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Harmonychain is a diversified blockchain company that focuses on sustainable blockchain systems

Harmonychain is listed on the Euronext Growth Oslo Stock Exchange. The management and board have experience from the IT sector, the strategy department in the Research Council of Norway (NTNF), as well as academia and finance. We focus on environmental improvements (reduction of energy consumption and CO2 emissions) in blockchain accounting. Harmonychain owns 100% of the subsidiaries Lokotech AS (Scrypt ASIC miner) and Arctic Core AS (test mining). Our low-energy microchips can potentially also be used in artificial intelligence (AI).

The Harmonychain group has comfortable liquidity. As of 29.6.2021. Harmonychain has NOK 85 million in bank deposits. The company has no debt. A total of 30 million in costs may accrue in the second half of 2021, of which General Corporate Purposes amounts to just over NOK 10 million and potential completion of Scrypt ASIC design, MPW and testing amounts to just over NOK 20 million. Lokotech AS considers it strategically important to focus on the Scrypt (Litecoin & Dogecoin) ASIC Miner development, and in this connection the development of SHA (Bitcoin) ASIC Miner is put on hold until further notice.

Lokotech AS, a wholly owned subsidiary of Harmonchain AS, has decided that in order to reduce production costs, ASIC designers will spend more time improving the design with the goal of reducing chip costs, so that the Scrypt ASIC Miner can become more competitive. This means that Lokotech’s participation in the Multi Project Wafer (MPW) will be postponed from September 2021. The next possible MPW is in December 2021. MPW is assumed to take 60-90 days before subsequent testing of the wafer.

  

 

Operational update

Lokotech AS, a wholly owned subsidiary of Harmonychain AS, had an update meeting with their ASIC designers on Monday evening, June 28, 2021. Lokotech was informed about indications of simulations that indicate that the company’s planned ASIC chip consumes just over 0.189 Joules per megahash or less, which corresponds to more than 5 MH per joule. This corresponds to a better efficiency than 10-15 MH per second per 3W per chip as previously communicated. However, the simulation indicates that each chip consumes only 0.3W, which corresponds for a need of up to 10 times more chips to achieve this performance. This in turn could significantly increase production costs, making Lokotech’s Scrypt Miner less competitive. The company has initiated surveys with the aim of reducing these production costs, but at the same time maintaining performance. The company will also consider various strategic alternatives in relation to the further development process. 

 

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