Lokotech Group (LOKO) Investor Update summary

Business and Product Overview

• Focus on three subsidiaries: chip (SQASIC/ASIC), PowerPool mining pool, and Arctic Core data centers, with additional interests in AI and storage.

• Lokotech Group is a fabless semiconductor company listed on Euronext Growth, with a market cap of NOK 450 million as of February 10, 2025.

• Operates cash-generating mining pools and data centers, expected to cover more than fixed costs in 2025.

• PowerPool mining pool generates high-margin revenue, with projected FY2025 profit of EUR 1.5–2.8 million depending on growth rate.

• Arctic Core operates four data centers, with potential free cash flow of NOK 5–10 million at full occupancy.

Commercial Traction and Orders

• SQASIC chip has secured significant pre-orders, including two framework agreements worth $2–5 million each and a total order backlog of $6–12 million.

• About 115 firm orders from both small and large distributors, with ongoing showroom discussions, especially with a Chinese distributor.

• Orders are flexible, allowing delivery timing and cost increases to be passed on to clients.

Technology and Competitive Advantage

• The redesigned Scrypt ASIC chip outperforms Bitmain’s latest models by 2–4x in power efficiency, achieved through a full redesign on a 12nm node.

• Design is protected by physical unclonable function (PUF) and encryption, with about 45–50 patents used in the chip.

• Technical risk is mitigated by a proven design team, prior successful designs, and in-chip microcontroller for fault detection.