Transformational Transaction Overview - May 4, 2021
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Transformational Transaction
Overview
May 4, 2021
1
Legal Disclosure
• This presentation includes forward-looking statements within the meaning of the Private
Securities Litigation Reform Act that reflect our current views with respect to, among other
things, our operations, business strategy, interpretation of prior development activities,
plans to develop and commercialize our products and services, potential market opportunity,
financial performance and needs for additional financing. We have used words like
"anticipate," "believe," "could," "estimate," "expect," "future," "intend," "may," "plan,"
"potential," "project," "will," and similar terms and phrases to identify forward-looking
statements in this presentation.
• The forward-looking statements contained in this presentation are based on management's
current expectations and are subject to substantial risks, uncertainty and changes in
circumstances. Actual results may differ materially from those expressed by these
expectations due to risks and uncertainties, including, among others, those related to our
ability to obtain additional capital on favorable terms to us, or at all, the success, timing and
cost of ongoing or future operations, the lengthy and unpredictable nature of the project
development, and technology process and businesses in which we currently engage or may
engage in the future.
• These risks and uncertainties include, but may not be limited to, those described in our
filings with the SEC. Forward-looking statements speak only as of the date of this
presentation, and we undertake no obligation to review or update any forward-looking
statement except as may be required by applicable law.
2
Where are we going?
Energy Compute
Position at the intersection
Energy and Compute
3
What does this mean?
Cryptomining Zero-Carbon Cloud Energy
Computing
Land Bank Capital Capital
Capital Technology Team
Technology Team
Team
4
Our Commitment to Investors
Build scale to become relevant
We currently have 2.6 MW operating
Committed to 25 MW Southeast Project
Committed to increasing scale to 50 MW under operation by end of year
! Goal to be relevant among peer group
Grow EcoChain business while being focused on Return on
Invested Capital
5
New Nomenclature after “The Transaction”
2.6 MW in Washington State. Capacity to about 3.3 MW
TNT
25 MW previously announced facility under construction
Anaconda Online late Q3 2021, early Q4 2021
25 MW of newly acquired capacity: The “Transaction”
Located in Southeastern United States
Python
6
Python: What does it do for us?
25 MW of nearly immediately available capacity
2.3 ¢ kWh for 83% uptime
Does not include potential local economic incentives
Building One: 12 MW with upgradability to 15 MW
Building currently hosts miners for third parties
Third party miners will be moved out of the facility
Landlord has significant economic incentives to move miners out early
Projected that by end of fourth quarter, full 15 MW will be operating with EcoChain miners
Hosting revenue remitted to EcoChain
Capacity to Build: 10 MW building can be built & operated by EcoChain at close
Not a greenfield site
Power available
Additional 100 MW capacity
EcoChain has exclusivity to obtain PPA and acquire/lease land from landowner
Price and terms of land use to be negotiated after PPA
7
Where are we now?
Anaconda 25 MW Late Q3/Q4 2021
12/15 MW Building One Operating
Python 25 MW
10 MW Building Two power available on property
TNT 2.6 MW
We are on pace to hit our 50 MW target and continue
52.6 MW(1) to work diligently to maintan a robust project pipeline
(1) Excludes option on 100 MW additional capacity at Python site 8
What are we paying for Python?
Consideration
$500,000 cash at closing
$4,000,000 cash or shares to be paid as the building is vacated
100,000 shares 6-month lockup with leak-out provision at close
Form of Transaction
Building One: 25 year lease prepaid for $4.5 million
Building Two Land: 25 year ground lease prepaid with 100,000 shares
Timing of Transaction
Early discussions January 2021
LOI Signed: January 29, 2021
Definitive agreement: May 3, 2021
Closing when conditions met/waived
9
Does Python make EcoChain relevant?
Cipher Mining 445 MW 1,135 MW
Argo 235 MW 835 MW
Marathon 335 MW 500 MW
Bitfarms 367 MW
Riot 120 MW
HIVE ~100 MW
Hut8 109 MW
Existing Capacity
EcoChain 150 MW(1)
2022 E Buildout
MGT Capital 20 MW Planned Expansion
Potential Expansion
Source: EcoChain management, Capital IQ, Company press releases and filings.
10
(1) TNT, 50 MW Anaconda and Python; 100 MW Potential ExpansionStrong Position on Global Cost Curve
EcoChain $24(1)
Low electricity costs
relative to peers
Cipher Mining $27
Marathon $28
Bitfarms $40
HIVE $40
Hut8 $45
Europe Median $40
N. America Median $50
Global Average $46
Source: EcoChain management, Capital IQ, Company press releases and filings.
11
(1) For 83% uptimeHow will we report results to you?
We are focused on Return on Invested Capital
We intend to report to you at the mine level so you can track our CapEx
and capital recovery
Sample of how that may look for the TNT location on next page
Reports on Anaconda will begin within a month or two of going live
(Quarterly reporting likely)
Reports on Python will begin a month or two after acquisition
(Quarterly reporting likely)
12TNT: Strong Return on Capital Inv.
Strong returns generated through careful acquisition and management
($ in 000s)
All capital
returned in
12 months
13• Hit our target 50 MW
Recap: What do we get? • Potential Land Bank of 100 MW
at our option
• Positioned to become relevant to
top-tier mining peer group in
capital market
14Execute on Pipeline
Turn Anaconda & Python to significant cash generating assets in Q4 2021
Continue Expanding Development Pipeline
Develop target for assets (MW) in operation by end of 2022
Focus on being low-cost producer, generating high Return on Invested Capital
and reporting location level economics to shareholders
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