From: Jeremy Rubin

From: Jeremy Rubin To: Vincenzo Iozzo Cc: "Jeffrey E." <[email protected]> Subject: Re: Notes from the call Date: Thu, 02 Aug 2018 06:51:14 +0000 - Structurally, I think we want to be able to pull our shares out of the SPV after their 'lockup period' rather than selling them (or selling the minimum amount to cover their carry). Don't want to pay tax if we can avoid it. - Jihan is a strong businessman. He makes some mistakes I think, but he undoubtedly has built a major business. - Bitmain also plans to court AI, which justifies a greater valuation in the future even if the crypto mining market becomes more competitive - IfNVhen it IPOs, it will be the best way for people who don't want to own bitcoin/crypto to get exposure to cryptocurrency. I think it is a great company to nab some exposure to, and I think we should do it. SieremyRubin On Wed, Aug 1, 2018 at 8:31 PM Vincenzo Iozzo < > wrote: - They are going to send a summary of governance structure for the partnership and what happens to the shares - Very open on governance of the LLC and can negotiate the fees with them - technically they need a commitment by mid day tomorrow but they are trying to push it to end of the day on Friday - we would basically have no voting rights on the company itself Now on the company itself, the main concerns (some of the notes are mine) are: I) No idea about about the future cash from asics sales because demand fluctuates widely based on crypto prices 2) not entirely clear what the they need the money for given what they already have on the balance sheet 3) They don't know what the capex is 4) Revenue split: 97% sales of asics and 3% is mining. "Traditional" players are allegedly getting into the market on the asics side and obviously if the hashing functions change their inventory could become worthless Positive facts: The revenue growth is stellar The series B was done by Dst/GIC/sequoia and sequoia led their A They are allegedly going to file the equivalent of an S-I in August If you are long crypto their balance sheet is very strong and they have investments in other companies in the space as well (Eg: circle) EFTA01004523