Risk Factors Update Summary

• Industry events, including significant activity by regulators against digital asset entities, have led to extreme price volatility in digital asset markets.
• The company's financial risk due to the potential loss of cash held in excess of FDIC insurance limits in banking institutions that may fail.
• The company does not engage in hedging activities. This change may expose investors to risks.
• The company's operations in Texas, particularly the Odessa Facility, are exposed to changes in the regulatory environment, market conditions, and natural disasters in Texas.
• The company's reliance on third-party service providers for critical equipment and components poses a risk of disruptions that could severely impact operations and financial results.
• The company's vulnerability to wide swings in bitcoin prices, without current hedging, exposes it to significant price volatility and financial impact.
• The company lacks insurance coverage for its bitcoin holdings, relying on custodians' coverage.
• New accounting standards may result in an opening adjustment to retained earnings of $2 million.
• Failure to maintain adequate power supply could result in the inability to secure acquisitions and expand business operations.
• The company's exposure to cybersecurity threats, including cyber-attacks and data breaches, could lead to significant liability, operational disruptions, and financial harm.
• The company may need to raise additional capital due to geopolitical tensions, impacting operations.
• The company's financial controls were identified as a material weakness, requiring remediation.
• The company faces risks from unfavorable global economic conditions, geopolitical tensions, and conflicts.
• The company's significant shareholder may exert substantial influence over strategic decisions and approvals.