Risk Factors Update Summary

• The trading price of common stock increased from $3.81 to $9.34, reflecting volatility linked to bitcoin prices.
• Uncertainty in accounting for cryptocurrency transactions may necessitate restating financial statements, impacting investor confidence.
• If we fail to qualify for certain state government tax incentives, we may suffer financial losses.
• The company’s hashrate grew significantly, increasing from 0.33 EH/s to 1% of current computing power, enhancing competitive position.
• The company may incur significant compliance costs if deemed a money services business under FinCEN regulations.
• Our cumulative net losses increased from $332 to $479 million, indicating worsening financial performance.
• Global economic conditions, including inflation and geopolitical events, could adversely affect capital access and operational costs.
• Our borrowings under the Master Loan are collateralized by approximately $78,125 of bitcoin, increasing counterparty risk.
• The implementation of SEC proposed rule changes may lead to increased oversight regarding climate-related disclosures.
• We currently have six executive officers, up from three, enhancing our management structure and capabilities.