CRYPTON s.r.o. is a privately held digital‑asset infrastructure operator headquartered in Prague, Czech Republic (Reg. No. 11931078). 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 centers, enabling rapid scale without greenfield build‑outs.

Business model

From the auditor’s perspective, CRYPTON operates a three‑strand model within a single asset‑light framework. First, the Company acquires and runs industrial ASIC miners, treating the resulting BTC as treasury and converting selectively to fund operating costs and growth. Second, it provides a turnkey managed‑mining service for retail‑scale and small institutional investors: CRYPTON sources hardware under negotiated supplier terms, places it in partner data centers, connects it to preferred pools, and delivers transparent performance and payout reporting; compensation is a fixed share of the BTC produced on client‑owned machines. Third, the Company leverages procurement scale to supply equipment on attractive terms, deepening supplier access while keeping inventory risk limited. In the auditor’s assessment, these streams reinforce one another—supplier pricing and hosting access improve proprietary unit economics, while proprietary scale supports more favorable pool terms for client deployments.

Footprint & capacity

Sites: Ethiopia, Oman, Argentina (partner data centers).
Fleet: 450 ASICs valued at €1.55m+; 0.100288 EH/s proprietary hashrate; ~1.5 MW power draw.
With client hardware under management: total effective hashrate >0.22 EH/s.
Monthly production: ~1.8–1.9 BTC, subject to network difficulty, uptime, and pool variance.

Revenue model & profit structure

BTC from proprietary mining (core driver; upside to BTC price).
BTC‑denominated management fees from client equipment hosted via CRYPTON’s partner contracts and pool terms.
Equipment margins on ASIC sourcing/sales.

Leadership

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

Competitive advantages

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

Key considerations

BTC price & difficulty cycles can affect short‑term profitability; mitigated by low tariffs, efficiency upgrades, and disciplined treasury.
Third‑party hosting reliance managed through SLAs and multi‑site placement.
BTC‑only focus concentrates exposure but preserves operational specialization.

Loan Collateral

To secure the batch‑based funding line (target up to €3,000,000 per month for five months at 20.9% p.a., 10‑month legal maturity per Draw), 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 BoS; assets added to pledge at invoice level. BTC receivables generated by that Batch are assigned to support coupon service and liquidity for the bullet.

Collateral coverage

Collateral type	Coverage basis / estimated value
Baseline pledged equipment	~€1.20m (current estimate; one‑time, programme‑wide)
Pledged new equipment per Draw	80% of funded amount (20% haircut to invoices)
Assigned BTC receivables per Batch	Monthly pool payouts pledged to debt service (interest) and liquidity build for principal at maturity

Indicative cumulative hard‑asset coverage (for €15m: 5 × €3m)

After Draw 1: 120% → After Draw 5 (peak €15m): ~88%. Assigned BTC receivables are expected to lift effective coverage toward ≥100% over the term, subject to production and performance.

The security package is simple and auditable: tracked ASICs plus assigned BTC receivables that accrue with each Batch. Batch‑level documentation and partner SLAs support enforceability and transparency, while residual values (typically ~50–60% after ~12 months; ~20–30% after 24–36 months, market‑dependent) provide additional recovery paths beyond the hard‑asset percentage.

Risk scoring

Collateral
Company Assets
Total risk score
A
Debt to equity
0.79
LTV
84 %
Credit history
8/10

Details

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

Metric \ Period	FY 2023	FY 2024	2025 YTD (Jan–Sep)
Revenue	€212,182	€915,068	€1,674,419
Expenses	€205,791	€938,448	€276,731.60
Operating profit	€6,391	€-24,174	€1,234,600
Net result	€8,130	€-23,426	€223,320

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

Quarter	Proprietary BTC	BTC mining fees	Total BTC
Q2 2024	0.5696436	0.0000000	0.5696436
Q3 2024	3.6525382	0.0248274	3.6773656
Q4 2024	3.9874906	0.0393657	4.0268563
Total 2024	8.2096724	0.0641931	8.2738655
Q1 2025	4.3872471	0.0572256	4.4444727
Q2 2025	5.0533925	0.0803635	5.1337560
Q3 2025	5.3414299	0.0796150	5.4210449

BTC sold (treasury realizations)

Quarter	BTC sold
Q4 2024	8.1698400
Q1 2025	2.7557434
Q2 2025	4.8214953
Q3 2025	4.4246215

Capacity & power metrics

Quarter	Operating EH/s (proprietary, quarter‑end)	Operating capacity (MW, quarter‑end)	Electricity consumption (kWh, quarter)
Q2 2024	0.018486	0.277290	1,581,596
Q3 2024	0.064128	0.971403	2,030,843
Q4 2024	0.064128	0.971403	3,850,823
Q1 2025	0.079948	1.212518	2,269,006
Q2 2025	0.100288	1.522523	2,838,469
Q3 2025	0.100288	1.522523	3,291,385

Capital formation & debt snapshot

Item	Amount / Status
Hardware CAPEX (2024)	€895,964 invested in ASICs
Funding source	Owner’s personal capital and owner‑provided debt
Repaid in 2025	~€450,000 (principal)
Outstanding balance (owner)	~€264,000
Restructuring	Executed in 2025: higher interest rate; principal repayment extended through Dec‑2027; schedule aligned to operating cash flows

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)

Horizon	Payback Period (scenario)	Net CF multiple vs. CapEx	Net CF (€) on €8m	Residual (as % of CapEx)	Residual (€)	Total value (Net CF + Residual)
24 months	12	2.00×	€16.0m	20–30%	€1.6–2.4m	€17.6–18.4m
24 months	14	1.71×	€13.7m	20–30%	€1.6–2.4m	€15.3–16.1m
30 months (2.5 yrs)	12	2.50×	€20.0m	20–30%	€1.6–2.4m	€21.6–22.4m
30 months (2.5 yrs)	14	2.14×	€17.1m	20–30%	€1.6–2.4m	€18.7–19.5m

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

Key facts

CRYPTON s.r.o. was founded
Oct 12, 2021
Start of active work/production
Oct 12, 2021

Borrower info

CRYPTON s.r.o.

Market description & size

Bitcoin in one line

Fixed supply (21M cap) + Proof‑of‑Work issuance that halves (3.125 BTC since Apr‑2024; next ≈2028) create a steadily tightening new‑supply curve. Blocks target ~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 (tighter spreads, larger primary flows), which supports miners by stabilizing 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, 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 • Argentina — competitive electricity, available partner DC capacity, SLA‑backed operations; climates/tariffs favor efficient cooling and stable uptime.

Target clients

Newcomers (€5k–€40k): turnkey entry (hardware, hosting, pools, reporting).
Scaling (≤€500k): small funds/FOs/HNW—priority procurement, standardized SLAs.
Migrators: operators with poor tariffs/pool terms moving under CRYPTON’s agreements.

Industry Summary

Finite issuance, post‑halving supply compression, and sustained institutional demand create a supportive backdrop for miners. Operating under an asset‑light, multi‑site model, CRYPTON deploys high‑efficiency ASICs into contracted low‑tariff, SLA‑grade capacity and extends institution‑level terms to smaller investors. This positions the Company to scale hashrate efficiently and translate production into resilient, cycle‑aware cash flows ahead of the ~2028 halving.