Lokotech Group (LOKO) Status update summary

Scrypt ASIC development

• Six-year ASIC R&D reached tape-out after GDSII sign-off in Q1 2026; the dual-use Scrypt mining and Edge AI silicon is in Malaysia for packaging, with more than 15 non-respin tapeouts and a downscaled prototype verified on mainnet.

• DoubleBarrel specifications are 18.64 Gh/s, 1,750W and 0.09 J/Mh, versus Bitmain at 20 Gh/s, 3,680W and 0.19 J/Mh; stated mining energy efficiency is ~2x Bitmain’s.

• Bring-up is expected before Christmas, with possible slippage into early next year; engineering wafers await bring-up and encryption keys, and boards test nine chips and inter-chip communication.

• Preorders and framework agreements stated at USD 2–13m are in place, but hardware sales are paused pending mass-production yield and margin data; bring-up may take one to six weeks.

Edge AI

• Agentic AI targets edge uses including industrial predictive maintenance, smart devices and security-sensitive applications; the opportunity is cited at $150bn+ across three verticals.

• The AI block is not physically proven in the MPW prototype; silicon is to be benchmarked on workloads and platforms including PyTorch and Alexa.

• AI commercialization may require OEM integration, SDK support and design wins; revenue could emerge 12 months down the road, with volume ramping taking time.

Data center development

• Halden was disposed of, leaving three projects; Kautokeino has a building permit and 2 MW access, and its test site was energized in October 2026 as civil works and infrastructure installation continued.

• Kautokeino work included a shipped transformer, 100 m remaining on a 1.4 km high-voltage cable and the first container being shipped; testing plans cover Arctic conditions, air- and hydro-cooled containers, and Bitmain comparisons.

• Mountain Hall interiors and hardware are being liquidated; tenant search follows cleanup after vanilla data center plans were discontinued, with 2 MW existing and up to 10 MW possible subject to regulation.

• Heat reuse is being explored with local businesses; management cited potential heat value at ~two-thirds of power price under normal market conditions.