Crypto Mining

CRYPTON s.r.o. began active BTC mining shortly after its April 2024 strategic pivot. Output ramped through Q2–Q4 2024 as capacity came online and stabilized further in 2025. The Company operates an asset‑light model: proprietary miners hosted with partners, complemented by equipment sales and managed‑mining fees from client hardware purchased via CRYPTON and deployed under the Company’s contracts. Revenue in EUR varies with BTC sales timing (treasury policy), network difficulty, and power tariffs; operational uptime and pool terms provide cash‑flow predictability.

Yearly financial summary

2025 annotation: during Jan–Sep 2025 the Company repaid ~€450,000 of the owner‑provided debt and purchased ASIC equipment for ~€561,000.

Quarterly BTC production

BTC sold (treasury realizations)

Capacity & power metrics

Capital formation & debt snapshot

Note: Investments in ASICs were financed via a mix of the Managing Director’s own funds and loans to the Company. The outstanding owner loan has been re‑termed to balance liquidity and growth.

Growth Plan

From late‑2025 through the next Bitcoin halving (≈2028), CRYPTON aims to expand hashrate rapidly and efficiently by adding machines under partner‑hosted capacity, without constructing its own sites. The strategic rationale is that Bitcoin’s new supply declines over time while adoption broadens; in such cycles, low‑cost, high‑reliability operators tend to capture outsized value.

During this period, the Company plans to accumulate the majority of mined BTC (treasury stacking) and sell only amounts necessary to fund organic growth and essential operating expenses (power, hosting/O&M). Capacity expansion will proceed along two tracks: scaling the proprietary fleet, and onboarding client hardware under the Company’s data‑centre and pool agreements. Deployments will remain multi‑site (Ethiopia, Oman, Argentina) to maintain predictable tariffs and high uptime.

Approaches to growth

Path A — Organic reinvestment

• Reinvest a defined share of cash flows from proprietary mining and BTC mining fees (client equipment) into additional ASIC units.

• Allocate purchases in tranches tied to delivery windows and power blocks; prioritise top‑efficiency models and negotiated pool tiers.

• Target steady hashrate compounding while preserving operating liquidity and treasury accumulation targets.

Path B — External capital (10–24 month programmes)

• Raise programmatic debt or structured capital with tenors of 10–24 months to fund accelerated ASIC procurement under existing hosting and power contracts.

• Debt service: aligned to BTC production (pool payouts) with optional support from resale of de‑risked equipment at residual value near or after payback.

• Expected payback per ASIC cohort ≈ 10–14 months (model‑based, subject to BTC price/difficulty/power). Beyond payback, cohorts contribute free cash flow.

Financial model – illustrative €8m cohort

Setup

• Initial CapEx: €8,000,000 for ASICs (installed under existing hosting/power terms)

• Target payback: 10–14 months net of power/hosting/O&M

• Effective operating life: 2–3 years (assume 2.5 years / 30 months for base illustration)

• Resale (residual) value:
  • After ~10 months: typically 50–60% of purchase price
  • After 24–36 months: typically 20–30% of purchase price (if market conditions are favourable)

Conservative year‑1 view (~not the best case)

• With a 14‑month payback, average monthly net cash flow ≈ €8,000,000 / 14 ≈ €571,000 per month

• Year‑1 net (12 months): ≈ €6.85m

• By month 12 the cohort is fully repaid; equipment remains on the balance sheet

Two‑to‑three‑year economics (net cash flow plus residual)

Why scaling is effectively unconstrained

• Elastic capacity: expansion depends primarily on capital availability and partner rack/power blocks, not on building proprietary real estate.

• Multi‑site network: parallel deployments across Ethiopia, Oman, Argentina reduce single‑site bottlenecks and enable continuous roll‑ins.

• Procurement lanes: supplier relationships secure batch allocations; pooled logistics reduce lead‑time friction.

• Operations abstraction: site O&M delivered by partners under SLA, letting CRYPTON focus on procurement, pool optimisation, and treasury.

Operating priorities during scale‑up

• Procurement discipline: model‑driven selection of ASIC efficiency/price, batch scheduling, and RMA/warranty coverage.

• Power economics: lock‑in or index favourable tariffs; monitor blended €/kWh and curtailment policies.

• Treasury policy: accumulate BTC through the cycle; convert selectively for opex, capex, and debt service in line with liquidity buffers.

Capital formation & debt stance

• 2024 hardware CAPEX €895,964 funded by owner capital and loans; ~€450,000 repaid in 2025; ~€264,000 outstanding restructured with higher coupon and principal amortisation extended to Dec‑2027.

• Future raises to be structured as programme lines against ASIC cohorts with clear collateralisation (equipment + receivables from pool payouts) and transparent reporting (dashboards, monthly statements).

Risk management for growth

• BTC price & difficulty: scenario plans (base/bull/bear) drive tranche sizing and liquidity buffers

• Tariff drift: multi‑site benchmarks and renegotiation triggers; curtailment playbooks

• Counterparty risk: diversified hosting and pool partners; SLA enforcement and performance scorecards

• Supply chain: multi‑vendor ASIC sourcing; spares inventory and RMA SLAs

• Regulatory: jurisdictional reviews and documentation via partners; conservative disclosures

CRYPTON’s growth plan is designed to showcase the strengths of its business model: asset‑light deployment, disciplined procurement, and institutional‑grade partnerships with data‑centre operators and mining pools. Over 2025–2028 the Company will compound hashrate in modular tranches, keep operating overhead lean, and retain the majority of mined BTC—selling primarily to fund organic expansion and essential operating costs.

This “mine‑and‑hold through the halving” stance is aligned with Bitcoin’s supply schedule and historically rewarded efficient operators: as new issuance declines and adoption broadens, well‑run miners with low unit costs and reliable uptime tend to capture disproportionate value. With contracted power, multi‑site diversification (Ethiopia, Oman, Argentina), and programmatic cohort financing, CRYPTON is positioned to approach the next halving with materially higher EH/s, robust uptime, and a larger BTC treasury—creating meaningful operating leverage if market demand persists.

For capital partners, the model offers clear collateral (equipment plus receivables from pool payouts), transparent reporting, and downside mitigants via residual equipment value and SLA‑backed hosting. Overall, CRYPTON presents a capital‑efficient, scalable, and resilient platform for building Bitcoin hashrate and converting operational execution into durable cash flows across cycles.

Description of the Loan

CRYPTON s.r.o. seeks a programmatic monthly funding line to deploy ASIC capacity under partner data‑centres. The Company targets allocations of up to €3,000,000 per month for five months (Investor discretion) at 20.9% p.a. on outstanding principal. Each Draw carries a 10‑month legal final maturity, with monthly interest‑only coupons and a single bullet principal at term end. Funds are disbursed against Batch Schedules naming site, hardware, tariffs, timelines, and pool settings; the Company may request smaller allocations or pause Draws based on capacity and pricing.

Use of proceeds (per Draw)

ASIC miners; required electrical balance‑of‑system (PDUs/breakers/cabling/racks where applicable); site install/commissioning fees; logistics and installation (shipping/customs/racking/burn‑in); initial power/O&M prepayments under contracted tariffs.

Loan Structure

• Monthly allocation target: up to €3,000,000 (Investor discretion) for 5 months; subsequent allocations contingent on new capacity

• Annual interest rate: 20.9% on outstanding principal, payable monthly in arrears

• Tenor / Legal Final Maturity: 10 months per Draw; multiple Draws may be outstanding concurrently

• Repayment: interest‑only during term; 100% principal repaid in a single bullet at maturity

• Disbursement: funds released during pre‑agreed monthly windows against a Batch Schedule specifying country/site, hosting partner, ASIC model & units, unit pricing, expected EH/s & power (MW), contracted power tariff (€/kWh), install/commissioning dates, pool/payout model, and a use‑of‑proceeds breakdown

• Allocation control: proceeds are allocated exclusively to the named Batch and applied solely to that deployment

• Reporting: investor dashboards and monthly statements with line‑item reconciliation of purchases, pool statements, power & O&M, and net cash flow by Draw