Good afternoon, everyone. How are we doing today? I'd like to share a number. 31. What is that number? 31 is the number of publicly traded companies that are engaging in Bitcoin mining as of today. That's quite a number, isn't it? Now let's delve a little deeper. I would like to see a show of hands, so here's the question: If you combine all these 31 companies' hash rates and compare them against the whole network hash rate, what would you come up with? I would like to see a show of hands. Who thinks it's more than 50% of the network hash rate? No one. How about 40 to 50%? No one. How about 30 to 40%? Oh, quite a few. 20 to 30? 20 to 30 might be the one, yeah. Less than 20? Okay. I see half of you hesitated to raise your hand, but you'll see the answer quite soon. All right, um, let me try to get this to work. Oops, uh, someone help me. That worked. Okay, our something about our company. So we went public in

2019 as one of the first blockchain companies that ever goes public, and I joined this company in 2021. Back then, I was working in China on capital markets with other companies, and I got tired of all these lockdowns in China and wanted to come back and reunite with my family in California. Kanan was looking for someone to represent on the capital market side, so it was a perfect match, and it's been 3 years, and um, I can't be more happier. All right, so um, so what's Bitcoin mining anyway? Some people say Bitcoin mining is just a game, some say it's a gamble, but I would say it's more than that. If you look at freedom, financial freedom precisely, you need something to help with that, right? 'Cause freedom doesn't come free. So, network hashrate is ever getting larger and larger and distributed and decentralized. So, by mining Bitcoin, you actually prevent someone from attacking the blockchain, preventing people from a monopoly, and helps the company and everyone gain Bitcoin with the ease of mind, right? So,

There are four pillars of mining: capital, operations, miners, and energy. These four pillars work together to make a sustainable and profitable Bitcoin money so that every one of you, of us, will be able to mine and consolidate the Bitcoin mining blockchain. So, let me talk about a little bit of history, right? So, before Bitcoin mining moved to the United States, it was part of Chinese business. In the summers and springs, miners mined out of the strayed hydroelectricity. But when the water level goes down, they move the miners over to hundreds of miles away to mine them with coal power. So, they were, I call this migratory mining. What's interesting about that is Bitcoin mining back then was no, it's very, very different, right? Like, everyone is looking at it as a business for sure, but because it's founded by friends and family, people are looking for immediate income. So, if they feel that the Bitcoin price is going down, their immediate reaction would be to sell the coins and the miners and get out of the game. That's the reason why we see in the old

days the network high rate goes up and down together with the Bitcoin prices almost immediately. It is very different now since 2019. Even before China completely banned Bitcoin mining, the China stake in the world has decreased from 2/3 of the network to 1/3 of the network in about less than two years, right? And the United States has increased from 4% to 24%, which is a big jump. What happened? One side of the story was that the Chinese government started to slowly wrapping down the Bitcoin mining, and miners who got really rich in 2017 by hiking up the Bitcoin price actually wanted to stay under the radar a little bit because, you know, Bitcoin trading, crypto trading have been largely banned in China, and that made them very difficult to sell Bitcoins. So, the hash rate never recovered in China until recently. In the meanwhile, American miners have gained a lot of capital because of the great hash rate, great economics of Bitcoin. Companies like R and Marathon started raising capital from the capital market since 2017, and that

process accelerated in 2019-2020, and also there was over one year of Speedman's internal conflict, followed by the pandemic and a harsh reset in China by the complete ban of Bitcoin mining. So, that all added up to a very favorable economy for Bitcoin mining. In the end, we all know that people got crazy about Bitcoin mining, and a lot of people started to accumulate leverage, you know, buying miners that didn't even exist, or that, you know, they didn't even have a place to put them. So, starting from 2021-2022, the hash rate started to climb up, even over a bear market, and a lot of companies went into trouble after the bear market, but US companies are very resilient. They learn quickly, they recover from the downside, and you know, all of a sudden, we have the strongest network hash rate among the globe. We're not just building the largest, but the strongest practice of Bitcoin mining here. As you can see, the United States hash rate stayed very stable, whereas the global hash rate

actually, are pretty speculative. When Bitcoin price goes up, it increases, but if the Bitcoin price stays flat, the global hash rate sometimes even decreases. But the United States is very consistent. That's why my answer to the question I answered in the first place was 35-34% as of the end of last quarter, right? It's quite surprising. And now, US Bitcoin mining experience has grown quickly. A lot of companies are coming out with different Bitcoin mining practices. You know, in the beginning, when a lot of high moved to the United States, the market wasn't ready. So, there was mining off the grid, on the grid with ground energy, natural gas, some repurposed facilities. But now, it's over 40%, even 60% green energy, calment on the grid, consolidated. And a lot of the publicly listed companies are coming out with larger and larger mining sites. These are the numbers from the US Energy Information Administration (EIA). So, if you look at it, we have one mining site greater than 500 megawatts.

five mining sites greater than 200 megawatts, five more than 100, and nine more than 50. If you consider three years ago, it's even more. It was even difficult to find what mining site is larger than 50 megawatts in the United States. So, we have gone a long way in Bitcoin money and becoming a very plausible industry. Bitcoin mining also helps regional grids. If you look at the narrative here, the US power outage is actually increased in the rapid range. You know, we have 40 to 50 years old infrastructure where there's power or substation or power lines that is not designed to accommodate very accurate climate changes. The recent six years outage doubled compared to six years ago, but Bitcoin mining seems to be a great solution to help with the grid. It increases the technology applied in the grid, whether it's green energy or efficiency energy or, you know, just a very flexible load. So, mining as a very flexible load is actually very

helpful because you can shut it down if you need it. So, it in turn helps with the green energy development and also increases the green energy usage. And you know, for some states, the Cod re refuse recommendation is also a great way to get rid of all these use code, and it also provides benefits to communities and infrastructure. So, I would say, you know, despite the negativity in the news, green energy and Bitcoin mining actually play hand in hand very well. And I see most of the governors and politicians start to treat Bitcoin mining as a great way to help stabilize our grid and our energy. And I would say the US system actually is perfect for Bitcoin mining as an industry. We have the Constitutions and legal protection for individual freedom, including crypto freedom and mining rights. We have capital markets that are very developed and encourage growth. Growth is actually the name of the game, so public miners will be able to raise a ton of capital, expanding and gaining more and more shares on the global network. And also, there is this federal

and state two-level setup, which means even though there are states that are not so favorable towards becoming money, the miners can always learn from the lessons and find the favorable states and concentrate their Bitcoin mining experience. More and more states are learning from other states to change their policies and to help their local grid, so actually, it is a very developing system. Mining equipment is designed to accommodate the changes in this industry. We help our customers, including cyber mining and some of the other public listed companies, to optimize their operations. We have great machines with very low maintenance, great durability, and great high consistency in extreme temperatures. Our global services are just everywhere, and we put a great emphasis on the US services. We have service centers in North Carolina, Louisiana, California, and Texas. We have four warehouses across the globe and two global factories in Malaysia and China. We try to build out a very responsible and responsive mining manufacturing business, helping our customers to become stronger because we believe in a very simple philosophy: our customer's success is our

success. Now we are seeing evolving a resilient USB Co mining ecosystem, from mining solution to mining pool, from exchanges to the miners themselves. I would say, you know, the United States is getting stronger on every single aspect, and we're proud to be part of the ecosystem, providing services and innovations to help everyone. We try to be a very responsible party, treat people with respect and honesty, and help us grow together. That's my speech. Thank you for coming, and please enjoy the rest of the conference. Do drop by our booth, which is number 916. Thank you so much for coming. Thanks. [Music] [Applause] Next year, we are bringing the Bitcoin conference to the American West, Las [Music] Vegas. The brightest in the world will converge to deliver Bitcoin history. Buy your tickets now at B.C SLC conference sl202.

Opportunities & Challenges for Bitcoin Mining in the US w/ Leo Wang

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