Chaince Digital (CD) Registration Filing summary

Company overview and business model

• Operates as a Cayman Islands holding company with subsidiaries in the U.S., Hong Kong, and China, focusing on business consultation, financial advisory, brokerage, and distributed computing/storage services, primarily Filecoin mining.

• Transitioned from B2B food services and blockchain technical services to current focus after divesting Chinese operations and discontinuing digital payment and Bitcoin mining businesses.

• Main revenue streams are business consulting (Asia-Pacific and North America), financial advisory/brokerage (pending FINRA approval), and Filecoin mining.

Financial performance and metrics

• Filecoin mining revenue was $285,928 in 2023 and $296,176 in the first half of 2024, with significant losses due to underutilized infrastructure and depreciation.

• Bitcoin mining discontinued in 2022 after incurring losses; no revenue from Bitcoin mining in 2023.

• Consulting services generated $140,000 in 2023, with at least $90,000 expected in 2024 from a single client.

• Cryptocurrency assets (Filecoin, Bitcoin, USD Coin) comprised less than 3% of total assets as of December 31, 2023.

• Impairment losses on crypto assets totaled $3,944,809 in 2023 due to asset seizure in China.

Use of proceeds and capital allocation

• No proceeds will be received by the company from this offering; all net proceeds go to selling shareholders.

• Past private placements funded business expansion, infrastructure acquisition, and compliance initiatives.

• Future earnings are intended to be reinvested in business expansion; no dividends planned.