Crypto Mining

• BTC price and difficulty cycles can affect short-term profitability; mitigated by low tariffs, efficiency upgrades and a disciplined treasury.
• Reliance on third-party hosting is managed through SLAs and multi-site placement.
• BTC-only focus concentrates exposure but preserves operational specialisation.

Risk management for growth

• BTC price and difficulty: base, bull and bear scenario plans 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.

During January–September 2025 the company repaid ~€450,000 of the owner-provided debt and purchased ASIC equipment for ~€561,000.

Quarterly BTC production

BTC sold (treasury realisations)

Capacity and power metrics

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

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 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. The company plans to accumulate the majority of mined BTC and sell only the amounts needed to fund organic growth and essential operating expenses (power, hosting/O&M). Expansion proceeds along two tracks — scaling the proprietary fleet and onboarding client hardware under the company’s data-centre and pool agreements — and stays multi-site to keep tariffs predictable and uptime high.

Path A — organic reinvestment

• Reinvest a defined share of cash flows from proprietary mining and BTC mining fees 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 and power); beyond payback, cohorts contribute free cash flow.

Why scaling is effectively unconstrained

• Elastic capacity: expansion depends primarily on capital and partner rack/power blocks, not on proprietary real estate.
• Multi-site network: parallel deployments 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 is 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 and price, batch scheduling, 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.

The model assumes initial CapEx of €8,000,000 for ASICs installed under existing hosting and power terms, a target payback of 10–14 months net of power, hosting and O&M, and an effective operating life of 2–3 years (2.5 years / 30 months in the base illustration). Resale value is typically 50–60% of the purchase price after ~10 months and 20–30% after 24–36 months, if market conditions are favourable.

In a conservative year-1 view (not the best case), a 14-month payback implies average monthly net cash flow of ≈ €571,000 and a year-1 net of ≈ €6.85m; by month 12 the cohort is fully repaid and the equipment remains on the balance sheet.

Over 2025–2028 the company intends to compound hashrate in modular tranches, keep operating overhead lean and retain the majority of mined BTC. With contracted power, multi-site diversification and programmatic cohort financing, CRYPTON aims to approach the next halving with materially higher EH/s, robust uptime and a larger BTC treasury.

Bitcoin in one line

A fixed supply (21M cap) and Proof-of-Work issuance that halves (3.125 BTC since April 2024; next ≈2028) create a steadily tightening new-supply curve. Blocks target a ~10-minute cadence with automatic difficulty retargets every 2,016 blocks, making issuance predictable and resistant to manipulation; as adoption and long-term holding grow, the tradable float contracts.

Institutional adoption

Spot Bitcoin ETFs run by major asset managers, alongside corporate and selected public-sector treasuries, have become persistent accumulators, typically holding in long-term custody. This moves inventory off exchanges, reduces free float and deepens institutional liquidity, which supports miners by stabilising offtake expectations and financing options around production.

Mining industry snapshot

A professional, multi-site sector operating at record network hashrates in 2025. Revenues remain multi-billion annually, driven by BTC price, the block subsidy (3.125 BTC), transaction-fee cycles and unit-cost advantages — chiefly power tariffs, uptime, pool fees and ASIC efficiency (lower J/TH). Post-halving, margins compress for high-cost fleets; operators with low-tariff power, >98–99% uptime, modern hardware and disciplined procurement tend to consolidate share.

CRYPTON geographies

Ethiopia, Oman and Argentina offer competitive electricity, available partner data-centre capacity and SLA-backed operations; their climates and tariffs favour efficient cooling and stable uptime. Finite issuance, post-halving supply compression and sustained institutional demand create a supportive backdrop for miners that deploy high-efficiency ASICs into contracted low-tariff capacity ahead of the ~2028 halving.

To secure the batch-based funding line, CRYPTON s.r.o. grants a first-ranking pledge over (i) the existing ASIC fleet and (ii) new equipment financed under each Draw, together with the assignment of BTC payout receivables per Batch. Collateral is documented at the Batch Schedule level and grows dynamically with each funded Draw.

• Existing fleet (baseline collateral): gross purchase ≈ €1.55m; current estimated value ≈ €1.20m (≈20% depreciation), shared across the programme.
• New collateral per Draw: additional ASICs and required electrical balance-of-system, added to the pledge at invoice level. BTC receivables generated by that Batch are assigned to support coupon service and liquidity for the bullet.

Indicative cumulative hard-asset coverage for €15m (5 × €3m): 120% after Draw 1, falling to ~88% after Draw 5 at the €15m peak. Assigned BTC receivables are expected to lift effective coverage toward ≥100% over the term, subject to production and performance. Batch-level documentation and partner SLAs support enforceability and transparency, while residual equipment values (typically ~50–60% after ~12 months; ~20–30% after 24–36 months, market-dependent) provide additional recovery paths.

CRYPTON s.r.o. seeks a programmatic monthly funding line to deploy ASIC capacity in partner data centres. 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 and commissioning fees; logistics and installation (shipping, customs, racking, burn-in); initial power and O&M prepayments under contracted tariffs.

Loan structure

CRYPTON s.r.o. is a privately held digital-asset infrastructure operator headquartered in Prague, Czech Republic. Incorporated in 2021 and strategically pivoted in April 2024, the company focuses exclusively on Bitcoin (BTC) mining under an asset-light model: hardware is deployed in partner Tier-1 data centres, enabling rapid scale without greenfield build-outs.

Active mining began shortly after the pivot. Output ramped through Q2–Q4 2024 as capacity came online and stabilised further in 2025. Monthly production is ~1.8–1.9 BTC, subject to network difficulty, uptime and pool variance.

Corporate identifiers: CRYPTON s.r.o., a Czech limited liability company; Reg. No. 11931078; incorporated October 2021; headquartered in Prague.

From the auditor’s perspective, CRYPTON operates a three-strand model within a single asset-light framework:

• Proprietary mining — the core driver: the company acquires and runs industrial ASIC miners, treating the resulting BTC as treasury and converting selectively to fund operating costs and growth, with upside to the BTC price.
• Managed mining — a turnkey service for retail-scale and small institutional investors: CRYPTON sources hardware under negotiated supplier terms, places it in partner data centres, connects it to preferred pools and delivers transparent performance and payout reporting. Compensation is a fixed, BTC-denominated share of the BTC produced on client-owned machines.
• Equipment supply — procurement scale is used to supply equipment on attractive terms, earning margins on ASIC sourcing and sales while keeping inventory risk limited.

In the auditor’s assessment the streams reinforce one another: supplier pricing and hosting access improve proprietary unit economics, while proprietary scale supports more favourable pool terms for client deployments. Revenue in EUR varies with BTC sales timing (treasury policy), network difficulty and power tariffs; operational uptime and pool terms provide cash-flow predictability.

Kamila Tirpáková (Managing Director) has been a BTC advocate since 2017, with deep relationships across hardware suppliers, data-centre operators and mining pools; she leads strategy, procurement and treasury oversight. The auditor views these relationships as a material competitive advantage in procurement, hosting access and pool terms.

• Scalable by capital, not real estate: modular expansion via partner capacity.
• Multi-site resilience: diversification across Ethiopia, Oman and Argentina mitigates jurisdiction and grid risk.
• Contracted costs: multi-year, fixed electricity and O&M rates versus higher, volatile pricing for new entrants.
• Dual-engine revenues: proprietary mining plus recurring BTC fees from managed mining.
• Institutional-grade for retail: pooled procurement, standardised SLAs and clear reporting give smaller investors access to institution-level terms.
• Pool relationships: aggregate hashrate secures better fee tiers and service.

• Newcomers (€5k–€40k): turnkey entry — hardware, hosting, pools and reporting.
• Scaling investors (≤€500k): small funds, family offices and HNW individuals — priority procurement and standardised SLAs.
• Migrators: operators with poor tariffs or pool terms moving under CRYPTON’s agreements.