Lokotech Group (LOKO) investor relations material

Business Overview and Strategy

• Operates at the intersection of semiconductor design and cryptocurrency mining, focusing on efficient ASIC chip development and data center projects in Northern Norway leveraging renewable energy.

• Announced a dual-use ASIC chip for blockchain mining and edge AI, with first silicon expected later this year and mass production planned for late 2026.

• Product line includes scalable mining hardware based on a single chip architecture, adaptable for both home and enterprise use.

• Achieved significant efficiency gains over competitors, especially in Scrypt mining, and signed framework agreements for pre-purchasing equipment valued between $5 million and $13 million.

• Stopped pre-selling hardware until physical silicon is available to ensure accurate pricing and cost structure.

Technology and Innovation

• ASIC chip features an onboard microcontroller, is produced on GlobalFoundries' 12nm node, and supports both crypto mining and full-stack edge AI, including on-device training.

• Over 15 successful tape-outs and mainnet-verified prototypes; ongoing engineering risk is limited to mask set precision.

• No direct competition in the edge AI ASIC niche; current GPU and NPU solutions are either too power-hungry or lack on-device learning.

• Edge AI ASIC targets a $150B+ market with unique on-device learning capabilities.

Mining Pool and Service Expansion

• Operates Powerpool, a mining pool with a 1% fee and 3% margin due to arbitrage strategies, showing exponential growth and high client retention.

• Mining pool PowerPool.io showed rapid growth, with 301% and 158% increases in primary algorithms in 2025, and market share in Scrypt and Sha256 mining pools increased significantly.

• Shifted focus from B2C to B2B, targeting institutional miners and achieving SOC 2 certification, with SOC 1 expected in Q3 2026.

• Expanded compatibility to support a wider range of mining equipment, including competitor hardware, driving further market share gains.

• Cash flow positive at current market share, with significant room for growth as top competitors are 100–150 times larger.