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.

• Shifted from blockchain technical services and Bitcoin mining to business consulting and Filecoin mining after regulatory and market changes.

• Business consultation targets clients in Greater China, Southeast Asia, and North America, assisting with U.S. market entry and compliance.

• Financial advisory and brokerage services are expanding, pending FINRA approval for a U.S. broker-dealer acquisition.

• Filecoin mining leverages Web3 decentralized storage infrastructure, with recent adoption of Filecoin Plus to enhance mining efficiency.

Financial performance and metrics

• 2023 revenue primarily from Filecoin mining; Filecoin mining revenue was $285,928 in 2023, with significant losses due to underutilized infrastructure and depreciation.

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

• Impairment losses on crypto assets totaled $303,276 in 2023, mainly from Filecoin.

• As of June 30, 2024, Filecoin holdings were 484,781.97 FIL, with most Bitcoin and USD Coin assets seized by Chinese authorities.

• Projected Filecoin mining expansion to 210 PiB effective storage by mid-2025, but breakeven requires Filecoin price above $7.29.

Use of proceeds and capital allocation

• No proceeds to the company from this offering; all shares are for resale by existing shareholders.

• Past private placements raised capital for business expansion, infrastructure acquisition, and compliance initiatives.

• Investment in Web3 storage infrastructure ($5.98M in shares) and aborted $3M Bitcoin miner purchase (funds pending refund).