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 consulting, financial advisory, brokerage, and distributed computing/storage services, primarily Filecoin mining.

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

• Consulting services target clients in Greater China, Southeast Asia, and North America, with expansion in Asia-Pacific through Hong Kong and Shenzhen teams.

• Chaince Securities and JVDA, LLC provide financial advisory and brokerage services, focusing on U.S. capital markets for emerging market clients.

• Filecoin mining operations are based in New Jersey, U.S., with technical support from Origin Storage and custody arrangements with Coinbase.

Financial performance and metrics

• Filecoin mining revenue was $285,928 in 2023 and $296,177 for the first half of 2024, with significant operating losses due to underutilized infrastructure and depreciation.

• Bitcoin mining and digital payment businesses were discontinued due to regulatory and market challenges.

• As of June 30, 2024, Filecoin assets accounted for 8.1% of consolidated total assets; total crypto holdings were less than 9% of assets.

• Impairment losses on crypto assets were $303,276 in 2023 and $3,144,053 in 2022, with additional $3,944,809 provisioned in 2023 for seized assets.

Use of proceeds and capital allocation

• No proceeds will be received from the resale of shares by selling shareholders; all net proceeds go to the selling shareholders.

• Past private placements raised capital for business expansion, including acquisition of mining infrastructure and development of consulting and brokerage services.

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