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 storage services.

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

• Main revenue streams now include Filecoin mining and business consultation, with plans to expand financial advisory and brokerage services in North America and Asia-Pacific.

• Discontinued digital payment and blockchain technical services due to regulatory uncertainty and market conditions.

Financial performance and metrics

• Filecoin mining revenue for 2023 was $285,928, with $296,177 recognized in the first half of 2024; Bitcoin mining revenue ceased after 2022.

• Significant impairment losses on crypto assets: $3.1M in 2022 and $4.2M in 2023, mainly due to Bitcoin and USD Coin price declines and asset seizures.

• Operating losses in distributed storage services due to underutilization of infrastructure and high depreciation costs.

• As of June 30, 2024, total crypto assets (mainly Filecoin) accounted for less than 9% of consolidated total assets.

Use of proceeds and capital allocation

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

• Past private placements funded expansion into digital assets infrastructure and business consulting, but digital payment initiatives have been discontinued.

• Future earnings are intended to be reinvested in business expansion; no dividends anticipated in the foreseeable future.