or indirect ownership of fifty percent (50%) or more of the outstanding capital stock or other equity interests having ordinary voting power.

"Agreement" means this Energy Management Services Agreement and any and all Transaction Confirmations.

"Ancillary Services" means the services required by ERCOT as set forth in Section 6 of the ERCOT Protocols.

"Bankrupt" means with respect to any entity, such entity (i) files a petition or otherwise commences, authorizes or acquiesces in the commencement of a proceeding or cause of action under a law related to Bankruptcy or Insolvency or has any such petition filed or commenced against it which is not dismissed within 30 days, (ii) makes an assignment or any general arrangement for the benefit of creditors, (iii) otherwise becomes bankrupt or Insolvent (however evidenced), (iv) has a liquidator, administrator, receiver, trustee, conservator or similar official appointed with respect to it or any substantial portion of its property or assets, or (v) is Insolvent.

"Business Day" means any day except a Saturday, Sunday, or a Federal Reserve Bank holiday. A Business Day shall open at 8:00 a.m. and close at 5:00 p.m. CPT.

"Claiming Party" means the Party claiming an event of Force Majeure.

"Claims" means all third party claims, demands or causes of action, that directly or indirectly relate to the subject matter of an indemnity given hereunder, and the resulting losses, damages, expenses, reasonable attorneys' fees and court costs, whether incurred by settlement or otherwise, whether such claims or actions are threatened or filed prior to or after the termination of this Agreement.

"CPT" means Central Prevailing Time.

"DSM Assets" means a facility that has the ability to reduce or modify electricity use in response to instructions or signals. DSM Assets will be identified with its associated site address, common name and utility account number on a TC.

"DSM Programs" means the ERCOT Ancillary Service Markets, Load Resource Participation or Load Acting as a Resource ("LAAR"), TDSP Commercial Load Management ("CLM"), Emergency Response Service ("ERS10" and "ERS30"), collectively "ERS"), Four Coincident Peak ("4CP") and Economic Energy Dispatch opportunities to produce revenue and/or reduce Customer cost. The scope of DSM Programs may change from time to time and to the extent that a new DSM Program becomes available, PPM will notify Customer of the new DSM Program attributes and Customer's participation shall be documented on a TC. The standards of compliance for Ancillary Services, LAAR, ERS10, ERS30 are set forth in the ERCOT Protocols.

"Energy" means electric energy.

"ERCOT" means the Electric Reliability Council of Texas or its successor(s).

"ERCOT Protocols" means the document adopted by ERCOT, including any attachments or exhibits referenced in these Protocols, as amended from time to time, that contain, among other things, the scheduling, operating, planning, reliability, and settlement (including Customer registration) policies, rules, guidelines, procedures, standards, and criteria of ERCOT.

"Governmental Authority" means any federal, state, local, municipal or other government, any governmental, regulatory or administrative agency, commission or other authority, having jurisdiction over a given matter and lawfully exercising, or being entitled to exercise, jurisdiction over the Parties or in connection with such matter.

"HE" means hour ending.

"Insolvent" means with respect to any Party, when such Party shall be unable to pay liabilities as they mature, or such entity shall admit in writing its inability to pay its debts generally as they become due.

"Instruction" means an electronic or verbal communication initiated by ERCOT, sent to PPM and then relayed to Customer to either decrease Energy consumption or increase the output of a Generating Unit or both.

---

| | |
|:---|:---|
| **Energy Management Services Agreement** | ![](ex10-6_001.jpg) |

---

***"Peak Load*"** is defined as the max interval usage reflected by utility metered historical usage data or telemetered meter data to PPM.

"Person" means any natural person, corporation, general partnership, limited partnership, limited liability company, proprietorship, other business organization, trust, union, association, Governmental Authority or other form or legal entity.

"PUCT" means the Public Utility Commission of Texas.

"Taxes" means any and all sales, use, gross receipts, franchise, excise, or any other taxes or similar charges imposed by any Governmental Authority on, or with respect to the sale and purchase of Energy or other products sold hereunder, but excluding property and income taxes imposed on the respective Parties, fees or charges by ERCOT and any fees or charges already included in the TDSP charges.

"Transmission and Distribution Service Provider" or "TDSP" means the regulated companies providing electric transmission and distribution service as designated by the PUCT.

"Transaction Confirmation" means a document entitled Transaction Confirmation, incorporating the terms of this Agreement by reference, and setting forth the commercial terms and conditions of Customer's participation in a certain DSM Program, signed by both Parties and substantially similar to Exhibit B.

**Section 25. Notices.** Notices, claims, demands, waivers and other communications hereunder shall be in writing and shall be deemed to have been given: (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee if sent by a nationally recognized overnight courier (receipt requested); (c) on the date sent by facsimile or email of a PDF document (with confirmation of transmission) if sent during normal business hours of the recipient, and on the next Business Day if sent after normal business hours of the recipient or (d) on the third day after the date mailed, by certified or registered mail, return receipt requested, postage prepaid. The addresses of the Parties for Notice are as follows (or at such other address for a Party as shall be specified in a notice given in accordance with this Section):

---

| | | |
|:---|:---|:---|
| **Notices to CUSTOMER** | **Notices to CUSTOMER** | **Notices to CUSTOMER** |
|  | Contract Issues | Billing & Payment |
| Attn: | Legal | Dave Albert |
| Address: | Celsius Mining LLC<br> 50 Harrison St, Suite 209F | Celsius Mining LLC<br> 50 Harrison St, Suite 209F |
| City,<br> State,<br> Zip | Hoboken NJ 07030 | Hoboken NJ 07030 |
| Phone# |  | 412-736-4933 |
| Email: | legal@celsius.network | david.albert@celsius.network |

---

---

| | |
|:---|:---|
| **Notices to PPM** | **Notices to PPM** |
| Attn: | Russell Schwertner |
| Address: | 4526 Research Forest Drive<br> Suite 250 |
| City,<br> State,<br> Zip, | The Woodlands, TX 77381 |
| Phone# | 281-231-9129 |
| Email: | rschwertner@prioritypower.net |

---

*[Signature page to follow]*

---

| | |
|:---|:---|
| **Energy Management Services Agreement** | ![](ex10-6_001.jpg) |

---

IN WITNESS WHEREOF, and intending to be legally bound, the Parties, have duly executed this Agreement by their authorized representatives as of the Effective Date. This Agreement will not become effective as to either Party unless and until executed by both Parties.

---

| | | | |
|:---|:---|:---|:---|
| **Celsius Mining LLC** | **Celsius Mining LLC** | **Priority Power Management, LLC** | **Priority Power Management, LLC** |
| By: | /s/ Chris Ferraro | By: | /s/ Trent Stout |
| Name: | Chris Ferraro | Name: | Trent Stout |
| Title: | Authorized Signatory | Title: | Senior Managing Director |
| Date: | 12/20/2022 | Date: | 12/7/2022 |

---

---

| | |
|:---|:---|
| **Energy Management Services Agreement** | ![](ex10-6_001.jpg) |

---

**EXHIBIT A**

Procedure for interrupting the load:

&nbsp;&nbsp;&nbsp;&nbsp;1. For ERCOT deployments, PPM will send a trip signal to interrupt
the load.

&nbsp;&nbsp;&nbsp;&nbsp;2. CUSTOMER will receive a deployment notification from PPM
via phone call, text and/or email to the phone number and email supplied by CUSTOMER to PPM for the Contact Person.

&nbsp;&nbsp;&nbsp;&nbsp;3. When the event is over, CUSTOMER will receive a restoration
notification from PPM via phone call, text and/or email to the phone number and email supplied by CUSTOMER to PPM for the Contact Person.

&nbsp;&nbsp;&nbsp;&nbsp;4. PPM will reset the trip signal.

&nbsp;&nbsp;&nbsp;&nbsp;5. CUSTOMER has 3 hours to restore load.

---

| | |
|:---|:---|
| **Energy Management Services Agreement** | ![](ex10-6_001.jpg) |

---

**EXHIBIT B**

**Transaction Confirmation #1**

This Transaction Confirmation confirms the transaction between the Parties agreed to as of the date accepted by Priority Power Management LLC ("PPM") below pursuant to and in accordance with the Energy Management Services Agreement entered into between PPM and Celsius Mining LLC("Customer") dated November 17, 2022 (the "Agreement") and constitutes part of and is subject to all of the terms and provisions of such Agreement. Capitalized terms used but not defined herein shall have the meanings given to them in the Agreement, or to the extent not used therein, capitalized terms shall have the respective meanings set forth in the relevant ERCOT Protocols, Manuals, Rules and/or Regulations governing the demand response opportunity, product and/or program.

**Demand Response Opportunity:** ERCOT Ancillary Services Market, including (to the extent offered by ERCOT and to the extent Customer is eligible to participate) Regulation Service – Up, Regulation Service – Down, Responsive Reserve Service, and Non-spinning Reserve Service, and such other ancillary services products as ERCOT may offer from time to time

**Qualification and Registration of Load Resource:** PPM will seek qualification and registration at ERCOT of Customer's DSM Assets based on the capabilities of the DSM Assets, in accordance with the ERCOT Protocols and Applicable Law, which are subject to amendment from time to time. Each DSM Asset may operate as a Controllable Load Resource ("CLR") or a Non- Controllable Load Resource ("Load Resource"), depending upon its ability to meet the functional requirements related thereto.

**Start Date:** November 17, 2022

**Term:** Start Date through November 16, 2027

**DSM Assets:**

---

| | | |
|:---|:---|:---|
| **Common Name** | **ESI ID** | **Estimated Total<br> Quantity (in MW)<br> ("ETQ")** |
| EAST STILES | 10443720005252691 | 15 |
| East Stiles 2 | 10443720005139830 | 15 |
| GARDEN CITY | 10443720005427407 | 12 |
| REBEL | 10443720007617836 | 12.5 |
| Rebel 2 | 10443720002673458 | 12.5 |
| STILES | 10443720000076843 | 20 |

---

---

| | |
|:---|:---|
| **Energy Management Services Agreement** | ![](ex10-6_001.jpg) |

---

**Description**: PPM and Customer agree to work together to develop a commercially appropriate curtailment plan for the DSM Assets (the "Curtailment Plan"). As part of the development of such Curtailment Plan, and the maintenance of such Curtailment Plan during the Term, Customer agrees to advise PPM and keep PPM advised as to planned outages, maintenance and forced outages, and recognizes that time is of the essence with respect to such communications. The Curtailment Plan will be updated from time to time, and each Party recognizes the need to update the Curtailment Plan in real-time as is necessary to maximize the performance of the DSM Assets.

Notwithstanding the above, during the Term, unless Customer has opted out in accordance with the terms herein, Customer shall make available the DSM Assets listed in the table above for participation in the Ancillary Services Market. Customer shall make best efforts to maximize participation of the DSM Assets but, from time to time, Customer may opt certain DSM Asset(s) out of participation for an Operating Day (or for certain operating hours during the Operating Day) by giving PPM written notice of Customer's opt-out by 8 a.m. Central Time the day prior to the Operating Day for which the opt-out applies.

Unless Customer has given PPM written notice by 8 a.m. Central Time the day prior to the Operating Day, PPM will offer into the ERCOT Ancillary Services Market, an amount of Customer's capacity associated with the DSM Assets that, in PPM's reasonable judgment, complies with the ERCOT protocols up to the ETQ as set forth in the table above. Customer understands that the ETQ does not represent the ERCOT awarded quantities and is solely a best estimate of possible performance of the DSM Asset, and that the amount of capacity offered, the price associated therewith, and the ERCOT awarded quantities will vary from time to time.

Customer understands that once an offer of capacity related to DSM Asset(s) by PPM on behalf of Customer is accepted by ERCOT and awarded by ERCOT, it becomes "Customer's Ancillary Services Obligation", and Customer agrees to reduce electrical demand to achieve its obligated capacity during a demand response event. Customer also agrees not to offer or otherwise obligate the capacity that comprises the Customer's Ancillary Services Obligation.

PPM agrees to provide Customer reasonable written notice of any Customer Ancillary Services Obligation that may be expected to exceed 24 hours.

**Economic Settlement**: Customer's load shall receive revenues related to its participation in the ERCOT Ancillary Services Market and such revenues are determined using the ERCOT awarded quantities and associated market clearing prices. If, for any period of time during the Term Customer's Ancillary Services Obligation to ERCOT is not met, whether due to Force Majeure, a forced outage, or otherwise, Customer authorizes PPM (at PPM's sole option and without advance notice to Customer) to replace the obligated capacity by procuring financial or physical replacement Ancillary Services from a third party and/or from ERCOT, and the decision with respect to counterparty and price shall be made in PPM's sole discretion (such replacement Ancillary Services called "Replacement AS"). PPM will make commercially reasonable efforts to procure the Replacement AS at a commercially reasonable cost to Customer. For all hours and all obligated capacity for which PPM procures Replacement AS, PPM will charge Customer, and Customer shall be obligated to pay PPM, a "Replacement AS Cost" equal to the amount PPM paid for the Replacement AS. If the Replacement AS charges exceed the revenues relative to this Transaction, Customer will remit payment to PPM in the amount invoiced by PPM within ten (10) Business Days after receipt of the invoice from PPM. If the Replacement AS charges do not exceed the revenues relative to the Transaction, Customer hereby authorizes PPM to net the Replacement AS charges against the revenue and remit the difference to the Customer.

**Reimbursable Expenses; Monthly Telecommunication Costs**. In the event PPM incurs out of pocket expenses related to the EMS, Customer shall reimburse PPM monthly for such expenses that are reasonable in amount, reasonably incurred, verified, and approved by Customer. Customer is further responsible for all monthly telecommunication expenses incurred hereunder and PPM shall pass through the cost of monthly telecommunication expenses to Customer without additional markup. Out of pocket expenses and monthly telecommunication expenses will be reflected on the monthly settlement statement prepared by PPM and delivered to Customer, and Customer shall satisfy those costs and expenses reflected thereon in accordance with the Agreement.

During a period of deployment ERCOT may assess Imbalance Charges to PPM. The full amount of these charges will be passed through to the Customer without markup and Customer is responsible for these Imbalance Charges. If the Imbalance Charges exceed the revenues relative to this Transaction Confirmation, Customer will remit payment to PPM in the amount invoiced by PPM. If the Imbalance Charges do not exceed the revenues relative to the Transaction Confirmation, Customer hereby authorizes PPM to net the Imbalance Charges against the revenue and remit the difference to the Customer in full satisfaction of PPM's obligation hereunder. "Imbalance Charges" include any and all charges assessed by ERCOT related to imbalance, including but not limited to the Real-Time Ancillary Service Imbalance Amount and the Real-Time Reliability Deployment Ancillary Service Imbalance Amount.

For all awarded quantities, the compensation shall be the revenues relative to this Transaction actually received by PPM from ERCOT (subject to the netting of Replacement AS and Imbalance Charges as set forth herein, if any). The net revenues shall be divided between the Parties with:

&nbsp;&nbsp;&nbsp;&nbsp;a) 92% of the net revenue accruing to Customer; and

&nbsp;&nbsp;&nbsp;&nbsp;b) 8% of the net revenue accruing to PPM.

*[Signature page to follow]*

---

| | |
|:---|:---|
| **Energy Management Services Agreement** | ![](ex10-6_001.jpg) |

---

---

| | | | |
|:---|:---|:---|:---|
| **Agreed and Accepted.** | **Agreed and Accepted.** | | |
| **Celsius Mining LLC** | **Celsius Mining LLC** | **Priority Power Management, LLC** | **Priority Power Management, LLC** |
| By: | /s/ Chris Ferraro | By: | /s/ Trent Stout |
| Name: | Chris Ferraro | Name: | Trent Stout |
| Title: | **Authorized Signatory** | Title: | Senior Managing Director |
| Date: | 12/20/2022 | Date: | 12/7/2022 |

---

---

| | |
|:---|:---|
| **Energy Management Services Agreement** | ![](ex10-6_001.jpg) |

---

**Transaction Confirmation #2**

This Transaction Confirmation confirms the transaction between the Parties agreed to as of the date accepted by Priority Power Management LLC ("PPM") below pursuant to and in accordance with the Energy Management Services Agreement entered into between PPM and Celsius Mining LLC ("Customer") dated <u>November 17, 2022</u> (the "Agreement") and constitutes part of and is subject to all of the terms and provisions of such Agreement. Terms used but not defined herein shall have the meanings ascribed to them in the Agreement, or to the extent not therein defined terms shall have the respective meanings set forth in the relevant ERCOT Protocols, Manuals, Rules and/or Regulations governing the demand response opportunity and/or program.

**Opportunity:** 4CP

**Term:** 60 Months beginning <u>11/17/2022</u> through <u>11/16/2027</u>

---

| | | |
|:---|:---|:---|
| **Common Name** | **ESI ID** | **Estimated Total<br> Quantity (in MW)<br> ("ETQ)** |
| EAST STILES | 10443720005252691 | 15 |
| East Stiles 2 | 10443720005139830 | 15 |
| GARDEN CITY | 10443720005427407 | 12 |
| REBEL | 10443720007617836 | 12.5 |
| Rebel 2 | 10443720002673458 | 12.5 |
| STILES | 10443720000076843 | 20 |

---

**Description:** PPM will notify CUSTOMER of the periods that PPM reasonably expects 4CP to occur. Customer acknowledges and agrees that

i) it is not possible to know the exact timing of a 4CP event and ii) PPM makes no representation as to its ability to identify in advance any 4CP event.

**Economic Settlement:** The value associated with 4CP will be determined for each ESIID by calculating a "Monthly Curtailment Amount" for each of the intervals in the summer months used by the TDSP to determine 4CP demand. The Monthly Curtailment Amount is calculated by subtracting Customer's actual metered consumption during the 4CP intervals from Customer's Baseline Load. Baseline Load is calculated by the same method as described for the Meter-Before/Meter-After Model as described in the ERCOT Demand Response Baseline Methodologies document. Each Monthly Curtailment Amount will be multiplied by 4 to compute the hourly demand and then averaged to calculate the "4CP Reduction". The 4CP Reduction described above shall be the input into the TDSP tariff calculation to determine the dollar value of the savings realized by taking action to reduce Energy consumption during a 4CP event ("4CP Savings"). The 4CP Savings shall be divided between the Parties with:

&nbsp;&nbsp;&nbsp;&nbsp;a) 100% of the Revenue accruing to Customer; and

&nbsp;&nbsp;&nbsp;&nbsp;b) 0% of the Revenue accruing to PPM.

---

| | | | |
|:---|:---|:---|:---|
| **Celsius Mining LLC** | **Celsius Mining LLC** | **Priority Power Management, LLC** | **Priority Power Management, LLC** |
| By: | /s/ Chris Ferraro | By: | /s/ Trent Stout |
| Name: | Chris Ferraro | Name: | Trent Stout |
| Title: | **Authorized Signatory** | Title: | Senior Managing Director |
| Date: | 12/20/2022 | Date: | 12/7/2022 |

---

---

| | |
|:---|:---|
| **Energy Management Services Agreement** | ![](ex10-6_001.jpg) |

---

**EXHIBIT B (continued)**

**Transaction Confirmation #3**

This Transaction Confirmation confirms the transaction between the Parties agreed to as of the date accepted by Priority Power Management, LLC ("PPM") below pursuant to and in accordance with the Energy Management Services Agreement entered into between PPM and Celsius Mining LLC ("Customer") dated November 17, 2022 (the "Agreement") and constitutes part of and is subject to all of the terms and provisions of such Agreement. Capitalized terms used but not defined berein shall have the meanings given to them in the Agreement, or to the extent not used therein, capitalized terms shall have the respective meanings set forth in the relevant ERCOT Protocols, Manuals, Rules and/or Regulations governing the demand response opportunity, product and/or program.

**Demand Response Opportunity:** Economic Energy Dispatch

PPM will seek qualification and registration at ERCOT of Customer's DSM Assets based on the capabilities of the DSM Assets, in accordance with the ERCOT Protocols and Applicable Law, which are subject to amendment from time to time. Each DSM Asset may operate as a Controllable Load Resource ("CLR") or a Non-Controllable Load Resource ("Load Resource"), depending upon its ability to meet the functional requirements related thereto. Economic Energy Dispatch may be performed through Customer's Voluntary Load Sales in response to wholesale energy market prices via the energy supply contract with Customer's Retail Electric Provider ("REP") or by participating in Security Constrained Economic Dispatch (SCED) administered by ERCOT.

**Term:** 60 Months beginning <u>11/17/2022</u> through <u>11/16/2027</u>

---

| | | |
|:---|:---|:---|
| **Common Name** | **ESI ID** | **Estimated Total<br> Quantity (in MW)<br> ("ETQ)** |
| EAST STILES | 10443720005252691 | 15 |
| East Stiles 2 | 10443720005139830 | 15 |
| GARDEN CITY | 10443720005427407 | 12 |
| REBEL | 10443720007617836 | 12.5 |
| Rebel 2 | 10443720002673458 | 12.5 |
| STILES | 10443720000076843 | 20 |

---

---

| | |
|:---|:---|
| **Energy Management Services Agreement** | ![](ex10-6_001.jpg) |

---

**Description:** Customer and PPM acknowledge and agree that generally, the intent of the Parties related to Customer's participation in Economic Energy Dispatch, is for any and all economic benefit realized relating to the DSM Asset(s) during the Term to be shared in accordance with the revenue sharing percentages set forth below. Customer further acknowledges that practically, the economic benefit intended to be shared hereunder may be realized in a number of different ways, including but not limited to: (i) dollars received by PPM as the QSE for the DSM Asset, (ii) dollars received by or on behalf of Customer (e.g. financial wholesale provider or Retail Electric Provider) or (iii) as an avoided cost to Customer. In any event and regardless of how the economic benefit is practically realized, Customer agrees to work in good faith to ensure the intent of shared economic benefit is met.

During the Term, the DSM Asset(s) may receive an economic benefit in one of three ways:

1. **SCED.** Customer shall determine a price such that when the Locational Marginal Price (LMP) is at
 or above the determined price Customer agrees to curtail its Energy usage (the "Strike Price"). Upon receipt of an
 ERCOT dispatch, PPM will send a Dispatch Instruction to Customer. Customer acknowledges and agrees that i) it is not possible for
 PPM to know what the LMP at any given time will be and ii) PPM makes no representations with respect to its ability to forecast LMP at any given
 time. Customer shall curtail its usage in accordance with the Dispatch Instruction, the ERCOT Protocols and Applicable Law.

2. **Voluntary Load Curtailment**. Customer may determine a price such that when the LMP is at or above the determined price Customer may curtail
its Energy usage, which may trigger liquidation of wholesale block(s) of Energy procured by Customer or on its behalf. In addition, Customer
may facilitate Voluntary Load Curtailment for 4CP, maintenance, and/or at Customer discretion.

3. **Avoided Cost.** In addition to instances of Energy
Dispatch and Voluntary Load Curtailment as set forth in numbers 1 and 2 above, Customer will receive an economic benefit in the form
of an avoided cost in all instances and for all Intervals where Customer's actual metered consumption is less than the wholesale block
quantity and (x) exceeds (y), where (x) is the Real-Time Settlement Price Point (RTSPP) and (y) is the sum of Customer's wholesale block
price plus the retail adder, regardless of the reason for Customer consuming less than the wholesale block. This Avoided Cost is an additional
economic benefit and shall be shared in accordance with the revenue sharing percentages set forth below.

**Economic Settlement:** The economic benefit associated with 1, 2 or 3 above, will be determined by multiplying (a) the Curtailment Amount (as defined herein) for each Settlement Interval by (b) the value of the [RTSPP] minus [the cost of the wholesale block plus the retail adder]. The Curtailment Amount is calculated by subtracting Customer's actual utility metered consumption from the wholesale block quantity for each Settlement Interval.

Economic Settlement Formula:

Curtailment Amount x (RTSPP (Wholesale Block Price + Retail Adder))

The sum of i) the revenue generated by Customer's Energy Dispatch, ii) the revenue generated by Customer's Voluntary Load Curtailment and iii) the value of the Customer's Avoided Cost associated hereunder (the "Revenue") shall be divided between the Parties with:

&nbsp;&nbsp;&nbsp;&nbsp;a) 92%
of the Revenue accruing to Customer; and

&nbsp;&nbsp;&nbsp;&nbsp;b) 8%
of the Revenue accruing to PPM.

**Payment.** If the Revenue is received by PPM, PPM will issue a line item credit on the monthly settlement statement as set forth in Section 2(e) of the Agreement.

---

| | |
|:---|:---|
| **Energy Management Services Agreement** | ![](ex10-6_001.jpg) |

---

If the Revenue is received by the Customer via cash payment from its Retail Electric Provider, wholesale provider, ERCOT or other third party, PPM will insert the Revenue amount as a line item on the settlement statement and Customer will remit to PPM the amount invoiced by PPM within ten (10) Business Days after receipt of the invoice from PPM.

If the Revenue is received in the form of a bill credit from Customer's Retail Electric Provider, wholesale provider, ERCOT, or other third party, Customer will nonetheless remit PPM's percentage share of the Revenue via payment to PPM. PPM will insert the Revenue as a line item on the settlement statement and Customer will remit to PPM the amount invoiced by PPM within ten (10) Business Days after receipt of the invoice from PPM.

**Reimbursable Expenses.** PPM will pass through without markup any telecommunication, labor and material charges associated with enabling telemetry and automation as a line item on the monthly settlement statement as set forth in Section 2(e) of the Agreement.

*[Signature page to follow]*

---

| | |
|:---|:---|
| **Energy Management Services Agreement** | ![](ex10-6_001.jpg) |

---

---

| | | | |
|:---|:---|:---|:---|
| **Celsius Mining LLC** | **Celsius Mining LLC** | **Priority Power Management, LLC** | **Priority Power Management, LLC** |
| By: | /s/ Chris Ferraro | By: | /s/ Trent Stout |
| Name: | Chris Ferraro | Name: | Trent Stout |
| Title: | **Authorized Signatory** | Title: | Senior Managing Director |
| Date: | 12/20/2022 | Date: | 12/7/2022 |

---

---

| | |
|:---|:---|
| **Energy Management Services Agreement** | ![](ex10-6_001.jpg) |

---

**EXHIBIT C**

**ACH VENDOR / MISCELLANEOUS PAYMENT INFORMATION FORM**

This form is used to conduct Automated Clearing House (ACH) payments to a recipient per applicable, agreed upon invoicing and/or contractual terms between identified parties. The information below is Confidential and applicable to all privacy laws.

**PAYEE / COMPANY INFORMATION**

---

| | |
|:---|:---|
| Company Name: | **Celsius Mining LLC** |
| Address: | **50 Harrison Street, Suite 209F, Hoboken, New Jersey 07030** |
| Contact Person Name: | **Jenny Fan** |
| Telephone #: | **2018242888** |
| Email Address: | **mining.ap@celsius.network** |

---

**FINANCIAL INSTITUTION INFORMATION**

---

| | |
|:---|:---|
| Institution Name: | **Signature Bank** |
| Address: | **1400 Broadway, 26th Floor, New York, NY 10018** |
| Telephone #: | **(646) 949-4054** |
| Routing Transit #: | **026013576** |
| Account #: | **1504554445** |
| Lockbox # (if applicable): |  |
| Type of Account: | ☒ Checking ☐ Savings ☐ Lockbox |

---

**Please return the completed form to:**

Russell Schwertner<br> Vice President of Asset Operations<br> Priority Power Management LLC<br> rschwertner@prioritypower.net<br> 281-231-9129

## Exhibit 10.7

**Exhibit 10.7**

![](ex10-7_001.jpg)

**Energy Management and Consulting Services Agreement**

This Energy Management and Consulting Services Agreement ("Agreement") is entered into and effective as of the date of September 28, 2021, by and between **Celsius Core LLC** (hereafter "CELSIUS") and **Priority Power Management, LLC**, a Texas limited liability company (hereafter "PPM"), collectively the "Parties".

**Recitals**

**Whereas**, deregulation of the electric energy marketplace has placed greater responsibility upon energy buyers for managing use and costs; and

**Whereas,** PPM has been providing energy management and consulting services to industrial, commercial and other large-volume end-users such as CELSIUS since 2001; and

**Whereas,** CELSIUS seeks assistance from PPM in managing its energy use, costs and related matters, and in negotiating an electricity supply contract with a suitable Retail Electric Provider ("REP") licensed by the Public Utility Commission of Texas;

Now, **Therefore**, in consideration of the mutual covenants set forth herein and other good and valuable consideration, the Parties hereby agree that PPM shall be the exclusive provider of the services outlined herein on the terms and conditions set forth below:

**Terms and Conditions**

**1.**  **<u>Nature and Scope</u>.** CELSIUS hereby retains PPM as the exclusive provider of the energy management and consulting services set forth in
Attachment A (the "Primary Services") for the CELSIUS property listed on Attachment B (the "Facility"), as such
Attachment A may be updated from time to time pursuant to the terms hereof, for the Initial Term and any Renewal Terms, as those terms
are defined below. PPM agrees to provide the Primary Services set forth in Attachment A. CELSIUS and PPM may agree from time to time
for PPM to provide the Other Services to CELSIUS for the Facility as set forth in Attachment A (together with the Primary Services, the
"Services"). PPM assumes no responsibility for performance either by third party suppliers of goods and services to CELSIUS
("Supplier" or "Suppliers") or by CELSIUS under contracts or agreements, formal or informal, between CELSIUS
and its Suppliers and/or customers that do not operate under the direction of PPM. In its performance of the Services, PPM shall not
take title to any electricity.

**2.**  **<u>Term</u>.** This Agreement shall be effective as of
the date stated above and shall remain in force and effect until 60 months following the execution of an electricity supply contract,
or for the length of the electricity supply contract between CELSIUS and an REP, whichever is longer ("Initial Term"); provided
that PPM identified such REP pursuant to its performance of the Primary Services hereunder. Thereafter, without further action by the
Parties, this Agreement shall automatically renew at the end of the Initial Term for one year and thereafter for one-year terms on each
anniversary of the renewal date (each, a "Renewal Term") unless either Party give the other Party written notice at least
90 days prior to the expiration of the then applicable term of this Agreement. In addition, a non-breaching Party may terminate this
Agreement if the other Party breaches its obligations under this Agreement and fails to cure such breach within thirty (30) days after
receipt of notice from the non-breaching Party of the existence of a breach. Provided, however, termination of this Agreement shall not
affect the rights and responsibilities of the Parties under any electricity supply contract in effect, and the termination of this Agreement
shall not be effective until the electricity supply contract terminates or expires.

**3.**  **<u>Compensation</u>.** As compensation for providing the
Services, CELSIUS authorizes PPM to collect from CELSIUS's REP billing and collecting agent, as applicable, a monthly volumetric
fee equal to $0.001 per kWh of CELSIUS's electricity supply for the CELSIUS Facility for the duration of the term of the energy
supply contract. The fee paid to PPM shall be included in the REP's electricity supply contract with CELSIUS, and CELSIUS's
REP will remit the fee to PPM directly.

**4.**  **<u>Facility</u>.** The Facility initially covered under this Agreement is identified on Attachment
 B. Additional facilities may be added at a later date upon the mutual agreement of the Parties. Such additional facilities shall
 only be included in Attachment B only when there is an executed electricity supply contract between CELSIUS and a REP within the
 ERCOT market.

Priority Power Management, LLC Page 1 of 8

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**5.**  **<u>Authority and Exclusivity of PPM</u>.** CELSIUS expressly
authorizes PPM to act on its behalf with respect to the Primary Services at the Facility. CELSIUS agrees to provide a Letter of Limited
Agency on CELSIUS's letterhead, substantially in the form of Attachment C, instructing energy suppliers and or transmission distribution
service providers to provide necessary information to PPM that will be used in providing the Services. Notwithstanding anything to the
contrary, PPM is not authorized to enter into any agreements as agent on behalf of CELSIUS, unless and until CELSIUS has authorized PPM
to do so in written form, including but not limited to pursuant to e-mail. Commencing on the Effective Date and continuing during the
Initial Term and any Renewal Term, CELSIUS agrees that PPM shall have the sole and exclusive right to provide the Primary Services to
CELSIUS at the Facility. During the Initial Term and any Renewal Term, CELSIUS agrees that it (a) shall not directly or indirectly seek,
solicit, or accept any offers for nor contract with any third party (including but not limited to another broker or consultant) for the
provision of the Primary Services (or substantially similar services) to the Facility and that it (b) shall not directly or indirectly
perform the Primary Services (or substantially similar services) for itself by contracting with an REP or demand response service provider
for the CELSIUS Facility. Consideration for CELSIUS's agreement to grant PPM the exclusive right to contract for and provide the
Primary Services to CELSIUS during the Initial Term and any Renewal Term for the CELSIUS Facility are the significant resources expended
by PPM in conducting its investigation of the Sites and initial assessment of the suitability of the Sites for the CELSIUS Facility,
and the initial work to assist CELSIUS in moving forward with securing or developing a Site or Sites, as well as disclosure of such strategically
gained information which would otherwise be confidential.

**6.**  **<u>CELSIUS Responsibilities</u>** . CELSIUS shall have the
following responsibilities during the term of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Data and Errors</u>. CELSIUS shall use reasonable best
efforts to (i) upon PPM's reasonable advanced written request, provide timely and accurate data and information required for PPM
to provide the Services, (ii) review all output produced by PPM as a result of providing the Services, and (iii) notify PPM of any errors
in such input data or output. CELSIUS shall cooperate with PPM in good faith to address the resolution of errors, omissions or deficiencies,
and provide PPM the opportunity to correct the errors, omissions and deficiencies. Upon successful resolution of errors, omissions or
deficiencies, in the reasonable determination of Celsius, CELSIUS shall accept the output as completed.

&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Transactions with Suppliers.</u> CELSIUS shall retain
all legal and/or equitable rights and remedies available to it against any Supplier and/or customer. CELSIUS agrees to hold PPM harmless
and defend PPM from any claims or causes of action asserted by Suppliers arising from CELSIUS's transactions with such Suppliers
and/or customers.

&nbsp;&nbsp;&nbsp;&nbsp;C. <u>Fees and Taxes.</u> CELSIUS shall be responsible for payment
of any electricity supply and any applicable transportation and distribution fees, and all taxes such as sales and use taxes assessed
upon the electricity as set forth in the applicable energy supply contract.

&nbsp;&nbsp;&nbsp;&nbsp;D. <u>Management Action</u>. Upon reasonable request by PPM,
CELSIUS shall promptly provide management determinations, approvals, and other information and assistance reasonably required by PPM
to perform the Services.

&nbsp;&nbsp;&nbsp;&nbsp;E. <u>Authorizations.</u> CELSIUS shall execute Attachment C,
Notice of Limited Agency, which provides PPM with the necessary authority to provide the Services.

**7.**  **<u>Notices</u>** . Except as otherwise expressly provided
for herein, all notices, requests or other communications required or permitted hereunder shall be in writing and shall be deemed to
have been given or made if delivered personally, by overnight delivery service, or by United States mail, return receipt requested, to
a Party at the following address, or at such other address as shall be specified in writing by a Party to the other Party in accordance
with the terms and conditions of this paragraph:

---

| | |
|:---|:---|
| If to PPM: | If to CELSIUS: |
| Priority Power Management, LLC | Celsius Core LLC |
| 2201 E. Lamar Blvd., Suite 275 | 221 River Street, 9<sup>th</sup> Floor |
| Arlington, TX 76006 | Hoboken, NJ, 07030 USA |
| Attn: John Bick, CCO | Attn: Patrick Holert |
| Email: jbick@prioritypower.com | Email: Patrick.holert@celsius.network |

---

Priority Power Management, LLC Page 2 of 8

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8. <u>INDEMNIFICATION, LIMITATION OF LIABILITY, AND DAMAGES</u>. IN ANY ACTION ARISING OUT OF THIS
 AGREEMENT, THE PARTIES AGREE THAT NEITHER PARTY SHALL BE LIABLE FOR CONSEQUENTIAL, INCIDENTAL, PUNITIVE, INDIRECT, LOST PROFITS, OR
 EXEMPLARY DAMAGES. LIABILITY SHALL BE LIMITED TO DIRECT ACTUAL DAMAGES. FURTHERMORE, THE PARTIES ACKNOWLEDGE AND AGREE THAT THE
 LIABILITY OF EACH PARTY TO THE OTHER PARTY SHALL BE LIMITED IN AMOUNT AND SHALL NOT EXCEED THE COMPENSATION RECEIVED BY OR DUE TO
 PPM UNDER THIS AGREEMENT FOR THE TWELVE-MONTH PERIOD IMMEDIATELY PRIOR TO THE DATE ON WHICH THE CLAIM AROSE (ANNUALIZED FOR ANY
 PERIOD SHORTER THAN TWELVE MONTHS). THE PARTIES ACKNOWLEDGE THAT THIS AGREEMENT IS BETWEEN PARTIES OF EQUAL BARGAINING POWER AND
 THAT THE FOREGOING LIMITATION OF LIABILITY IS SUPPORTED BY LEGITIMATE COMMERCIAL REASONS.

**9.**  **<u>Force Majeure</u>.** The inability of either Party to
perform under this Agreement shall not be the basis of a claim for damages by either Party, or for breach of contract, when due to causes
or contingencies reasonably beyond the control of the non-performing Party; including strike, riot, sabotage, terrorism, civil disorder,
labor disputes, accidents, failure or fluctuations of power supply, lack of capacity of the local distribution company or transmission
provider and its equipment or power lines, or acts of nature such as flood, earthquake, tornado, storm, or lightning, but excluding extremes
of temperature alone. The Party suffering the force majeure shall notify promptly the other Party in writing of the particulars. With
the exception of labor disputes, and so far as possible, the force majeure shall be resolved with all reasonable dispatch.

**10.**  **<u>Assignment</u>.** This Agreement shall not be assigned
in whole or in part by PPM without the prior written consent of CELSIUS. In the event CELSIUS should sell, transfer, assign or convey
its operating rights to a property covered hereby, this Agreement shall be binding on the successor or assignee.

**11.**  **<u>Confidentiality</u>.** The
Parties shall hold all information, whether oral, written, electronic or otherwise, that each receives from the other (collectively,
"Confidential Information") in strict confidence, and use at least the same degree of care as it uses with respect to its
own confidential information to prevent the disclosure of such Confidential Information. The Parties shall not disclose the Confidential
Information to any person or entity except as necessary to perform obligations described in this Agreement. The Parties shall not provide
Confidential Information to any such person or entity until such person or entity agrees to abide by the terms of this Section.

**12.**  **<u>Applicable Law</u>.** This Agreement shall be performable
in the State of Texas, and shall be governed by and interpreted in accordance with the laws of the State of Texas. Venue for any cause
of action shall be in Tarrant County, Texas.

**13.**  **<u>Entire Agreement</u>.** This Agreement and all attachments
constitute the entire Agreement between the Parties hereto with respect to PPM's performance of the Services at the Facility. Any
amendment, addition or deletion to this Agreement must be in writing and executed by the Parties. This Agreement shall supersede any
prior oral discussions or terms and conditions contained on any form or document used in connection with the Services hereunder. All
implied or express warranties related to the Services are hereby disclaimed. Each Party affirms that it has read this Agreement in its
entirety and it agrees to the terms and conditions contained herein and to the wording of this Agreement, and any ambiguities shall not
be interpreted to the detriment of either Party merely by the fact that such Party is the author of the Agreement.

**14.**  **<u>Severability</u>** . If, any clause or provision of this
Agreement be held or ruled unenforceable or ineffective under the law, such a ruling will in no way affect the validity or the enforceability
of any other clause or provision contained herein.

**15.**  **<u>Authorized Representative</u>.** The person executing
this Agreement on behalf of each Party hereby represents that he/she is said Party's authorized representative and is fully authorized
and empowered to enter into this Agreement and that each Party has full authority to perform the terms and conditions hereof.

**16.**  **<u>Relationship of Parties</u>.** The relationship between
the Parties shall be limited to the performance of Services as set forth in this Agreement and shall not constitute a joint venture,
partnership or an employee-employer relationship. PPM is an independent contractor and shall be responsible for the means and methods
used in performing Services under this Agreement. Neither Party may obligate the other to any expense or liability outside of this Agreement
with respect to the Services, except upon written consent of the other or set forth in an additional agreement.

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In Witness Whereof, the Parties by their respective duly authorized representatives have executed this Agreement. This Agreement shall not become effective as to either Party until executed by both Parties.

---

| | | | |
|:---|:---|:---|:---|
| Priority Power Management, LLC | Priority Power Management, LLC | Celsius Core LLC | Celsius Core LLC |
| By: | /s/ Trent Stout | By: | /s/ Roni Cohen Pavon |
| Name: | Trent Stout | Name: | Roni Cohen Pavon |
| Title: | Senior Managing Director | Title: | Chief Revenue Officer |

---

Priority Power Management, LLC Page 4 of 8

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**Attachment A**

PPM will perform the following **Primary Services**:

**1.** Site Selection & Utility Interconnect

&nbsp;&nbsp;&nbsp;&nbsp;a) Identify potential additional sites that are within a deregulated
area of the ERCOT market and either currently have existing adequate electrical capacity from the utility or can be upgraded in a timely
manner to provide the capacity required.

&nbsp;&nbsp;&nbsp;&nbsp;b) Interface with the utility to assess the utility's
ability to provide adequate service in a timely manner.

&nbsp;&nbsp;&nbsp;&nbsp;c) Submit electrical load forms, applications for service and
other information as may be required by the utility.

&nbsp;&nbsp;&nbsp;&nbsp;d) Negotiate utility interconnect agreement.

&nbsp;&nbsp;&nbsp;&nbsp;e) Advise CELSIUS on required easements or other matters as
may be required.

**2.** Data Collection and Analysis

&nbsp;&nbsp;&nbsp;&nbsp;a) Gather CELSIUS Facility lists, including supplier information,
account numbers, and service addresses;

&nbsp;&nbsp;&nbsp;&nbsp;b) Gather historical load data for each site;

&nbsp;&nbsp;&nbsp;&nbsp;c) Collect current contracts;

&nbsp;&nbsp;&nbsp;&nbsp;d) Determine whether CELSIUS has a preferred supplier;

&nbsp;&nbsp;&nbsp;&nbsp;e) Analyze and complete any missing or questionable load data,
including identification of demand ratchet and power factor penalty charges;

&nbsp;&nbsp;&nbsp;&nbsp;f) Prepare data for distribution to suppliers.

**3.** Strategy Assessment and Development

&nbsp;&nbsp;&nbsp;&nbsp;a) Assess the short term and long-term goals of CELSIUS;

&nbsp;&nbsp;&nbsp;&nbsp;b) Assess market conditions and develop strategy consistent
with CELSIUS goals;

&nbsp;&nbsp;&nbsp;&nbsp;c) Determine market liquidity and pricing environment;

&nbsp;&nbsp;&nbsp;&nbsp;d) Analyze various pricing structures and product mixes relative
to CELSIUS goals;

&nbsp;&nbsp;&nbsp;&nbsp;e) Gain consensus from CELSIUS on hedging strategy if applicable;

&nbsp;&nbsp;&nbsp;&nbsp;f) Assist CELSIUS with the development of contract terms that
provide operational and incremental purchasing flexibility.

**4.** Procurement

&nbsp;&nbsp;&nbsp;&nbsp;a) Present pricing options to CELSIUS relative to CELSIUS'
guidance and strategy;

&nbsp;&nbsp;&nbsp;&nbsp;b) Prepare electricity Request for Proposals (RFP's) and
distribute to qualified suppliers;

&nbsp;&nbsp;&nbsp;&nbsp;c) Include CELSIUS in group buying pools organized and managed
by PPM if applicable;

&nbsp;&nbsp;&nbsp;&nbsp;d) Provide consistency in communicating RFP questions and answers
to all participating suppliers;

&nbsp;&nbsp;&nbsp;&nbsp;e) Provide evaluation and analysis of all supplier bids and
present findings to CELSIUS;

&nbsp;&nbsp;&nbsp;&nbsp;f) Negotiate terms and conditions with appropriate supplier(s).

**5.** Contract Management

&nbsp;&nbsp;&nbsp;&nbsp;a) Monitor and verify accurate and timely switches of accounts
to new supplier;

&nbsp;&nbsp;&nbsp;&nbsp;b) Review supplier invoices to determine consistency with contract
terms;

&nbsp;&nbsp;&nbsp;&nbsp;c) Manage the addition and or deletion of CELSIUS accounts from
supplier contract;

&nbsp;&nbsp;&nbsp;&nbsp;d) Provide CELSIUS with Mark-to-Market valuations of supply
contracts in the event of a property disposition and or acquisition of a new property;

&nbsp;&nbsp;&nbsp;&nbsp;e) Assist CELSIUS with supplier issue resolution;

&nbsp;&nbsp;&nbsp;&nbsp;f) Provide CELSIUS with estimated annual budgets and or ongoing
performance metrics as needed.

**6.** Portfolio Management

&nbsp;&nbsp;&nbsp;&nbsp;a) Provide CELSIUS with market reports highlighting market events
and pricing levels on a periodic basis;

&nbsp;&nbsp;&nbsp;&nbsp;b) Provide CELSIUS with price discovery by querying market suppliers
regarding current market price;

&nbsp;&nbsp;&nbsp;&nbsp;c) Maintain a customized hedging position report for CELSIUS
outlining various purchases and risk positions, if applicable;

&nbsp;&nbsp;&nbsp;&nbsp;d) Perform market outlooking and forward price discovery to
meet CELSIUS-specific trigger levels;

&nbsp;&nbsp;&nbsp;&nbsp;e) Analyze "blend & extend" opportunities to
meet desired budget goals;

&nbsp;&nbsp;&nbsp;&nbsp;f) Adjust strategies as needed to meet changing CELSIUS goals
and market environment.

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**Other Services<sup>1</sup>**

From time to time, CELSIUS may request that PPM provide Other Services, including but not limited to the following:

1) Strategic Utility Planning Services:

&nbsp;&nbsp;&nbsp;&nbsp;a) Identification of power availability, utility service territory
boundaries, and utility contacts in geographic areas targeted for new CELSIUS sites;

&nbsp;&nbsp;&nbsp;&nbsp;b) Interface with utility to provide load estimates, project
timelines, line extension cost estimates, rates and tariff review, and necessary agreements for electric service.

2) Regulated Utility Negotiations

&nbsp;&nbsp;&nbsp;&nbsp;a) Negotiate with utility on behalf of CELSIUS, agreements for
electric service, line extensions, and or other agreements as necessary.

3) Regulated Rate Analysis and Negotiations

&nbsp;&nbsp;&nbsp;&nbsp;a) Analyze utility rates, tariffs, rider, and or service regulations
to determine estimated costs to CELSIUS;

&nbsp;&nbsp;&nbsp;&nbsp;b) Negotiate lowest cost rates and riders when applicable.

4) Regulatory Advisory Services

&nbsp;&nbsp;&nbsp;&nbsp;a) Advise CELSIUS on regulatory rules and services regulations
as may be applicable.

5) Field Project Manager Services

&nbsp;&nbsp;&nbsp;&nbsp;a) Act
as a single-point-of-contact in the field on behalf of CELSIUS with applicable utilities as it relates to new electrical service requests;

&nbsp;&nbsp;&nbsp;&nbsp;b) Coordination
of all aspects of provisioning for electrical service to new CELSIUS sites including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) Receiving site location and service requirements from CELSIUS
personnel;

ii) Onsite field meetings with CELSIUS, electrical contractors and utility personnel to develop cost efficient and timely designs for electricity service to CELSIUS site locations;

iii) Coordination and administration of functions such as permit tracking, easements, establishing utility account numbers, applications for service, etc;

&nbsp;&nbsp;&nbsp;&nbsp;c) Develop, manage and distribute management reports of all
CELSIUS projects, desired electricity service dates, contrition dates, issues resolution, etc.

6) Power Studies

&nbsp;&nbsp;&nbsp;&nbsp;a) Power factor analysis and corrective measure solutions;

&nbsp;&nbsp;&nbsp;&nbsp;b) Power quality analysis;

&nbsp;&nbsp;&nbsp;&nbsp;c) Onsite, and or backup emergency, generation analysis;

&nbsp;&nbsp;&nbsp;&nbsp;d) Demand response programs cost benefit analysis.

PPM may perform Other Services as requested by CELSIUS on an ad hoc basis as a part of its fees as outlined herein Section 3, Compensation. However, should PPM's work associated with Other Services becomes a meaningful effort, PPM and CELSIUS may agree on additional compensation for the Other Services in a separate written agreement.

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**ATTACHMENT B**

---

| | | |
|:---|:---|:---|
| **Property Name** | **Address** | **City, St Zip** |

---

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**ATTACHMENT C**

September 28, 2021

**RE: NOTICE OF LIMITED AGENCY**

Dear Utility and/or Energy Service Provider,

<u>CELSIUS CORE LLC</u> (hereinafter referred to as "Principal"), with principal offices located at 221 River Street, 9<sup>th</sup> Floor, Hoboken, NJ, 07030 USA does hereby appoint Priority Power Management, LLC (hereinafter referred to as "Agent"), as the exclusive agent for the limited purpose of requesting and receiving any and all information concerning utility services, line extensions, electrical distribution designs, tariffs, rates, metering, historical usage and billing information, retail electricity pricing and contracting terms.

Furthermore, Agent is authorized to negotiate and enter into on behalf of Principal (subject to a separate written approval by Principal to enter into), any agreements for electric service with transmission and distribution service providers, and pricing and/or contracting for retail electric supply furnished to Principal, and negotiating such final pricing, conversion pricing and terms with suppliers on behalf of Principal.

All inquiries concerning the Principal's electricity requirements should be directed to the following

Person: Mr. Tyler Randolph

Senior Director, Business Development

Priority Power Management, LLC

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) (214) 957-7032

trandolph@prioritypower.com

Thank you for your cooperation in providing information requested in a timely manner. This limited authorization letter shall become effective from the date on which it is executed and shall remain in full force and effect until terminated by Principal or Priority Power Management with at least 10 days written notice to the other party.

Best Regards,

CC: John Bick – Priority Power Management, LLC

Trent Stout – Priority Power Management, LLC

Tyler Randolph – Priority Power Management, LLC

Priority Power Management, LLC Page 8 of 8

## Exhibit 10.8

**Exhibit 10.8**

**Amendment to Energy Management and Consulting Services Agreement**

This Amendment (the "Amendment") dated August 2, 2022 (the "Effective Date"), is made and entered into by and between Celsius Mining LLC ("Customer") and Priority Power Management LLC ("PPM"), each sometimes referred to individually as a "Party" and collectively as the "Parties".

Whereas, Customer and PPM entered that one certain Energy Management and Consulting Services Agreement effective as of September 28, 2021 (the "Agreement"); and

Whereas, in accordance with the Agreement Customer has retained PPM as the exclusive provider of energy management and consulting services for the properties listed on Attachment B thereto (the "Facilities"); and

Whereas, the Parties wish to add certain properties to Attachment B as Facilities and to amend the compensation to be paid to PPM for the Primary Services.

Now Therefore, this Amendment sets forth the Parties' mutual agreement to amend the Agreement to memorialize the recitals set forth above. All capitalized terms herein used but not defined have the meanings set forth in the Agreement.

For good and valuable consideration and in exchange for the mutual promises and covenants made one to another, the Parties hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. As of the Effective Date of this Amendment, the Parties agree
to add the following properties as Facilities to Attachment B of the Agreement and for PPM to be the exclusive provider of Primary Services
to these Facilities:

---

| | | | |
|:---|:---|:---|:---|
| Property Name | Address | City, State, Zip | GPS Coordinates |
| Rebel | 15135 State Hwy 158 | Garden City, TX 79739 | 31.904523, -101.715488 |
| East Stiles | 7359 N FM 33 | Big Lake, TX 76932 | 31.559836, -101.479721 |
| Stiles | 13345 N State Highway 137 | Big Lake, TX 76932 | 31.925595, -102.210380 |
| Garden City | 6661 E. Hwy 158 | Garden City, TX 79739 | 31.863444, -101.469583 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. As of the Effective Date, the Parties further agree to amend
"Section 3 Compensation" of the Agreement by deleting the provision in its entirety and replacing it as follows:

"3. Compensation. As compensation for providing the Services, CELSIUS authorizes PPM to collect from CELSIUS's REP or REP's billing and collecting agent, as applicable, a monthly volumetric fee equal to $0.002 per kWh of CELSIUS's electricity supply for the Facilities for the duration of the term of any energy supply contract for the Facilities. The fee paid to PPM shall be included in the REP's electricity supply contract(s) with CELSIUS, and CELSIUS's REP will remit the fee to PPM directly."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. This Amendment is governed by, construed, and enforced in
accordance with the laws of the State of Texas without giving effect to any conflict of law principles that might otherwise be applicable.
Except as specifically amended herein, the terms and conditions of the Agreement shall remain in full force and effect as written.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. This Amendment may be executed in several counterparts, each
of which will be deemed an original, and all of which taken together will constitute one single agreement between the Parties with the
same effect as if all the signatures were upon the same instrument. Counterparts may be delivered via facsimile, electronic
mail (including PDF or any electronic signature complying with the U.S. Federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission
method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

In Witness Whereof, the Parties, by their respective duly authorized representatives, execute, ratify and confirm this Amendment as of the Effective Date.

---

| | | | |
|:---|:---|:---|:---|
| Priority Power Management, LLC | Priority Power Management, LLC | Celsius Mining LLC | Celsius Mining LLC |
| By: | /s/ Trent Stout | By: | /s/ Amir Ayalon |
| Name: | Trent Stout | Name: | Amir Ayalon |
| Title: | Authorized Signatory | Title: | CEO |

---

## Exhibit 10.9

**Exhibit 10.9**

*Execution Version*

 

**ASSIGNMENT AND ASSUMPTION AGREEMENT**

THIS ASSIGNMENT AND ASSUMPTION AGREEMENT (this "<u>Agreement</u>") is entered into as of January 31, 2024, by and between Celsius Mining LLC, a Delaware limited liability company ("<u>Celsius Mining</u>"), Priority Power Management, LLC, a Delaware limited liability company ("<u>PPM</u>"), and Ionic Digital Inc., a Delaware company ("<u>MiningCo</u>"). Celsius Mining and PPM are each a "Party" and collectively the "Parties" to this Agreement.

**<u>RECITALS</u>**

**WHEREAS**, Celsius Mining and PPM are party to (i) that certain Letter of Intent with Terms and Conditions for Proposed Development of Sites for Virtual Currency Mining Facilities, dated December 22, 2021, for the development and energy management of the Rebel, East Stiles, and Stiles sites (as described therein) (the "<u>Rebel, East Stiles, and Stiles LOI</u>"), (ii) that certain Letter of Intent with Terms and Conditions for Proposed Development of Sites for Virtual Currency Mining Facilities, dated February 16, 2022, for the Garden City site (as described therein) (the "<u>Garden City LOI</u>"), (iii) that certain Amended Energy Management and Consulting Services Agreement, dated as of August 2, 2022 (the "<u>EMCSA</u>"), and (iv) that certain Energy Management Services Agreement, dated as of November 17, 2022 (the "<u>EMSA Agreement</u>," and together with the Rebel, East Stiles, and Stiles LOI, the Garden City LOI, and the EMCSA, each as may be amended, supplemented, or modified from time to time the "<u>Mining Agreements</u>"). The Mining Agreements are attached hereto as **<u>Exhibit A</u>**;

**WHEREAS**, on July 13, 2022, and December 7, 2022, as applicable, Celsius Mining LLC, a Delaware limited liability company and certain of its debtor affiliates (collectively, the "<u>Debtors</u>") commenced voluntary cases under chapter 11 of title 11 of the United States Code, 11 U.S.C. §§ 101-1532, as amended (the "<u>Bankruptcy Code</u>") in the United States Bankruptcy Court for the Southern District of New York (the "<u>Bankruptcy Court</u>");

**WHEREAS**, on September 27, 2023, the Debtors filed the *Modified Joint Chapter 11 Plan of Reorganization of Celsius Network LLC and Its Debtor Affiliates* [Docket No. 3577] (as may be amended, supplemented, or otherwise modified from time to time, the "<u>Plan</u>");<sup>1</sup>

**WHEREAS**, on November 30, 2023, the Debtors filed the *Joint Motion of the Debtors and the Committee for Entry of an Order (I) Approving the Implementation of the MiningCo Transaction and (II) Granting Related Relief* [Docket No. 4050] (the "<u>MiningCo Motion</u>");

**WHEREAS**, on November 9, 2023, the Bankruptcy Court confirmed the *Modified Joint Chapter 11 Plan of Reorganization of Celsius Network LLC and Its Debtor Affiliates* [Docket No. 3972] (the "<u>Confirmation Order</u>"); and on December 27, 2023, the Bankruptcy Court entered an order approving the Wind Down Motion [Docket No. 4171] (the "<u>MiningCo Order</u>");

<sup>1</sup> Capitalized terms used but not otherwise defined herein have the meanings ascribed to them in *Modified Joint Chapter 11 Plan of Celsius Network LLC and its Debtor Affiliates* (the "<u>Plan</u>"), attached as <u>Exhibit A</u> to the *Finding of Fact, Conclusions of Law, and Order Confirming the Modified Joint Chapter 11 Plan of Celsius Network LLC and its Debtor Affiliates* (the "<u>Confirmation Order</u>") [Docket No. 3972].

**WHEREAS**, as part of implementing the Restructuring Transactions, on the Effective Date of the Plan, the Debtors will transfer the Mining Assets to Ionic Digital Inc., a Delaware limited liability company, and/or its designated assignee affiliates under the Plan ("<u>MiningCo</u>"), and such transfer shall constitute a legal, valid, binding, and effective sale of the Mining Assets and shall vest MiningCo with title to the Mining Assets;

**WHEREAS**, Celsius Mining and PPM, seek to amend and modify the Mining Agreements as part of Celsius's chapter 11 plan of reorganization and the establishment of MiningCo; and

**WHEREAS**, as part of implementing the Restructuring Transactions, Celsius Mining, desires to sell, transfer, assign, convey, and deliver to MiningCo, all of Celsius Mining's right, title, and interest in, to and under the Mining Agreements on the Effective Date as set forth herein.

**NOW, THEREFORE**, in consideration of the foregoing and the mutual representations, warranties, covenants, and agreements set forth herein, and intending to be legally bound hereby, Celsius Mining and PPM hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Definitions</u>. Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Plan or the Mining Agreements, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Assignment and Assumption</u>. Pursuant to the Plan, on the Effective Date, Celsius Mining will transfer, assign, convey, and deliver to MiningCo all of Celsius Mining's right, title and interest in and to the Mining Agreements, free and clear of any and all liens and encumbrances. For the avoidance of doubt, MiningCo, as the assignee of the Mining Agreements, shall have no obligation to pay or assume any cure obligation in connection with the assumption and assignment of the Mining Agreements; *provided* that MiningCo shall assume all go-forward rights and obligations on the Effective Date. Notwithstanding anything to the contrary in this Agreement, the Parties acknowledge and agree that, except as explicitly set forth herein (a) each of Celsius Mining and MiningCo reserves all of its rights under the Plan, and (b) this Agreement shall not prejudice any rights of the Debtors or MiningCo under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Amended Agreement</u>. Subject to and in accordance with the Debtors' and MiningCo's rights under the Plan (including without limitation, Article IV and Article V thereof), Celsius Mining and PPM hereby agree to amend the Mining Agreements on the Effective Date as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) PPM shall transfer and assign title to the land for each of
the Garden City site (the " <u>Garden City</u> ") and East Stiles site (" <u>East Stiles</u> ") to MiningCo (or its
subsidiary designees) on the Effective Date in substantially the form attached hereto as  **<u>Exhibit B</u>** , which shall include
a special warranty of title from PPM and its affiliates, and which each Party shall execute on the Effective Date in the form necessary
for recording in the real property records of the county in which each of Garden City and East Stiles is located.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) PPM shall hereby immediately assign all of its right, title,
and interest, subject only to any consent required from Oncor Electric Delivery Company LLC (" <u>Oncor</u> ") (or cause the
transfer and assignment) of the Facilities Extension Agreements (each, an " <u>FEA</u> " and collectively the " <u>FEAs</u> ")
currently in effect between PPM and Oncor for each of the Rebel site (" <u>Rebel</u> "),
the Stiles site (" <u>Stiles</u> "), East Stiles and Garden City, in each case reflecting Oncor's Primary-Substation Delivery
Tariff, commonly referred to as a "one-span" rate, to MiningCo (or its subsidiary designees) as soon as possible following
the Effective Date and in no event later than thirty (30) days following the Effective Date; to the extent that any consent of Oncor is
required in order to avoid a breach or termination of such FEAs, PPM agrees from the date hereof to use commercially reasonable best efforts
to obtain Oncor consent to such transfer and assignment. PPM shall continuously collaborate with MiningCo in obtaining such consent, and
shall promptly notify MiningCo of any discussions or correspondence with Oncor related thereto until such consent is obtained. As of the
date hereof, PPM represents and warrants that it has disclosed to MiningCo (i) all agreements with Oncor related to the subject matter
herein (including all FEAs) and (ii) all correspondence with Oncor or its affiliates related thereto. Pending receipt of fully executed,
effective and consented to FEAs, PPM agrees that it shall cooperate in making available all benefits of such FEAs to MiningCo.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) PPM
shall for the duration of the EMSA and EMCSA, and while Celsius Mining (and subsequently MiningCo) is not in continuing uncured payment
default thereunder, grant Celsius Mining (and subsequently MiningCo) sub-easements relating to the delivery of power at the Garden City,
Rebel, East Stiles, and Stiles sites in the form attached hereto as  **<u>Exhibit D</u>** .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) PPM
shall within five business days of the Effective Date assign the master easements held by PPM relating to delivery of power at the Garden
City, Rebel, East Stiles, and Stiles sites ("Master Easements") to MiningCo (or its subsidiary designees), substantially in
the form attached hereto as  **<u>Exhibit E</u>** (or such other form in which such easements are currently held by PPM), subject to
there being no continuing uncured payment default under the EMSA and the EMCSA by Celsius and MiningCo, as applicable; *provided* that
if at the time of expiration, Celsius Mining (or MiningCo or any transferee permitted under such agreements) is in payment default of
the EMSA and/or the EMCSA, PPM shall retain title to the Master Easements until such time as such payment obligations under the EMSA and
EMCSA have been satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) Celsius Mining shall promptly pay the outstanding balance of $271,132.62 (except to the extent that such
amount has been previously satisfied by Celsius through payments or offsets benefitting PPM) under the Mining Agreements in full and final
settlement of all disputed amounts thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f) The payment due date of the East Stiles Phase 2A and 2B development fees is modified to the date that
the FEA in respect of the Phase 2 expansion capacity for East Stiles of up to 10 MW for Phase 2A and 20 MW for Phase 2B is delivered to
MiningCo, and the fee invoiced shall be $850,000 for Phase 2A and $1,700,000 for Phase 2B (or if a lesser capacity, calculated at a rate
of $85,000 per megawatt actually permitted (" <u>MW</u> ")); *provided* that (i) the payment due date shall occur no earlier
than the date that is six months prior to the capacity availability date communicated by Oncor in writing, upon
delivery of the applicable executable FEA to MiningCo (A) in a form on or better than industry standard, (B) reflecting Oncor's
Primary-Substation Delivery Tariff, commonly referred to as a "one-span" rate, and (C) executed by Oncor and only requiring
MiningCo's execution prior to it becoming effective, where MiningCo is afforded reasonable time, not to be less than fifteen (15)
business days, to review and execute such documentation; (ii) the payment(s) shall be made into escrow and shall not be released to PPM
until such the expansion power capacity is available to be energized;and (iii) the payment(s) shall be refunded to MiningCo if either
(A) Oncor communicates that such expansion power capacity will no longer be available, or (B) such expansion power capacity is not is
available to be energized prior to July 31, 2027. In order to be entitled to the release of the payment(s) held by the escrow agent under
the foregoing sentence, MiningCo must take commercially reasonable steps to achieve the energization of such expansion power capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g) With
respect to the Rebel Phase 2 development fee, (i) the Parties shall modify the payment due date to the later of (A) December 31, 2024
or (B) the date that the FEA in respect of the Phase 2 expansion capacity for Rebel of up to 25 MW is delivered to Celsius Mining and
the fee invoiced for $2,125,000 (or if a lesser capacity, calculated at a rate of $85,000 per/MW megawatt); *provided* that in no
event shall the payment due date occur earlier than the date that is six months prior to the capacity availability date communicated
by Oncor in writing upon delivery of the executable Facilities Extension Agreement to MiningCo (A) in a form on or better than industry
standard, (B) reflecting Oncor's Primary-Substation Delivery Tariff, commonly referred to as a "one-span" rate, and
(C) executed by Oncor and only requiring MiningCo's execution prior to it becoming effective, where MiningCo is afforded reasonable
time, not to be less than fifteen (15) business days, to review and execute such documentation; (ii) the payment shall be made into escrow
and shall not be released to PPM until such expansion power capacity is available to be energized; and (iii) the payment shall be refunded
to MiningCo if either (A) Oncor communicates that such expansion power capacity will no longer be available, or (B) such expansion power
capacity is not is available to be energized prior to July 31, 2027. In order to be entitled to the release of the payment(s) held by
the escrow agent under the foregoing sentence, MiningCo must take commercially reasonable steps to achieve the energization of such expansion
power capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>No Assumption of Liabilities:</u> The parties represent and warrant that MiningCo will not be obligated to pay or assume any cure amounts or other amounts relating to or arising from or during the period prior to the Effective Date with respect to the Mining Agreements. Without limiting the foregoing, after the Mining Agreements are assumed and assigned to MiningCo, MiningCo shall be solely obligated to perform obligations that arise after the Effective Date. Furthermore, except as expressly provided herein, no other agreements by and among Celsius Mining and PPM shall be assumed or assumed and assigned pursuant to this Agreement. Nothing herein is intended or shall be construed as being inconsistent with the Plan (including the Plan Supplement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Release of Claims</u>. Upon the valid assignment and delivery by PPM to MiningCo of (a) each of Garden City and East Stiles, and (b) each of the FEAs, Master Easements and sub- easements detailed above, each of the Parties shall unequivocally, fully, irrevocably, and forever release and forever discharge the other Party and its affiliates, of and from any and all claims, known and unknown, asserted or unasserted, including but not limited to any breaches or defaults, arising under or related to the Mining Agreements and that arose prior to such assignment and delivery. PPM further agrees and covenants not to sue or otherwise assert against MiningCo any claim arising from or relating to any act, omission, or occurrence prior to the Effective Date, whether known or unknown, that arises under or relates to the Mining Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Governing Law</u>. THIS AGREEMENT IS TO BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED IN SUCH STATE, WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF. Each Party hereto agrees that it shall bring any action or proceeding in respect of any claim arising out of or related to this Agreement in the Bankruptcy Court, and solely in connection with claims arising under this Agreement: (a) irrevocably submits to the exclusive jurisdiction of the Bankruptcy Court; (b) waives any objection to laying venue in any such action or proceeding in the Bankruptcy Court; and (c) waives any objection that the Bankruptcy Court is an inconvenient forum or do not have jurisdiction over any Party hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Remedies</u>. PPM agrees and acknowledges that irreparable damage would occur in the event of a breach of this Agreement by PPM and remedies at law would not be adequate to compensate Celsius Mining or MiningCo. Accordingly, PPM agrees that Celsius Mining or MiningCo shall have the right, in addition to any other rights and remedies existing in its favor, to an injunction or injunctions to prevent breaches of the provisions of this Agreement and to enforce its rights and obligations hereunder not only by an action or actions for damages but also by an action or actions for specific performance, injunctive relief, and/or other equitable relief. The right to equitable relief, including specific performance or injunctive relief, shall exist notwithstanding, and shall not be limited by, any other provision of this Agreement. PPM hereby waives any defense that a remedy at law is adequate and any requirement to post bond or other security in connection with actions instituted for injunctive relief, specific performance, or other equitable remedies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Severability</u>. It is the desire and intent of the Parties that the provisions of this Agreement be enforced to the fullest extent permissible under the Laws and public policies applied in each jurisdiction in which enforcement is sought. Accordingly, if any particular provision of this Agreement shall be adjudicated by a court of competent jurisdiction to be invalid, prohibited or unenforceable for any reason, such provision, as to such jurisdiction, shall be ineffective, without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction. Notwithstanding the foregoing, if such provision could be more narrowly drawn so as not to be invalid, prohibited or unenforceable in such jurisdiction, it shall, as to such jurisdiction, be so narrowly drawn, without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Modifications</u>. This Agreement may be amended by the Parties only by an instrument in writing. No course of dealing between or among the parties hereto shall be deemed effective to modify, amend or discharge any part of this Agreement or any rights or obligations of any such party or such holder under or by reason of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Successors and Assigns</u>. This Agreement is intended to bind and inure to the benefit of the Parties and their respective successors and permitted assigns, as applicable. There are no third-party beneficiaries under this Agreement, and the rights or obligations of any Party under this Agreement may not be assigned, delegated, or transferred to any other person or entity without the prior written consent of the other Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Execution of Agreement</u>. This Agreement may be executed in counterparts (including by means of email in .pdf format), each of which shall be deemed an original, and all of which together shall constitute one and the same instrument, and shall become effective when two or more such counterparts have been signed by each of the parties hereto and delivered to the other party (it being understood that all parties need not sign the same counterpart).

[*Remainder of page intentionally left blank*]

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized representatives as of the date first written above.

---

| | |
|:---|:---|
| **CELSIUS MINING LLC** | **CELSIUS MINING LLC** |
| By: | /s/ Christopher Ferraro |
| Name: | Christopher Ferraro |
| Title: | Authorized Signatory |

---

[Signature Page to Assignment and Assumption Agreement]

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized representatives as of the date first written above.

---

| | |
|:---|:---|
| **Ionic Digital Inc.** | **Ionic Digital Inc.** |
| By: | /s/ Matt Prusak |
| Name: | Matt Prusak |
| Title: | CEO |

---

[Signature Page to Bill of Sale, Assignment and Assumption Agreement]

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized representatives as of the date first written above.

---

| | |
|:---|:---|
| **Priority Power Management, LLC** | **Priority Power Management, LLC** |
| By: | /s/ Trent Stout |
| Name: | Trent Stout |
| Title: | Chief Commercial Officer |

---

[Signature Page to Assignment and Assumption Agreement]

**<u>Exhibit A</u>**

 **Mining Agreements**

Attached.

**<u>Exhibit B</u>**

**Form of Assignment and Bill of Sale**

<u>Attached.</u>

**<u>Exhibit C</u>**

**Form of FEA Assignment Agreement**

To come.

**<u>Exhibit D</u>**

**Form of Sub-easement Agreement**

To come.

**<u>Exhibit E</u>**

**Form of Master Easements Assignment Agreement**

To come.

## Exhibit 10.11

**Exhibit 10.11**

**PERSONAL AND CONFIDENTIAL**

![](ex10-11_001.jpg)

***2332 Galiano Street, 2nd Floor***

***Coral Gables, FL 33134***

 ****

December 9, 2024

Mr. Anthony McKiernan

Address on file with the Company

Re: Offer Letter

Dear Anthony,

We are thrilled to extend to you a formal offer of employment at Ionic Digital Services, LLC (the "**Company**"), a wholly owned indirect subsidiary of Ionic Digital Inc. (together with its subsidiaries as appropriate in the context, "**Ionic**") in the position of Chief Executive Officer ("**CEO**") of Ionic. Ionic is a pioneering force in the bitcoin mining industry. Your expertise and background have impressed us, and we are excited about the potential you bring to our team. In this position, you will be expected to devote your full time, attention and energies to the performance of your duties with Ionic. This letter contains the terms and conditions of our offer of employment to you.

**Start Date and Location**

Your expected start date will be December 13, 2024 (the "**Start Date**"). Ionic shall permit you to work remotely from your home office in Connecticut, although you understand and agree that you will travel as required to perform your duties as CEO.

**Position and Reporting Structure**

As CEO, you will play an important role in our future growth. On your Start Date, you will report directly to Ionic's Board of Directors (the "**Board**").

**Compensation**

<u>Base Salary</u>

Your annualized base salary on your Start Date will be $500,000. Your base salary will be payable in accordance with the Company's standard payroll policies (subject to normal required withholding). Any partial periods will be pro-rated based on the actual number of days worked in the month. Your position is classified as a salaried, exempt position and as such, you are not eligible to receive overtime compensation.

<u>Annual Incentive Bonus</u>

For each calendar year of your employment with the Company, beginning with the calendar year 2025 you will be eligible to earn a discretionary incentive bonus for each such calendar year payable, in the Board's sole determination, in cash or immediately vested shares of Ionic common stock (which may not be freely tradeable at the time of issuance) or a combination thereof, with a target bonus opportunity of 100% of your base salary. Any such bonus, if earned and approved by the Board, is paid annually, typically within sixty (60) calendar days after December 31 of the applicable year, subject to your still being an active employee in good standing with the Company in your current position on the date of payment or issuance (except as otherwise expressly set forth in this letter). The milestone(s) required for you to earn such a bonus will be as mutually determined by you and the Board and may include Ionic, department or personal milestone(s) or any combination thereof. For the avoidance of doubt, the milestone(s) to be determined by you and the Board can change from year to year, and there is no guarantee that the target will be reached in any year. All bonus payouts are subject to the discretion and approval of the Board. For calendar year 2024, you will be eligible to earn an annual incentive bonus to be prorated for the portion of the year during which you were employed and determined in the Board's sole discretion. In the event of a bonus payment in shares of Ionic common stock, a portion of your bonus (not less than the amount necessary to cover the withholding obligations on the entire bonus) will still be paid to you in cash.

<u>LTIP Participation</u>

The Company intends to establish a Long-Term Incentive Plan for senior executives of the Company (including you). However, these plans will only become effective upon the completion of both (a) the U.S. Securities and Exchange Commission informs the Company in writing that its Form S-1 (Registration Statement under the Securities Act of 1933) has become effective, and (b) the New York Stock Exchange or the NASDAQ have commenced trading of the common stock of the Company (such date, the "Completion Date"). When the Company implements a LTIP, you will be eligible to participate.

**Benefits and Withholding**

During your employment, you will be eligible to participate in the Company's health plans and other fringe benefit plans that the Company from time to time provides to employees of the Company at your level. All forms of compensation paid to you as an employee of the Company will be less all applicable withholdings, as determined by the Company.

**At-Will Employment**

Your employment with the Company is "at-will", meaning either you or the Company can terminate the employment relationship at any time, with or without cause or notice. No terms or conditions of your employment, including without limitation this at-will relationship, can be modified or changed verbally in any manner and may only be changed by an express written agreement signed by you and authorized executive officer of the Company.

**Contingencies**

This offer is contingent upon a standard background check and your ability to confirm eligibility for employment in the United States. A list of acceptable documents is available on request or can be found at http://www.uscis.gov/files/form/i-9.pdf. Additionally, your acceptance of this offer, and your continued employment with the Company (including any right to receive any payments or benefits hereunder), are expressly conditioned on your agreement to comply and your ongoing compliance with all Company and Ionic policies and procedures and your entering into Company standard confidentiality, intellectual property and restrictive covenant agreements, as applicable.

**Governing Law**

This letter shall be governed by and construed in accordance with the laws of the State of Delaware, without giving effect to the principles of conflicts of law thereof.

**Miscellaneous**

This constitutes the entire agreement between the parties and supersedes all other agreements or understandings (provided that any confidentiality agreements or requirements to which you are subject, by contract or under applicable law, will remain in full force and effect). You may not assign this letter without the Board's prior express written consent. This letter may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement. A signed copy of this letter delivered by facsimile, email, or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this letter.

**SPECIAL NOTE**

Please be advised that the Company respects, and expects your ongoing compliance with, any and all obligations you have with your current and prior employers regarding protected information you may have acquired during your employment with them. It is not our intention to acquire any trade secrets or confidential information from you. The Company understands your continuing obligations and encourages you to understand fully what measures you must take to ensure that no inadvertent misappropriation or prohibited disclosure occurs if you elect to accept this offer of employment with the Company. By accepting this offer of employment, you confirm that you fully understand the duties and responsibilities of the position offered to you, and you confirm that you can perform them without using or disclosing confidential or proprietary information of another party and without violating the terms of any other applicable agreement.

**[Signature Page Follows]**

We are confident that your contributions will be instrumental in driving the Company towards its strategic goals. We look forward to you joining our team and embarking on this exciting journey together. Should you have any questions or require further clarification, please do not hesitate to reach out to me directly at claritasadvisors@gmail.com.

Please indicate your acceptance of this offer by signing and dating below and returning this letter to me as soon as possible. In addition, I would appreciate a call from you informing me of your decision as well.

Sincerely,

---

| | |
|:---|:---|
| By: | /s/ Elizabeth LaPuma |
|  | **Elizabeth LaPuma** |
|  | Chair of the Board |

---

**Offer Letter Acceptance**

I have read, and hereby acknowledge, accept and agree to the terms stated in, this letter as of the date first set forth above.

---

| |
|:---|
| /s/ Anthony McKiernan |
| Anthony McKiernan |

---

Date: 2024-12-09

We are confident that your contributions will be instrumental in driving the Company towards its strategic goals. We look forward to you joining our team and embarking on this exciting journey together. Should you have any questions or require further clarification, please do not hesitate to reach out to me directly at claritasadvisors@gmail.com.

Please indicate your acceptance of this offer by signing and dating below and returning this letter to me as soon as possible. In addition, I would appreciate a call from you informing me of your decision as well.

Sincerely,

---

| | |
|:---|:---|
| By: |  |
|  | **Elizabeth LaPuma** |
|  | Chair of the Board |

---

**Offer Letter Acceptance**

I have read, and hereby acknowledge, accept and agree to the terms stated in, this letter as of the date first set forth above.

  <br> Anthony McKiernan

Date: ___________

## Exhibit 10.12

**Exhibit 10.12**

![](ex10-12_001.jpg)

**ORDER FORM**

---

| | |
|:---|:---|
| **Anchorage Contact** | **Client Contact** |
| Name: Ryan Porter | Name: Joel Block |
| Email: ryan.porter@anchorlabs.com | Email: joel@ionicdigital.io |

---

This MASTER CUSTODY SERVICE AGREEMENT ("**Agreement**") is made and entered into as of the Effective Date provided herein, by and between Anchorage Digital Bank N.A. ("**Anchorage**"), and each Client as provided herein (each a "**Client**") (collectively, Anchorage and Client, each a "**Party**" and collectively, the "**Parties**").

The Agreement consists of the terms in this Order Form and the Standard Terms and Conditions attached hereto.

---

| | |
|:---|:---|
| **1. Effective Date:** | 1/26/2024 \| 6:00 PM PST |
| **2. Initial Term:** | One (1) year |
| **3. Renewal Term:** | One (1) year |
| **4. Client(s).** Each "Client" listed herein is subject to the Agreement as if this Agreement were between such individual Client and Anchorage, except specifically the Fees will be calculated on an aggregated basis, including the sum of all Clients' Assets Under Custody. | **4. Client(s).** Each "Client" listed herein is subject to the Agreement as if this Agreement were between such individual Client and Anchorage, except specifically the Fees will be calculated on an aggregated basis, including the sum of all Clients' Assets Under Custody. |
|  | Ionic Digital Treasury Inc., a Delaware corporation |

---

&nbsp;&nbsp;&nbsp;&nbsp;5. FEES

In full consideration for Anchorage's provision of the Services described herein, Client will pay Anchorage the following fees ("**Fees**"). Fees will commence the earlier of: (a) on the first date that any Digital Assets are deposited into any Client Account, and (b) ninety (90) days after Effective Date of this Agreement ("**Fees Commencement Date**").

Changes to the Services, including the inclusion of new assets or Clients, are subject to changes in Fees. Fees shall be invoiced by Anchorage, and paid by Client, in US Dollars ("**USD**").

---

| | |
|:---|:---|
| Page **1** of **33** |  |
|  | Confidential & Proprietary |

---

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**FEE TYPE** | **AUC TIER (graduated basis)** | **Annual Basis Points** |
| &nbsp;&nbsp; <br> **Monthly Custody Fee** | <br>Greater than $0 | <br>15 |
| <br> **Monthly NFT Custody Fee** | **NFT AUC** | **Annual Basis Points** |
| <br> **Monthly NFT Custody Fee** | Greater than $0. | 90 |
| **One-Time Onboarding Fee** | <br> $0 | <br> $0 |
| **Monthly Minimum Fee** | <br> $0 | <br> $0 |
| <br> **On-Chain Services** | <br> Varies based on service. | <br> Varies based on service. |

---

**Client shall pay a Fee** which shall be the greater of i) Monthly Custody Fee + Monthly NFT Custody Fee, or ii) Monthly Minimum Fee.

&nbsp;&nbsp;&nbsp;&nbsp;6. Address for Notices:

---

| | |
|:---|:---|
| **To Client(s):** | **Invoice Email:** joel@ionicdigital.com |
|  | **Notice Email:** joel@ionicdigital.com |
|  | **Attention:** Ionic Digital Treasury Inc. |
|  | 2332 Galiano Street, 2nd Floor |
|  | Coral Gables, FL 33134 |
| **To Anchorage:** | legal@anchorage.com AND |
|  | custodyexecutive@anchorage.com |
|  | Anchorage Digital Bank N.A. |
|  | 101 S. Reid Street, Suite 329 |
|  | Sioux Falls, South Dakota 57103 |

---

IN CONSIDERATION AND WITNESS WHEREOF, Anchorage and Client, by their duly authorized representatives, hereby execute this Agreement as of the Effective Date.

---

| | | | |
|:---|:---|:---|:---|
| **ANCHORAGE DIGITAL BANK N.A.** | **ANCHORAGE DIGITAL BANK N.A.** | **ON BEHALF OF EACH CLIENT HEREIN** | **ON BEHALF OF EACH CLIENT HEREIN** |
| By: | /s/ Rachel Anderika | By: | /s/ Joel Block, CFO |
| Name: | Rachel Anderika | Name: | Joel Block |
| Title: | Bank COO | Title: | CFO |
|  |  | Company: Ionic Digital Treasury Inc. | Company: Ionic Digital Treasury Inc. |

---

---

| | |
|:---|:---|
| Page **2** of **33** |  |
|  | Confidential & Proprietary |

---

**AFFILIATED BUSINESS DISCLOSURE <br> AND CONFLICT OF INTEREST WAIVER**

Anchorage Digital Bank N.A. is affiliated with Anchor Labs, Inc., Anchorage Hold LLC, and Anchorage Lending CA, LLC (each an "**Anchorage Affiliate**"), through common ownership and management. In particular, Anchor Labs, Inc. provides certain administrative, technology, marketing, and other support services for custodial accounts on behalf of Anchorage Digital Bank. Because the two companies are under common ownership and management, the owners of Anchor Labs, Inc. will receive an indirect benefit from any fees you pay to Anchorage Digital Bank. In addition, Anchorage Digital Bank and Anchorage Affiliates may also refer clients to each other for the performance of services offered by such companies. Your use of services of Anchorage Digital Bank may result in benefits from such referral to the other companies by virtue of the companies' common ownership and management.

<u>ACKNOWLEDGEMENT</u>

I, duly authorized and on behalf of each Client as set forth in the Order Form, have read this disclosure form, and I acknowledge and understand that Anchorage Digital Bank and Anchorage Affiliates are under common ownership and control. I further acknowledge and understand that by retaining Anchorage Digital Bank, I am providing an indirect financial benefit to the owners of Anchorage Affiliates. Understanding the common ownership and control of the companies, I agree to utilize the services of Anchorage Digital Bank freely and with no influence from anyone. I also understand and agree that referrals for services among Anchorage Digital Bank and Anchorage Affiliates may result in the owners of the referring company receiving an indirect financial benefit from the services provided.

---

| | |
|:---|:---|
| **ON BEHALF OF EACH CLIENT SET FORTH HERETO** | **ON BEHALF OF EACH CLIENT SET FORTH HERETO** |
| By: | /s/ Joel Block, CFO |
| Name: | Joel Block |
| Title: | CFO |
| Company: Ionic Digital Treasury Inc. | Company: Ionic Digital Treasury Inc. |

---

---

| | |
|:---|:---|
| Page **3** of **33** |  |
|  | Confidential & Proprietary |

---

**ANCHORAGE DIGITAL BANK <br> STANDARD TERMS AND CONDITIONS**

*Capitalized terms not defined in the Order Form, body of these Terms and Conditions, or supporting Schedules are defined in Schedule A (Definitions).*

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Anchorage Appointment and Provision of the Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1. <u>Appointment</u>.
 Client appoints Anchorage to provide the Services, including acting as custodian of Client
 Digital Assets pursuant to this Agreement, and Anchorage hereby accepts such appointment.
 The Parties agree that for purposes of this Agreement, SDCL shall apply to this Agreement,
 including exemption from the list of liability for an "excluded fiduciary" under
 SDCL 55-1B-2(1) through (5). Anchorage is a qualified custodian as defined under Investment
 Advisers Act of 1940.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2. <u>Provision of the Services</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to (i) Client's successful completion of the account acceptance process as provided in Section
2.1, and (ii) provided that Client is in compliance with this Agreement, during the Term, Anchorage will provide the Services to Client.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Anchorage will, in its sole discretion, determine the requirements for any Direction, including Authenticated
Instructions, and whether such requirements have been satisfied as to any Direction. Anchorage is entitled to rely upon information, data,
and instructions from Client (or otherwise persons or parties authorized to act on its behalf) related to a Direction in all respects.
Client acknowledges that (i) Anchorage's acceptance of Directions related to Client's deposit and withdrawal of assets is
based on the parameters of Authenticated Instructions and in accordance with Anchorage's Services requirements; and (ii) Anchorage
has no duty to inquire into or investigate the legality, validity, or accuracy of any information, data, or instructions related to a
Direction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Services are available only in connection with those Digital Assets and protocols that Anchorage,
in its sole discretion, supports. The type and scope of Services that Anchorage supports for each Digital Asset, and applicable Fees for
such Services, may differ. Under no circumstances should Client attempt to use the Services to store, send, request, or receive Digital
Assets and protocols that Anchorage does not support. Client shall have access to a list of Digital Assets that Anchorage supports in
the Anchorage Application. Anchorage assumes no responsibility in connection with any attempt to use any Account or Vault with Digital
Assets that Anchorage does not support, and any such unsupported Digital Assets deposited to or received in any Account or Vault are subject
to forfeiture and loss. The Digital Assets that Anchorage supports may change from time to time, based on Anchorage's sole and absolute
discretion. Anchorage will notify Client as soon as reasonably practicable in advance if it ceases to support a particular Digital Asset
for which Anchorage has provided Services to Client.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Client acknowledges that Anchorage will not monitor Digital Assets for actions taken by the issuer of
such Digital Asset, if any. Such actions may include an issuer instruction requiring the holder of a Digital Asset to transfer it to a
certain location. For the avoidance of doubt, Client is solely responsible for satisfying or responding to any such actions of an issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Unless acting in accordance with Section 1.2(f), (g), (j) or (k), Anchorage shall only follow the Directions
from Client. Anchorage is released and held harmless by Client for following the Directions from the Client, Client Service Providers,
Control Parties, or Token Issuer, when acting in accordance with any Client Service Provider Agreement, Control Agreement, or Vesting
Schedule as the case may be except to the extent of Anchorage's Bad Acts (as defined below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) In the event Client enters into any of the following agreements
 (any such agreement, a "**Client Service Provider Agreement** "):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) A brokerage services agreement with Anchorage Hold, LLC ()"**Trader** "), under which Client
appoints Trader to act as Client's agent to issue Directions to Anchorage for the transfer of Client's Digital Assets or fiat
currency to an Account or Vault in the name of, and solely controlled by, Trader or its affiliates, for the purpose of trading, clearing,
settling, netting, accounting for, and providing other services in connection with, Client's Digital Assets or fiat currency;

ii) A lending agreement, a loan agreement and security agreement, or other similar agreement, regardless of how titled, with Anchorage Lending CA, LLC ("**Lending**"), under which Client appoints Lending to act as Client's agent to issue Directions to Anchorage for the transfer of Client's Digital Assets or fiat currency to or from an Account or Vault in the name of, and solely controlled by, Lending or its affiliates, or an omnibus account held for Client's benefit, for the purpose of (i) advancing Client's Digital Assets or fiat currency to Lending; or (ii) borrowing Digital Assets or fiat currency from Lending and providing collateral in connection therewith; or

iii) An agency appointment with any other party, under which Client appoints such Third Party ("**Agent**") to act as Client's agent to issue Directions to Anchorage for any purpose set forth in the appointment; then, in each applicable case, Client shall promptly notify Anchorage in writing of any such agency appointment using a form of notice acceptable to Anchorage. Where Client has duly appointed any of Trader, Lending or Agent (each, a "**Client Service Provider**") as its agent pursuant to the foregoing agreements or a Control Agreement (each a Client Service Provider Agreement), Client directs Anchorage to follow, and Anchorage shall follow, any Direction initiated by a Client Service Provider related to Digital Assets or Fiat Services as if initiated directly by the Client provided that such Directions followed by Anchorage shall be limited to those contemplated by a Client Service Provider Agreement or otherwise agreed between Client Service Provider and Anchorage, including, without limitation, through an Authenticated Instruction by a Client Service Provider on Client's behalf.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) In the event Client enters into an account control agreement, vault control agreement, or other similar
agreement (regardless of how titled, a "**Control Agreement**") with Anchorage, a lender (a "**Control Party** ")
and any other parties (each, an "**Ancillary Party** "), under which Client directs Anchorage to follow such Control Party's
instructions as described therein, Client directs Anchorage to follow, and Anchorage shall follow, any Direction initiated by such Control
Party related to Digital Assets or Fiat Services as if initiated directly by the Client. Directions of a Control Party or Ancillary Party
may be initiated by any method contemplated by a Control Agreement or otherwise agreed between a Control Party, Ancillary Party and Anchorage,
including, without limitation, through an Authenticated Instruction by a Control Party on Client's behalf or Ancillary Party on
Client's behalf.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) From time to time, Anchorage may, in its sole discretion, offer Client additional optional services involving
settlement services ()"**Optional Settlement Services** "). Client may elect to accept Optional Settlement Services by signing
the Settlement Services Addendum attached to this Agreement, or by accepting such services in the Anchorage Platform if offered therein.
In the event Client accepts Optional Settlement Services, Client agrees to comply with all terms and conditions set forth under the Settlement
Services Addendum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Client agrees that Client is solely responsible for any gas or network fees necessary for the transfer
of Digital Assets pursuant to Client Directions. To the extent a Client's Digital Assets are unable to be transferred out of the
Account due to insufficient gas or network fees necessary for the transfer, Client agrees to promptly deposit additional Digital Assets
to permit such transfer; if Client does not promptly deposit additional Digital Assets to permit such transfer, the Direction to transfer
such Digital Assets shall be deemed canceled and void. Anchorage shall not be liable for paying any gas or network fees on behalf of Client,
unless otherwise agreed in writing between the parties, and shall not be liable for any canceled Directions due to insufficient gas or
network fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Vesting Schedules</u>. By custodying Digital Assets from validators, protocols, or token issuers
 (each a "**Token Issuer**") with a Vesting Schedule ()"**Restricted Assets**") with Anchorage, Client
 agrees that Restricted Assets may be subject to the applicable Vesting Schedule imposed by the applicable Token Issuer. Anchorage
 may, as required by Token Issuer, act in accordance with and comply on a best efforts basis with the applicable Vesting Schedule,
 such that all Restricted Assets deposited in Client Account or Vault shall remain restricted from withdrawal by Client in accordance
 with the applicable Vesting Schedule provided by the Token Issuer, and as instructed by the Token Issuer to Anchorage. Accordingly,
 Client acknowledges and agrees that Client may not be able to
withdraw any Restricted Assets from Client Account or Vault until such assets have vested pursuant to the applicable Vesting Schedule
as provided by Token Issuer, and in the case of any conflict between Client Directions regarding Restricted Assets and the applicable
Vesting Schedule, Anchorage is hereby authorized by Client to act in accordance with the Vesting Schedule.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Token Issuer Risks</u>. Client acknowledges and agrees that Anchorage is not responsible for decisions
made by any Token Issuer, or for any changes to any Vesting Schedule made by the Token Issuer once Client's Restricted Assets are
deposited with Anchorage, and Client acknowledges and accepts any risks associated with decisions made by Token Issuer, which are outside
of Anchorage's control. If Client causes Anchorage to follow any Client Directions that would result in any of the Client Account(s)
being in violation of any applicable Vesting Schedule, Client agrees to indemnify and hold Anchorage harmless against any Claims by the
Token Issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3. <u>Storage of Digital Assets</u>. Anchorage will receive Digital Assets for storage by generating Private Keys and their Public Key pairs, with Anchorage retaining custody of such Private Keys. Upon receipt, Anchorage will custody the Digital Assets in Client's name or Accounts established for the benefit of the Client, unless otherwise specified in (a) an applicable Client Service Provider Agreement, or (b) instructions provided by a Client Service Provider or a Control Party pursuant thereto. Anchorage shall be deemed to have received a Digital Asset after the Digital Asset's receipt has been confirmed on the relevant Blockchain or otherwise ledgered to Anchorage's reasonable satisfaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4. <u>Accounting for Digital Assets</u>. At all times, Client owns Digital Assets and fiat currency (if applicable) held by Anchorage on behalf of Client under this Agreement, unless otherwise specified in (a) an applicable Client Service Provider Agreement, or (b) instructions provided by a Client Service Provider or a Control Party pursuant thereto. Client Digital Assets and fiat currency shall be kept separate from the assets of Anchorage and shall not be reflected on Anchorage's balance sheet as assets of Anchorage. Anchorage will record on its books and records all Digital Assets and fiat currency (if applicable) received by it for the Account and will segregate Digital Assets from those of any other person or entity, unless otherwise specified in (i) an applicable Client Service Provider Agreement, or (ii) instructions provided by a Client Service Provider or a Control Party pursuant thereto. Anchorage will provide Client with access to the Technology Platform for transaction records and holdings and will provide Client monthly statements that show balances and transaction records of Client Digital Assets. Upon commercially reasonable notice to Anchorage, Anchorage will provide Client copies of the books and records pertaining to the Client that are in the possession or under the control of Anchorage. The books and records maintained by Anchorage will, to the extent applicable, be prepared and maintained in all material respects as required by applicable Laws.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5. <u>Authority to Assign or Pledge</u>. Subject to applicable Law and Section 5.4, Client's Digital Assets and fiat currency shall not be subject to any right, charge, security interest, lien or claim of any kind in favor of Anchorage or any of its Affiliates or of any creditor of any of them, and Anchorage shall not have the independent right or authority to assign, hypothecate, pledge, encumber or otherwise dispose of any Client Digital Assets or fiat currency. The Digital Assets in the Account and the fiat currency in the Deposit Account, as defined in Section 2.7, are not general assets of Anchorage or of any of its Affiliates and are not available to satisfy claims of any creditors of Anchorage or of any of its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6. <u>Application of UCC</u>. Except as may be otherwise provided in this Agreement or applicable Law, the Parties agree the relationship between Anchorage and Client is governed by Article 8 of the Uniform Commercial Code, as adopted and implemented under South Dakota law ("**UCC**"), and that for the purposes of this Agreement, (i) Client is an "entitlement holder" and any Digital Assets credited to the Account for Digital Assets or the Deposit Account for fiat currency, as defined in Section 2.7, shall be treated as a "financial asset" within the meaning of SDCL 57A-8-102(a)(7) and (9); (ii) Anchorage is a "securities intermediary" pursuant to SDCL 57A-8-102(a)(14) with respect to all financial assets held in such securities accounts; (iii) Anchorage maintains its accounts as "securities accounts" pursuant to SDCL 57A-8-501 in the ordinary course of business; and (iv) should Client enter into an agreement with Lending, then instructions given by Lending hereunder are "entitlement orders" pursuant to SDCL 57A-8-507, and Lending is an "entitlement holder" pursuant to SDCL 57A-8-102.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7. <u>Rights of Use; Limits on Use</u>. Subject to the terms of this Agreement, including compliance with Schedule B (Technical and Equipment Specifications) and Client's confidentiality obligations under Section 8, Anchorage hereby grants to Client a non-sublicensable, non-exclusive, worldwide right during the Term to access the Technology Platform. The foregoing rights grant extends to access and use by Authorized Persons, and for the Anchorage API only, to Third Parties authorized by Client, subject to Section 2.3(b). Client will not, and will not permit Authorized Persons or Third Parties to: (i) directly or indirectly copy, disseminate, display, distribute, publish, sell, or otherwise use or disclose any part of the Technology Platform, or create any works or other materials based on or derived from any part of the Technology Platform; (ii) reverse engineer, decompile, or disassemble the software used in the Technology Platform; (iii) sell, rent, lease, or license Client's right to use the Technology Platform except as may be set out under this Agreement; or (iv) use the Technology Platform or Services in any other way not expressly authorized by this Agreement. Client will be responsible for all acts and omissions of Authorized Persons in connection with or relating to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8. <u>Support and Maintenance</u>. Subject to applicable Law, as part of the Services and at no additional cost to Client, Anchorage will (i) make available the Technology Platform, and (ii) provide other Support Services as described in this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.9. <u>Business Continuity Policy</u>. Anchorage shall maintain a business continuity policy applicable to Anchorage's performance of Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.10. <u>Forks, Airdrops</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Should a Fork occur: (i) Anchorage retains the right, in its sole discretion, to determine whether or not to support (or cease supporting)
either Forked Network; (ii) in connection with determining to support a Forked Network,
Anchorage may suspend certain operations, in whole or in part (with or without advance notice), for however long Anchorage deems necessary,
in order to take the necessary steps, as determined in its sole discretion, to perform obligations hereunder with respect to supporting
a Forked Network; (iii) Client hereby agrees that Anchorage shall determine, in its sole discretion, whether to support such Forked Network
and that Client shall have no right or claim against Anchorage related to value represented by any change in the value of any Digital
Asset (whether on a Forked Network or otherwise), including with respect to any period of time during which Anchorage exercises its rights
described herein with respect to Forks and Forked Networks; (iv) Anchorage will use commercially reasonable efforts to timely select,
in its sole discretion, at least one (1) of the Forked Networks to support and will identify such selection in a written notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) With respect to a Forked Network that Anchorage chooses not to support, Anchorage shall, in cooperation
with Client but in Anchorage's sole discretion, elect to (x) abandon or otherwise not pursue obtaining the Digital Assets from that
Forked Network, or (y) deliver the Digital Assets from that Forked Network to Client within a time period as determined by Anchorage in
its sole discretion, together with any credentials, keys, or other information sufficient to gain control over such Digital Assets (subject
to the withholding and retention by Anchorage of any amount reasonably necessary, as determined in Anchorage's sole discretion,
to fairly compensate Anchorage for the efforts expended to obtain and deliver such Digital Assets to Client).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) With respect to Forked Networks that Anchorage chooses to support, Client may be responsible for the fees
for such support (to be negotiated), and Client acknowledges and agrees that Anchorage assumes no responsibility with respect to any Forked
Network and related Digital Assets that it chooses not to support.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Client acknowledges that Digital Asset values can fluctuate substantially which may result in a total
loss of the value of Digital Assets. The supply of Digital Assets available as a result of a Forked Network and Anchorage's ability
to deliver Digital Assets resulting from a Forked Network may depend on circumstances or Third Party providers that are outside of Anchorage's
control. Anchorage does not own or control any of the protocols that are used in connection with Digital Assets and their related Digital
Asset networks, including those resulting from a Forked Network. Accordingly, Anchorage disclaims all liability relating to a Forked Network
and any change in the value of any Digital Assets (whether on a Forked Network or otherwise), and makes no guarantees regarding the security,
functionality, or availability of such protocols or Digital Asset networks. Client accepts
all risks associated with the use of Anchorage's services to conduct transactions, including, but not limited to, in connection
with the failure of hardware, software, and internet connections.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event that a Digital Asset network, entity or person (a "**Sender**") attempts to
or does contribute (sometimes called "airdropping" or "bootstrapping") its Digital Assets (collectively, "**Airdropped Digital Assets**") to holders of Digital Assets on an existing Digital Asset network and Client notifies Anchorage in writing
of such event, Anchorage may, in its sole discretion, elect to: (i) subject to an airdrop fee to be determined, support the Airdropped
Digital Asset for custody and, if appropriate, reconcile Account(s); (ii) abandon or otherwise not pursue obtaining the Airdropped Digital
Assets; or (iii) within a time period as determined by Anchorage in its sole discretion, deliver the Airdropped Digital Assets from that
Digital Asset network to Client, together with any credentials, keys, or other information sufficient to gain control over such Airdropped
Digital Assets (subject to the withholding and retention by Anchorage of any amount reasonably necessary, as determined in Anchorage's
sole discretion, to fairly compensate Anchorage for the efforts expended to obtain and deliver such Airdropped Digital Assets to Client).
If Anchorage supports, obtains or delivers Airdropped Digital Assets, such actions will not create any relationship between the Sender
and Anchorage, grant any interest or rights to the Sender (including, without limitation, any Third Party beneficiary rights), or subject
Anchorage to any obligations as it relates to the Sender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.11. <u>Generally</u>. Notwithstanding any federal, state or local Law to the contrary regarding any common law or contractual duty, Client agrees that Anchorage will perform only such duties as are expressly set forth herein as Services, and no additional duties or obligations shall be implied. Anchorage has the authority to do all acts that Anchorage reasonably determines are necessary, proper, or convenient for it to perform its obligations under this Agreement and shall have no obligation to perform acts which it reasonably believes do not comply with applicable Laws. In providing the Services, Anchorage has no duty to inquire as to the provisions of or application of any agreement or document other than this Agreement, notwithstanding its receipt of such agreement or document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Client Responsibilities and Acknowledgements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. <u>Account Acceptance; Authorized Person Designations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Services will be provided only after Client's successful completion of the account acceptance process,
including but not limited to the onboarding process in Section 2.3(a), as determined in Anchorage's sole discretion. Anchorage may
terminate this Agreement upon fourteen (14) days' prior written notice to the Client due to Client's failure to complete the
onboarding process with Anchorage. To complete the acceptance process, Client shall provide Anchorage with information and documents,
which include but are not limited to, information necessary for Anchorage's compliance with the Bank Secrecy Act ()"**BSA** "),
and all Laws and regulations relating to anti-money laundering ()"**AML** "), Know-Your-Customer ()"**KYC** "),
counter-terrorist financing, sanctions screening requirements,
or any other legal obligations, in each case, as determined by Anchorage in its sole discretion. Upon acceptance of Client by Anchorage,
Client shall nominate and manage Authorized Persons; provided that if Client has entered into, or at any time enters into, a Client Service
Provider Agreement or Control Agreement that (i) contemplates or requires an Authorized Person to be nominated by a Third Party or (ii)
can only be reasonably implemented through the use of Authorized Persons that are nominated by a Third Party, then Authorized Persons
shall be nominated in accordance with such agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In order to be approved as an Authorized Person, nominated persons must agree to data collection permissions
and related policies provided in the Anchorage application and Technology Platform, including privacy policies and other terms, which
may be amended from time to time. A copy of the then-current versions of such privacy policies and other terms will be provided at the
written request of Client. Client is solely responsible for the actions or inactions of all Authorized Persons at all times, including
their intentional, unintentional, or coerced use of the Services. With respect to Client's primary custody Account, Client will
initially nominate three (3) or more individuals as Authorized Persons prior to initiation of Client on-boarding by Anchorage, and a minimum
of two (2) of three (3) Authorized Persons must approve an Authenticated Instruction. Anchorage reserves the right in its reasonable sole
discretion to change, upon reasonable advance written notice, the minimum number of Authorized Persons to be designated or which are required
to approve a Direction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) With respect to any Account or Vault opened in connection with a Client Service Provider Agreement or
Control Agreement, the applicable Third Party shall nominate the agreed-upon number of individuals as Authorized Persons, and the Quorum
shall be determined as required by such agreement. Subsequent to the approval and on-boarding of initial Authorized Persons, Client or
an approved Third Party (pursuant to a Client Service Provider Agreement or Control Agreement) may nominate additional Authorized Persons
or revoke an Authorized Person's status, each through a Direction to be approved by a Quorum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2. <u>Acceptable Devices</u>. Unless expressly agreed upon otherwise, Client shall maintain a separate Acceptable
Device for each Authorized Person. The Acceptable Device must have Internet accessibility and meet other technical specifications prescribed
by Anchorage in Schedule B.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3. <u>Authorized Persons; Anchorage API</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each person nominated by Client as an Authorized Person must be confirmed by Anchorage as an Authorized
Person. Authorized Persons may be required to successfully complete the onboarding process and training, which may include (i) installing
the Anchorage application onto the person's Acceptable Device; and (ii) training on the Services regarding the creation of Directions
or joining a Quorum. Upon completion of Anchorage's onboarding process and any training, to Anchorage's satisfaction in its
reasonable sole discretion, the nominated person will be designated by Anchorage as one of Client's Authorized Persons and their
device designated by Anchorage as an Acceptable Device, such that they may create Directions or join a Quorum.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As part of the Services, Anchorage may provide Client with access to the Anchorage API, through which
Client may permit Third Party access to the Account(s) or Technology Platform. Anchorage has implemented and will maintain an information
security program that includes policies and procedures reasonably designed for the safeguarding of Anchorage's Technology Platform.
Anchorage shall follow any Directions submitted via the Anchorage API, including Directions for withdrawals and external transfers of
Client's Digital Assets, as though such Directions were submitted from and by Client and without additional authentication, unless
otherwise specified in this Agreement. Authorized Persons may generate API keys and assign roles to a Third Party, including without limitation,
a Third Party application, subject to their compliance with the Anchorage API's Documentation, and applicable Law. Client and all
Authorized Persons shall use industry best practices to safeguard any generated Anchorage API keys. Client shall be responsible for all
Third Party access to the Account(s) and Directions submitted via the Anchorage API, and Anchorage shall not be liable for following any
instructions submitted via an Anchorage API key unless Anchorage's gross negligence or willful misconduct caused unauthorized access
to or possession of such key.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4. <u>On-Chain Services</u>. From time to time, Anchorage may, in its sole discretion, offer Client additional optional services involving on-chain transactions (other than deposits and withdrawals included in Anchorage's basic custody service), which may include staking, voting, vesting, signaling, and other activities requiring interaction with the applicable blockchain ("**On-Chain Services**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Offer and Acceptance of On-Chain Services. Anchorage may offer On-Chain Services by presenting the option to elect such services in
the Anchorage application to Authorized Persons of Client. Any offer for On-Chain Services will include the following terms:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) a basic description of the On-Chain Service;

ii) a disclosure of the material risks of the On-Chain Service;

iii) a description of any associated fees;

iv) any other key terms of the On-Chain Service, as applicable (for example, Anchorage will disclose if Digital Assets must be locked for a minimum period and would not be immediately accessible to Client); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v) an option to expressly agree to the On-Chain Service.

Any Authorized Person may accept an On-Chain Service on behalf of Client by clicking on the button indicating the Authorized Person's election of such service ("Agree" or similar) on behalf of Client.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Cancellation of On-Chain Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) Any Authorized Person may cancel an On-Chain Service at any time; provided, however, that in cases where Digital Assets are locked
up for a certain period pursuant to the blockchain protocol,
Anchorage will release locked Digital Assets when and as permitted by the applicable blockchain protocol. If Client desires to cancel
an On-Chain service, Client may do so through the Anchorage application.

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ii) Anchorage may discontinue an On-Chain Service at any time without notice for any reason. If Anchorage decides to discontinue an On-Chain Service, Anchorage will endeavor to provide as much notice to Client as reasonably possible, however Anchorage shall not be liable for any loss of rewards, slashing, penalty, or additional fees that may be incurred by the Client on the blockchain protocol.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5. <u>Legal Compliance</u>. Notwithstanding any other provision in this Agreement, Client agrees to the extent permitted by applicable Law, at all times to (i) fully satisfy Anchorage's information requests and other requirements, including but not limited to those relating to Authorized Persons or Digital Assets; (ii) fully comply with all applicable Laws, including the BSA and all other Laws and regulations related to AML, KYC, counter-terrorist financing, sanctions screening requirements, or other legal obligations; (iii) notify Anchorage if Client becomes a target of any BSA or Digital Asset related action, investigation or prosecution; (iv) notify Anchorage of any changes in its jurisdiction of organization or any change in ownership of the Client resulting from the acquisition by any Person of the beneficial ownership of ten (10) percent or more of the outstanding voting stock of the Client; and (v) provide Anchorage full cooperation in connection with any inquiry or investigation made or conducted by the U.S. Office of the Comptroller of the Currency ("**OCC**"). Anchorage will have no obligation to provide the Services if Client or Authorized Persons fail to comply with the foregoing to Anchorage's reasonable satisfaction. Client agrees to immediately notify Anchorage if it becomes aware of any suspicious activity or pattern of activity, or any activity which upon investigation may be a suspicious activity or pattern of activity under applicable Laws. As used herein, "Person" means an individual, a corporation, partnership, limited liability company, association, trust, unincorporated organization, or other legal entity or organization, or a Government Body.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6. <u>Acknowledgements</u>. Client acknowledges that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Client is an "Entitlement Holder" in a "Financial Asset," as defined by, and
 for purposes of, the UCC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Anchorage does not provide investment advice or exercise investment discretion. Client is capable of evaluating
transaction and investment risks independently, both in general and with regard to all transactions and investment strategies. Client
is solely responsible for, and Anchorage has no involvement in, determining whether any Digital Asset transaction (whether an investment
or otherwise), investment strategy, or related transaction is appropriate for Client;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Anchorage has no control over the Blockchains and markets in which Digital Assets are purchased and traded,
and such may be subject to technology flaws, manipulations, hacks, double spending, "51%" attacks, other attacks, and operational
limitations;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Anchorage does not control and makes no guarantee as to the functionality of any Blockchain's decentralized
governance, which could, among other things, lead to delays, conflicts of interest, or operational decisions that may impact Client or
its Digital Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Advancements in cryptography could render current cryptography algorithms utilized by a Blockchain supporting
a specific Digital Asset inoperative;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The price and liquidity of Digital Assets has been subject to large fluctuations in the past and may be
subject to large fluctuations in the future;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Deposits into Client's Accounts may not be considered "deposits," as that term may be
used under the applicable Laws, rules, or regulations in Client's jurisdiction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Digital Assets in Client's Accounts are not subject to deposit insurance protection of the Federal
Deposit Insurance Corporation ()"**FDIC"**) and may not be subject to the protection afforded customers under the Securities
Investor Protection Act of 1970, as amended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Digital Assets are not legal tender and are not backed by any government;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Legislative and regulatory changes or actions at the state, federal, or international level may adversely
affect the use, transfer, exchange, and value of Digital Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Transactions in Digital Assets may be irreversible, and, accordingly, losses due to fraudulent or accidental
transactions may not be recoverable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Some Digital Asset transactions shall be deemed to be made when recorded on a public ledger, which is
not necessarily the date or time that transaction was initiated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The value of Digital Assets may be derived from the continued willingness of market participants to exchange
fiat currency or Digital Assets for Digital Assets, which may result in the potential for permanent and total loss of value of a particular
Digital Asset should the market for that Digital Asset disappear;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) There is no assurance that a person who accepts a Digital Assets as payment today will continue to do
so in the future;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) Due to the volatility and unpredictability of the price of Digital Assets relative to fiat currency trading
and owning Digital Assets may result in significant loss over a short period of time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) The nature of Digital Assets may lead to an increased risk of fraud or cyber-attack;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) The nature of Digital Assets mean that technological difficulties experienced by Anchorage may prevent the access to or use of Client's
Digital Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) Any bond, insurance or trust account maintained by Anchorage for the benefit of its customers may not
be sufficient to cover all losses incurred by Client;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) Client agrees to hold Anchorage harmless from any loss or liability related to the acknowledgments in
this paragraph 2.6 (a)-(r); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) The Fees and any other payments or compensation otherwise agreed to by Anchorage and Client represent
reasonable compensation for Anchorage's Services and expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7. <u>Fiat Currency Instructions and Acknowledgements; Undirected Cash Disclosures</u>. Anchorage may, in its sole discretion, offer Fiat Services to Client. If Anchorage offers Fiat Services, and Client accepts Fiat Services, Client shall be subject to the requirements, policies and procedures of any Fiat Institution (as defined below), as applicable, and Anchorage will, acting as Client's agent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Deposit all cash deposited by Client with Anchorage, for which the Client has not already provided transfer
instructions, into deposit accounts at FDIC-insured, regulated depository institutions selected by Anchorage (each, a "**Fiat Institution** "),
which accounts will be held for the benefit of (FBO) Anchorage clients ()"**Deposit Accounts** "). Deposit Accounts will
be non-interest-bearing and may be segregated by client or pooled into omnibus accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Enter into such sub-accounting agreements as may be required by the Fiat Institution, and;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Initiate wire transfer requests from time to time for the withdrawal of Client funds from the Deposit
Accounts, which requests are to be honored by the Fiat Institution for withdrawal of Client's funds from such Deposit Accounts for
distributions, investments, fees and other disbursements directed or agreed to by the Client or Client's delegate. All applicable
wire transfer fees shall be paid by the Client.

For the sub-account held for the benefit of Client, Anchorage will keep records to obtain pass-through FDIC coverage of up to the maximum coverage level of $250,000 per Client at a single Fiat Institution. Anchorage makes no guarantee that pass-through FDIC coverage will be available, and Client acknowledges and accepts the risk that pass-through FDIC coverage may not be available. Anchorage shall not be liable for any defaults by a Fiat Institution, including but not limited to any bankruptcy filing or insolvency of a Fiat Institution, and any Losses incurred by Client due to Fiat Institution's actions , omissions, failures, or insolvency.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Ownership and Intellectual Property Rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. <u>Services and Documentation</u>. As between the Parties and subject to Section 3.2 (Outputs of Services) and 3.3 (Client Data), Anchorage owns the Services, the Documentation, and all Intellectual Property Rights in the Services and the Documentation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. <u>Outputs of Services</u>. Anchorage hereby grants Client a perpetual, royalty-free, non-transferable (except as provided in Section 12.10), non-sublicensable, worldwide license to all output and results from use of the Services by Client or Authorized Persons, including any reports, graphics, data, specification, programs and all other materials or computer output ("**Outputs**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3. <u>Client Data</u>. As between the Parties, Client owns all Client Data and all Intellectual Property Rights in Client Data. Client hereby grants Anchorage, and any of its Affiliates that provide or may provide additional services to Client, a perpetual, royalty-free, non-transferable (except as provided in this Section 3.3 or Section 12.10), non-sublicensable, worldwide license to disclose and use Client Data (i) to operate and manage the Services for Client; (ii) to monitor, process and support Directions or as necessary to effect, administer, or enforce a transaction or directive that Client otherwise requests or authorizes, including to facilitate Client's use of services provided by Anchorage Affiliates; (iii) to comply with legal or regulatory obligations applicable to the Services including financial reporting and retention of related data; and (iv) in de-identified and anonymized form in aggregation with other clients' data, to improve Anchorage's services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4. <u>Feedback</u>. From time to time, Client may submit or provide suggestions, requests for features, recommendations, or ideas to Anchorage ("**Feedback**"). By submitting Feedback, Client grants Anchorage a non-exclusive, worldwide, royalty-free, irrevocable, sub-licensable, perpetual license to use the Feedback, without consideration or compensation to Client or Authorized Persons, Affiliates, agents, partners, or personnel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Term and Termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. <u>Term</u>. This Agreement is effective as of the Effective Date and will continue in full force and effect for the Initial Term period in the Order Form, and will be automatically renewed for each successive Renewal Term specified in the Order Form (the Initial Term and each Renewal Term collectively referred to herein as the "**Term**"). For each Renewal Term, Anchorage reserves the right to change the Fees, institute new charges, or to otherwise change the Services upon written notice to Client no less than sixty (60) days prior to the commencement of the Renewal Term. Either Party may elect not to renew the Agreement by providing written notice of cancellation no less than thirty (30) days prior to the expiration of the current Term or unless sooner terminated as set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. <u>Termination for Cause</u>. This Agreement may be terminated by the non-breaching Party upon a material breach which is not cured within thirty (30) days after receipt by the breaching Party of written notice from the non-breaching Party of such breach. Notwithstanding the foregoing, this Agreement may be terminated immediately (without an opportunity to cure) upon written notice by the non-breaching Party in the following cases: (i) either Party reasonably determines that any part of the Services is or may become in violation of applicable Laws or raises material regulatory, risk, or reputational issues; (ii) Client or Authorized Persons have acted fraudulently or made a willful misrepresentation; (iii) the other Party files bankruptcy or is declared insolvent, or has an administrative or other receiver, manager, trustee, liquidator, administrator, or similar officer appointed over all or any substantial part of its assets; (iv) the other Party enters into or proposes any composition or arrangement with its creditors generally; or (v) the other Party violates Section 8.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3. <u>Effect of Termination Notice</u>. Upon termination of this Agreement, Client will pay Anchorage all Fees, as provided in the Order Form, and documented expenses for Services rendered to Client through the effective date of termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4. <u>Obligations and Rights on Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Timeline for Termination. Client shall, within thirty (30) days (or as otherwise agreed in writing between
the Parties) of the date of any termination notice, whether sent by Anchorage or by Client, transfer all of Client's Digital Assets
or fiat currency out of all Accounts and Vaults with Anchorage, subject to applicable Laws and any payment obligations and set off to
Anchorage for any outstanding Fees and associated costs of such return (if any). If the Client fails to transfer their Digital Assets
or fiat currency within thirty (30) days (or as otherwise agreed in writing between the Parties) of termination, Client shall work in
good faith with Anchorage to transfer all Digital Asset and fiat currency out of Client Account and Vault as soon as possible. Regardless
of termination, Client shall accrue Fees until all Digital Assets and fiat currency are transferred out of Client Account and Vault with
Anchorage. Notwithstanding the foregoing, Clients may be required to transfer all of Client's Digital Assets or fiat currency earlier
than the time period agreed herein if Anchorage reasonably determines that any part of the Services is or may become in violation of applicable
Laws, or raises material regulatory, risk, or reputational issues. For avoidance of doubt, and regardless of termination, Client shall
be responsible for payment of any Fees accrued until the Client transfers all of Client's Digital Assets from Client's Account
with Anchorage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Digital Assets. A Digital Asset will be deemed to have been returned to Client when: (i) a transfer of
the Digital Asset initiated by Anchorage has received a reasonable number of confirmations on the relevant Blockchain; or (ii) via an
alternative method mutually agreed upon between Anchorage and Client. To the extent a Client's Digital Assets are unable to be transferred
out of the Account due to insufficient gas or network fees necessary for the transfer, Client agrees to deposit additional Digital Assets
to permit such transfer, or otherwise abandons and forfeits any claims to such Digital Assets upon closure of the Account. Client acknowledges
and agrees that upon notice of termination, if Client fails to transfer out Digital Assets within thirty (30) days, those Digital Assets
shall be abandoned and forfeited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Confidential Information and Client Data. At the Disclosing Party's written request, the Receiving
Party will return or destroy any or all of the Disclosing Party's Confidential Information. In addition, upon Client's written
request, Anchorage will return or destroy all Client Data. Notwithstanding the
foregoing, either Party may retain a copy of Confidential Information and Client Data (i) for audit, legal, accounting or compliance purposes;
(ii) if included within unstructured backup files or that technically cannot be deleted; (iii) as licensed pursuant to Section 3.3; or
(iv) as may be required by applicable Laws, including requirements of the OCC, provided that Section 8 shall continue to apply to all
such retained information, notwithstanding termination of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Timeline for Claims. The Parties agree that any claim, suit, proceeding, cause of action, or arbitration
request arising out of or relating to this Agreement must be asserted by a Party the earlier of (A) the applicable statute of limitation
under applicable Law and (B) within twelve (12) months of the time a Party becomes aware or should have become aware of the event giving
rise to the claim, suit, proceeding, cause of action, or arbitration request..

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Fees and Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. <u>Fees</u>. Client will pay Anchorage the Fees for the Services as set forth in the Order Form, in any addendum or attachment to this Agreement, or as otherwise agreed in writing between the Parties. Upon termination, Client shall be responsible for payment of any Fees accrued until the Client transfers all of Client's assets out of Client's Account, or until the assets are abandoned and forfeited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2. <u>Invoices; Payment Terms</u>. Anchorage will submit invoices for the Services as set forth in the Order Form. Except as otherwise set forth in the Order Form, Client agrees to pay all undisputed invoices net thirty (30) days following receipt. If Client reasonably disputes any portion of an invoice, Client agrees, within the foregoing 30-day period, to (i) pay the undisputed amounts; and (ii) provide a detailed explanation with all supporting documentation of the basis for its dispute. The first invoice will be sent after the end of the calendar month including the Fees Commencement Date, unless otherwise agreed in writing by the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3. <u>Taxes.</u> The Fees do not include all taxes, assessments, duties, and other governmental and similar charges ("**Taxes**") that may be assessed on Client or Client's assets by governmental authorities, which are Client's sole obligation to remit unless otherwise mandated by law. Client shall be liable for all Taxes relating to any Digital Assets held on behalf of Client or any transaction related thereto. Client shall remit to Anchorage for the amount of any Tax that Anchorage is required under applicable Laws (whether by assessment or otherwise) to pay on behalf of, or in respect of activity in the Account of Client. In the event that Anchorage is required under applicable law to pay any Tax on behalf of Client, Anchorage shall promptly notify Client of the amount required and Client shall promptly transfer to Anchorage the amount necessary to pay the Tax.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4. <u>Lien and Right of Setoff, Reserve</u>. To secure payment or performance of Client's Obligations, Client hereby pledges and grants to Anchorage and its Affiliate, Anchorage Hold, LLC, and agrees that Anchorage and its Affiliate, Anchorage Hold, LLC, will have, to the maximum extent permitted by Law, a continuing first lien and security interest in, and right of setoff against Accounts, all assets and property credited to the Accounts (including, for the avoidance of doubt, Digital Assets and fiat currency) or otherwise transferred to Anchorage, contractual and non-contractual rights in respect of any of the foregoing, and all proceeds of the foregoing. Client acknowledges and agrees that Anchorage has no duties or responsibilities with respect to the foregoing property (including any duty to collect any distributions or enforce or preserve any rights pertaining to such property) other than those expressly set forth in this Agreement or under applicable Law.

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Client also acknowledges that Anchorage is acting as agent for each Anchorage Affiliate for purposes of this Section 5.4.

Further, with Client's prior written consent, Anchorage may establish a reserve account to ensure Client pays Fees ("Reserve Account") if Client: (i) breaches this Agreement; (ii) is subject to a material regulatory action or proceeding that Anchorage reasonably determines makes it prudent for it to engage counsel or incur expenses to manage the Account; or (iii) is likely to become the subject of bankruptcy or insolvency proceedings, each as reasonably determined by Anchorage. If Anchorage creates a Reserve Account, Anchorage will provide prior written notice to the Client of the reasons therefore and the required Reserve Account balance. Anchorage may use Reserve Account funds to pay Client obligations to Anchorage, and if such funds are used, Anchorage will account to Client for such funds used in Client's monthly statements. In no case shall any amounts held in the Reserve Account constitute "demand deposits" or be withdrawable by check or similar means for payment to Third Parties or others, within the meaning of 12 U.S.C. 1841(c)(2)(D)(iv)(1).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Representations and Warranties; Disclaimers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. <u>Mutual Representations and Warranties</u>. Each Party represents, warrants, and covenants that: (i) it is a validly organized entity under the laws of the jurisdiction of its incorporation; (ii) it has all rights, power, and authority necessary to enter into this Agreement and perform its obligations hereunder; (iii) its performance of this Agreement, and the other Party's exercise of its rights under this Agreement, will not conflict with or result in a breach or violation of any of the terms or provisions or constitute a default under any agreement by which it is bound or any applicable Laws; and (iv) it will comply with all applicable Laws in performing its obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2. <u>Anchorage Representations and Warranties</u>. Anchorage represents, warrants and covenants that: (i) the Services will conform to this Agreement; (ii) it is the owner of or is duly authorized to provide all Services; (iii) it has all rights necessary to grant all the rights and licenses that it purports to grant and perform all of its obligations under this Agreement; (iv) it is not aware of any claim that the Services, and the use thereof by any Authorized Person in accordance with this Agreement, infringe upon or otherwise violate any statutory, common law or other rights of any Third Party in or to any Intellectual Property Rights therein; and (v) as of the Effective Date, there is no pending, threatened, or anticipated claim, suit, or proceeding affecting or that could affect Anchorage's ability to perform and fulfill its obligations under this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3. <u>Client Representations and Warranties</u>. The Client represents, warrants and covenants as of the Effective Date and as of each Direction from Client provided hereunder that: (i) Client is and has been for the past five (5) years or since its formation, whichever is more recent, based on a reasonable investigation and analysis of such applicable Laws, in compliance with all applicable Laws, including but not limited to those relating to anti-money laundering, Know-Your-Customer, customer identification and similar Laws; (ii) Client is, and will at all times remain, the owner or beneficial owner of all Digital Assets handled under this Agreement, subject only to liens and encumbrances granted to Anchorage pursuant to this Agreement or otherwise created as part of the Client's business; (iii) Client shall only use the Account(s) for the purpose of custody of Digital Assets by Client as beneficial owner, and under no circumstances shall Client use or cause Account(s) to receive third party payments; (iv) any Digital Assets or fiat currency deposited into any Account are not proceeds of a crime; and (v) Client is not directly or indirectly owned or controlled by any person or entity (a) included on the Specially Designated Nationals and Blocked Persons or the Consolidated Sanctions List maintained by the Office of Foreign Assets Controls ("**OFAC**") or similar list maintained by any government entity from time to time; or (b) located, organized, or resident in a country or territory that is the target of sanctions imposed by OFAC or any government entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4. <u>Anchorage Disclaimers</u>. Except to the extent set forth in Sections 6.1 and 6.2 above, **THE SERVICES ARE PROVIDED "AS IS" AND "AS AVAILABLE," WITHOUT WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, ANCHORAGE EXPLICITLY DISCLAIMS ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR NON-INFRINGEMENT, AND ANY WARRANTIES ARISING OUT OF THE COURSE OF DEALING OR USAGE OF TRADE.** The Parties further acknowledge and agree that Anchorage has no obligation to inquire into, and shall not be liable for any damages or other liabilities or harm to any person or entity relating to: (i) the ownership, validity or genuineness of any Digital Asset; (ii) the authority of any Authorized Person to act on behalf of the Client with respect to a Digital Asset; (iii) the accuracy or completeness of any Client Data or information provided by Client or any Authorized Person with respect to a Digital Asset or Direction; or (iv) the collectability, insurability, effectiveness, marketability or suitability of any Digital Asset. Client additionally understands and agrees that Anchorage will follow the Directions from Client, is considered by this Agreement to be an "excluded fiduciary" and shall be released and held harmless for following the Directions from Client, who is considered by the Agreement to be a Trust Advisor (in its capacity as a custody account holder) under SDCL 55-1B-1(3).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5. <u>Prohibition Against Nested Transactions</u>. Client shall not permit any transactions and/or activities of a financial institution from passing through any of the Account(s). Client shall provide Anchorage with such assurances and/or confirmation regarding Client's compliance with the foregoing prohibition as Anchorage may require, at its sole discretion from time to time, within such time frames as Anchorage may require and in form and substance acceptable to Anchorage. Should Client become aware of the use of an Account by any other financial institution, directly or indirectly, Client will promptly cause such use and/or activity to immediately cease and shall promptly notify Anchorage, in writing, of such circumstances.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Security Requirements; Personal Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1. <u>Security Requirements; Personal Information</u>. Client and Anchorage hereby agree that the Data Processing Addendum provided at: https://anchorage-digital.docsend.com/view/8v28dnjv9wk25xtr shall apply to and is hereby incorporated into this Agreement. Client will comply with and cause Authorized Persons and its Representatives to comply with the terms and conditions set forth in the Data Processing Addendum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2. <u>Breach Notifications</u>. Anchorage agrees to use commercially reasonable efforts to notify Client of any Personal Data Breach involving Client Data within forty-eight (48) hours of becoming aware of the Personal Data Breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3. <u>Changes in Law</u>. To the extent that applicable data protection Laws impose any additional compliance obligations that are not sufficiently addressed in this Agreement, the Parties agree to enter into good faith discussions regarding amending this Agreement or taking such other steps as may be mutually agreed as reasonably necessary to achieve compliance with those applicable data protection Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Confidentiality.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1. <u>Use and Disclosure</u>. The Parties acknowledge that, in the course of performance of this Agreement, it may be necessary for one Party ("**Disclosing Party**") to disclose or permit access to Confidential Information to the other Party ("**Receiving Party**") and its Representatives. Disclosing Party's disclosure of, or provision of access to, Confidential Information to Receiving Party's Representatives is solely for the purposes agreed to under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2. <u>Confidential Treatment</u>. Confidential Information disclosed to a Receiving Party will be held in confidence by the Receiving Party and not disclosed to others or used except as expressly permitted under this Agreement or as expressly authorized in writing by the Disclosing Party. Each Party will use the same degree of care to protect the other Party's Confidential Information as it uses to protect its own information of like nature, but in no circumstances less than reasonable care. At the Disclosing Party's written request, the Receiving Party will return or destroy any or all of the Disclosing Party's Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3. <u>Allowances</u>. Notwithstanding anything to the contrary in this Section 8, Confidential Information may be disclosed by a Receiving Party to its Representatives, service providers, including Vendors, and professional advisors who require it in connection with their duties in performing such Party's obligations under this Agreement and who are bound by confidentiality obligations substantially similar to those of this Agreement and which would extend to the Disclosing Party's Confidential Information. If disclosure is compelled by law, pursuant to a duly authorized subpoena, court order, or government authority, unless otherwise prohibited by law, the Receiving Party shall provide the Disclosing Party with prompt notice to permit the Disclosing Party to seek a protective order or other appropriate remedy protecting its Confidential Information from disclosure. If disclosure is required, the Receiving Party shall limit the disclosure of the Confidential Information to only the portions required to be disclosed. Notwithstanding the foregoing, Anchorage and Client may disclose any Confidential Information of Client to the OCC, or that is requested from, or required or appropriate to be provided to, any other state, federal, or international governmental or regulatory body with jurisdiction over Anchorage or Client, without prior notice to the other party. In addition, notwithstanding the foregoing, Anchorage may disclose the existence and terms of this Agreement in connection with an actual or prospective sale or transfer of Anchorage's assets or stock.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4. <u>Exceptions</u>. Except with respect to Personal Information, which will in all circumstances remain Confidential Information, obligations under this Section 8 will not apply to information which: (a) is or becomes available in the public domain without breach of this Agreement; (b) was lawfully received by the Receiving Party from a Third Party without confidentiality restrictions; (c) was known or legally in the possession of to the Receiving Party and its Representatives without confidentiality obligations prior to disclosure from the Disclosing Party; and (d) was independently developed by the Receiving Party without breach of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Indemnification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1. <u>Indemnification Obligation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Client will defend, indemnify, and hold harmless Anchorage, its directors, officers, employees and agents (collectively, the "**Anchorage Indemnified Party**") from and against losses, damages, fines, fees (including reasonable fees of attorneys and accountants), and penalties ("**Losses**") asserted in or incurred as a result of claims, demands, suits, or proceedings ("**Claims**") by a Third Party arising out of or in connection with this Agreement, except to the extent arising out of (i) Anchorage's gross negligence, willful misconduct, or fraud as determined by a non-appealable, adjudication by an arbiter of competent jurisdiction ("**Bad Acts**"), provided, however, that Anchorage shall be released and held harmless for Direction from the Client, and (ii) any breach by Anchorage of its obligations, warranties and representations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Client further agrees to indemnify Anchorage for actual, reasonable legal costs and expenses directly related to Client's Account(s) or any related account that are a result of any regulatory inquiry, legal action, litigation, dispute, or investigation whether such situations occur or are anticipated, that arise or relate to Client. Client further agrees to defend, indemnify and hold Anchorage Indemnified Party and any financial institution harmless from and against any Losses or Claims arising from or related to (i) Anchorage's execution of the Directions instituted by Client or anyone acting on Client's behalf or at its direction (such as a Client Service Provider or Control Party), including but not limited to requests for withdrawals by wire transfer made from Client's portion of the Deposit Accounts; (ii) instructions submitted via the Anchorage API, provided that such instructions were submitted pursuant to a validly generated Anchorage API key; and (iii) the actions or omissions of any party to whom the Client may have given access to an Anchorage API key.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2. <u>Notice and Settlement of a Claim</u>. Anchorage will provide Client with prompt notice of any Claim for which indemnification will be sought hereunder and will cooperate in all reasonable respects with Client in connection with any such Claims, at Client's expense. Client will defend Anchorage at Anchorage's request, but failure to give notice will not relieve Client of its obligations under this Section 9. Client will be entitled to control the handling of any such Claim and to defend or settle any such Claim, in its sole discretion, with counsel of its own choosing, except that any settlement for other than money damages will be subject to the approval of the Anchorage, which approval will not be unreasonably withheld. Client may not settle any Claim without the prior written consent of Anchorage where such proposed settlement may limit, materially interfere with, or otherwise adversely affect the rights of Anchorage herein.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. Liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1. <u>LIMITATION OF LIABILITY</u>. EXCEPT FOR ANCHORAGE'S BAD ACTS, ANCHORAGE SHALL NOT BE LIABLE FOR ANY LOSSES, WHETHER IN CONTRACT, TORT OR OTHERWISE, INCURRED BY CLIENT, FOR ANY AMOUNT IN EXCESS OF FEES PAID BY CLIENT IN THE TWENTY-FOUR (24) MONTHS PRIOR TO WHEN THE LIABILITY ARISES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2. <u>DAMAGES LIMITATION</u>. IN NO EVENT WILL ANCHORAGE BE LIABLE FOR (I) LOSSES WHICH ARISE FROM ANCHORAGE'S COMPLIANCE WITH APPLICABLE LAWS, INCLUDING SANCTIONS LAWS ADMINISTERED BY OFAC; OR (II) SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES, OR LOST PROFITS OR LOSS OF BUSINESS ARISING IN CONNECTION WITH THIS AGREEMENT. IN ADDITION TO THE FOREGOING, ANCHORAGE SHALL NOT BE LIABLE FOR ANY LOSSES WHICH ARISE AS A RESULT OF THE NON-RETURN OF DIGITAL ASSETS THAT CLIENT HAS DELEGATED TO ANCHORAGE OR A THIRD PARTY FOR ON-CHAIN SERVICES, SUCH AS STAKING, VOTING, VESTING, AND SIGNALING, UNLESS SUCH LOSSES OCCUR AS A RESULT OF ANCHORAGE'S BAD ACTS.

FOR THE AVOIDANCE OF DOUBT, THE LIMITATION OF LIABILITY IN THIS SECTION 10 IS A SEPARATE LIMITATION OF LIABILITY AS TO EACH CLIENT AND SHALL NOT INCLUDE ANY AMOUNT PAID BY CLIENTS IN THE AGGREGATE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. Dispute Resolution; Binding Arbitration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1. <u>Initial Resolution; Mediation</u>. In the event of any dispute, potential claim, question, or is agreement arising from or relating to this Agreement or the breach thereof (collectively, a "**Dispute**"), the aggrieved Party shall notify the other of the aggrieved Party's intent to address and resolve the Dispute, and the specific terms of such Dispute. The Parties shall use their commercially reasonable efforts to promptly settle the Dispute. Such efforts will include, at a minimum, that executives of each Party consult, meet in person, and negotiate with each other in good faith. If the Parties do not resolve the Dispute pursuant to the foregoing paragraph within a period of 30 days following the aggrieved Party's notice, then, upon notice by either Party to the other, the Parties agree to confidentially mediate the Dispute in good faith according to the American Arbitration Association ("**AAA**") Commercial Mediation Procedures in Sioux Falls, South Dakota or another location agreed to by the Parties. The Parties shall work in good faith with the mediator to attempt to complete the mediation within 30 days of such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2. <u>Arbitration</u>. If the parties do not resolve the Dispute pursuant to the foregoing paragraph, then, upon notice by either Party to the other, the Dispute shall be finally settled by binding arbitration administered by the AAA in accordance with the provisions of its rules applicable to commercial disputes. The arbitration shall be conducted on a confidential basis in Sioux Falls, South Dakota, or another location agreed to by the Parties. The arbitration shall be conducted before a single arbitrator experienced in contract, finance and technology law. Any decision or award shall be in writing and shall provide an explanation for all conclusions of law and fact. The arbitrator may award the prevailing Party on each claim or defense, if any, as determined by the arbitrator, some or all of its Costs, in the arbitrator's sole discretion. "**Costs**" mean all reasonable pre-award expenses of the arbitration, including the arbitrators' fees, administrative fees, out-of-pocket expenses such as copying and telephone, witness fees, and reasonable attorneys' fees.

No Party shall bring a putative or certified class action to arbitration, nor seek to enforce any pre-dispute arbitration agreement against any person who has initiated in court a putative class action; or who is member of a putative class who has not opted out of the class with respect to any claims encompassed by the putative class action until: (i) the class certification is denied; (ii) the class is decertified; or (iii) the customer is excluded from the class by the court. Such forbearance to enforce any agreement to arbitrate shall not constitute a waiver of any rights under this Agreement except to the extent stated herein.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3. <u>Exception for Protection of Confidential Information</u>. The Parties each agree that the protection of Confidential Information is necessary and reasonable in order to protect the Disclosing Party and its business. The Parties each expressly agree that monetary damages would be inadequate to compensate the Disclosing Party for any breach of its Confidential Information. Accordingly, each Party agrees and acknowledges that any such violation or threatened violation would cause irreparable injury to the Disclosing Party and that, in addition to any other remedies that may be available, in law, in equity or otherwise, the Disclosing Party shall be entitled to obtain injunctive relief against the threatened breach or continued breach by the Receiving Party, without the necessity of proving actual damages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. General Provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1. <u>Independent Contractor</u>. It is understood by the Parties that Anchorage is an independent contractor, and that this Agreement does not create or constitute a partnership, joint venture or employment relationship between the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2. <u>No Third Party Beneficiaries</u>. This Agreement is not intended to and shall not be construed to give any Third Party any interest or rights (including, without limitation, any Third Party beneficiary rights) with respect to or in connection with any agreement or provision contained herein or contemplated hereby, except as otherwise expressly provided for in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3. <u>Publicity and Client Identification</u>. The existence and subject matter of this Agreement, including Fees, is deemed the Confidential Information of Anchorage. Notwithstanding the foregoing, for the Term of the Agreement, Client may use Anchorage's name and approved or publicly available trademarks to identify Anchorage as its Digital Asset custodian services provider, and Anchorage may use Client's name and approved or publicly available trademarks to identify Client as a customer of Anchorage. Any use of a Party's trademarks shall be in a form reasonably acceptable to that Party. Any other use of a Party's name or trademarks by the other may only be made with its prior written consent.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.4. <u>Force Majeure</u>. Except for obligations to pay Fees, neither Party will be liable to the other Party for the failure to perform or delay in the performance of its obligations under this Agreement to the extent such failure or delay is caused by or results from a Force Majeure Event. The affected Party will not be held liable by the other Party for such non-performance or delay as long as the fact of the occurrence of such Force Majeure Event is duly proven or is reasonably provable. In addition, Anchorage will not be liable to Client for any costs or expenses incurred by Client as a result of any Force Majeure Event. Notwithstanding the foregoing, if the delay in performance exceeds thirty (30) days, the Party awaiting performance will be permitted to terminate this Agreement upon five (5) days' prior written notice to the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.5. <u>Notices</u>. All notices required or permitted under this Agreement will be in writing and delivered by courier, mail, electronic mail, or within the Anchorage application (except for service of legal process which shall be by courier). A Party's email addresses, or physical address may be changed from time to time by either Party by providing written notice to the other in the manner set forth above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.6. <u>Execution in Counterparts and by Electronic Means</u>. This Agreement may be executed in counterparts and by electronic means and the Parties agree that such electronic means and delivery will have the same force and effect as delivery of an original document with original signatures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.7. <u>Entire Agreement; Amendment</u>. This Agreement includes all exhibits, schedules, and attachments referenced herein, all of which are incorporated herein by this reference. This Agreement is the final, complete, and entire agreement of the Parties. There are no other promises or conditions in any other agreement, oral or written. This Agreement supersedes and replace, as applicable, any prior promises, agreements, representations, undertakings, or implications whether made orally or in writing between the Parties related to the subject matter of this Agreement, including but not limited to, any prior Master Custody Services Agreements entered into between the Parties which shall be deemed terminated upon the execution of this Agreement. The Agreement may only be modified or amended in writing and signed by both Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.8. <u>Remedies Cumulative</u>. Each Party will have all of the rights and remedies provided by law in addition to the rights and remedies set forth in this Agreement and in any other agreement or writing between the Parties. All of a Party's rights and remedies are cumulative and may be exercised from time to time, and the pursuit of one right or remedy will not constitute an exclusive election or otherwise preclude or limit its pursuit of any other or additional right or remedy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.9. <u>Severability</u>. If any provision of this Agreement will be held to be invalid or unenforceable for any reason, the remaining provisions will continue to be valid and enforceable. If a court finds that any provision of this Agreement is invalid or unenforceable, but that by limiting such provision it would become valid and enforceable, then such provisions will be deemed to be written, construed and enforced as so limited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.10. <u>Assignment</u>. No Party may assign any of its rights under this Agreement or delegate its performance under this Agreement without the prior written consent of the other Party; except that Anchorage may assign its rights and delegate its performance under this Agreement to: (i) any entity that acquires all or substantially all of its assets; (ii) any Affiliate that controls, is controlled by, or is under common control with Anchorage; and (iii) any successor in a merger, acquisition, or reorganization, including any judicial reorganization, in each case but only if the successor or acquirer entity is a "qualified custodian" as defined under Investment Advisers Act of 1940, or chartered as a bank or trust company under U.S. state or federal law.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.11. <u>Use of Affiliates</u>. Anchorage may use Anchorage Affiliates to provide certain Services as directed by Anchorage. Without limiting the generality of the foregoing, Anchorage hereby discloses that it is a subsidiary of Anchor Labs, Inc., which provides certain technology and administrative services to Anchorage in support of Anchorage's provision of Services hereunder, pursuant to an Intercompany Services Agreement between Anchorage and Anchor Labs, Inc. Anchorage is, and will at all times be, responsible for the acts and omissions of its Affiliates, including Anchor Labs, Inc., and all provisions under this Agreement that are applicable to Anchorage will apply equally to its Affiliates, including Anchor Labs, Inc. For the avoidance of doubt, this section does not apply to Anchorage's use of a Vendor, Fiat Institution, or other service provider.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.12. <u>No Waiver of Contractual Right</u>. The failure of either Party to enforce any provision of this Agreement will not be construed as a waiver or limitation of that Party's right to subsequently enforce and compel strict compliance with every provision of this Agreement. A waiver or consent given on one occasion is effective only in that instance and will not be construed as a bar to or waiver of any other right on any other occasion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.13. <u>Governing Law</u>. Except to the extent, it is governed by federal banking Law and any other Laws referenced in this Agreement, this Agreement will be governed by and construed exclusively in accordance with the laws of the State of South Dakota, without regard to its conflicts of laws provisions or rules. Subject to Section 11, the Parties hereby agree to submit to the exclusive jurisdiction of any appropriate court located in the State of South Dakota or the United States District Court for South Dakota located in the city of Sioux Falls, South Dakota, as a forum for litigation. Each of the Parties hereto hereby waives all right to trial by jury in any lawsuit, action, proceeding or counterclaim arising out of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.14. <u>Survival</u>. Any expiration or termination of this Agreement will not affect any accrued claims, rights or liabilities of Parties, and all provisions which must survive to fulfill their intended purposes, or by their nature are intended to survive such expiration or termination will survive, including Sections 2 - 12, and the Schedules.

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**SCHEDULE A DEFINITIONS**

"**Account**" means an account established in the name of, or for the benefit of a Client, in which the ownership of Digital Assets is recorded and to which Digital Assets are credited. Each Account is recorded separately on Anchorage's books and records and has one or more unique wallet addresses. An organization may have one or more Accounts, and an Account may have one or more Vaults. The Authorized Persons and Quorum requirements for each Account may differ from those of other Accounts.

"**Acceptable Device**" means a hardware device with software configuration set forth in Schedule B.

"**Affiliate**" means an entity controlling, controlled by or under common control with a Party.

"**Anchorage API"** means the application programming interface, as such may be modified from time to time, made available by Anchorage as part of the Services.

"**Annual Basis Points**" refers to the annual rate for custody fees. Monthly Custody Fees are

charged at the rate of one-twelfth of the listed annual rate.

"**AUC**" or "**Assets Under Custody**" means the average daily balance of Client Digital Assets in Anchorage's custody each month, calculated after the conclusion of each month, where the average daily balance is determined by adding each daily balance and dividing the sum of the daily balances by the number of days in such month (or in the case of the first month, by the number of days in such month following the Fees Commencement Date). Daily balances are calculated in U.S. Dollars by applying closing prices, as provided by CryptoCompare.com at the close of each day (UTC), or if unavailable, other reliable, reputable third party pricing sources, selected at Anchorage's sole discretion, to the end of day holdings in the Account. If such source(s)' closing prices for certain Digital Assets are unavailable, or Anchorage reasonably determines that such prices are unreliable due to low or inconsistent trading volumes, Anchorage may use fixed pricing for such Digital Assets, which will be determined in Anchorage's reasonable sole discretion*.*

 

"**Authenticated Instruction**" means a Direction (i) regarding specific Digital Assets; (ii) to add or remove Authorized Persons; (iii) to generate or remove, or change permissions for, Anchorage API keys; or (iv) which is otherwise provided for by the Services; by (a) an Authorized Person that has received Quorum approval (where such Quorum approval is required) or (b) an authorized application using an Anchorage API key (generated by an Authorized Person). Anchorage's authentication processes and procedures will be determined by Anchorage in its sole discretion from time to time, and will include biometric authentication for each Authorized Person, which may include but are not limited to fingerprint, facial recognition, or voiceprint. Where the purpose of an Authenticated Instruction relates to Digital Assets, such an Authenticated Instruction is an Entitlement Order for purposes of the UCC.

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"**Authorized Person**" means a person nominated by Client, or another party if so, contemplated by a Client Service Provider Agreement or Control Agreement, and thereafter approved by Anchorage pursuant to Section 2.1.

"**Basis Point**" means 1/100<sup>th</sup> of 1%.

"**Blockchain**" means software operating a distributed ledger which is maintained by a network of computers, and that records all transactions in a Digital Asset in theoretically unchangeable data packages known as blocks, each of which are timestamped to reference the previous block so that the blocks are linked in a chain that evidences the entire history of transactions in the Digital Asset.

"**Client Data**" means any or all of the following, and all copies thereof, regardless of the form or media: (i) Personal Information of Client or an Authorized Person; and (ii) any non-public data or information provided or submitted by or on behalf of Client or an Authorized Person as part of the Services.

"**Confidential Information**" means information and technical data, which is not generally known to the public, whether disclosed directly or indirectly, in writing, orally, or visually, that the Receiving Party knows or should know is confidential or proprietary. Examples of Confidential Information include, but are not limited to, a Party's products, software, websites, apps, marketing plans and materials, business strategies, business methods, models, financial reports or projections, product plans and specifications, designs, processes, manuals, ideas, concepts, drawings, pricing, fees, operational plans, know-how, employee information, shareholder information, vendor information, customer information, and ownership or investor information.

"**Digital Asset**" means a digital representation of value that may function as a medium of exchange or medium for investment, and which is evidenced on, and can be electronically received and stored using distributed ledger technology. For the avoidance of doubt, Digital Assets held by Anchorage for the Client are "Financial Assets" for purposes of the UCC and are not assets of Anchorage.

"**Direction**" means any directions, instructions or requests made by Client through the Services, including but not limited to Authenticated Instructions, through the Anchorage application made by Authorized Persons, or the Anchorage API, relating to the storage or transfer of Digital Assets.

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"**Documentation**" means all Client manuals, training and marketing materials, guides, product descriptions, product specifications, technical manuals, supporting materials, and other information relating to the Services and provided by Anchorage to Client.

"**Fee**" has the meaning provided in the Order Form.

"**Fiat Services**" means services related to the custody, management, and Directions related to fiat currencies owned by Client and held for Client's benefit by Anchorage, including (i) holding Client's fiat currency in an omnibus banking account held for the benefit of Anchorage's clients, and (ii) transferring Client's fiat currency as directed by Client, a Client Service Provider or other Client designee.

"**Force Majeure Event**" means an event, including, but not limited to natural catastrophes, fire, explosions, pandemic or local epidemic, war or other action by a state actor, public power outages, civil unrests and conflicts, labor strikes or extreme shortages, acts of terrorism or

espionage, Domain Name System server issues outside a Party's direct control, technology attacks (e.g., DoS, DDoS, MitM), cyberattack or malfunction on the blockchain network or protocol, or governmental action rendering performance illegal or impossible, occurring after

the Effective Date and that is caused by a circumstance beyond a Party's reasonable control and

that could not have been prevented or avoided by the exercise of due diligence.

"**Fork**" means (i) that a Digital Asset network has been changed in a way that makes it incompatible with the unchanged version of the Digital Asset network, (ii) a material population of miners and/or users of the Digital Asset network accept the changes, and (iii) that the two resulting Digital Asset networks have not been merged together in a timely manner. A Fork may create two separate Digital Asset networks (each, a "**Forked Network**"), and may result in Anchorage holding an identical amount of Digital Assets associated with each Forked Network.

"**Intellectual Property Right(s)**" means, with respect to any thing, material or work (hereinafter, a "**Work**"): any and all (i) worldwide copyrights, trademarks, trade secrets and any other intellectual property and proprietary rights and legal protections in and to such Work including but not limited to all rights under treaties and conventions and applications related to any of the foregoing; (ii) all patents, patent applications, registrations and rights to make applications and registrations for the foregoing; (iii) all goodwill associated with the foregoing; (iv) all renewals, extensions, reversions or restorations of all such rights; (v) all works based upon, derived from, or incorporating the Work; (vi) all income, royalties, damages, claims, and payments now or hereafter due or payable with respect thereto; (vii) all causes of action, either in law or in equity for past, present or future infringement based on the Work; (viii) rights corresponding to each of the foregoing throughout the world; and (ix) all the rights embraced or embodied therein, including but not limited to, the right to duplicate, reproduce, copy, distribute, publicly perform, display, license, adapt, prepare derivative works from the Work, together with all physical or tangible embodiments of the Work.

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"**Laws**" means all United States federal, state and local laws, statutes, ordinances, regulations, rules, executive orders, circulars, opinions, agency guidance, interpretive letters and other official releases, request, or recommendation of or by any government, or any authority, department or agency thereof.

**"Monthly Custody Fee"** means (Annual Basis Points x AUC)/12 as calculated using the fee table in the Order Form.

**"Monthly Minimum Fee"** refers to the fees as agreed by Parties in the Order Form.

"**Monthly NFT Custody Fee**" means as provided in the Order Form or as agreed by Client in the Anchorage Technology Platform, provided that if there is any discrepancy between such Fees, the Fees stated in the Order Form shall govern.

"**NFT**" or "**Non-Fungible Token**" means a digital representation of value which is evidenced in a Blockchain and is used to certify authenticity and ownership of specific Digital Assets. For all purposes of this Agreement (except where specifically addressed), NFTs are included within the definition of "Digital Asset" herein and are deemed a type of Digital Asset.

"**NFT AUC**" means the average daily balance of Client NFTs in Anchorage's custody each month, calculated after the conclusion of each month, where the average daily balance is determined by adding each daily balance from the applicable month and dividing the sum of the daily balances by the number of days in such month (or in the case of the first month, by the number of days in such month following the Fees Commencement Date). Daily balances are calculated in U.S. Dollars based on the corresponding NFT collection floor price. NFT collection floor price means the lowest listed price of any NFT within a collection at a given time, as determined by Anchorage at its sole discretion, provided that such floor price may be subject to change when a reliable, reputable third party pricing source, selected at Anchorage's sole discretion, becomes available.

"**Obligations**" mean in respect of Client, all present and future obligations and liabilities of Client (whether or not matured, unmatured, liquidated, unliquidated, fixed or contingent and irrespective of the currency of such obligations) to Anchorage and each Anchorage Affiliate, as applicable, under this Agreement and any other agreement.

"**On-Chain Services**" has the meaning set forth in Section 2.4.

"**One-Time Onboarding Fee**" refers to the fees for establishing Client as an Anchorage customer, including KYC/AML processes; one in-person training session; Authorized Person onboarding; and remote training for up to ten (10) individuals. Credit, if any, may be applied to Client Fees only above the Monthly Minimum Fee, and will be applied fully each month until the credit has been fully expended within the Initial Term. Any remaining credit after the Initial Term shall be forfeited.

"**Personal Data Breach**" has the meaning provided for in the Data Processing Addendum.

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"**Personal Information**" means any information relating to an identified or identifiable individual, such as name, postal address, email address, telephone number, date of birth, Social Security number (or its equivalent), driver's license number, account number, personal identification number, health or medical information, fingerprint, voice print, or any other unique logical or biometric identifier specific to an individual, regardless of the media in which it is contained, that is: (i) disclosed to Anchorage, its Affiliates or Anchorage Representatives by Client or an Authorized Person in anticipation of, in connection with or incidental to the Services; (ii) processed at any time by Anchorage, an Anchorage Affiliate or Anchorage Representatives in connection with or incidental to the performance of its obligations under this Agreement; or (iii) derived by Anchorage, an Anchorage Affiliate or Anchorage Representatives from the information described in (i) and (ii) above.

"**Private Key**" means an alphanumeric string known only to the holder of a Digital Asset, which must be used to transact the Digital Asset represented by the corresponding Public Key.

"**Public Key**" means an alphanumeric string on a Blockchain that indicates ownership/possession of a specific amount of a Digital Asset by a specific network participant. The Public Key is visible to all participants in the Blockchain's network.

"**Quorum**" means the minimum number of Authorized Persons required to approve a Direction which requires a quorum. Unless otherwise specified in an applicable Client Service Provider Agreement, Control Agreement, or instructions provided in connection therewith, (i) Client may designate the total number and the minimum number of Authorized Persons required to approve an Authenticated Instruction or other Direction so long as Client designates at least three (3) Authorized Persons, with at least two (2) required to approve any Direction.

"**Representative**" means any employees, officers, directors, representatives, contractors, and agents of a Party.

"**SDCL**" means South Dakota Codified Laws.

"**Services**" means the services related to the custody and settlement of Digital Assets provided by Anchorage to Client under this Agreement (including any attachments, schedules, exhibits, or addendums), including the Technology Platform and Support Services. "Services" also includes Fiat Services or On-Chain Services if Anchorage has offered such services to Client, and Client has accepted such services. For the avoidance of doubt, "Services" expressly excludes the provision of legal, tax, brokerage, or investment advice or recommendations.

**"Support Services"** means services supporting the use of the Services, including access to Anchorage Representatives for support related to Account(s), training, etc.

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"**Technology Platform**" means the technology platform and application provided by Anchorage and made available to Client to access the Services and Account(s), including the Anchorage API, and any changes, improvements, extensions thereto or other versions thereof in order to: (i) store Client's Digital Assets and provide related services; (ii) handle Digital Assets according to Authenticated Instructions; and (iii) determine the eligibility of Digital Assets for storage and continued storage. The Technology Platform includes but is not limited to (i) algorithms, computer programs, concepts, ideas, inventions, machines, mask works, procedures, processes, rates, security codes, and works of authorship in all cases whether or not patentable or copyrightable, that are owned or in-licensed by Anchorage or that otherwise are or have been created, developed, owned, incorporated or generated, in whole or in part, by or on behalf of Anchorage for or into or in connection with features, functions, tools or services to be provided pursuant to this Agreement, (ii) all data and other information that are or can be collected, compiled, or derived by or on behalf of Anchorage from any usage by Client or any other person of any work, invention, or other subject matter referred to in the foregoing, and (iii) any work, invention, or other subject matter that constitutes or relates to a suggestion, enhancement, modification, improvement, upgrade, or update regarding, or that is otherwise based on or derived from or related to, any work, invention, or other subject matter referred to in this the foregoing.

"**Third Party**" means a person(s) or any legal entity that is not a Party, a Representative of a Party, or an Affiliate of a Party.

"**UUC**" or "**Units Under Custody**" means the average daily quantity of Client Digital Assets in Anchorage's custody each month, calculated after the conclusion of each month, where the average daily quantity is determined by adding each daily quantity and dividing the sum of the daily quantity amounts by the number of days in such month (or in the case of the first month, by the number of days in such month following the Fees Commencement Date). The first invoice will be sent after the end of the calendar month including the Fees Commencement Date, unless otherwise agreed in writing by the Parties.

"**Vault**" means a subdivision of an Account. Each Vault is held separately on Anchorage's books and records and may have one or more unique wallet addresses. The Authorized Persons and Quorum requirements for each Vault may differ from those of other Vaults.

"**Vendor**" means any Third Party retained by Anchorage or its Affiliates to provide technical or professional services used by Anchorage or its Affiliates to provide the Services to Client.

"**Vesting Schedule**" shall mean a schedule provided by the Token Issuer which determines when the Restricted Assets will become available for Client to withdraw from their Account or Vault.

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**SCHEDULE B<br> **TECHNICAL AND EQUIPMENT SPECIFICATIONS**

&nbsp;&nbsp;&nbsp;&nbsp;1. Acceptable Device.

As to each nominated Authorized Person, a unique iPhone with TouchID or FaceID is required for the Services and must meet the minimum iPhone model as required by Anchorage.

*Note: The iPhone SE is specifically excluded from the list of compatible devices. Anchorage also reserves the right, upon notice to Client, to exclude new iPhone versions for a brief period as Anchorage deems necessary in its sole discretion (such as to ensure that the new software and/or device is operable with the Anchorage application and systems, is secure, and free from material bugs).*

 

&nbsp;&nbsp;&nbsp;&nbsp;2. Software Specifications.

As to each Acceptable Device of each nominated Authorized Person, the operating system must meet the minimum iOS version as required by Anchorage.

&nbsp;&nbsp;&nbsp;&nbsp;3. Changes to Schedule B.

Anchorage may, in its sole discretion, amend the Acceptable Device and Software Specification requirements in this Schedule B for security or service purposes, at any time. Anchorage agrees to use commercially reasonable efforts to provide Client prior notice of any such amendment. Upon amendment of any Acceptable Device and Software Specification requirements, as provided hereunder, Client will update and/or replace the Acceptable Device(s) as may be necessary, at its sole expense. Client understands and agrees that ongoing access to the Services will depend on compliance with Anchorage Acceptable Device and Software Specification requirements.

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## Exhibit 10.13

**Exhibit 10.13**

**CONFIDENTIAL**

CUSTODIAL SERVICES AGREEMENT

Ionic Digital Treasury Inc. &

Fidelity Digital Asset Services, LLC

**THIS CUSTODIAL SERVICES AGREEMENT** (this "***Agreement***") is made on June 18, 2024, (the "***Effective Date***"), by and between Ionic Digital Treasury Inc. (the "***Client***"), and Fidelity Digital Asset Services, LLC (the "***Custodian***", and collectively with the Client, the "***Parties***," and each individually, a "***Party***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. DEFINITIONS AND INTERPRETATION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. **Definitions.** For purposes of this Agreement and any exhibit or schedule hereto, the following terms
shall have the meanings ascribed to them below:

"***Account Tax Documentation***" has the meaning set forth in Section 7.B.

"***Affiliated Agent***" has the meaning set forth in Section 12.C.iii.

"***Assets***" means Cash and Eligible Assets that have been Delivered to the Custodian to be credited to one or more Custody Accounts established and maintained by the Custodian on behalf of the Client, in each case until such Assets are withdrawn or cease to be Assets pursuant to this Agreement. Assets shall also mean any Forked Digital Asset that the Custodian, in its sole discretion, chooses to support pursuant to Section 8 hereof.

"***Authenticated Instruction***" means an Instruction that has been confirmed as originating from an Authorized Person through a video conference call, the use of a mobile phone application or hardware security module or other method of authentication in accordance with procedures specified by the Custodian from time to time as required to be used in connection with the services hereunder.

"***Authorized Agent***" [not applicable].

"***Authorized Person***" has the meaning set forth in Section 5.A.

"***Blockchain Address***" means a public address on a blockchain in which a record of Eligible Assets can be held (including, without limitation, a bitcoin address for the asset commonly known as bitcoin).

"***Business Day***" means any day on which the Federal Reserve Bank of New York is open for business.

"***Cash***" has the meaning set forth in Section 2.A.ii.

"***Cash Credit Request****"* has the meaning set forth in Section 3.D.

"***Cash Custody Account****"* has the meaning set forth in Section 2.A.ii.

"***Cash Debit Request****"* has the meaning set forth in Section 3.E.

"***Client Digital Assets****"* has the meaning set forth in Section 2.B.i.

*"**Confidential Information**"* has the meaning set forth in Section 18.

"***Custody Account****"* has the meaning set forth in Section 2.A.ii.

"***Cut-Off Time****"* has the meaning set forth in Section 5.G.

"***Delivery***" (or "***Deliver***" or "***Delivered***") means the transfer of Eligible Assets to one or more Blockchain Addresses controlled by the receiving Party and provided by the receiving Party to the sending Party for such transfer. Eligible Assets shall be considered Delivered to the Custodian after the prevailing number of network confirmations as required by the Custodian from time to time have occurred on the blockchain used for the transaction transferring the Eligible Assets.

"***Digital Asset***" means a digital asset (also called a "cryptocurrency," "virtual currency," "digital currency," or "digital commodity"), such as bitcoin, which is based on the cryptographic protocol of a computer network that may be (i) centralized or decentralized, (ii) closed or open-source, and (iii) used as a medium of exchange and/or store of value.

 

*"**Digital Asset Credit Request**"* has the meaning set forth in Section 3.A.

*"**Digital Asset Debit Request**"* has the meaning set forth in Section 3.B.

"***Digital Asset Custody Account***" has the meaning set forth in Section 2.A.i.

"***Eligible Assets***" mean Digital Assets that are supported by the Custodian in its sole discretion on any given date in accordance with Section 2.C.

"***Fee Schedule***" means the schedule referred to in Section 12.D.i, as annexed hereto.

"***Force MaJeure Event***" means any event due directly or indirectly to any cause or condition beyond the reasonable control of the Custodian that materially affects its ability to perform its obligations hereunder, such as, but not limited to: changes in the functioning or features of Eligible Assets or the software protocols that govern their operation; sabotage or fraudulent manipulation of the protocols or network that govern Eligible Assets; changes in applicable Law; cybersecurity attacks, hacks or other intrusions; unavailability or malfunction of wire, communications or other technological systems; suspension or disruption of trading markets; requisitions; involuntary transfers; failure of utility services; fire; flooding; adverse weather or events of nature; explosions; acts of God, civil commotion, strikes or industrial action of any kind; riots, insurrection, terrorist acts; war (whether declared or undeclared); or acts of government or government agencies (U.S. or foreign).

"***Fork***" means a change in the consensus rules of a network for a Digital Asset, as further described in <u>Schedule 3</u>.

"***Forked Digital Asset***" means the resulting branches of a Digital Asset that has undergone a Fork.

"***Governmental Authority***" means any governmental body at the supranational, national, state, county, province, city, municipal, local or any other level, any agency, authority, instrumentality, regulatory body, quasi-regulatory authority, administrative tribunal, central bank, public office, court, arbitration or mediation panel, or other entity or subdivision exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of government, securities exchange or self-regulatory organization, in each case in any jurisdiction, having authority over a party.

"***Ineligibility Determination***" has the meaning set forth in Section 2.C.

"***Instructions***" mean communications received by the Custodian through an on-line communication system, by e-mail, or other method or system, as specified by the Custodian from time to time as available for use in connection with the services hereunder.

"***Law***" means each of the following, including any updates thereto throughout the Term, to the extent applicable to a party: any and all supranational, national, state, provincial or local laws, treaties, rules, regulations, regulatory guidance, directives, policies, orders or determinations of (or agreements with), and mandatory written direction from (or agreements with), any Governmental Authority or other regulatory authority, including export laws, sanctions regulations, and all federal and state statutes or regulations relating to banking, stored value, money transmission, unclaimed property, payment processing, telecommunications, unfair or deceptive trade practices or acts, anti-corruption, trade compliance, anti-money laundering, terrorist financing, "know your customer," securities, commodities, derivatives, other financial products or services, privacy or data security.

 

*"**Non-U.S. Bank**"* has the meaning set forth in Section 11.B.xi.

 

*"**Omnibus Wallet**"* has the meaning set forth in Section 2.B.i.

"***Person***" means any natural person, corporation, general partnership, limited partnership, limited liability company, joint venture, trust, proprietorship, governmental body or other entity, association or organization of any nature. Any reference herein to any Person shall be construed to include such Person's successors and assigns.

"***Proper Instructions***" has the meaning set forth in Section 5.B.

*"**Sanctioned Party**"* has the meaning set forth in Section 11.B.viii. *"**Sanctions**"* has the meaning set forth in Section 11.B.viii.

*"**System Failure**"* means a failure of any computer hardware or software used by the Custodian or a service provider to the Custodian, or any telecommunications lines or devices used by the Custodian or a service provider to the Custodian.

"***Taxes***" means all federal, state, local, foreign, and other taxes, government fees or the like, including, without limitation, income taxes, estimated taxes, alternative minimum taxes, franchise taxes, capital stock taxes, sales taxes, use taxes, ad valorem, or value-added taxes, employment and payroll-related taxes, withholding taxes, and transfer taxes, whether or not measured in whole or in part by net income, and all deficiencies, or other additions to tax, interest thereon, and fines and penalties imposed in connection therewith.

 

*"**Term**"* has the meaning set forth in Section 20.

 

*"**Trade Order**"* has the meaning set forth in Section 4.A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. **Interpretation**. The words "hereof," "herein" and "hereunder"
and words of like import used in this Agreement will refer to this Agreement as a whole and not to any particular provision of this Agreement.
References to Sections, Exhibits, Appendices and Schedules are to Sections, Exhibits, Appendices and Schedules of this Agreement unless
otherwise specified. All Exhibits, Appendices and Schedules annexed hereto or referred to herein are hereby incorporated in and made a
part of this Agreement as if set forth in full herein. Any capitalized terms used in any Exhibit, Appendix or Schedule but not
otherwise defined therein, will have the meaning as defined in this Agreement. Any singular term in this Agreement will be deemed to include
the plural, and any plural term the singular. Whenever the words "such as," "include," "includes"
or "including" are used in this Agreement, they will be deemed to be followed by the words "without limitation,"
whether or not they are in fact. The word "will" shall be construed to have the same meaning and effect as the word "shall."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. ESTABLISHMENT AND MAINTENANCE OF CUSTODY ACCOUNTS AND APPOINTMENT
OF CUSTODIAN

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. **Custody Accounts.** The Client authorizes, approves and directs the Custodian to establish and maintain on its books, in the
name of the Client, pursuant to the terms of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. one or more custody accounts for the receipt, safekeeping and maintenance of Eligible Assets (each a "  ***Digital Asset Custody Account*** "); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. one or more U.S. dollar cash accounts (each a "  ***Cash Custody Account*** ", and, together
with the Digital Asset Custody Accounts, the "  ***Custody Account*** "), each corresponding to a Digital Asset Custody
Account, to hold cash and monies received for deposit for the account of the Client ("  ***Cash***") in accordance with
the terms of this Agreement. Cash held for the Client in Cash Custody Accounts may be held by the Custodian in an omnibus, non-interest
bearing cash account, along with the Cash of other customers of the Custodian, at an unaffiliated depository in the name of the Custodian,
specifically designated for the purpose of holding funds of the Custodian's customers. The Custodian may hold Cash in a Cash Custody
Account subject to and in accordance with applicable local law, rules or practices. The establishment of the Custody Account in the name
of the Client shall be subject to successful completion of the Custodian's screening procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Digital Asset Segregation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Digital Assets in the Digital Asset Custody Account will be held through an omnibus wallet structure along
with the Digital Assets of other customers of the Custodian (an "  ***Omnibus Wallet*** "). The Client agrees that the
Digital Assets that are transferred by the Client to the Custodian or acquired by the Client through Trade Orders ("  ***Client Digital Assets***") will be treated as fungible with those Digital Assets of other clients of the Custodian that are based
on the same cryptographic protocol or consensus rules of a computer network (subject to Schedule 3) that are also held in the Omnibus
Wallet by the Custodian on behalf of such other clients. The Client acknowledges that the redelivery rights of the Client in respect of
the Client Digital Assets are not necessarily for the same Digital Assets as the Client Digital Assets (or addresses or accounts that
are associated with the Client Digital Asset), but rather will be in respect of an equal amount of Digital Assets that are based on the
same cryptographic protocol or consensus rules of a computer network (subject to Schedule 3) as the Client Digital Asset. The Custodian
will manage all associated private keys on behalf of the Client, subject to the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. A portion of the Digital Assets held for clients in the Omnibus Wallet will be held within an offline
storage system used by the Custodian in connection with the storage or maintenance of the Digital Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.** **Acceptance and Holding of Assets.** The Custodian will determine in its sole discretion whether to
accept Assets of any kind for custody in the Custody Account. If the Custodian determines in its sole discretion that, due to legal, regulatory,
operational, security or reputational risk, an Asset currently held in custody is no longer an Eligible Asset ("  ***Ineligibility Determination*** "), the Custodian shall (i) deliver the Client written notice of such Ineligibility Determination, (ii) provide
no other services with respect to any such Asset, except for Digital Asset Debit Requests and the services described in this Section 2,
following such Ineligibility Determination and (iii) within 60 Business Days, or if that is not reasonably practicable, as promptly as
reasonably practicable, of the delivery of the Ineligibility Determination, Deliver Digital Assets that are of the same type as the Client
Digital Assets (as set forth in Section 2.B.i) in the amount of the Digital Assets subject to the Ineligibility Determination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D.** **Designation of Assets.** The Custodian shall on its books and records segregate all Digital Assets
from the proprietary property of the Custodian; <u>provided</u> that the Custodian may maintain in the Omnibus Wallet an amount of proprietary
Digital Assets that are used for operational or other purposes. The ownership of all of the Client's Assets shall be clearly recorded
in the Custodian's books and records as belonging to the Client. Without the consent of the Client, the Custodian will not lend,
pledge or hypothecate any Client Digital Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E.** **Status of Custodian**. The Custodian is a limited liability company and its capacity under this Agreement
shall be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. a bailee with respect to any Digital Asset Custody Account and any Digital Assets in such Digital Asset
Custody Account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. an agent for the exclusive benefit of the Client and other customers of the Custodian with respect to
any Cash Custody Account and any cash deposits in such Cash Custody Account, subject to Section 12.C.vii; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. agent or principal with respect to any actions taken by the Custodian with respect to the purchase and
sale services pursuant to Section 4 of this Agreement, subject to Section 12.C.vii.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. TRANSFER OF ASSETS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. **Credits to the Digital Asset Custody Account.** Subject to the terms of this Agreement, the Client
may transfer Eligible Assets from an external provider or other third parties to the Digital Asset Custody Account. In advance of any
such transfer from an external provider or other third party, the Client shall send the Custodian the applicable Proper Instructions in
accordance with Section 5.B (a "  ***Digital Asset Credit Request***") and the name of the owner(s) of the Digital Assets.
The Custodian is not obligated to credit any Digital Assets to the Digital Asset Custody Account before the Custodian actually receives
such Digital Assets by final settlement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. The Custodian, upon receiving the Digital Asset Credit Request and verifying that such request complies
with Section 5.B, will generate and deliver to the Client a recipient address and complete any Delivery to the Digital Asset Custody Account
within two (2) Business Days after receipt of the Digital Assets at the recipient address specified by the Custodian to the Client (or
at an address previously specified by the Custodian to the Client and not subsequently identified to the Client as invalid), subject to
successful completion of the Custodian's screening procedures. Delivery to the Digital Asset Custody Account is subject to the payment
of the Custodian's fees as specified in the Fee Schedule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. The Custodian shall monitor associated nodes, as determined to be necessary by the Custodian in its sole
discretion, for incoming transactions. The Custodian shall advise the Client of Eligible Assets availability after Eligible Assets have
been Delivered to the Digital Asset Custody Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. **Debits to the Digital Asset Custody Account**. Subject to the terms of this Agreement, the Client
may Deliver Eligible Assets from the Digital Asset Custody Account by sending the Custodian the applicable Proper Instructions in accordance
with Section 5.B (a "  ***Digital Asset Debit Request*** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. The Custodian, upon receiving the Digital Asset Debit Request and verifying that such request complies
with Section 5.B, will initiate the transfer and broadcast the Digital Asset Debit Requests to the blockchain supporting the relevant
Eligible Asset within two (2) Business Days after the Custodian receives such Digital Asset Debit Request, subject to successful completion
of the Custodian's screening procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. The Custodian shall provide the Client with a confirmation of a pending debit transaction. Within the
three (3) hours immediately following receipt of such confirmation, the Client may notify the Custodian to query or halt the transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. If the Custodian has received a Digital Asset Debit Request that would result in the transfer of Assets
from the Custody Account exceeding the credit to the Custody Account for that Asset, the Custodian may, in its sole and absolute discretion,
reject such Instructions or decide which deliveries it will make (in whole or in part and in the order it selects).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. **Request for Additional Information.** The Client shall promptly provide to the Custodian such additional
information as the Custodian may request regarding the source or ownership of the Eligible Assets that are subject to a Digital Asset
Credit Request or the recipient of Eligible Assets (and any associated financial institution) that are the subject of a Digital Asset
Debit Request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. **Credits to the Cash Custody Account**. Subject to the terms of this Agreement, the Client may transfer
Cash into the Client's Cash Custody Account from a third-party bank account or a third party by sending the Custodian the applicable
Proper Instructions in accordance with Section 5.B (a "  ***Cash Credit Request*** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. The Custodian, upon receiving the Cash Credit Request and verifying that such request complies with Section
5. B, will complete any transfer to the Cash Custody Account within the time period specified by the Custodian. Transfers to the Cash Custody
Account are subject to fees specified in the Fee Schedule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. **Debits to the Cash Custody Account**. Subject to the terms of this Agreement, the Client may transfer
Cash from the Cash Custody Account to an account at a third-party bank established and maintained in the name of the Client or in the
name of a third party in connection with the Client's purchase of Digital Assets by sending the Custodian the applicable Proper
Instructions in accordance with Section 5.B (a "  ***Cash Debit Request*** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. The Custodian, upon receiving the Cash Debit Request and verifying that such request complies with Section
5. B, will complete any transfer from the Cash Custody Account within the time period specified by the Custodian. Transfers
from the Cash Custody Account are subject to fees specified in the Fee Schedule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Such transfer may only be effected via wire transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F.** **Purpose of Transfer of Cash**. Any transfer of Cash to or from the Client's Cash Custody Account
requested by the Client pursuant to this Agreement shall be solely for the purpose of the settlement of transactions that are the subject
of the Client's Digital Asset Credit Request or Digital Asset Debit Request, to transfer Cash to an account at a third-party bank
established and maintained in the name of the Client or to pay fees or expenses of the Custodian.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**G.** **Investment in and Transfer of Assets**. The Client shall bear the sole risk and expense associated
with investing, transferring or otherwise transacting in respect of Digital Assets (except to the extent otherwise specifically provided
in this Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**H.** **Transaction Limits**. The Custodian may, for risk management or other reasons, impose reasonable
limits on the number or size, or both, of transactions processed for the Client under this Section 3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. PURCHASE AND SALE OF DIGITAL ASSETS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** **Role of Custodian**. The Custodian may purchase any Digital Assets constituting Eligible Assets from
the Client or sell any such Digital Assets to the Client upon receipt of a sale or purchase order in the form of Proper Instructions from
the Client ("  ***Trade Orders*** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** **Execution and Order Fulfillment**. The Custodian will execute and fulfill the Client's Trade
Orders in accordance with the terms set forth in <u>Schedule 2</u> attached hereto, as such terms and procedures may be modified by the
Custodian from time to time. THE CUSTODIAN'S EXECUTION AND SETTLEMENT OF TRADE ORDERS IS SUBJECT TO AVAILABLE LIQUIDITY AND MARKET
CONDITIONS GENERALLY. THE CUSTODIAN RESERVES THE RIGHT TO CANCEL OR REJECT ANY TRADE ORDER, IN WHOLE OR IN PART, FOR ANY REASON.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. INSTRUCTIONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** **Authorized Persons and Authorized Agents**. The Persons identified as "Authorized Persons"
on the Firm Authorized User Form(s) completed by the Client or the Authorized Agent shall, subject to approval by the Custodian, be authorized
to act on behalf of the Client in the performance of those acts or duties specified for each such person from time to time in the Firm
Authorized User Form(s) ("  ***Authorized Persons*** "). The Client, or Authorized Agent acting on behalf of the Client,
may, from time to time, add to or remove names from the list of Authorized Persons maintained by the Custodian, or change the authorizations
granted to any Authorized Person, by delivery of a new or revised Firm Authorized User Form to the Custodian. If at any time there are
no Authorized Persons designated by the Client or the Authorized Agent, the president/chief executive officer and chief financial officer
of the Client shall be deemed Authorized Persons hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Proper Instructions .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. "Proper Instructions" mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) With respect to Digital Assets Debit Requests or Cash Debit Requests, an Authenticated Instruction delivered
by an Authorized Person (or Person that the Custodian believes in good faith to be an Authorized Person after following Custodian's
procedures) that is confirmed by an Authenticated Instruction from at least one additional Authorized Person (or Person that the Custodian
believes in good faith to be an Authorized Person after following Custodian's procedures);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) With respect to Digital Assets Credit Requests or Cash Credit Requests, an Authenticated Instruction delivered
by an Authorized Person (or Person that the Custodian believes in good faith to be an Authorized Person after following Custodian's
procedures);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) With respect to Trade Orders, an Instruction delivered by an Authorized Person (or Person that the Custodian
believes in good faith to be an Authorized Person after following Custodian's procedures) through the user interface specified by
the Custodian to submit Trade Orders; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) With respect to requests not involving the transfer of Assets from or to the Custody Account, an Instruction
delivered by an Authorized Person (or Person that the Custodian believes in good faith to be an Authorized Person after following Custodian's
procedures).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. The Custodian may act upon and rely upon any Proper Instruction received from, or believed in good faith
by the Custodian to be received from, an Authorized Person, that have been validated in accordance with procedures in place from time
to time, unless or until the Custodian has (i) received written notice of any change thereto from the Client and (ii) had a reasonable
time to note and implement such change. Validation procedures used by the Custodian are designed only to verify the source of the Instruction
and not to detect errors in the content of that Instruction or to prevent duplicate Instructions. The Client agrees that the Custodian
shall have no obligation to act in accordance with purported Instructions to the extent that they conflict with applicable Law. The Custodian
shall not be liable for any loss resulting from a delay while it obtains clarification of any Proper Instructions. The Client agrees that
the Custodian is not responsible for any errors made by the Client, any errors resulting, directly or indirectly, from fraud or the duplication
of any Instruction by or on behalf of the Client, or any losses resulting from the malfunctioning of any devices used by the Client or
any Authorized Person or loss or compromise of credentials used by the Client or any Authorized Person to deliver Instructions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. **Rejection of Instruction**. The Custodian may reject or decide, in its sole and absolute discretion,
not to act on any Instruction to transfer Eligible Assets (i) based on the Custodian's applicable policies and procedures, including
the results of the Custodian's transaction monitoring and screening procedures, (ii) where it reasonably doubts such Instruction's
contents, authorization, origination or compliance with the Custodian's policies and procedures, (iii) where it reasonably believes
that acting on the Instruction could (a) require it to register or qualify as a regulated entity, (b) violate or facilitate the violation
of any Law or (c) subject the Custodian to any financial or other liability for which it has not been provided adequate indemnification,
and, in each case, the Custodian covenants to promptly notify the Client of its decision in such instance if permitted to do so by Law,
or (iv) in order to give effect to transaction limits imposed in accordance with Section 3.H. In the event the Custodian shall receive
conflicting Instructions from the Client or any Authorized Person, the Custodian
shall be entitled, at its option, to refrain from taking action until such conflicting Instructions are reconciled to its reasonable satisfaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D.** **Responsibility for Instructions**. The Client is responsible for any Instructions actually given
to the Custodian or on which the Custodian is entitled to rely hereunder, whether or not properly authorized by the Client after following
Custodian's procedures. The Custodian shall have no duty or responsibility to inquire into, make recommendations, or determine the
suitability of any Instructions or transactions affecting the Custody Account after following Custodian's procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E.** **Acknowledgment of Risk**. The Client expressly acknowledges and agrees that the use of electronic
communication systems to convey Instructions does not eliminate the risk of error and fraudulent activities or security and privacy issues.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F.** **English**. Instructions are to be given in the English language only.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**G.** **Cut-Off Times**. The Custodian may act on Instructions only within applicable cut-off times specified
by the Custodian from time to time on Business Days when the Custodian is open for business in the ordinary course (a "  ***Cut-Off Time*** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. PERFORMANCE BY THE CUSTODIAN

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. **Custodial Duties Requiring Instructions.** The Custodian shall carry out any of the following actions
only upon receipt of specific Instructions, delivered in accordance with Section 5, authorizing and requesting same:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Receive or deliver any Assets, except as otherwise specifically provided for in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Carry out any action affecting Assets and the Custody Account, other than those specified in Section 6.B
below; provided, however, that each instance shall be subject to the prior approval and agreement of the Custodian; provided further,
that all Instructions regarding Forked Digital Assets are subject to Section 8 of this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Transfer Assets in connection with the services described in Section 3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. **Non-Discretionary Custodial Duties**. Absent a contrary Instruction, the Custodian shall be permitted,
and is hereby authorized and directed by Client to, and may authorize subcustodians or depositories to, carry out any of the following
actions without any further Instructions or approval by or on behalf of Client:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. In the Client's name or on its behalf, sign any affidavits, certificates of ownership and other
certificates and documents relating to Assets which may be required (a) to obtain any Assets, or (b) by any tax or regulatory authority
having jurisdiction over the Assets or the Custody Account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Notify the Client of notices, circulars, reports and announcements that require discretionary action,
in each case, which the Custodian has received in the course of acting in the capacity of custodian of any Assets held on the Client's
behalf; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Attend to all non-discretionary matters in connection with anything provided in this Section 6.B or any
Instruction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Use of Third Parties.

The Custodian may perform any of its duties or obligations under this Agreement through depositories, subcustodians, subcontractors or agents (including its affiliates), whenever and on such terms and conditions as it deems necessary or advisable to perform such duties or obligations or liabilities.

The Custodian shall act in good faith and use reasonable care in the selection and continued appointment of unaffiliated depositories, subcustodians, subcontractors or agents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D.** **Reporting**. The Custodian will provide to Client monthly account statements identifying the Digital
Assets in the Custody Account on a monthly basis and setting forth all transactions in the Custody Account during such month. Upon written
request from the Authorized Agent, the Custodian will also provide copies of monthly account statements to the Authorized Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E.** **Security of Assets**. The Custodian may take such steps that it determines, in its sole discretion,
may be necessary or advisable to inspect and protect the security of the Assets, the Custody Account or the Omnibus Wallet or enhance
the Custodian's ability to secure the Assets or the Omnibus Wallet, including cancelling, interrupting, terminating or suspending
any or all of the Custodian's services and operations hereunder and the Client's access to the Custodian's services and operations, to
any Assets or to the Custody Accounts. The Custodian may from time to time review and amend its policies and procedures or impose such
additional policies and procedures as the Custodian, in its sole discretion, considers necessary or advisable to enhance the Custodian's
ability to secure the Assets or the Omnibus Wallet.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. TAXATION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** **Client's Tax Obligations**. The Client shall, for all tax purposes, be treated as the owner
of all Assets held by the Custodian pursuant to this Agreement. It is the Client's sole responsibility to determine whether and
to what extent Taxes and Tax reporting obligations may apply to the Client with respect to its Assets, Custody Accounts, and transactions,
and the Client shall timely pay all such Taxes and shall file all returns, reports, and disclosures required by applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** **Tax Information**. Upon execution of this Agreement, as well as upon request of the Custodian, the
 Client will promptly provide the Custodian with all forms, certifications, documentation, representations and warranties and any
 other information as the Custodian may request ("  ***Account Tax Documentation*** "), including a duly completed
 and executed W-9 or W-8 (both available at www.irs.gov), as applicable, as to the Client's and/or the Client's
 underlying beneficial owners' tax status and/or residence. The Client
warrants that, when given, such Account Tax Documentation is true, complete and correct. If any such Account Tax Documentation becomes
inaccurate, incorrect or obsolete, the Client will notify the Custodian immediately and promptly provide updated Account Tax Documentation.
The Client understands that the Custodian may disclose any information with respect to Client Assets, Custody Accounts and transactions
required or requested by any applicable taxing authority or other governmental entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.** **Payments; Indemnity.** Custodian is authorized to deduct and/or withhold Taxes, including Taxes arising
as a result of the Client's failure to provide Account Tax Documentation pursuant to Section 7.B above, from Client's
Assets, Custody Account or cash or other property of the Client and remit such amounts to the relevant taxing authority. If any
Taxes become payable with respect to any prior payment made to the Client by the Custodian, the Custodian may withhold any cash or
other property of the Client held or received with respect to Client's Assets, Custody Accounts or cash or other property in
satisfaction of such prior Taxes. The Client shall remain liable for any Tax deficiency. If Taxes are required to be deducted or
withheld from any payments made by the Client to Custodian, the Client will pay such additional amounts as are necessary so that
Custodian receives a net amount equal to the amount Custodian would have received absent such withholding or deduction. Without
limiting Section 13 hereof, the Client shall indemnify and hold the Custodian harmless from and against any and all liabilities,
penalties, interest or additions to tax with respect to, or resulting from, any delay in, or failure by, the Custodian to pay,
withhold or report any Taxes imposed on Client's Assets, cash or other property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. DIGITAL ASSET FORKS

The Custodian is not responsible for any Fork of a Digital Asset, including any Eligible Assets, and is not liable for any loss in value of the Assets held by the Custodian on the Client's behalf as a result of any Fork or otherwise. It is the responsibility of the Client to make itself aware of anticipated or upcoming operational or systemic changes in a Digital Asset and the Client must carefully consider publicly available information as well as information provided by the Custodian, if any, in determining whether to continue to use an account with the Custodian in connection with a Forked Digital Asset. In the event of a Fork of an Eligible Asset, the Custodian will use reasonable efforts to investigate the technical and operational feasibility of providing services with respect to Forked Digital Assets and will act in accordance with its Policy Statement on Forks as set forth in <u>Schedule 3</u> attached hereto, which may be supplemented or modified by the Custodian from time to time in its sole discretion; <u>provided</u> that the Custodian retains the right, in its sole discretion, to determine whether or not to support (or cease supporting) each Forked Digital Asset.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. VALUE AND SUPPLY OF DIGITAL ASSETS; INSURANCE

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** **VALUE FLUCTUATION.** THE CLIENT UNDERSTANDS THAT THE VALUE OF DIGITAL ASSETS AND ANY UNSUPPORTED
FORKED DIGITAL ASSET CAN FLUCTUATE SUBSTANTIALLY, WHICH MAY RESULT IN A SIGNIFICANT OR TOTAL LOSS OF THE VALUE OF THE ASSETS HELD BY THE
CUSTODIAN ON THE CLIENT'S BEHALF OR ANY UNSUPPORTED FORKED DIGITAL ASSET. THE CLIENT AGREES THAT THE CUSTODIAN WILL NOT BE LIABLE
FOR ANY LOSS IN VALUE OF THE ASSETS OR UNSUPPORTED FORKED DIGITAL ASSET AT ANY TIME.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** **SUPPLY OF DIGITAL ASSETS.** THE SUPPLY OF DIGITAL ASSETS AVAILABLE TO THE CUSTODIAN TO PROVIDE TO
THE CLIENT THROUGH TRADE ORDERS AND THE ABILITY OF THE CUSTODIAN TO DELIVER DIGITAL ASSETS DEPENDS ON THIRD PARTY PROVIDERS THAT ARE OUTSIDE
OF THE CUSTODIAN'S CONTROL. THE CUSTODIAN DOES NOT OWN OR CONTROL ANY OF THE PROTOCOLS THAT ARE USED IN CONNECTION WITH DIGITAL
ASSETS AND THEIR RELATED NETWORKS, INCLUDING THOSE RESULTING FROM A FORK. ACCORDINGLY, THE CUSTODIAN DISCLAIMS ALL LIABILITY RELATING
TO SUCH PROTOCOLS AND ANY CHANGE IN THE VALUE OF ANY DIGITAL ASSETS (WHETHER FORKED DIGITAL ASSETS OR NOT), ANY ELIGIBLE ASSETS, OR ANY
ASSETS, AND MAKES NO GUARANTEES REGARDING THE SECURITY, FUNCTIONALITY, OR AVAILABILITY OF SUCH PROTOCOLS OR NETWORKS. THE CLIENT ACCEPTS
ALL RISKS ASSOCIATED WITH THE USE OF THE SERVICES TO CONDUCT TRANSACTIONS, INCLUDING, BUT NOT LIMITED TO, RISKS IN CONNECTION WITH THE
FAILURE OF HARDWARE, SOFTWARE AND INTERNET CONNECTIONS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. **INSURANCE**. THE CLIENT ACCEPTS THAT DIGITAL ASSETS ARE NOT SUBJECT TO THE PROTECTIONS OR INSURANCE
PROVIDED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR THE SECURITIES INVESTOR PROTECTION CORPORATION. IN ADDITION, ALTHOUGH THE CUSTODIAN
MAY MAINTAIN INSURANCE FOR ITS OWN BENEFIT IN CONNECTION WITH ITS BUSINESS, THIS INSURANCE, IF MAINTAINED, IS SOLELY FOR THE BENEFIT OF
THE CUSTODIAN AND DOES NOT GUARANTEE OR INSURE THE CLIENT IN ANY WAY.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. ACKNOWLEDGMENT OF DIGITAL ASSET RISKS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. **General Risks.** The Client understands and acknowledges that investing in, buying, and selling Digital
Assets presents a variety of risks that are not presented by investing in, buying, and selling products in other, more traditional asset
classes. These risks include, but are not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Digital Assets are not legal tender, operate without central authority or banks, and are not backed by
any government.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Digital Assets are a new technological innovation with a limited history and are a highly speculative
asset class, and as such, have in the past experienced, and are likely in the future to continue to experience, high volatility, including
periods of extreme volatility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Digital Assets could become subject to Forks, and various types of cyberattacks, including but not limited
to a "51% Attack" or a "Replay Attack," as described in the Policy Statement on Forks attached to this Agreement
as <u>Schedule 3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. Trading platforms on which Digital Assets are traded, including exchanges that may be used by the Custodian
to fill Trade Orders, may stop operating or shut down due to fraud, technical problems, hackers or malware, and these trading platforms
may be more susceptible to fraud and security breaches than established, regulated exchanges for other products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. The decentralized, open source protocol of the peer-to-peer computer network supporting a Digital Asset
could be affected by internet disruptions, fraud or cybersecurity attacks, and such network may not be adequately maintained and protected
by its participants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. Regulatory actions or policies may limit the ability to exchange a Digital Asset or utilize it for payments,
and federal, state or foreign governments may restrict the use and exchange of Digital Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii. It may be or in the future become illegal to acquire, own, sell, or use a Digital Asset in one or more
countries, and the regulation of Digital Assets within and outside of the United States is still developing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;viii. A Digital Asset could decline in popularity, acceptance or use, thereby impairing its price and liquidity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. **Acknowledgement.** The risks described in this Section 10 are just some of the risks presented by
investing in, buying and selling Digital Assets, and the Client acknowledges that the Client is solely responsible for understanding and
accepting the risks involved in investing in, buying, and selling Digital Assets, acknowledges that, subject to the other provisions of
this Agreement, the Custodian has no control or influence
over such risks, and acknowledges that the Custodian shall not be liable for any loss in value of Digital Assets that occurs in connection,
directly or indirectly, with these risks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. REPRESENTATIONS AND WARRANTIES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. **General.** Each Party hereto represents and warrants to the other Party, as of the date this Agreement, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. It is duly organized and in good standing in its jurisdiction of formation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. It has the requisite power and authority to execute this Agreement and to perform its obligations hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. It has taken all necessary action to authorize the execution and delivery of this Agreement and the consummation
of the transactions contemplated hereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. This Agreement, when executed and delivered, will be its legal, valid and binding obligation, enforceable
against it in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy or other similar laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. Any consent, authorization or Instruction required in connection with its execution and performance of
this Agreement has been provided by any relevant third party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. Any act reasonably required by any relevant governmental or other authority to be done in connection with
its execution and performance of this Agreement has been or will be done (and will be renewed if necessary); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii. Neither the execution nor performance of this Agreement by such Party will materially breach any applicable
Law, contract or other requirement to which such Party is bound.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. **Client.** In addition to the general representations set forth in <u>Section 11(A)</u> hereof, the Client also represents, warrants
and covenants to the Custodian that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Its principal place of business is in Florida, and it will notify the Custodian before changing its principal
place of business to another State or foreign country;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. It has the requisite power and authority to deposit the Assets in the Custody Account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Any factual information heretofore or contemporaneously furnished
by or on behalf of the Client in writing to the Custodian for purposes of or in connection with the services contemplated by this Agreement
is true and accurate in all material respects on the date as of which such information is dated or certified and not incomplete by omitting
to state any fact necessary to make such information not misleading in any material respect at such time; <u>provided</u> that, with
respect to forecasts or projections, the Client represents only that such information was prepared in good faith based upon assumptions
believed to be reasonable at the time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. There is no claim pending, or to the Client's knowledge, threatened, and no encumbrance or other
lien, in each case, that may adversely affect any delivery of Assets made in accordance with this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. It has not relied on any oral or written representation or warranty made by the Custodian or any other
person on the Custodian's behalf, other than those explicitly set forth in <u>Section 11.A.</u> hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. It owns the Assets in the Custody Account free and clear of all liens, claims, security interests and
encumbrances (except those granted herein) and it has all rights, title and interest in and to the Assets in the Custody Account as necessary
for the Custodian to perform its obligations under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii. It acknowledges that Digital Assets are new forms of assets, that the law regarding their ownership, custody
and transfer is developing and uncertain, and that custody of such assets poses certain risks that are not present in the case of more
traditional asset classes, including the risks of fraud and theft; and it understands that it will bear such risks and the potential loss
or diminution in value of Digital Assets due to (a) changes or developments in the Law or conditions under existing Law in which its rights
in and to such Digital Assets are not adequately protected, (b) changes in the Custodian's policies or procedures made in the Custodian's
sole discretion in light of legal, regulatory, operational, security or reputational risks, (c) an Ineligibility Determination or (d)
fraud and theft;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;viii. It is not, and no transferee of Assets pursuant to any Digital Asset Debit Request is, (a) the target
of any economic, financial or trade sanctions or embargoes, export controls or other restrictive measures imposed by the United States
of America (including those administered by the United States Department of the Treasury's Office of Foreign Assets Control), the
European Union, any member state of the European Union, the United Kingdom or the United Nations (the "  ***Sanctions*** "),
or (b) located, organized or resident in a country or territory with which dealings are broadly restricted or prohibited by any Sanctions
(as of the date hereof, Crimea, Cuba, Iran, North Korea and Syria)(any such country, territory, entity or individual described in this
clause (ix), a "  ***Sanctioned Party*** ");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ix. The Client does not know or have any reason to suspect that (a) any part of the Assets are or will be
derived from, held for the benefit of, or related in any way to transactions with or on behalf of, any Sanctioned Party, and (b) any Sanctioned
Party has or will have any legal or beneficial interest in the Client or any of the Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;x. The Client does not know or have any reason to suspect that (a) any part of the Assets was derived from
unlawful activities, or (b) any part of the Assets or proceeds of the Assets will be used to finance any unlawful activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xi. If the Client is a non-U.S. banking institution (a "  ***Non-U.S. Bank***") or is holding the Assets directly or indirectly on behalf of or for the benefit of a Non-U.S. Bank, such Non- U.S.
Bank (a) maintains a place of business at a fixed address, other than solely a post office box or an electronic address,
in a country where the Non-U.S. Bank is authorized to conduct banking activities; (b) at such location, employs one or more individuals
on a full-time basis; (c) maintains operating records related to its banking activities; (d) is subject to inspection by the banking
authority that licensed the Non-U.S. Bank; and (e) does not provide banking services to any other Non-U.S. Bank that does not have a
physical presence in any country and that is not a registered affiliate of such Non-U.S. Bank;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xii. If the Client is an entity holding the Assets on behalf of any of its own customers, whether or not expressly
identified to the Custodian from time to time, any such customers of the Client shall not be customers or indirect customers of the Custodian
by virtue of the services provided hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xiii. If the Client is an entity holding the Assets on behalf of third parties, (a) the Client is in compliance
in all material respects with Sanctions and, as applicable to the Client, the U.S. Bank Secrecy Act, as amended, the U.S. Money Laundering
Control Act of 1986, as amended, the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism Act of 2001, as amended, or any similar U.S. federal, state or foreign law or regulation, (b) the Client has anti-money laundering
policies and procedures in place reasonably designed to verify the identity of its customers and investors and their sources of funds,
and (c) the Client has established the identities of and conducted thorough due diligence with respect to all of its customers or investors
who beneficially own or will beneficially own, directly or indirectly, any of the Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xiv. It acknowledges that the Custodian may, with or without prior notice to the Client, "freeze"
the Client's Custody Account, or any other Assets of the Client in the Custodian's possession or control, including, but not
limited to, prohibiting transfers, declining any Cash Debit Request, Cash Credit Request, Digital Asset Debit Request or Digital Asset
Credit Request, and/or segregating Assets or property, if the Custodian determines, suspects, or is advised that such actions are necessary
or advisable to comply with any applicable anti-money laundering, OFAC or other laws or regulations in any relevant jurisdiction. The
Client acknowledges that the Custodian may be required to report transactions that raise suspicions of money laundering or OFAC violations
and to disclose the identity of the Client and any related parties to appropriate government authorities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xv. It does conduct and intends to continue to conduct its business in material compliance with all applicable
Laws, and has obtained all regulatory licenses, approvals and consents necessary to carry on its business as now conducted; without limiting
the generality of the foregoing, it will not use the services provided by Custodian hereunder in any manner that is, or would result in,
a violation of any applicable Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xvi. It is aware of and familiar with, and has been fully informed of, the risks associated with giving Proper
Instructions, and is willing to accept such risks, and it shall (and shall cause each Authorized Person to) safeguard and treat with extreme
care any devices or credentials related to Proper Instructions, understands that there may be alternative methods of giving or delivering
the same than the methods selected by the Custodian, agrees that the security procedures (if any) to be followed in connection therewith
provide a commercially reasonable degree of protection in light of its particular needs and circumstances, and acknowledges and agrees
that a deposit or withdrawal request may conclusively be presumed by the Custodian to have
been given by Authorized Person(s) duly authorized to do so, and may be acted upon as given; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xvii. It has determined, and agrees that it is solely responsible for ensuring, that the services offered by
the Custodian under this Agreement are sufficient for all legal, regulatory, contractual, operational and other requirements and obligations
of the Client, and that such services are appropriate and desirable for the Client, including, but not limited to, determining whether
the services provided by the Custodian hereunder are sufficient for satisfying any obligation of the Client to arrange for a qualified
custodian to maintain Client funds and securities under the Investment Advisers Act of 1940, as amended. The Custodian makes no express
or implied warranty, guarantee, or representation that the services offered by the Custodian under this Agreement satisfy any legal or
regulatory requirements applicable to the custody of Client Assets. The Custodian shall have no liability whatsoever for, and the Client
shall indemnify and hold the Custodian harmless against, any loss in value of the Assets held by the Custodian on the Client's behalf
and any other loss, expense, cost or liability of any kind incurred by the Custodian arising directly or indirectly out of the Client's
failure or alleged failure to comply with any Law, contract or operational requirements applicable to the Client, including, but not limited
to, any Law applicable to the custody of Client Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. **Custodian**. The Custodian represents to the Client that the Custodian is (A) a New York State limited
liability trust company authorized pursuant to Section 102-a of the New York Banking Law to engage in all activities described in Sections
96 and 100 of the New York Banking Law, with the exception of accepting deposits and making loans, and (B) a "bank" as defined
in Section 202(a) of the Investment Advisers Act of 1940, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. SCOPE OF RESPONSIBILITY

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. **Standard of Care.** The Custodian shall exercise the reasonable care of a professional custodian
for hire.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Limitations on Liability and Losses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. In no event will the Custodian be responsible or liable for any loss, claim or damage suffered by the
Client, except to the extent of a final, non-appealable judicial determination that such loss, claim or damage directly resulted from
the gross negligence, willful misconduct or fraud of the Custodian. In the event of such final, non-appealable judicial determination,
the liability of the Custodian will not exceed the lesser of (a) the replacement cost of any Assets and (b) the market value of the Assets
(as determined by the Custodian) to which such loss or damage relates at the time the Client reasonably should have been aware of such
gross negligence, willful misconduct or fraud. In the event of any loss sustained by the Client for which the Custodian is liable hereunder,
the liability of the Custodian shall be reduced to the extent that the Client's own conduct contributed to such loss.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. The Custodian shall not be liable for any loss caused, directly or indirectly, by (a) the failure of the
Client to adhere to the Custodian's policies and procedures that have been disclosed to the Client, (b) a Force Majeure Event or
(c) any action taken pursuant to Section 6.E.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Under no circumstances will the Custodian
 be liable to the Client for (a) acting in accordance with or conclusively relying upon any
 Instruction that it believes in good faith to have been authorized by the Client or any Person
 acting on behalf of the Client, or (b) <u>any indirect, consequential, incidental, special or punitive loss or damage, even if the Custodian has been advised of or otherwise might have anticipated the possibility of such loss or damage</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. The Custodian shall not be responsible or liable to the Client for any loss caused, directly or indirectly,
by (a) any failure or delay to act by any service provider to the Custodian or (b) any System Failure (other than
a System Failure caused by the gross negligence, willful misconduct or fraud of the Custodian or the Custodian's affiliates), that
prevents the Custodian from fulfilling its obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Limitations on the Custodian's Responsibility

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**i.** **General.** The Custodian shall only be responsible for the performance of those duties as are expressly
set forth herein, including acting in accordance with any Proper Instructions given in accordance with this Agreement. The Custodian shall
have no implied duties or other obligations whatsoever. The Custodian shall not be subject to, nor required to comply with, any other
agreement to which the Client is a party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**ii.** **No Liability for Third Parties.** The Custodian, provided that the Custodian shall have acted in
good faith and used reasonable care in the selection and continued appointment of the third party and subject to clause iii below, is
not responsible or liable for the acts, omissions, defaults, insolvency, negligence, gross negligence, misconduct or fraud of any third
party selected by the Custodian to perform any of its duties or obligations under this Agreement, other than any Affiliated Agent. In
addition, and subject to clause iii below, in no event shall the Custodian be liable for the acts, omissions, defaults, insolvency, negligence,
gross negligence, misconduct or fraud of any other third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**iii.** **Sole Obligations of the Custodian.** The Client understands and agrees that notwithstanding any delegation
by the Custodian of any of its obligations and duties to any affiliate of the Custodian (defined as an "  ***Affiliated Agent*** "),
no such agreement with any Affiliated Agent shall discharge the Custodian from its obligations hereunder, and the rights of the Client
with respect to the Custodian extend only to the Custodian and do not extend to any Affiliated Agent of the Custodian. The Client shall
have no direct or indirect rights or causes of action against any Affiliated Agent, nor shall any Affiliated Agent have any responsibility
or liability to any Client of the Custodian.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**iv.** **Performance Subject to Laws.** The Client understands and agrees that the Custodian's performance
of this Agreement may be subject to relevant Laws and any rules, operating procedures, practices, and protocols related to Digital Assets,
all of which may be subject to change. The Custodian may from time to time review and amend its policies and procedures or impose such
additional policies and procedures as the Custodian, in its discretion, considers necessary or advisable due to change in any Law, including
any Law related to Digital Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**v.** **Preventing of Performance.** The Custodian will not be responsible for any failure to perform
 any of its obligations if such performance is prevented, hindered or delayed by a Force Majeure Event, by changes in the
 Custodian's policies or procedures made in the Custodian's sole discretion in light of legal, regulatory, operational,
 security or reputational risks or after an Ineligibility
Determination. In such case, the Custodian's obligations will be suspended for so long as the Force Majeure Event continues or any
change in the Custodian's policies or procedures or Ineligibility Determination remains in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**vi.** **Validity of Assets.** The Custodian does not warrant or guarantee the form, authenticity, value or
validity of any Asset received by the Custodian.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**vii.** **No Fiduciary Duties.** The Custodian has no fiduciary duty to the Client in any respect, including
with respect to the Assets held in the Custody Account under this Agreement (irrespective of whether an affiliate of the Custodian has
provided other services or is currently providing other services to the Client on other matters).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**viii.** **Capacity of Custodian.** For the avoidance of doubt, the Custodian is not acting as an investment
manager or as a broker or dealer (as respectively defined in the Securities Exchange Act of 1934, as amended), nor is it acting as an
investment, financial, legal or tax adviser to the Client. This Agreement is an arm's length, commercial transaction between the
Client and the Custodian. The Custodian is not recommending that the Client take any investment or other action with respect to the Assets
held in the Custody Account under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**ix.** **Forwarded Information; Contents of Documents.** The Custodian is not responsible for the form, accuracy
or content of any notice, circular, report, announcement or other material provided under Section 6.B.ii of this Agreement not prepared
by the Custodian and the Custodian shall not be required to make any investigation into the facts or matters stated in any certificate,
report, or other document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**x.** **Security of Assets**. The Custodian shall not be liable to the Client for any loss resulting from
actions taken by the Custodian to inspect, protect or improve the security of the Client's Assets pursuant to Section 6.E.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**xi.** **Conflicting Claims**. In the event of any dispute or conflicting claims by any person or persons
with respect to the Assets, the Custodian shall be entitled to refuse to act until either (a) such dispute or conflicting claim
shall have been finally determined by a court of competent jurisdiction or settled by agreement between conflicting parties, and the Custodian
shall have received written evidence satisfactory to it of such determination or agreement or (b) the Custodian shall have received an
indemnity, security or both, satisfactory to it and sufficient to hold it harmless from and against any and all loss, liability and expense
that the Custodian may incur as a result of its actions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**xii.** **Legal and Regulatory Compliance**. The Custodian shall have no obligation to review, monitor or otherwise
ensure compliance by the Client or the Authorized Agent with (a) any Law applicable to the Client or the Authorized Agent or (b) any term
or condition of any agreement between the Client and any third party, including the Authorized Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**xiii.** **Reliance on Written Items**. The Custodian may rely on and shall be protected in acting or refraining
from acting upon any written notice, instruction, statement, certificate, request, waiver, consent, opinion, report, receipt or other
paper or document furnished to it in accordance with this Agreement, not only as to its due execution and validity, but also as to the
truth and accuracy of any information therein contained, which it in good faith believes to be genuine and signed or presented by an Authorized
Person. The Custodian shall be entitled to presume
the genuineness and due authority of any signature appearing thereon. The Custodian shall not be bound to make any independent investigation
into the facts or matters stated in any such notice, instruction, statement, certificate, request, waiver, consent, opinion, report, receipt
or other paper or document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Client Obligations .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. The Client agrees to pay all fees, expenses, charges and obligations incurred from time to time for any
services pursuant to this Agreement as determined in accordance with the terms of the Fee Schedule attached hereto, which may be changed
from time to time by the Custodian upon prior written notice to the Client or the Authorized Agent, together with any other amounts payable
to the Custodian under the Agreement. The Client authorizes the Authorized Agent to acknowledge receipt of any changes to the Fee Schedule
on behalf of the Client without providing prior notice to, or obtaining prior consent from, the Client. Unless otherwise agreed, all fees
and expenses paid to the Custodian shall be paid in U.S. Dollars.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. The Client hereby acknowledges that the Custodian is subject to various laws including those verifying
the identities of customers, pursuant to which the Custodian will obtain, verify and record information that allows the Custodian to identify
each Client. Accordingly, prior to entering into this Agreement, the Custodian will ask the Client to provide certain information including,
but not limited to, the Client's name, physical address, tax identification number and other information that will help the Custodian
to identify and verify the Client's identity, such as organizational documents, certificate of good standing, license to do business
or other pertinent identifying information. The Custodian may obtain and verify comparable information for any Authorized Person. The
Client shall provide the Custodian with documentation to allow for obtaining and verifying the beneficial owners and control persons of
customers that are legal entities. The Client acknowledges that the Custodian cannot provide services under this Agreement until the Custodian
verifies the identity of the Client (and, if applicable, Authorized Persons and/or beneficial owners) in accordance with its customer
identification and verification procedures. The Client's Custody Account may be restricted or closed if the Custodian cannot obtain
and verify this information. The Custodian will not be responsible for any losses or damages (including, but not limited to, lost opportunities)
that may result if a Client's Custody Account is restricted or closed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. The Client will promptly provide the Custodian with such additional information and documentation (including,
as applicable, by executing additional documentation) as the Custodian may request to identify the owner(s) of Assets, for the Custodian
to comply with applicable Law and its policies and procedures, and to enable the Custodian to perform its duties and obligations under
this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. The Client shall promptly inform the Custodian if (a) the Client is or becomes a Sanctioned Person, (b)
the Client is or becomes located, organized, or resident in, or begins to conduct business in or with a country or territory with which
dealings are broadly restricted or prohibited by any Sanctions (including, as of the date hereof, Crimea, Cuba, Iran, North Korea and
Syria) or (c) the Client becomes aware that the Client or any Asset, or any transaction involving an Asset, is or becomes the target of
any Sanctions or investigation (including the reasonable details thereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. The Client shall not grant any other Person a lien, security interest, charge or similar rights or claims
against the Assets without the Custodian's prior consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. In giving any Instructions which purport to be Proper Instructions under this Agreement, the Client will
act, and will cause the Authorized Agent to act, in accordance with the provisions of any and all constitutional documents of the Client,
any and all documents governing the Assets and any related laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii. The Client and its Authorized Persons are responsible for creating a strong password and maintaining adequate
security and control of any and all IDs, passwords, hints, personal identification numbers, or any other codes that the Client and any
Authorized Person uses to access the services provided by the Custodian under this Agreement. Any loss or compromise of the foregoing
information and/or the Client's personal information may result in unauthorized access to the Custody Account by third-parties and
the loss or theft of any Digital Assets or Assets held in the Custody Account and any associated accounts. The Client is responsible for
keeping the Client's contact information, including email address and telephone number, up to date in order to receive any notices
or alerts that the Custodian may send to the Client. The Custodian assumes no responsibility for any loss that the Client may sustain
due to compromise of account login credentials not due to fault of the Custodian, or due to any failure by the Client, any Authorized
Person or the Authorized Agent to follow or act on any notices or alerts that the Custodian may send to the Client, an Authorized Person
or the Authorized Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;viii. At any time, the Custodian may request Instructions from any Authorized Person or Authorized Agent (or
Person that the Custodian believes in good faith to be an Authorized Person or Authorized Agent), and may consult with its own legal counsel
or outside legal counsel for the Client with respect to any matter arising in connection with the services to be performed by the Custodian
under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. INDEMNITY

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** **Indemnity to the Custodian.** The Client agrees to indemnify, defend and hold harmless the Custodian,
its parent companies, subsidiaries and affiliates, and its and their directors, officers, agents and employees, against any and all claims,
costs, causes of action, losses, liabilities, lawsuits, demands and damages, fines, penalties and expenses, including without limitation,
any and all court costs and reasonable attorney's fees, in any way related to or arising out of or in connection with this Agreement
or any action taken or not taken pursuant hereto, except to the extent that the Custodian would be liable under Section 12.B hereunder.
The foregoing indemnifications shall survive any termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** **Client's Direct Liability.** The disclosure by the Client to the Custodian that the Client
has entered into this Agreement as the agent or representative of another person shall not relieve the Client of any of its obligations
under this Agreement, including those described in Section 13.A above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. CLIENT FINAL DISTRIBUTION OF ASSETS

The Client agrees that the Assets will be finally distributed, transferred and delivered to the Client only upon the Client's indefeasible payment in full of any amounts due and owing to the Custodian hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. REMEDIES UPON NONPAYMENT

If the Client, upon demand, fails to pay the Custodian any required amount in respect of any Asset subject to this Agreement, the Custodian may, after reasonable notice and at least three (3) days to cure such failure to the Client (except as required by Law) and at any time appropriate, sell such Asset and/or exercise in respect of each such Asset any and all the rights and remedies of a secured party on default under applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. LIEN AND SET OFF

In addition to all rights and remedies available to the Custodian under applicable Law, the Custodian shall have, and the Client hereby grants, a continuing lien on and valid and perfected first-priority security interest in all Assets in the Custody Account until the satisfaction of all liabilities of the Client to the Custodian arising under this Agreement, including without limitation liabilities in respect of any fees and expenses or credit exposures in relation to the Custody Account incurred in the performance of services under this Agreement. Custodian shall have all the remedies of a secured party under the Uniform Commercial Code in effect in the Commonwealth of Massachusetts. The Client shall not grant any other Person a lien, security interest, charge or similar rights or claims against the Assets without the Custodian's prior written consent.

Without limiting any other rights and remedies of the Custodian under this Agreement or applicable Law, to the extent permitted by applicable Law, the Custodian may, with at least three (3) days' (or otherwise, as soon as reasonably practicable) prior notice to the Client, set off any certain and final payment obligation owed to the Custodian by the Client against any payment obligations owed by the Custodian to the Client, regardless of the place of payment, delivery and/or currency of any obligation (and for such purposes may make any necessary conversions of currencies or Digital Assets)..

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. RECORDS

The Client shall examine each statement provided by the Custodian and notify the Custodian in writing within five (5) Business Days of the date of such statement of (A) any discrepancy between Instructions given by the Client and the position shown on the statement and (B) any other errors known to the Client. Absent such timely notification, the Custodian's liability for any loss or damage in regards to such discrepancy shall not accrue beyond such five (5) Business Day period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. CONFIDENTIAL INFORMATION

Each of the Custodian and the Client agrees that it will maintain any confidential and proprietary information disclosed to it by the other Party hereto ("***Confidential Information***") in a confidential manner using the same care it uses to protect the confidentiality of its own confidential information, and will not use for its own benefit or otherwise the Confidential Information of the other Party except (x) as expressly authorized by this Agreement and to the extent necessary for performance of this Agreement or (y) upon the prior written consent of the other Party; <u>provided</u>, <u>however</u>, that each of the Custodian and the Client may disclose any such confidential or proprietary information of the other Party to those of its affiliates and its and their officers, directors, employees, agents (including attorneys and financial advisors), and contractors, in each case, who need to know such information for purposes of this Agreement and who are bound by confidentiality obligations consistent with the terms hereof. Notwithstanding the foregoing, Confidential Information shall not include information that was (a) publicly available prior to disclosure by such disclosing party; (b) already in the receiving party's possession and not subject to an obligation of confidentiality; (c) obtained by the receiving party from a third party without restriction on disclosure; (d) entirely independently developed by the receiving party without reference to any Confidential Information of the disclosing party; (e) the tax treatment and any facts that may be relevant to the income tax consequences of the transactions contemplated by this Agreement. The Client shall treat the terms of this Agreement, including the fees set forth on Schedule 1 hereto, as Confidential Information.

If, at any time, the receiving party is required by law or regulation to make any disclosure of any of the Confidential Information, by summons, subpoena, judicial or administrative order or otherwise, the receiving party shall (to the extent permissible and practicable under the circumstances) give prompt prior written notice of such requirement to the disclosing party and permit the disclosing party to intervene in any relevant proceedings to protect its interests in the Confidential Information, and provide reasonable cooperation and assistance to the disclosing party in lawful efforts to resist, limit or delay disclosure at the disclosing party's sole expense. Notwithstanding the foregoing, the Custodian may disclose the Client's Confidential Information to the Custodian's regulators without any notice thereof.

The receiving party shall promptly notify the disclosing party in writing of any loss, or use, access or disclosure of Confidential Information of the disclosing party in violation of this Agreement promptly following recipient's discovery and shall promptly take measures to minimize the effect and prevent its recurrence. The receiving party shall be liable under this Agreement to the disclosing party for any loss, or access, use, or disclosure in violation of this Agreement by itself or its representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. TRADE NAMES

The Client acknowledges that the names and logos of the Custodian and its affiliates including, but not limited to, "Fidelity", "Fidelity Investmentsâ" and "Fidelity Digital Assets" (collectively, "***Names***") are proprietary trademarks and trade names and are of significant value and importance. Client will not undertake any written or oral sales, advertising, press release, marketing, promotional or solicitational activities which identify, make reference to or otherwise use these Names, or suggest either orally or in writing that Client is an agent or partner of, affiliated with or in any way part of the Fidelity organization, except as otherwise approved in writing by the Custodian. No reference to the Custodian or Fidelity companies may be made in such a way as to potentially mislead customers of the Client.

Notwithstanding the preceding paragraph, during the term of this Agreement, Client shall have permission to use the Custodian's full legal entity name, Fidelity Digital Asset Services, LLC, or its associated trade name, Fidelity Digital Assets, in the marketing of the Client's services when referring to the Custodian as providing custody, trade execution or other applicable services, as the case may be, as a simple statement of fact, without providing notice to, or receiving prior written consent from, the Custodian.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. TERMINATION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. **Term.** The term of this Agreement shall commence on the Effective Date and terminate when terminated pursuant to this Section
20 (the "  ***Term*** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. **Termination**. Either Party may terminate this Agreement in whole or in part, with or without cause,
by giving not less than thirty (30) days' prior written notice to the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. **Immediate Termination by Either Party**. Without prejudice to any accrued rights and remedies under
this Agreement, either Party may terminate this Agreement immediately by giving written notice to the other Party upon the occurrence
of any of the following events (provided such notice to terminate is given within three (3) months following the occurrence of the event):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. if the other Party commits any material breach of any of its obligations under this Agreement and, in
the case of any breach which is capable of remedy, fails to remedy such breach within seven (7) days of delivery of a written notice to
the other Party specifying such breach (or such longer period as the notice may specify); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. if the other Party becomes insolvent, enters into liquidation (apart from solvent liquidation for the
purposes of amalgamation or reconstruction) or is dissolved or declared bankrupt or has a receiver, administrator or administrative receiver
appointed over all or a substantial part of its assets or enters into an arrangement with its creditors or takes or suffers similar action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. **Immediate Termination by Custodian**. Without prejudice to any accrued rights and remedies under
 this Agreement, the Custodian may terminate this Agreement immediately by giving written notice to the Client if in its sole
 discretion it has determined that (i) continuing to provide services under this Agreement would result in violation of any Law, (ii)
 any of the representations or warranties made by the Client under this Agreement cease to be true in any material respect on a
 continuing basis, or (iii) the Client has conducted or participated in any activity, transaction or conduct that will cause a
 material adverse impact or reflection on the Custodian's reputation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. **Effect on Assets.** Upon termination of this Agreement and subject to <u>Section 14</u> hereof, the
Custodian shall deliver the Client's Assets as instructed by the Client in writing. If by the termination date the Client has not
given instructions to the Custodian regarding where to deliver any Assets, the Custodian will continue to maintain the Custody Account
until the Client provides such Proper Instructions to effect a free delivery of such Assets, and the Client shall be liable to pay monthly
storage fees in the amount determined by the Custodian until all Assets are removed. However, the Custodian will provide no other services
with respect to any such Assets following termination. Notwithstanding termination of this Agreement or any Proper Instruction, the Custodian
may retain sufficient Assets to close out or complete any transaction that was in process prior to such termination or to pay any fees
of the Custodian or amounts otherwise outstanding hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. **Surviving Terms**. The rights and obligations contained in Sections 7, 11, 13, 15, 16, 18 and 19
of this Agreement shall survive the termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. GOVERNING LAW AND JURISDICTION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** **Governing Law.** This Agreement is solely and exclusively governed, construed and enforced in accordance
with the laws of the Commonwealth of Massachusetts, without giving effect to conflict of law rules or principles that would cause the
application of the laws of any other jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** **Jurisdiction.** Both Parties submit to personal jurisdiction in the federal and state courts located
in Commonwealth of Massachusetts, and further agree that any and all claims and controversies arising out of this Agreement that cannot be amicably resolved
by the Parties shall be brought solely and exclusively in a court in the Commonwealth of Massachusetts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.** **Venue.** Each Party hereto waives any objection it may have at any time, to the laying of venue of
any actions or proceedings brought in an inconvenient forum and further waives the rights to object that such court does not have jurisdiction
over such parties

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D.** **Negotiated Agreement**. Each Party acknowledges that it has had the opportunity to negotiate the
terms of this Agreement, including the foregoing governing law and jurisdiction provisions, and that it has freely contracted to bind
itself to such provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. MISCELLANEOUS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** **Entire Agreement; Amendments.** This Agreement, including all exhibits and schedules, constitutes
the entire Agreement and understanding between the Parties, and supersedes all previous communications, representations or agreements,
whether written or oral, with respect to the subject matter hereof. In the event that this Agreement conflicts with any exhibit, schedule,
or terms of use, the terms of this Agreement shall control and govern. Except as specified in this Agreement, this Agreement may be modified
only by written agreement signed by both Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** **Notices**. For the purposes of any notices or other communications required to be delivered hereunder,
the Custodian's address shall be 245 Summer Street, Boston, MA 02210 and the Client's address shall be as set forth in the
account opening documentation provided by the Client to the Custodian, as updated from time to time. Either Party may provide such notice
by sending written notice by registered or certified mail or by e-mail to the address designated by the other Party. Any notices provided
under this provision shall be effective, upon receipt (in the case of registered or certified mail) or by the recipient acknowledging
receipt (in the case of e-mail).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.** **Third Parties**. This Agreement is not intended to confer any rights or benefits to any third parties,
including, but not limited to, the Client's affiliates, employees, customers, counterparties or investors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D.** **Severability.** If any provision of this Agreement is or becomes illegal, invalid, or unenforceable
under any applicable Law, the remaining provisions shall remain in full force and effect (as shall that provision under any other law).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E.** **Waiver of Rights.** No failure or delay of the Client or the Custodian in exercising any right or
remedy under this Agreement shall constitute a waiver of that right. Any waiver of any right will be limited to the specific instance.
The exclusion or omission of any provision or term from this Agreement shall not be deemed to be a waiver of any right or remedy the Client
or the Custodian may have under applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F.** **Recordings.** The Client and the Custodian consent to telephonic or electronic recordings for security
and quality of service purposes and agree that either may produce telephonic or electronic recordings or computer records as evidence
in any proceedings brought in connection with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**G.** **Assignment.** The Custodian may assign this Agreement, delegate its duties hereunder, and transfer
the Custody Account to any of its affiliates or to its successors and assigns, whether by merger, consolidation, or otherwise, in each
case, so long as such entity is a similarly regulated and supervised entity, with at least three (3) days' notice to the Client.
The Client may not assign or transfer any of its rights or obligations under this Agreement without the Custodian's prior written consent. Any attempted transfer
or assignment in violation hereof shall be null and void.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**H.** **No Agency**. Nothing contained in this Agreement shall constitute the Client and/or the Custodian
(and/or any other Person) as members of any partnership, joint venture, association, syndicate, unincorporated business or similar assignment
as a result of or by virtue of the engagement or relationship established by this Agreement. Neither the Client nor the Custodian shall
hold itself out as an agent, partner or joint venture partner of the other or any of the subsidiaries or companies controlled directly
or indirectly by or affiliated with the other.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**I.** **No Affiliate Obligations**. The Client acknowledges and agrees that (i) the obligations and duties
of the Custodian hereunder apply only to the Custodian and are not obligations or duties of any other member of the Fidelity organization;
(ii) notwithstanding any affiliation of the Custodian with the Fidelity organization or any member thereof (including FMR LLC, the parent
company of the Custodian), this Agreement is with the Custodian only, and the rights of the Client under this Agreement apply only to
the Custodian and not to FMR LLC or any other affiliate of the Custodian; and (iii) the Custodian may in its sole and absolute discretion
in the performance of its responsibilities hereunder make such arrangements as it sees fit with any affiliate to have access to and use
the services and resources of its affiliates, and in such event, the Custodian alone shall remain solely responsible to the Client for
the provision of services hereunder and any such affiliate shall have no duty, responsibility or liability whatsoever to any Client in
connection herewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**J.** **Other Business**. Nothing herein shall prevent the Custodian or any of its affiliates from engaging
in other business, or from entering into any other transaction or financial or other relationship with, or receiving fees from or from
rendering services of any kind to, the Client or any other Person. The Custodian and its affiliates may own and trade Digital Assets and
are not prohibited from engaging in other business or activities, including those that might be in direct competition with the Client.
The Custodian and its affiliates (or funds or other accounts advised or managed by them) may have investments in, or other commercial
arrangements with, counterparties that fill Trade Orders or other service providers to the Custodian. Affiliates of the Custodian (and
funds or other accounts advised or managed by them) may themselves utilize the Custodian's trade execution service and submit Trade
Orders that could be internally crossed with Trade Orders of the Client.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**K.** **Headings.** Titles to Sections of this Agreement are included for convenience of reference only and
shall be disregarded in construing the language contained in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**L.** **Counterparts; Electronic Signatures.** This Agreement may be executed in several counterparts, each
of which shall be an original, but all of which together shall constitute one and the same agreement. This Agreement may be accepted,
executed, and agreed to through the use of electronic signatures and electronic transmission.

[*signature page follows*]

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their respective officers thereunto duly authorized.

---

| | |
|:---|:---|
| IONIC DIGITAL TREASURY INC. | IONIC DIGITAL TREASURY INC. |
| By: | /s/ John Penver |
| Name: | John Penver |
| Title: | Interim CEO |
| FIDELITY DIGITAL ASSET SERVICES, LLC | FIDELITY DIGITAL ASSET SERVICES, LLC |
| By: | /s/ Michael O'Reilly |
| Name: | Michael O'Reilly |
| Title: | President |

---

**<u>Schedule 1</u>**

**<u>Fees</u>**

(as of the Effective Date)

---

| | | | |
|:---|:---|:---|:---|
| **Fee** | **Fee Amount** | **Fee Amount** | **Notes** |
| Custody Charge for Digital Assets | **Chargeable Digital Assets:<br> (Aggregate Balance)** | **Rate - <br> Annualized** | &nbsp;&nbsp;&nbsp;&nbsp;**Asset Aggregation:**<br>· **Multi-Account Aggregation:** The Custody Charge shall be applied to the aggregate amount of all Digital Assets in all digital asset custody accounts established at the Custodian that are in the name of the Client.<br>**Calculation Detail:** |
| Custody Charge for Digital Assets | Up to $25,000,000 | 30 bps | &nbsp;&nbsp;&nbsp;&nbsp;**Asset Aggregation:**<br>· **Multi-Account Aggregation:** The Custody Charge shall be applied to the aggregate amount of all Digital Assets in all digital asset custody accounts established at the Custodian that are in the name of the Client.<br>**Calculation Detail:** |
| Custody Charge for Digital Assets | Between $25,000,000 and $100,000,000 | 25 bps | &nbsp;&nbsp;&nbsp;&nbsp;**Asset Aggregation:**<br>· **Multi-Account Aggregation:** The Custody Charge shall be applied to the aggregate amount of all Digital Assets in all digital asset custody accounts established at the Custodian that are in the name of the Client.<br>**Calculation Detail:** |
| Custody Charge for Digital Assets | Greater than $100,000,000 | 15 bps | &nbsp;&nbsp;&nbsp;&nbsp;**Asset Aggregation:**<br>· **Multi-Account Aggregation:** The Custody Charge shall be applied to the aggregate amount of all Digital Assets in all digital asset custody accounts established at the Custodian that are in the name of the Client.<br>**Calculation Detail:** |
|  | <br> Under this schedule, the aggregate value of customer Digital Assets will be charged at a single rate according to the tier that the aggregate Digital Asset balance falls into. | <br> Under this schedule, the aggregate value of customer Digital Assets will be charged at a single rate according to the tier that the aggregate Digital Asset balance falls into. | <br> · Custody charge accrues daily<br>· Custody charge is calculated by the Custodian on the actual daily value of Digital Assets, based on the price (as at 5:00 p.m. US ET) of:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· CoinDesk's XBX Index (in the case of Bitcoin)<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· CoinDesk's ETX Index (in the case of Ether)<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· or another index chosen by the Custodian |
| Trade Orders | 20 bps of the notional USD trade value of each executed Trade Order | 20 bps of the notional USD trade value of each executed Trade Order |  |
| Transfers of Assets | US$15 per outgoing transfer | US$15 per outgoing transfer |  |
| Wire Fee | US$15 per outgoing wire | US$15 per outgoing wire |  |
| Other Fees | as agreed by the parties | as agreed by the parties |  |

---

**<u>Schedule 2</u>**

**<u>Purchase and Sale Execution and Order Fulfillment</u>**

**(as of June 27, 2022)**

Clients may buy Digital Assets with U.S. dollars and sell Digital Assets for U.S. dollars in "spot" transactions through the Custodian's execution service in accordance with the following terms, as such terms and procedures may be modified by the Custodian from time to time. As further described below, the Custodian's trade execution service is comprised of (1) an internal matching engine with a "dark" order book, (2) a smart order router to facilitate execution of Trade Orders that do not match through the internal matching engine, and (3) external market reference data.

**Business Hours**

Trade Orders may be entered only within applicable 'trading session hours' specified by the Custodian on Business Days when the Custodian is open for business in the ordinary course. Open Trade Orders (or portions thereof) that are not fully executed by the close of trading session hours will be cancelled by the Custodian. Trading session hours, and the time in force for Trade Orders, may be modified by the Custodian from time to time.

**Trading Accounts / Balances**

Trade Orders may be submitted in amounts of Digital Assets or US Dollars (or portions thereof) that do not exceed the "XBT Balance" or "USD Balance" in the Client's Custody Account, as reflected in the trading interface. The executed U.S. dollar value of Trade Orders will be rounded up or down to the nearest cent. If one cent or less is remaining in a Trade Order that was submitted in U.S. dollars, the Custodian will treat that order as filled. Trade Orders entered in US Dollars will be converted to quantities of Digital Assets for execution; as a result, the actual amount of an executed Trade Order entered in US Dollars may be more or less than the US Dollar amount entered for the Trade Order.

The Custodian's trading interface can only be accessed via successful log-in to the Custodian's custody dashboard. The Custodian's custody dashboard will display, for each Custody Account, the "Available", "Unsettled" and "Total Value" amounts for both U.S. dollars and Digital Assets. Because the custody dashboard does not reflect open Trade Orders, the "Available" balances shown in the custody dashboard could be different than the "XBT Balance" and "USD Balance" shown in the trading interface.

**Balance Available to Trade**

When a Trade Order is entered, the notional U.S. dollar value of the purchase, or quantity of Digital Assets of the sale will be deducted from the Client's "Available" balance in the Custody Account. An additional reserve may be deducted for market orders to protect against market movement. Deducted value may be returned to the Client's Custody Account if the Trade Order expires, is cancelled, or the executed value is less than the amount deducted. "Available" balances are maintained in real-time to account for intraday activity.

Digital Asset and U.S. dollar balances related to executed Trade Orders must be settled in the Client's Custody Account (as reflected in the "Available" balance) before additional Trade Orders may be placed in respect of those Digital Asset and U.S. dollar balances. When open Trade Orders exist, the Client should refer to the "Available" balances as reflected in the trading interface to determine Digital Asset or U.S. dollar balances available for transfer.

**Order Entry**

All Trade Orders must be submitted through the Custodian's proprietary trading interface. Initially, the Custodian's system will support market, limit, and stop-limit orders.

The Custodian may, for risk management or other reasons, impose limits on the number or size, or both, of Trade Orders. Each Trade Order shall not exceed the maximum limit in notional U.S. dollar value established by the Custodian; multiple Trade Orders from the Client may have a cumulative value over the maximum limit if they are entered as separate Trade Orders that individually do not exceed the maximum limit. Each Trade Order must exceed a minimum amount in notional U.S. dollar value established by the Custodian. The Client is responsible for the accuracy, content, and submission of each Trade Order.

**Execution Quality**

The Custodian will attempt to provide Clients with the 'best' price for Trade Orders that is available from its internal order books or network of approved counterparties through its order handling process, as described in this Schedule 2. As used in this Schedule 2, 'best price' means the highest available price for "sells" and the lowest available price for "buys". The Custodian makes no representations as to how the execution price of any Trade Order compares to prices quoted by other trading platforms or market information generally, and makes no assurances that Client Trade Orders will be executed at prices more favorable to the Client than are available through other trading platforms. <u>The Custodian is not, and is not registered as, a broker-dealer or investment adviser and has no obligation to seek "best execution" for Client purchases or sales of Digital Assets</u>.

**Order Handling**

The Custodian's order handling process will first attempt to electronically match each Trade Order with a Trade Order from another client (on the opposite side) before routing a Trade Order externally. The Client will not know if an executed Trade Order was internally matched or routed away.

The internal matching engine prioritizes orders with the highest (buy) or lowest (sell) price over orders with a lower (buy) or higher (sell) price; orders are then ranked on the system by arrival time. Trade Orders are matched internally at the mid-point of prices that are derived from reference prices from external marketplaces, subject to the requirements of the applicable order type. Limit orders are matched internally if the Limit price is greater than or equal to the best ask for buy orders, or less than or equal to the best bid for sell orders. <u>The Client will not know the execution price of an order before the Trade Order is executed.</u>

If a Trade Order is not matched internally, it will be routed away to counterparties that have been previously approved by the Custodian. The composition of the network of approved counterparties available to the Custodian may change at any time. The Custodian does not provide economic incentives to counterparties to attract order flow. The Custodian is not able to honor Client requests or prohibitions about trading with certain counterparties. The identity of the approved counterparties to whom the Client's Trade Order has been externally routed will not be disclosed to the Client.

The routing algorithm prioritizes Trade Orders by price, as described in the second paragraph of this section. The Custodian's system requests the best prices that are available from approved counterparties; the Custodian's order handling process will choose the best price from among the prices that are quoted by approved counterparties within a narrow range and will execute the Client's Trade Order at that price as the execution price, subject to requirements of the applicable order type. <u>The Client will not know the execution price of an order before the Trade Order is executed</u>. Trade Orders are not aggregated, and buy and sell orders are not netted, when quotes are requested from approved counterparties.

The Custodian will only execute Trade Orders that have been internally matched with another Trade Order or that have been executed at a price received from an approved counterparty. The Custodian does not mark-up or mark-down any quotes received from approved counterparties. The Custodian may declare a Trade Order to be null and void, or may adjust the execution price or other components of a Trade Order, if it determines, in its sole discretion, that the execution price of the Trade Order was clearly erroneous.

With respect to each executed Trade Order that was routed away (or, with respect to partial executions of a Trade Order, that portion that is executed), the relevant deliver, receive and related payment obligations will be owed to and from the Client and the Custodian (and will be settled through corresponding credits or debits to the Client's Custody Account) and not to or from the Client and the counterparty that has provided the execution price of the related Trade Order. With respect to each executed Trade Order that was matched internally, the Custodian will settle the Trade Order through corresponding credits or debits to the Client's Custody Account, as applicable, without a requirement for any Delivery to occur.

**Settlement**

Proceeds from all Trade Orders will be made available to the Client, as reflected in the "Available" balance, promptly following execution of their Trade Order.

**Trading Fees**

Upon trade execution, Trade Orders will be assessed a per transaction fixed fee in basis points (based on notional value) in the amount specified in the Custodial Services Agreement, which may be updated from time to time. For purchases of Digital Assets, the U.S. dollar value of the Client's Cash Custody Account will be reduced at order entry by the amount of the transaction fee, and the full executed quantity of Digital Assets will be credited to the Client's Digital Assets Account, subject to the settlement procedures described above. For sales of Digital Assets, the U.S. dollar proceeds received by the Client will be reduced by the amount of the transaction fee.

**Market Data / Best Bid Offer**

The Custodian's custody dashboard will display external market reference data solely for the purpose of providing information to Clients about broader market conditions. Such external market reference data may include prices and other information about purchases or sales of Digital Assets on certain trading platforms that are not available for Client Trade Orders. Market data may appear with a time delay, and the Custodian is not responsible for the accuracy or completeness of pricing or trade information from external trading venues. <u>Prices of Digital Assets that are displayed in the Custodian's trading interface are for reference only and should not be relied upon by the Client as the expected execution price of any Trade Order.</u>

The Custodian's trading interface will display non-executable pricing that is derived from external reference data of the best bid and ask from select external marketplaces. Market data for Trade Orders facilitated by the Custodian is hidden from Client and public view.

**Limitations of Order Entry**

Trade Orders that include any of the following characteristics will not be accepted by the Custodian:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Trade Order for a Custody Account that is subject to a restriction imposed by the Custodian;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Notional value of Trade Order exceeds the maximum limit established by the Custodian;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Notional value of Trade Order is less than the minimum amount established by the Custodian;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Notional value of a "buy" order exceeds the "Available" U.S. dollar balance in Client's Cash Custody
Account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Quantity of Digital Assets subject to a "sell" order exceeds the "Available" Digital Assets balance in Client's
Digital Asset Custody Account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Limit Prices entered exceed a percentage (determined by the Custodian) above or below the prevailing market price; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Any subsequent Trade Order deemed to be a duplicate of a previously accepted Trade Order.

**Limitations of Execution**

Trade Orders will not be executed under any of the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Trade Orders for a Client that are open when the Custodian imposes a restriction on the Client's Custody Account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Client successfully cancels a Trade Order prior to execution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. A Trade Order cannot match on the internal order book and no price quotes are received from approved counterparties, either due to market
conditions, restrictions applicable to approved counterparties or for other reasons;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. A Trade Order cannot match on the internal order book and the Custodian has disabled access to one or more approved counterparties
due to trading limits, credit risk or for other reasons;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. A Trade Order that remains open at the end of time in force limits specified by the Custodian; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Trade Orders that the Custodian determines (in its sole discretion) to be clearly erroneous.

**<u>Schedule 3</u>**

**<u>Policy Statement on Forks</u>**

(as of November 29, 2019)

<u>Introduction</u>

Disagreements among developers of digital assets can result in non-backwards compatible changes to the consensus rules of a blockchain, which can cause two (or more) digital assets to appear that are essentially copies of one another, with balances on both chains. "Hard" forks and airdrops result in the creation of new digital assets, but do not necessarily create value. Digital assets that result from hard forks or airdrops may not be available to customers of Fidelity Digital Asset Services, LLC ("<u>FDAS</u>").

<u>Background</u>

Set forth below are certain terms that are sometimes used when discussing forks.

A "<u>hard fork</u>" is a fork that changes the consensus rules of the network in a non-backwards compatible way. Hard forks, including those with widespread community support, require updates to software.

A "<u>soft fork</u>" is a fork that changes the consensus rules of the network in a backwards compatible way. These forks are voluntary; using the fork's new features is an option, but not a requirement, that can be taken into account by users of the network.

A "<u>51% attack</u>" can occur when a fork does not change the "proof of work" function, and one of the resulting forks has a significantly higher hashrate than the other. In such circumstances, miners who switch their hashrate temporarily to the minority chain are able to reverse transactions, which can result in losses.

A "<u>replay attack</u>" occurs when the fork does not change the transaction format so that a transaction is valid on both chains. Some forks have chosen not to implement replay protection, and others have chosen to implement new transaction signing mechanisms that avoid movement of funds on both chains when a user intended to move them on only one chain.

An "<u>airdrop</u>" is a general term for a new coin or fork that imports addresses from another coin. It is a way to distribute assets to users of a network without conducting a sale.

The "<u>address</u>" on a blockchain is a "payment instruction" and generally contains a unique identifier that identifies the coin (e.g., starts with 1 or 3 for bitcoin addresses). Confusion and additional risks arise when a fork does not change the address format.

A "<u>chain reorganization</u>" can occur when a hard fork does not change its proof of work function, and one side has more hashrate than the other initially but that hashrate moves to another fork after the fork activates. This can reorganize the minority chain deposits received even before the fork, and is the reason why exchanges may pause operations for a period of time before a fork is deployed.

<u>Policy</u>

In light of the foregoing, a hard fork can be considered an attack on the user's key management policies and introduces additional risks. In connection with the occurrence or anticipated occurrence of a fork, FDAS may suspend operations (with or without advance notice) while it evaluates the consequences of a fork and determines which chain resulting from the fork it will support as an Eligible Asset under this Agreement.

FDAS is not responsible for hard forks or soft forks, any of which may result in material changes to the value or functioning of a digital asset.

FDAS may, but is not required to, implement the features of future soft forks of digital assets.

In the event of a hard fork of a digital asset, FDAS will determine in its sole discretion which branch of the blockchain it will support, and FDAS is under no obligation to support any other forks or versions of digital assets. FDAS will use reasonable efforts to notify its clients of hard forks that, in its sole discretion, may result in a material change to a network for the related digital asset; however, it remains the responsibility of the Client to make itself aware of hard forks and their consequences. In determining whether or not to support a fork and provide services with respect to the related digital asset as an Eligible Asset under this Agreement, FDAS will evaluate various technical and market considerations that it determines to be relevant at that time. Those considerations could include, but are not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. technical attributes of the fork (e.g., changes in proof of work function and/or address format; replay protection);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. timing of the announcement and implementation of the fork;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. support of the new asset from development teams;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. treatment of new asset by leading trading venues;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. price and trading volumes; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. regulatory and tax considerations.

However, a decision by FDAS is not required to be based on the factors set forth above and could include other considerations that FDAS determines to be relevant at the time. FDAS will use reasonable efforts to allow customers within a prescribed period of time to withdraw digital assets that are created as a result of a hard fork or airdrop and that FDAS determines not to support; however, it is not required to do so.

## Exhibit 10.18

**Exhibit 10.18**

**SECOND AMENDED AND RESTATED PROFESSIONAL SERVICES AGREEMENT AND CONFIDENTIALITY AGREEMENT**

This Second Amended and Restated Professional Services Agreement is made on November 24, 2024 (the "Effective Date") between Ionic Digital, Inc. ("Client"), and Laura Schnaidt ("Consultant"). Client and Consultant are sometimes collectively referred to herein as the "Parties" and individually as a "Party."

WHEREAS, the Parties entered into a Professional Services Agreement on October 26, 2024 (the "Original Agreement") and amended and restated the Original Agreement on November 1, 2024 (the "Amended and Restated Agreement") in order to change Consultant's scope of services and title from legal consultant to General Counsel;

WHEREAS, the Parties wish to amend and restate the Amended and Restated Agreement in its entirety in order to reflect the increased level of responsibilities and scope of services that Consultant is undertaking by increasing Consultant's Fees;

NOW, THEREFORE, based upon the mutual covenants and promises contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, the Parties to amend and restate the Amended and Restated Agreement in its entirety and agree as follows:

**1. TERM.**

The Agreement will commence as of the Effective Date and will terminate in accordance with Section 7.

**2. SERVICES.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. Services. Consultant shall serve as the Client's General Counsel as further outlined in Exhibit A to this Agreement (the "Services"). In rendering such Services, Consultant will use the requisite time and effort necessary to appropriately perform the Services, and carry out all functions customarily required of a General Counsel, and Consultant shall observe and act at all times in a manner consistent with industry standards, any applicable laws, or governmental regulations. Consultant shall also comply with all rules and procedures communicated to her by the Client, including those related to security and confidentiality.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2. Cooperation of Client. Client agrees to comply with all reasonable requests of Consultant and shall provide Consultant with access to all documents, resources and facilities as may be reasonably necessary for the performance of the Services under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3. Location of Performance. Consultant shall work remotely unless periodically asked to travel, in which case, Consultant shall travel in compliance with Client's travel policy. Client shall provide Consultant with access to its electronic materials, information and systems to the extent necessary for the performance of the Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4. Exclusions from Services. The Parties acknowledge and agree that Consultant is not a registered investment advisory firm or a law firm. Consultant shall not be obligated to provide services that are outside the scope of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5. Modification of Services. No changes to the Services will be authorized by Consultant, and Consultant shall have no obligation to perform any additional or modified Services, until such change is agreed to in writing and signed by Consultant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6. Subcontractors and Consultants. Client acknowledges and agrees that it may request that Consultant use its subcontractors and consultants to perform some of the Services to be provided under this Agreement. In the event Consultant utilizes subcontractors or consultants to perform any of the Services, Consultant shall not be responsible under this Agreement to Client for the failure of Client's third-party subcontractors and consultants to perform.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7. No Exclusivity; Dedication of Time. This consulting arrangement does not create an exclusive relationship and Client is free to retain other consultants of its choosing. Correspondingly, Consultant has other clients that rely on her for general matters, and Client agrees that Consultant may represent, perform services for, and contract with other clients, persons, or companies as Consultant, in her sole discretion but subject to her obligations under applicable professional responsibility law, sees fit, including through companies she owns and manages. The Parties agree that Consultant shall dedicate a substantial amount of her time and efforts (approximately 80%) to performing the Services for Client, provided however, that this Agreement shall not restrict her from performing services for other clients or operating companies she owns and manages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8. Registrations, Permits and Licenses. Client agrees, at its own expense, to operate in full compliance with all governmental laws, regulations and requirements applicable to the duties conducted hereunder. Unless otherwise specified in writing and agreed to by Consultant, it shall be Client's responsibility to pay for any licenses, permits, and registrations as may be necessary for Consultant's performance of the Services under this Agreement.

**3. CONSULTING FEE AND EXPENSES.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. Consulting Fee. In consideration for the performance of the Services, Client shall pay Consultant a consulting fee (the "Consulting Fee") of $40,000 per month (the "Monthly Rate"). The Monthly Rate is payable in arrears promptly upon receipt by Client of Consultant's monthly invoice. Client agrees that Consultant may resign or suspend work if satisfactory arrangements are not made to pay amounts outstanding for more than 45 days. The Consulting Fee is neither refundable nor contingent upon any conditions other than performance of the Services, and is payable in full each month. Consultant has the right to terminate this Agreement upon any failure of Client to promptly pay the Consulting Fee in accordance with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. No Provision of Facilities or Equipment; Reimbursable Expenses. Except as otherwise provided in this Section 3.2, Consultant shall provide at her own expense her office or place of business, any necessary equipment, office supplies, materials, appropriate assistance from other persons, and any other services needed for the performance of the Services under this Agreement. Fees and expenses, such as for travel, search and filing fees and overnight mail, will be added to the monthly invoice. The foregoing notwithstanding, Client shall reimburse Consultant for all reasonable and necessary out-of-pocket travel expenses, if any, and any other pre-approved expenses, in each case, incurred by Consultant in connection with the Services. Consultant shall submit to the Client, within ten (10) days following the last day of each calendar month during the Term, an account of all reimbursable expenses incurred by Consultant and/or her personnel during the prior calendar month. Client shall pay Consultant for the full amount of all pre-approved expenses within fourteen (14) days following Client's receipt of such account.

**4. TAXES.**

Consultant hereby represents and warrants that Consultant is solely and exclusively responsible for paying all federal, state and/or local taxes and withholdings with respect to any Monthly Fees Consultant receives as a result of the performance of the Services. Consultant acknowledges that Client is not withholding any taxes from the payments made to Consultant under this Agreement, and Client shall report all compensation paid to Consultant hereunder on an IRS Form 1099.

**5. INDEMNIFICATION; LIMITATION OF LIABILITY; ACTIONS.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. Indemnification by Client. Client will indemnify and hold Consultant harmless against all demands, claims, actions or causes of action, assessments, losses, damages, liabilities, fines, penalties, costs, and expenses, including reasonable attorneys' fees (collectively "Damages") asserted against, imposed upon or incurred by Consultant by reason of, resulting from, or in connection with: (i) third party damages resulting from the breach or failure to perform any obligation, covenant, or agreement made or given by Client in this Agreement; and (ii) any claim by a thirty-party for bodily injury, death, or property damage caused by the negligent, reckless, or intentional acts or omissions of Client or its employees, agents, or anyone for whom Client is responsible in connection with the performance of its obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2. Exculpation. To the fullest extent permitted by applicable law, the Consultant shall not be liable to Client for any action taken or omitted to be taken by Consultant in good faith and in a manner reasonably believed to be in or not opposed to the best interests of Client, except for Damages found in a final determination by a court of competent jurisdiction to have arisen from Consultant's breach of this Agreement, fraud, gross negligence, or willful misconduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3. Limitation of Liability. IN NO EVENT SHALL EITHER PARTY BE LIABLE UNDER THIS AGREEMENT TO THE OTHER PARTY FOR ANY INCIDENTAL, CONSEQUENTIAL, INDIRECT, STATUTORY, SPECIAL, EXEMPLARY OR PUNITIVE DAMAGES, INCLUDING, BUT NOT LIMITED TO, LOST PROFITS, LOSS OF USE, LOSS OF TIME, INCONVENIENCE, LOST BUSINESS OPPORTUNITIES, DAMAGE TO GOOD WILL OR REPUTATION, AND COSTS OF COVER, REGARDLESS OF WHETHER SUCH LIABILITY IS BASED ON BREACH OF CONTRACT, TORT, STRICT LIABILITY OR OTHERWISE, AND EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES OR SUCH DAMAGES COULD HAVE BEEN REASONABLY FORESEEN.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4. Actions. No action shall be brought for any claim relating to or arising out of this Agreement more than one (1) year after the accrual of such cause of action, except for money due on an open account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5. D&O Insurance Coverage. Client, to the fullest extent permitted by applicable law, will use reasonable best efforts to cause consultant to be an insured party under Client's existing directors and officers insurance policy (including, without limitation, to the extent permitted by applicable law, identifying her as an officer of Client for this purpose).

**6. CONFIDENTIAL INFORMATION.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. Confidential Information. Consultant acknowledges and agrees that as a result of the Services to be provided hereunder, it may acquire certain confidential and proprietary information concerning or relating to Client, or Client's parent, subsidiary or affiliate companies (collectively, the "Client Group"), including, without limitation, business and financial information and records; business methods and practices; investment strategies and processes; technological methods; business affiliates; suppliers and vendors; procedures and operational methods; inventions and developments; contracts; information concerning employees, partners, and contractors including identities, contact information, compensation, or other terms of engagement, and performance; and any other information regarding the Client Group's business that has not been intentionally made known to the public, all of which is confidential and in some instances constitute trade secrets (the "Confidential Information").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2. Use of Confidential Information; Standard of Care. Consultant shall maintain the Confidential Information in strict confidence. Consultant shall use the same degree of care as she uses with respect to her own similar information, but no less than a reasonable degree of care, to protect Client's Confidential Information from any unauthorized use, disclosure, dissemination, or publication. Consultant shall only use the Confidential Information in furtherance of her performance of her obligations under this Agreement, and agrees not to use Client's Confidential Information for any other purpose or for the benefit of any third party, without the prior written approval of Client.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3. Exceptions. Confidential Information does not include information that: (i) was lawfully in Consultant's possession before receipt from Client; (ii) at or after the time of disclosure, becomes generally available to the public other than through any act or omission of Consultant; (iii) is developed by Consultant independently of any Confidential Information it receives from Client; (iv) Consultant receives from a third party free to make such disclosure without, to the best of Consultant's knowledge, breach of any legal or contractual obligation; or (v) is disclosed by Consultant with Client's prior written approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4. Required Disclosures. If Consultant is confronted with legal action to disclose Confidential Information received under this Agreement, Consultant shall, unless prohibited by applicable law or regulation, provide prompt written notice to Client to allow Client an opportunity to seek a protective order or other relief it deems appropriate, and Consultant shall reasonably assist Client in such efforts. If disclosure is nonetheless required, Consultant shall limit her disclosure to only that portion of the Confidential Information that Consultant is advised by her legal counsel must be disclosed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5. Unauthorized Use or Disclosure of Confidential Information. In the event Consultant discovers that any Confidential Information has been used, disseminated or accessed in violation of this Agreement, it will immediately notify Client, take all commercially reasonable actions available to minimize the impact of the use, dissemination or publication, and take all necessary steps to prevent any further breach of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6. Return of Confidential Information; Survival. Consultant shall promptly return or, at Client's option, certify destruction of all copies of Confidential Information at any time upon Client's request or within fourteen (14) business days following the expiration or earlier termination of this Agreement. However, Consultant's obligation under this Section 6 shall not extend to information that is already in the public domain at the time of disclosure to Consultant; or, following disclosure, becomes generally known or available through no act or omission on the part of Consultant in violation of this Agreement. The provisions of this Section 6 shall survive for a period of two (2) years from the date of termination of Consultant's engagement under this Agreement.

**7. TERMINATION.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1. Termination by Mutual Agreement. This Agreement is "at will" and the Parties may terminate the Agreement immediately upon mutual agreement of the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2. Obligations Upon Termination. Except as otherwise provided in this Agreement, upon the expiration or termination of this Agreement for any reason and at any time, all relationships and duties between Consultant and Client shall be terminated; provided, however, that Consultant shall perform all reasonable and necessary tasks to provide for an orderly transition of Consultant's work to Client or to another consultant or employee designated by Client.

**8. RELATIONSHIP OF THE PARTIES.**

The Parties hereto agree that the Services rendered by Consultant in the fulfillment of the terms and obligations of this Agreement shall be as an independent contractor and not as an employee, and with respect thereto, Consultant is not entitled to the benefits provided by Client to its employees including, but not limited to, group insurance and participation in Client's employee benefit plans. Consultant shall be responsible for payment of all taxes arising out of Consultant's activities in accordance with this Agreement, including by way of illustration but not limitation, federal and state income tax, social security tax, unemployment insurance taxes, and any other taxes or fees as required.

**9. NO AUTHORITY TO BIND CLIENT.**

Consultant shall be entitled to represent to third parties that Consultant serves as a consultant to Client and/or as Client's General Counsel, and, if so instructed by the Client, is authorized to enter into discussions with such third parties on Client's behalf to the extent so authorized. However, except as expressly outlined in Exhibit A, Consultant shall have no authority to make any commitments or enter into any agreements whatsoever on behalf of Client or to bind Client in any way.

**10. GOVERNING LAW AND VENUE.**

This Agreement will be governed by and interpreted in accordance with the laws of the State of New York, without giving effect to the principles of conflicts of law of such state. The Parties hereby agree that any action arising out of this Agreement shall be brought solely in a court of competent jurisdiction in and for New York County, New York. Both Parties hereby submit to the exclusive jurisdiction and venue of any such court (and of the appropriate appellate courts) and waive any objection to jurisdiction or venue laid therein.

**11. LEGAL FEES; COLLECTION EXPENSES.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1. Legal Fees. If either Party incurs any legal fees associated with the enforcement of this Agreement or any rights under this Agreement, the Parties shall be responsible for their own attorney's fees and any court, arbitration, mediation, or other litigation expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2. Collection Costs. If Consultant incurs any costs, expenses, or fees, including reasonable attorney's fees and professional collection services fees, in connection with the collection or payment of any amounts due it under this Agreement, Client agrees to reimburse Consultant for all such costs, expenses and fees.

**12. CUMULATIVE REMEDIES.**

All rights and remedies of the Parties under this Agreement shall be cumulative and the exercise of any one right or remedy shall not bar the exercise of any other right or remedy.

**13. ASSIGNMENT; THIRD PARTY BENEFICIARIES.**

This Agreement shall be binding upon and inure to the benefit of the successors, assigns and legal representatives of the Parties. A Party may not, without written consent of the other Party, assign this Agreement to a purchaser or transferee.

**14. SEVERABILITY.**

If any provision or portion of this Agreement shall be rendered by applicable law or held by a court of competent jurisdiction to be illegal, invalid, or unenforceable, the remaining provisions or portions shall remain in full force and effect.

**15. HEADINGS; CONSTRUCTION.**

The headings and captions appearing in this Agreement have been inserted for the purposes of convenience and ready reference, and do not purport to and shall not be deemed to define, limit or extend the scope or intent of the provisions to which they appertain. This Agreement is the result of negotiations between the Parties and their counsel. Accordingly, this Agreement shall not be construed more strongly against either Party regardless of which Party is more responsible for its preparation, and any ambiguity that might exist herein shall not be construed against the drafting Party.

**16. SURVIVAL.**

In the event of termination of this Agreement, the provisions of Sections 4-7 hereof shall survive the termination of this Agreement and shall continue to apply in accordance with their terms.

**17. COUNTERPARTS.**

This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original, but all of which together will constitute one and the same instrument, without necessity of production of the others. An executed signature page delivered via electronic transmission or an electronic signature shall be deemed as effective as an original executed signature page.

**18. NOTICES.**

All notices or other communications required under this Agreement shall be in writing and shall be deemed effective when received and made by a method of communication that provides a receipt:

If to Consultant, to:

Attn: Laura Schnaidt

140 Hope Street, Apt 3A, Brooklyn, NY 11211

Laura@paradoxprincipals.com

If to Client, to:

Ionic Digital, Inc.

Attn: John Penver, Interim CEO and CFO

jpenver@ionicdigital.com

**19. WAIVER.**

No waiver of any term or right in this Agreement shall be effective unless in writing, signed by an authorized representative of the waiving Party. The failure of either Party to enforce any provision of this Agreement shall not be construed as a waiver or modification of such provision, or impairment of its right to enforce such provision or any other provision of this Agreement thereafter.

**20. ENTIRE AGREEMENT; MODIFICATION.**

This Agreement, and any exhibits attached hereto, are the entire agreement between the Parties with respect to the subject matter hereof, and supersedes any prior agreement or communications between the Parties, whether written, oral, electronic or otherwise. Each Party acknowledges that no representations, inducements, promises, or agreements, orally or otherwise, have been made by any Party, or anyone acting on behalf of any Party, which are not contained in this Agreement, and that no other agreement, statement, or promise not contained in this Agreement will be valid or binding. No change, modification, amendment, or addition of or to this Agreement or any part thereof shall be valid unless in writing and signed by authorized representatives of the Parties.

[signatures follow]

In witness whereof, the Parties hereto have executed this Agreement on the date set forth below.

---

| | |
|:---|:---|
| **IONIC DIGITAL INC.** | **IONIC DIGITAL INC.** |
| Name: | John Penver |
| Title: | Interim Chief Executive Officer and <br> Chief Financial Officer |
| Date: 2024-11-24 | Date: 2024-11-24 |
| **CONSULTANT** | **CONSULTANT** |
| Name: | /s/ Laura Schnaidt |
| Laura Schnaidt | Laura Schnaidt |
| Date: 2024-11-24 | Date: 2024-11-24 |

---

**<u>Exhibit A</u>**

**<u>General Counsel Role Description</u>**

The general counsel will be responsible for ensuring that firm business strategies, policies, and programs are developed and applied in full recognition of all legal implications and risks. The general counsel will act as the manager of the firm's Legal Department while providing legal services as a practicing counsel, and managing relationships and matters with outside counsels. The general counsel will ensure that the legal affairs of the firm are attended to in an effective and efficient manner and that all legal records are properly compiled and securely maintained for the required time period. The general counsel reports and is responsible to the Board of Directors and executive management.

## Exhibit 99.1

**Exhibit 99.1**

**IONIC DIGITAL INC.**

**Global Code of Conduct and Ethics**

**Effective February 2025**

**Table of contents**

---

| | |
|:---|:---|
|  | **Page** |
| Introduction | 1 |
| What to do when you have an ethics concern or question | 1 |
| Where to report | 2 |
| Cooperation with investigations | 2 |
| What happens when you report an ethics or compliance concern | 2 |
| A respectful, safe and professional workplace | 3 |
| A respectful and inclusive workplace |  |
| Discrimination and harassment | 3 |
| A safe and healthy workplace | 3 |
| Workplace safety and environment | 3 |
| Workplace violence | 4 |
| Drugs and alcohol | 4 |
| Misconduct outside the workplace | 5 |
| Solicitation and fundraising | 5 |
| Gambling | 6 |
| Employee privacy | 6 |
| Monitoring and recording at work | 6 |
| Integrity and fairness in the workplace |  |
| Conflicts of interest | 7 |
| Personal conflicts of interest | 7 |
| Outside employment | 8 |
| Outside activities | 8 |
| Political interactions and contributions | 9 |
| Seeking public office | 10 |
| Insider trading and securities transactions | 10 |

---

i

---

| | |
|:---|:---|
| Outside financial interests | 10 |
| Loans | 10 |
| Protecting Ionic's assets and reputation. | 11 |
| Preparing, disclosing, and maintaining accurate records | 11 |
| Promoting transparent and complete disclosure | 11 |
| Safeguarding company information | 12 |
| Acquiring other parties' non-public information | 12 |
| Intellectual property | 13 |
| Gathering information about competitors | 13 |
| Protecting company communication and information systems | 13 |
| Proper use of Ionic resources | 14 |
| Security of facilities | 14 |
| External communications | 14 |
| Integrity and fairness in the marketplace | 18 |
| Relationships with customers | 17 |
| Customer privacy | 18 |
| Customer marketing | 18 |
| Selling with integrity | 18 |
| Relationships with business providers and partners | 19 |
| Relationships with competitors | 19 |
| Relationships with former employees | 20 |
| Gifts and entertainment | 20 |
| Gifts | 21 |
| Entertainment | 21 |
| Bribery, anticorruption and government ethics | 21 |
| Anti-money laundering laws | 22 |
| International relationships | 22 |
| Foreign Corruption Practices Act (FCPA) | 22 |
| Compliance with sanctions and anti-boycott laws | 22 |

---

ii

**Introduction<sup>1</sup>**

**What to do when you have an ethics concern or question**

Ionic Digital Inc. ("**Ionic,**" "**we**" or the "**Company**") provides a safe community that encourages employees to reach out and ask questions about what is right or wrong without fear of retaliation. Employees are empowered to come forward if they feel that they have been placed in an ethically precarious position. Employees who are challenged with tough ethical questions or who are not sure how to proceed in order to resolve those issues are encouraged to seek guidance from supervisors, managers or other appropriate Ionic personnel. Retaliation against employees who report concerns is strictly prohibited, and if you have concerns about retaliation, you must report those as well. Ionic prohibits retaliation against employees for submitting complaints or cooperating with investigations, and anyone engaging in retaliation is subject to discipline, up to and including termination of employment.

We are defined by our values: community, loyalty, integrity, social responsibility, respect and excellence. These values should guide us in how we deal with every problem at work, large and small. This Global Code of Conduct and Ethics ("**Code of Conduct**" or the "**Code**") gives us detailed guidance about how to apply Ionic's values to specific issues and challenges that arise in our jobs. It reflects our changing business environment and has been approved by the Ionic Board of Directors (the "**Board**").

You must follow the law, this Code of Conduct, and all Ionic policies and guidelines applicable to you. You can't violate any of these rules for any reason, even if you are instructed to do so by your supervisor. Violations of this Code, or any other Ionic policy, can lead to discipline up to and including termination of employment.

But following this Code of Conduct is just a starting point. We're all expected to help maintain and promote the culture of integrity, inclusiveness and community that is one of our greatest competitive advantages. Employees in supervisory roles have a special duty to set the right example. Supervisors must promote an open door culture in which employees are comfortable speaking their mind. A critical part of maintaining a culture of integrity, inclusiveness and community is making sure that each of us asks questions and raises concerns. If you do this, you can help the Company spot issues before they turn into problems. Reporting misconduct or ethics concerns isn't just an option – it's each employee's responsibility. You must report suspected misconduct and violations of this Code. If you believe that you or anyone else is the subject of retaliation for reporting misconduct or cooperating with an investigation, you must report it to Ionic's Legal Department and Human Resources.

<sup>1</sup> You are required to comply with this Code of Conduct as a condition of continued employment. This Code may be changed by the Ionic at any time, except pursuant to any applicable collective bargaining obligations, without notice to you. Except where applicable law provides otherwise, employment with Ionic is "at will," which means that you or Ionic may terminate your employment, at any time, with or without cause, with or without notice, for any reason not prohibited by law, unless governed by a collective bargaining agreement or specific contract of employment. Any at will employment relationship may not be modified except in a written agreement signed by an authorized Ionic officer.

If your local laws conflict with this Code of Conduct or your business unit has more restrictive policies or practices, you must comply with the local law or the unit's policy or practice.

**Where to report**

You have many resources available to you should you have any concerns or questions about how this Code of Conduct applies to a particular issue. You may contact your manager, Human Resources, or Ionic's Legal Department.

You must immediately report any instance of violence, hostile behavior, or possession of weapons on company property to your supervisor. In cases of imminent danger, you should contact 911 or local law enforcement first, and then contact your supervisor.

You must report any concerns or questions you have about the accuracy or integrity of Ionic's financial statements, reporting, accounting, internal accounting controls, or auditing matters to Ionic's Legal Department.

**Cooperation with investigations**

Every employee has a duty to report potential or apparent violations of this Code of Conduct. Further, every employee is obligated to fully cooperate in any investigation by Ionic regarding a reported concern and cooperate in the legal representation and defense of Ionic's interests.

**What happens when you report an ethics or compliance concern**

Ionic is committed to fully investigating all reported ethics and compliance concerns. Employees are encouraged to bring such concerns to our attention. When making a report, employees should provide as many specific details as possible because that will assist us in executing a complete, timely and thorough investigation. Please refer to the Global Whistleblower Policy for procedures and policies on bringing concerns to our attention.

You must cooperate completely in any investigation. You must be honest and forthcoming at all times during an investigation, and you must provide any investigator with full, accurate, timely, and truthful information. Misrepresenting facts or failing to disclose facts during an investigation is strictly prohibited. You can't interfere with or obstruct an investigation conducted by the Company or by any government agency.

**Administering the Code**

The Audit Committee is responsible for administering the Code of Conduct in an independent, objective and consistent manner. We realize that the Code will not cover every possible circumstance, especially when issues arise with contracts or local laws. As such, Ionic may modify the Code, as necessary. Any waivers of the Code, however, must be approved by the Board or its designees.<sup>2</sup> In the extremely rare situation that a waiver is approved, we will quickly and properly disclose it where required by law.

<sup>2</sup> NTD: Nasdaq rule amendments allow for waiver to be made by a committee of the board of directors for directors and executive officers, rather than the board alone.

**A respectful, safe and professional workplace.**

We are committed to a safe, healthy, and professional work environment in which each of us is treated with respect and given the opportunity to achieve performance excellence. As an Ionic employee, you are expected to treat fellow employees, partners and vendors with respect, dignity, honesty, fairness and integrity at all times.

Not only is this sound business practice, it's also the right thing to do.

**Discrimination and harassment**

We are committed to maintaining a workplace free from illegal discrimination or harassment, including sexual harassment or harassment based on any other legally protected category.

We respect and comply with all laws providing equal opportunity to individuals without regard to race, color, religion, age, sex, pregnancy, sexual orientation, gender identity and expression, genetic information, national origin, disability, marital status, citizenship status, veteran status, military service status, and any other protected category under applicable law.

Unlawful harassment comes in many forms and includes conduct or language that creates a hostile or offensive work environment. It can be physical, verbal, or visual. For example, sexual harassment may include inappropriate touching, unwelcome romantic advances, lewd gestures, or the display of obscene material. Other forms of harassment may include racist comments, ethnic slurs, religious stereotypes, or homophobic jokes.

We do not tolerate such behavior. If you are subjected to or observe unlawful harassment, you should report it to your supervisor (if appropriate), Human Resources or Ionic's Legal Department, and, if you are comfortable doing so, confront the perceived harasser and ask that they stop. Supervisors who become aware of harassment concerns must report the issue.

**A safe and healthy workplace**

We share a responsibility for maintaining a safe and healthy workplace and for doing business in a way that meets our responsibilities to each other, our customers, and the public.

**Workplace safety and environment**

We are additionally committed to providing a safe workplace and to meeting our environmental responsibilities.

That means that each of us must perform our jobs in a safe and environmentally responsible manner and in compliance with Ionic's values and the law. Supervisors must ensure that direct reports are trained in the safety and environmental practices of their jobs, report potential noncompliance, and investigate all environmental, health, and safety concerns of which they become aware.

You must report a work-related crash or injury; a hazard or incident; or a violation of an environmental, health, or safety law or company policy to your supervisor

**Workplace violence**

We are committed to maintaining a work environment that is free from violence and weapons, or threatening, hostile, or abusive behavior.

You must never engage in violent or threatening behavior toward fellow employees, customers, or business partners.

We maintain a weapons-free workplace. Under no circumstances should anyone possess or use any weapon or weapon component (e.g., ammunition) on Company property, in a Company vehicle, or while conducting Company business. Unless expressly permitted by local law, this includes weapons stored in a locked personal vehicle on Company property.

It is critical that you take personal responsibility for immediately reporting any instance of violence, threats, hostile behavior, or weapon possession on Company property to your supervisor. In cases of imminent danger, you should immediately notify local law enforcement (e.g., 911 or other applicable local emergency service number).

Domestic violence can also have an impact on workplace safety. If you are the victim of domestic violence, you should notify the police and security about any person who may be threatening your safety or the safety of fellow employees. You can also contact your supervisor, Human Resources, Legal Department, or anyone at Ionic you feel comfortable speaking to.

**Drugs and alcohol**

Substance abuse is incompatible with workplace health and safety.

You may not report to work under the influence of alcohol, an illegal drug, or any controlled substance for which you do not have a prescription. If you are taking prescription medication that affects your perception or responsiveness, you should notify your supervisor and Human Resources.

You must not use or possess illegal drugs or drug paraphernalia while on Company property or when on Company time. You should not possess or use controlled substances or prescription drugs that have not been prescribed to you by a physician.

Marijuana is an illegal drug under U.S. federal law. Even if you work in a jurisdiction that has legalized marijuana for medical or recreational purposes, you may not report to work under the influence of marijuana, or use or possess marijuana while on Company property or when on Company time.

Possession and use of alcohol are prohibited on Company property, and when conducting Company business. There are limited exceptions to this prohibition:

&nbsp;&nbsp;&nbsp;&nbsp;♦ alcohol may be served at social functions on Company premises,
but only with prior approval from a supervising officer (or above leader);

&nbsp;&nbsp;&nbsp;&nbsp;♦ alcohol may be consumed if it is served at an external event
at which you are representing Ionic (e.g., a business dinner or cocktail reception).

In such cases, consumption of alcohol must be voluntary, in moderation, and in a manner that does not embarrass the Company.

**Misconduct outside the workplace**

Each of us must avoid any misconduct off the job that could impair our ability to do our jobs or affect the Company's reputation or business interests.

Accordingly, you must promptly report to Ionic Human Resources any arrest, charge, or conviction for:

&nbsp;&nbsp;&nbsp;&nbsp;♦ a felony (or equivalent under local law);

&nbsp;&nbsp;&nbsp;&nbsp;♦ an offense involving dishonesty, assault, or battery;

&nbsp;&nbsp;&nbsp;&nbsp;♦ a drug-related offense;

&nbsp;&nbsp;&nbsp;&nbsp;♦ an
alcohol-related offense relating to conduct while on Company property or business or that may otherwise affect your ability to perform
your job, or affect the Company's business interests; or

&nbsp;&nbsp;&nbsp;&nbsp;♦ any other offense which may affect your ability to perform
your job or otherwise affect the Company's business interests.

**Solicitation and fundraising**

You may not engage in solicitation or fundraising during work time (defined as the work time of either the employee making or receiving the solicitation), and you may not engage in the distribution of nonbusiness literature during work time or in Company work areas. Further, you may not use Company resources to solicit or distribute at any time. Non-employees may not engage in solicitation, fundraising, or the distribution of literature on Company property.

There are limited exceptions to this policy:

&nbsp;&nbsp;&nbsp;&nbsp;♦ Company pre-approved communications relating to employee
benefits or services;

&nbsp;&nbsp;&nbsp;&nbsp;♦ communications about charitable initiatives undertaken with
the approval of Ionic's Legal Department;

**Gambling**

Gambling is illegal in many jurisdictions and can contribute to an unprofessional workplace. You may not gamble (online or offline) on Company property, when using Company systems, or while conducting Company business. You may not participate in games of chance (including sports pools, raffles, or lotteries) on Company property, when using Company systems, or while conducting Company business without written approval from Ionic.

**Employee privacy**

You must take appropriate steps to protect confidential personal employee information, including social security numbers, identification numbers, passwords, bank account information, and medical information. You should never access or obtain, and may not disclose outside of Ionic, another employee's personal information obtained from Ionic's business records or systems unless you are acting for legitimate business purposes and in accordance with applicable laws, legal process, and company policies, including obtaining any approvals necessary under those policies.

**Monitoring and recording at work**

To maintain a safe and professional work environment, Ionic monitors employee use of Company property, consistent with applicable law. Monitoring applies to company facilities and vehicles. Such monitoring also applies to Company-provided communications devices, our networks and computer systems (including corporate email, encrypted and unencrypted internet access, and any application, such as web-based email, accessed from Company provided devices and systems).

In cases involving safety or suspected misconduct (for example, investigating claims of sexual harassment, workplace violence, or suspected theft), the Company reserves the right to monitor or inspect, without notice, any company property or any personal property on Company premises that may contain evidence of misconduct, consistent with applicable law or any local data privacy notice. With respect to Company provided or paid for communications devices or accounts, the Company may, as permitted by law or any local data privacy notice, access any stored information (whether on the device, our servers or with a third-party) that may contain evidence of misconduct, and employees are required to cooperate, including by providing access to the information, when requested by Ionic's Legal Department or its designee, or IT/Security Department.

Unless you are participating in an approved observation program or have obtained prior approval from Ionic's IT/Security or Legal Department, subject to applicable law or any local data privacy notice, you may not record (photo, video, or audio) an employee (while the employee is at work or engaged in business activities), a customer, partner, or competitor without that individual's knowledge and consent, or access another employee's information systems or business records without that employee's knowledge and consent.

**Conflicts of interest**

You must avoid any relationships or activity that might impair, or even appear to impair, your ability to make objective and fair decisions when performing your job. When acting on behalf of the Company, you must advance the Company's legitimate interests when the opportunity to do so arises. If you identify a situation where the Company's interests are being harmed, you must report the matter to Ionic Human Resources or Legal Department.

You must never use Ionic property or information for personal gain or take personal advantage of any opportunity that arises in your work for Ionic.

You must disclose any potential or actual conflict to Ionic as soon as you become aware of it.

**Personal conflicts of interest**

**I am an employee and one of my reports disclosed a personal conflict of interest to me. I promptly implemented controls to minimize the risk. Is that sufficient?**

No. All conflicts and potential conflicts of interest must be cleared by Ionic.

Certain types of personal relationships can create actual or apparent conflicts of interest both internally at Ionic and in our interactions with third parties. Never use your position at the company to advance your personal interests or those of a friend or relative at the expense of the company's interests.

Internally, you may not supervise – directly or indirectly – someone with whom you share a close personal relationship, such as anyone in your family or household, or someone with whom you have or had a romantic relationship or other similar relationship. Even if a family member or romantic partner is not in your reporting chain, if you interact with such a person as part of your Ionic work responsibilities, you must avoid any actions at work that could create even the appearance of a conflict of interest. If you are uncertain about what interactions are appropriate, you must contact Ionic Human Resources or Legal Department.

Externally, you may not participate in the selection process for, have discretionary authority involving Ionic's business with, or supervise Ionic's relationship with, a company that does business with Ionic if it employs someone with whom you have a close personal relationship or is a company with which you have a business relationship. Exceptions to this restriction are extremely limited and require the approval of Ionic Human Resources and Legal Department.

If a family member or person with whom you have a close personal relationship is employed by an entity that does business with Ionic, you cannot interact with that individual about business between Ionic and the outside entity.

**Outside employment**

**How do I find out if the company where I have a second job is providing services or access to services that are also provided by Ionic?**

If you think there is any chance that an outside employer might be operating in the same space as Ionic, you must contact Ionic Human Resources for guidance.

**My supervisor knows that I have a side job. Do I have to let anyone else know?**

A "side hustle" related to the field in which you work for Ionic, competitive with Ionic, or involving any product or service in which Ionic might be active, must be pre-approved by Ionic Human Resources and Legal Department.

You may not—with or without compensation—be self-employed or employed by, consult with, own, perform services for, or aid:

&nbsp;&nbsp;&nbsp;&nbsp;♦ a company or organization (including a charitable organization)
that is a vendor, supplier, partner, contractor, subcontractor, or competitor of Ionic; or

&nbsp;&nbsp;&nbsp;&nbsp;♦ a
company that provides services or access to services that are provided by Ionic, or that Ionic is seeking to provide or provide access
to.

Outside work must not interfere with your work for Ionic. This limitation also applies to simultaneous employment by Ionic and its subsidiaries, affiliates, and joint ventures in which the Company maintains an ownership interest. Exceptions to the requirements of the previous paragraph may be granted only upon written approval by Ionic Human Resources and Legal Department.

Unless you receive the prior written approval of your supervisor, Human Resources and Legal Department, you may not engage in any outside employment or self-employment or perform any commercially-related services—with or without compensation—while absent from work on any Company-approved leave of absence, absence due to sickness or disability, Family Medical Leave, or comparable leave provided for by applicable law.

**Outside activities**

**I have been asked to participate in an investor expert network as a digital assets industry professional. This expert network does research to assist investors. If I do not reveal any confidential Ionic information, can I participate?**

Employees and executives are generally prohibited from participating in expert networks for investors due to insider trading concerns. You should consult with Ionic Legal Department regarding this request.

When employees participate in outside activities, Ionic draws a distinction between personal activities (not representing Ionic) and service on behalf of the Company (representing Ionic). Many employees, in their personal capacities, participate in outside civic and charitable activities by serving as trustees or members of various community organizations such as local not-for- profits, religious institutions, parent teacher associations, or homeowners' associations. If a matter regarding Ionic's services or access to services or products arises when performing such outside civic or charitable activities, you must remove yourself from discussing or voting on the matter or on any matter that involves the interests of Ionic or its competitors to avoid conflicts of interest. Participation in outside civic or charitable activities should not interfere with your work for Ionic. To the extent your participation infringes on Company time or involves the use of Ionic resources, your supervisor's approval is required.

Service in an outside organization on behalf of Ionic means that you are expected to represent Ionic's interests when participating in the organization's activities. Prior to serving as a representative of Ionic with any outside organization, you must obtain the prior approval of Ionic Human Resources, Legal Department and your supervisor.

Special approval requirements apply when seeking to serve on any outside company's board of directors:

&nbsp;&nbsp;&nbsp;&nbsp;♦ Service on the board of directors of a public corporation
must be approved in advance by both Ionic Human Resources, Legal Department and your organization's executive office.

&nbsp;&nbsp;&nbsp;&nbsp;♦ Service
on the board of directors of a non-public corporation must be approved in advance by Ionic Human Resources and Legal Department.

**Political interactions and contributions**

Ionic encourages participation in the political process and each of us is responsible for ensuring compliance with all laws and regulations relating to interactions with government officials, including laws governing campaign finance, government ethics, and lobbying. In addition, all lobbying activities on behalf of the Company must be authorized by Ionic's Legal Department.

If you are appearing before a government body or engaging in contact with a public official outside of your ordinary work duties regarding a business in which Ionic is engaged or a business issue in which Ionic has an interest, make it clear that you are not representing Ionic and advise your supervisor in advance.

Your personal political contributions and activities must be kept separate from the Company. If you make political contributions, you may not refer to your employment or use the Company's assets, including its name, in connection with your contributions, unless required to do so by law. You may not make payments of corporate contributions, whether monetary or non-monetary assets, to any domestic or foreign political party, candidate, campaign, or public official unless that contribution is permitted under applicable laws inside and outside the U.S., and approved in advance by Ionic's Legal Department. In addition, you may never reimburse anyone for any political contribution.

**Seeking public office**

Before you seek any elected or appointed public office, including a local position, such as school board, you must obtain the approval of your director level or above supervisor and Ionic.

**Insider trading and securities transactions**

Insider trading occurs when a person trades in a company's securities using material inside information, often referred to as material non-public information—that is, information that is not publicly available and that could reasonably affect a person's decision about whether to buy or sell the securities.

It also occurs when a person gives material inside information to someone else who trades on it. Insider trading is a serious violation of the law and can result in severe penalties, including imprisonment. Please refer to the Ionic's Insider Trading Policy for further information about this matter.

**Outside financial interests**

**Can I purchase stock in a company that is a vendor on a project I am working on?**

If you are working with that vendor, you cannot purchase stock in that company.

You may not transact any business in a company's securities or derivatives of those securities if you conduct or supervise Ionic business with that company.

If you have a pre-existing stock interest in a company and your position at Ionic requires you to conduct or supervise business with this company, you must disclose your ownership interest to a supervisor. You may not trade in that company's securities without advance approval from Ionic's Legal Department.

You may not take a significant financial interest in a company that is a business provider or that competes with or is in one of the same lines of business as Ionic. A significant financial interest is any financial interest that is more than US$100,000 and that represents either (1) more than [25%] of your annual gross income or (2) more than 1% of the value of the other company. If any investment appreciates over time so that it creates an actual or apparent conflict of interest, it should be brought to the attention of Ionic's Legal Department.

**Loans**

Personal loans from the Company to any executive officer (as defined by securities law) are unlawful and strictly prohibited. Personal loans from the Company to any other employee must be approved in writing in advance by Ionic's Legal Department or under an approved Ionic program. Loans greater than US$25 between employees in a direct or indirect reporting relationship are prohibited.

**Protecting Ionic's assets and reputation.**

We are all accountable for protecting the company's assets and reputation.

**Preparing, disclosing, and maintaining accurate records**

**I am required to track and record the time I spend working each week. I sometimes fail to properly record half-days as vacation days or personal time, but it is not a common occurrence. Is this a big deal?**

Yes. Failure to accurately record your time is a violation of this Code of Conduct and could result in discipline up to and including termination of employment.

We are committed to maintaining and providing truthful information that satisfies all legal requirements. We do not tolerate the falsification or improper alteration of records.

You must create and maintain true and accurate records. If you identify any mistakes or discrepancies, no matter how small, you must try to resolve them immediately, and you must promptly notify your supervisor.

You may never direct anyone to create or approve a false or misleading record, or intentionally take any action that helps to create a false or misleading record, such as withholding information from someone preparing a record.

Company records must be retained according to applicable laws and company policies. You may never destroy, alter, or conceal any record if you have been directed to retain it or if you know – or reasonably believe there is a possibility – of any litigation or any internal or external investigation concerning that record.

If you believe a record was intentionally falsified or created to be misleading, or if anyone directed you to violate any section of this policy, you must immediately contact Ionic Human Resources.

**Promoting transparent and complete disclosure**

Our investors and shareholders are key to our success and we are committed to transparency in financial reporting. All disclosures made in financial reports and in public communications must be full, fair, accurate, and understandable.

You may not selectively disclose (even in one-on-one or small meetings) any material information regarding the Company. You should be particularly careful not to disclose such information if you make presentations to customers, business providers, investors, or other third parties.

We use auditors to ensure the accuracy of our reporting. You must cooperate with auditors and provide them with complete, accurate, and timely information, and you must never improperly influence or mislead any auditor.

**Safeguarding company information**

Our business depends on protecting its proprietary, non-public, and confidential information, as well as the information others entrust to us as part of our business. Examples of such information include: "inside information" that could lead someone to buy or sell Ionic stock, marketing presentations, or copyrighted materials. You must comply with all Company policies regarding the protection of Ionic's information. You may not release non-public Company financial information to the public or third parties unless specifically authorized by your supervisor and Ionic's Legal Department.

You may not release other non-public Company information to the public, third parties, or internet forums (including blogs or chat rooms) unless you are specifically authorized to do so by your Ionic supervisor and Legal Department. You may only disclose non-public Company information to employees who have demonstrated a legitimate, business-related need for the information.

Your obligation to safeguard Ionic information continues even after your employment at the Company has ended, and you may never disclose or use non-public Company information absent Ionic's specific written authorization.

**Acquiring other parties' non-public information**

**A customer shared a competitor's pricing in connection with a pending bid because the customer wants to make it clear that there is a certain "price to beat." Can I use this information?**

No. This information is almost certainly proprietary and the customer may not be authorized to share it with Ionic. You should contact Ionic's Legal Department, preserve the email, and do not take further action until directed by Ionic's Legal Department.

**A competitor's pricing information was posted on a blog. It's marked "confidential." Can I use it?**

If you have reason to believe the blogger wasn't authorized to post the information and that it is non-public, contact Ionic's Legal Department to receive guidance before using it.

**In connection with a pending transaction, a partner sent me confidential information. A properly approved NDA is in place. Can I accept the information?**

Yes, you can accept confidential information pursuant to a properly approved NDA.

You cannot accept or use non-public information belonging to a third party (including information from a former employer) unless the person disclosing the information is authorized to do so, Ionic has the owner's written permission to receive it, and the information is provided according to a written agreement approved in advance by your supervisor and Ionic's Legal Department.

**Intellectual property**

Our intellectual property is a valuable asset and must be protected by everyone. Similarly, you must respect the proprietary rights of others by complying with all applicable laws and agreements, including those with business providers, competitors, and customers.

You must not acquire the intellectual property of others through unlawful or inappropriate means. You may not copy, use, or share copyrighted materials unless you obtain the specific, written, prior consent of the owner, or unless such use is permitted under applicable law as determined by Ionic's legal department.

If you have entered into any agreement with a prior employer with respect to intellectual property, non-competition, non-solicitation, or non-disclosure, you are required to disclose such an agreement to your supervisor, Human Resources and Legal Department.

**Gathering information about competitors**

Gathering information about competitors is a common business practice, but you must always do so with integrity. You must always accurately represent yourself and may never misrepresent your identity when gathering information. You are also required to direct that all consultants and agents with whom you work on behalf of Ionic do the same.

You may generally obtain information from public sources, industry gatherings, surveys, and competitive research, but it is never acceptable to obtain or request non-public information from any source, including the internet. It is never appropriate to engage in theft, espionage, or breach of a competitor's non-disclosure agreement. If information you receive is marked private or marked in such a way as to indicate it is private, absent an appropriate confidentiality agreement, do not use it and contact Ionic's Legal Department for guidance.

**Protecting company communication and information systems**

Ionic's communication and information systems, including all company Computers and mobile devices, are critical to the Company's operation. You must protect Company information from accidental or unauthorized disclosure. You must also protect the security of user IDs and passwords for all company systems and devices. Additionally, you must also comply with all company policies relating to the use of computer hardware and software on company systems, and the acquisition, use, and disposition of data on company systems. Only approved software and hardware may be used on Company systems, and such media must have a legitimate business purpose and be malware free.

You may not use Company systems, such as email or instant messaging, to engage in activities that are illegal, violate company policy, or could result in Ionic's liability or reputational harm. Some examples of improper uses of Company systems include:

&nbsp;&nbsp;&nbsp;&nbsp;♦ pornographic, obscene, offensive, harassing or discriminatory
content;

&nbsp;&nbsp;&nbsp;&nbsp;♦ unauthorized mass distributions;

&nbsp;&nbsp;&nbsp;&nbsp;♦ communications on behalf of commercial ventures; and

&nbsp;&nbsp;&nbsp;&nbsp;♦ communications directed to a group of employees on behalf
of an outside organization.

You may make limited personal use of Company systems, so long as it does not interfere with your work responsibilities, incur costs, or otherwise violate this Code of Conduct or Ionic policy. You may not send non-public Company information to personal email unless you are authorized to do so by a supervisor and comply with Company policies regarding encryption.

**Proper use of Ionic resources**

You are required to protect Ionic's resources, as well as property belonging to customers, business providers, and co-workers. All Company resources must be used appropriately, and never for personal gain. Company property cannot be taken, sold, loaned, intentionally damaged, given away, or otherwise disposed of, regardless of its condition or value, without specific authorization.

You are never permitted to use Ionic equipment or vehicles for personal purposes, or any device or system to obtain unauthorized free or discounted service.

Ionic benefits plans and programs must be used honestly. You are not permitted to misrepresent any fact regarding your health status, covered members, beneficiaries, or any other facts, including reasons for absence, for any purpose.

**Security of facilities**

To ensure a safe work environment and the integrity of the Company's facilities, you must take all appropriate precautions to protect Ionic's systems and premises. Do not leave visitors unescorted or sensitive areas unattended or unlocked. When on Company property and conducting Company business, request identification from others you do not recognize. You must report all suspicious activity to your supervisor.

**External communications (applicable to Ionic employees, directors and board observers (if any))**

**If I am using my personal social media account on my personal time, does this Global Code of Conduct and Ethics apply?**

Yes, portions of this Code of Conduct still apply to your personal use of social media. For example, if you identify Ionic as your employer and post a racist comment or encourage acts of violence on your social media pages, such behavior may constitute prohibited off-duty misconduct.

**Where can I get more information about the Company's policies on social media?**

How we use social media and what we say has the potential to affect our reputation and/or expose us to business or legal risk. You must comply with the following rules and guidelines when you reference Ionic, its operations or its relationships or industry-related topics. These rules and guidelines are not intended to restrict communications or actions protected or required by state or federal law.

**<u>Social Media Rules and Guidelines</u>**

**"Ionic" media channels.** No employee may create or register a social media channel on behalf of Ionic without prior authorization from the Chief Executive Officer or the Chief Legal Officer.

**Don't be the leak.** You may mention information about official Ionic announcements only if the information has already been announced publicly via a press release, Form 8-K or information posted on official, Ionic-owned social media accounts, but you may not take information out of context or otherwise change its meaning.

**Be balanced.** Ionic carefully formulates its messages to the public, so as to ensure that the information it releases fairly reflects the performance of Ionic and complies with all laws. Be sure not to "like" or re-tweet the messages released by Ionic in a way that distorts the message that Ionic intended to convey, for example, by only "liking" or re-tweeting the positive parts of a more comprehensive communication released by Ionic.

**Act responsibly.** You are personally responsible for content you post. Don't use abusive, harassing, speculative, defamatory, discriminatory, threatening or unlawful language. You should also show proper consideration for others' privacy. Your posts and responses, even from personal accounts, could be read and reported by news media and remain public for a long time, so consider all consequences before you post. Take care to understand a site's terms of service.

**Identify yourself.** When speaking about Ionic or industry-related matters on your personal account, you should disclose your identity and, when relevant, role at Ionic, but make clear that you are not speaking on behalf of Ionic. You should also be aware of your association with Ionic in online social networks. If you identify yourself as an Ionic employee, ensure your profile and related content is consistent with how you wish to present yourself with colleagues and customers.

**Distinguish your views.** If you publish content on your personal account related to Ionic, the sterilization services or lab testing industries or the work you do, you should make it clear you are speaking for yourself and not on behalf of Ionic. For example, you can use a disclaimer, such as: *"The views presented are my own and do not represent those of Ionic."*

**Respect the rights of others.** You are responsible for your social media communications. Avoid disseminating legally-protected copyrighted materials unless you have appropriate authorization (i.e., license or permission from the owner of the content). You should also be mindful of content posted on private sites, and obtain any required approvals or authorization before reposting on public channels.

**Be truthful.** Be aware that making untruthful statements about individuals, competitors or business partners could subject you or Ionic to claims of defamation by businesses or individuals. Take responsibility to ensure that any content you post about a third party is truthful.

**Alert the Chief Legal Officer to criticism or negative comments made about Ionic.** If you see criticism towards Ionic on social media sites that you believe requires an official response from Ionic, contact the Legal Department. It's up to everyone to keep their eyes open for relevant commentary in the community— both positive and negative.

**Use your judgment and common sense.** There are always consequences to what you publish. If you feel uncomfortable about what you're about to post, rethink it, and consider discussing with the Legal Department. Use the test: "if this were a news headline, would it harm Ionic?" Follow the platform's terms of use regarding what you post.

**Public versus private.** You are responsible for knowing whether the content you are posting will be posted publicly or to a private, self-identified group of people. However, these rules and guidance apply regardless of the size of the group.

**Logos and trademarks.** Do not misuse Ionic logos or trademarks, which you may only use if you have the authority to do so. For example, you should not use "Ionic" in your screen name or other social media ID.

**Keep in mind the global scope of social media.** Local posts, even to a limited audience, can be mistranslated, misunderstood or illegal in other countries. Therefore, you must qualify or limit your posts appropriately. If you are unsure or have questions, consult with the Legal Department.

**Be familiar with our communications policies.** Ionic has a number of policies that include restrictions and guidelines regarding external communication of Ionic's information, including this Code of Conduct and the Insider Trading Policy. Non-compliance with these policies can result in disciplinary action, up to and including termination. Employees should review our policies prior to discussing Ionic on social media. Certain information should not be discussed online, even if stated as an opinion, and even if you use a disclaimer, including:

**Confidential information.** Confidential information includes our trade secrets, products and services, intellectual property, non-public information about our customers, prospective customers, and suppliers (as well as our customers' and suppliers' proprietary information and trade secrets), sensitive or personal information about our employees obtained with or without authorization in the course of one's employment or from Ionic records, non-public information about our finances, business prospects and plans, strategies and policies, and methods of doing business, or other private information, including information subject to a non-disclosure or confidentiality agreement. All non-public information about Ionic or its businesses or activities should be considered confidential information.

**Sensitive or "inside" information.** Sensitive or "inside" information includes things like Ionic's future business performance (including upcoming quarters or future periods), Ionic's business plans, unannounced strategies or prospects, potential acquisitions or divestitures, or similar matters involving Ionic's competitors. This applies to anyone including conversations with financial analysts, the press or other third parties (including friends and relatives). If you're unsure of the sensitivity of a particular subject, seek advice from your manager, the Legal Department before talking about it or simply refrain from the conversation. Ionic's policy is not to comment on rumors in any way about these issues. You should merely say, "no comment" to rumors or refer the inquirer to the Legal Department. Do not deny or affirm them (or suggest the same in subtle ways), speculate about them or propagate them by participating in "what if"-type conversations.

**References to customers, partners or suppliers without their approval.** Externally, never identify a customer, partner or supplier by name without permission, and never discuss confidential details of a customer relationship.

Unless you receive prior approval from both your supervisor and Human Resources, when presenting your personal views in public or at professional, community, and other events, you may never suggest you are speaking on behalf of the Company.

External requests and inquiries seeking information from the Company must be directed to the appropriate organizations:

&nbsp;&nbsp;&nbsp;&nbsp;♦ Investor Relations or a vendor designated by the Company
is responsible for contact with the news media and inquiries about community relations.

&nbsp;&nbsp;&nbsp;&nbsp;♦ Investor
Relations or a vendor designated by the Company handles communications related to the Company's financial performance and all contacts
with the financial community.

&nbsp;&nbsp;&nbsp;&nbsp;♦ Human
Resources or a vendor designated by the Company handles inquiries regarding current and former employees, including employment verification.

&nbsp;&nbsp;&nbsp;&nbsp;♦ Ionic's Legal Department handles contacts from outside
attorneys, law enforcement, legislative bodies, and regulatory agencies.

This includes responses to subpoenas, court orders, and inquiries from law enforcement, including requests to access Ionic facilities. You may never confirm or deny the existence, or discuss the substance, of any subpoena, warrant or court order, and must immediately refer any such inquiries or requests to security or Ionic's Legal Department. If you receive any legal documents relating to Ionic, you must immediately forward them to Ionic's Legal Department.

Ionic generally does not make company-sponsored endorsements or provide testimonials. You may not use Ionic's name, nor may you make any endorsement, without the explicit approval of Ionic's Legal Department.

**Integrity and fairness in the marketplace.**

Our relationships with customers, suppliers, and society are fundamental to our commercial success and are a critical part of our social responsibility. Each of us must ensure that our interactions outside the Company are based on integrity.

**Customer privacy**

We are all responsible for protecting customers' privacy. You must only obtain, use, or share customer information for legitimate business purposes.

Ionic's privacy policies describe the information the Company collects from and about customers and website visitors and how that information may be used and shared. The privacy policies also explain the choices customers have about certain uses and sharing of that information. You must respect these choices.

You must not, and must not permit others to access, listen to, monitor, record, tamper with, or disclose any customer communication, except as required by the duties of your position to comply with a valid service or installation order, to comply with a valid legal order or law, or for the limited purpose of quality monitoring and training, or as approved by Ionic's Legal Department.

You must also protect customer information. That means you may not access, view, use, modify or share customer information without a proper business reason. You also may not access account information concerning yourself, or your friends, acquaintances, family, or coworkers without prior approval from your supervisor.

Ionic contractors and business partners also must protect customer information. Before sharing any customer information with a third party, ensure that a written agreement that protects customer information is in place.

If you are aware of or suspect unauthorized access to, disclosure of, or loss of customer information, you must report it immediately to Ionic's Legal Department.

**Customer marketing**

You must follow all Company policies and applicable laws before using any customer's information to market to the customer, including marketing for additional products and services or access to services.

**Selling with integrity**

You may never deceive customers, and you must fully, clearly, and directly inform customers of the terms and conditions of our services:

&nbsp;&nbsp;&nbsp;&nbsp;♦ All advertising and sales materials must be truthful and
accurate. All claims must be substantiated in advance with a factual basis and backup. No advertising or sales materials should be released
without Ionic's Legal Department approval.

&nbsp;&nbsp;&nbsp;&nbsp;♦ When selling to Ionic's customers, never disparage
or misrepresent the Company's products or services.

&nbsp;&nbsp;&nbsp;&nbsp;♦ When advertising the price of Ionic's products and
services, the customer must be clearly informed of all material terms and restrictions for obtaining the advertised rate in marketing
and promotional materials. There should be no hidden charges.

&nbsp;&nbsp;&nbsp;&nbsp;♦ All rules regarding sales and promotions must be followed
without exception.

&nbsp;&nbsp;&nbsp;&nbsp;♦ Promote Ionic's products and services by focusing on
their strength, quality, reputation, and where appropriate, through fair and accurate comparisons with our competitors. You should not
disparage competitors or make misleading or inaccurate comparisons with competitors' products and services.

&nbsp;&nbsp;&nbsp;&nbsp;♦ Report to Ionic's Legal Department any loopholes or
flaws in promotions or offers that allow customers or the Company to be harmed.]

**Relationships with business providers and partners**

You must use good judgment when selecting and maintaining relationships with all of Ionic's business providers and partners. Employees who select, supervise, and work with business providers must:

&nbsp;&nbsp;&nbsp;&nbsp;♦ use a selection process that is fair, lawful, does not improperly
discriminate, and complies with all Company policies;

&nbsp;&nbsp;&nbsp;&nbsp;♦ ensure that business providers and partners are apprised
of their obligation to abide by all applicable Ionic policies;

&nbsp;&nbsp;&nbsp;&nbsp;♦ put all agreements in writing and obtain all required approvals
for agreements; and

&nbsp;&nbsp;&nbsp;&nbsp;♦ protect the confidential information of business providers
and partners.

**Relationships with competitors**

We depend upon a fair marketplace for our success. Accordingly, we will never seek to eliminate or reduce competition through illegal agreements with competitors. To safeguard against this risk, you may not enter into agreements with competitors without advance approval from Ionic's Legal Department. When thinking about what companies could be competitors, take a broad view and, if in doubt, contact Ionic's Legal Department prior to making any agreement.

You must avoid agreements that could violate antitrust and competition laws such as fixing prices, dividing markets or products, rigging bids, or boycotting particular suppliers or customers. Explicit agreements, informal "gentlemen's agreements," and even a "wink and a nod" are against the law and can result in criminal penalties for Ionic or you personally.

When interacting with competitors externally – including at trade association activities or in informal settings – do not discuss Ionic's pricing, terms, or marketing plans.

**Relationships with former employees**

**My colleague left Ionic last month to work for one of our vendors where he is working on Ionic matters. Can I interact with the former employee regarding Ionic business?**

It depends. When a former employee has left Ionic, depending on the role he plays at his new employer, there may be restrictions on Ionic employees' ability to immediately interact with the person. You should reach out to Ionic's Legal Department to discuss the individual circumstances.

Your obligation to follow the Company's standards continues even after your employment at Ionic ends:

&nbsp;&nbsp;&nbsp;&nbsp;♦ When leaving or retiring, you must return all Ionic property,
including all records and equipment. You can't use or disclose Ionic's non-public information in any subsequent employment,
unless you receive written permission in advance from a Ionic supervisor and Ionic's Legal Department.

&nbsp;&nbsp;&nbsp;&nbsp;♦ You may not provide any Ionic non-public information to former
employees unless properly authorized. If a former employee solicits non-public information from you, you must immediately notify security
or Ionic's Legal Department.

**Gifts and entertainment**

Gifts and entertainment can be part of promoting a successful working relationship with our business partners and customers. However, if you fail to follow the rules relating to gifts and entertainment, it can damage our relationships, harm our reputation, and expose the company to legal risk.

No gift or entertainment can be exchanged if (a) it might create the appearance of undue influence, unfairness or impropriety, (b) it is intended to improperly influence another person's business judgment, or (c) you are participating in, conducting, or directly supervising a formal Ionic procurement process.

If you receive or want to offer a gift or entertainment that is outside of this Code of Conduct standards, you must contact Ionic's Legal Department for guidance.

Moreover, you may never use your own funds to circumvent our rules regarding gifts and entertainment, and you must ensure that all gifts and entertainment are accurately reflected in Ionic's books and records, including expense reports. Our rules regarding gifts and entertainment can apply to your family and individuals with whom you have a close personal relationship when those individuals receive gifts and entertainment because of your position at Ionic.

**Gifts**

A gift is anything of value, including promotional trinkets, food, beverages, and event tickets, that you give or receive. To be permissible, a gift must comply with all applicable laws and be:

&nbsp;&nbsp;&nbsp;&nbsp;♦ unsolicited;

&nbsp;&nbsp;&nbsp;&nbsp;♦ not cash or usable as cash (including gift cards unless they
have been approved as part of an authorized Ionic program and by Ionic's Legal Department); and

&nbsp;&nbsp;&nbsp;&nbsp;♦ no more than US$150 in value in a calendar year to or from
the same organization, unless approved by a director level supervisor and Ionic's Legal Department.

You must receive approval from Ionic's Legal Department before offering or accepting any gifts of travel or lodging.

**Entertainment**

Entertainment is any meal or event you attend with a customer or business provider. If you do not attend an event with a customer or business provider, the tickets to the event are considered a gift, not entertainment. To be permissible, entertainment must comply with all applicable laws and be:

&nbsp;&nbsp;&nbsp;&nbsp;♦ attended by both an Ionic employee and a business provider's
employee, and be an occasion where business is discussed;

&nbsp;&nbsp;&nbsp;&nbsp;♦ no more than US$250 in value per occasion, per person, unless
approved by a director level supervisor and Ionic's Legal Department; and

&nbsp;&nbsp;&nbsp;&nbsp;♦ at a venue and conducted in a manner that does not violate
other provisions of this Code of Conduct or harm the Ionic's reputation (e.g., attending an event at an adult entertainment venue).

**Bribery, anticorruption and government ethics**

**Who counts as a "government official?"**

Legal definitions of "government official" can vary. For the purpose of complying with Company policy, you should take the broadest possible view of who is a government official. This includes all elected and appointed officials and any employee of any government entity, at any level, including national, state, provincial, local, or municipal level. It also includes officials and employees associated with quasi-governmental entities and state-owned companies. If you're in doubt as to whether someone should be treated as a government official, contact Ionic's Legal Department for assistance.

Ionic employees must comply with all anti-bribery and anti-corruption laws applicable in any jurisdiction in which we operate.

You must not offer or pay a bribe to anyone, and you must never receive or solicit a bribe from anyone. If you are ever offered a bribe by anyone, you must report it to Ionic's Legal Department immediately.

You must obtain Ionic's Legal Department approval before offering any gifts, entertainment, meals, or anything else of value to any government official, whether they are based inside or outside of the United States. You must also obtain Ionic's Legal Department approval before entering into personal business with a government official as a consultant on behalf of Ionic (for example, hiring a government official or entering into a joint venture or partnership with a government official).

You may never make payments to any third party you suspect may be passed on to government officials or otherwise used to improperly influence anyone's decision making to obtain business or other benefits for Ionic. Whenever you retain any agents or consultants in connection with our global business, you must verify that there are adequate controls to prevent funds provided to those agents from being used to make improper payments.

You must ensure that Ionic and any agents or consultants hired to represent Ionic properly document all transactions and maintain accurate records regarding all payments, including amounts, recipients, and purpose of payments.

If you have questions about any anti-corruption or anti-bribery related issue, contact Ionic's Legal Department immediately.

**Anti-money laundering laws**

Money laundering is an attempt to hide or disguise the proceeds of criminal activity through a series of otherwise legitimate business transactions. Be sure products and services or access to services are reviewed before release to determine if any features could be susceptible to money laundering. We prohibit knowingly engaging in transactions that facilitate money laundering or result in unlawful diversion.

**International relationships**

We must follow the law, wherever we do business. If you find that there is a conflict between applicable law and this Code of Conduct or Ionic policy, you should comply with the law and seek further guidance from Ionic's Legal Department.

**Foreign Corruption Practices Act (FCPA)**

It is Ionic's policy that all employees, partners, independent contractors, agents, representatives, vendors and other third-parties who work with Ionic fully comply with the anti-bribery laws of the United States and of the foreign countries where Ionic may do business. Bribery of any kind in the United States and abroad is strictly prohibited.

**Compliance with sanctions and anti-boycott laws**

Check with Ionic's Legal Department for specific guidance, but the U.S. maintains broad prohibitions on dealings with countries such as Cuba, Iran, North Korea, Syria, the Crimea region of Ukraine, the non-government controlled areas of the Kherson and Zaporizhzhia regions of Ukraine and the so-called Donetsk People's Republic and Luhansk People's Republic in Ukraine.

Received and acknowledged

Name: