Bitcoin Mining

ORAX’s available financial data cover the first three months of commercial operations at its Paraguayan site (September–November 2025). Over this period, the company has demonstrated strong gross and operating margins on a relatively small but growing revenue base, confirming the economic viability of the 2 MW configuration under the current power tariff and network conditions.

All figures below are expressed in EUR, converted from USD at an illustrative rate of 1 USD = 0.86 EUR.

Key financial indicators

(Values in EUR ’000, rounded)

Revenue recognition follows the company’s mine-and-hold approach: monthly revenue is calculated as the end-of-month BTC price multiplied by the BTC mined in that month, without requiring actual BTC sales. This is a mark-to-market representation of economic value created, rather than realised cash income.

Analysis of revenue and profitability

In September 2025, the first month of the presented period, ORAX generated around EUR 51k of revenue with a gross margin of 75% and an approximate net margin of 63%. This reflects a small but efficient operation at 2 MW, with a lean cost base and limited fixed overhead.

In October 2025, revenue almost tripled to about EUR 145k, driven by higher BTC production and pricing, while gross and net margins remained very strong at roughly 71% and 62% respectively. This indicates that the cost structure scaled well with increased output, and that additional revenue largely fell through to operating profit.

In November 2025, revenue moderated to approximately EUR 118k, broadly reflecting BTC price movements and normal month-to-month volatility. Gross margin eased to around 65% and net margin to roughly 52%, but the operation remained highly profitable on an economic basis.

Across the three months combined, ORAX generated:

• Revenue of roughly EUR 315k

• Gross profit of about EUR 219k

• Net (operating) profit of approximately EUR 183k

This corresponds to an overall gross margin of about 69% and a net margin of about 58% for the period.

Key trends and financial observations

The first three months of data show a profitable early-stage profile with very high percentage margins, consistent with a low direct power cost and a compact organisational structure.

Gross and net margins naturally fluctuate with BTC price and network conditions, but the spread between the all-in cost of production per BTC and the mark-to-market value of mined BTC is substantial in this period. On a unit basis, the internal calculations for September–November indicate an all-in production cost (power + services + overhead) of roughly EUR 36–37k per BTC, compared with an average realised value of around EUR 88k per BTC equivalent, implying an economic margin on the order of 58%.

Operating expenses are modest in absolute terms and remain low relative to revenue, reflecting a lean in-house team and outsourcing of non-core functions. This supports strong operating leverage: as capacity and BTC production increase, ORAX expects a significant portion of additional revenue to translate into incremental operating profit, provided power tariffs and network conditions remain broadly in line with current assumptions.

At the same time, the financial track record under the current model is very short (three months), and results are inherently sensitive to BTC price, difficulty and uptime. The current figures should therefore be viewed as an initial proof of concept for the 2 MW setup and the chosen mine-and-hold approach, rather than as a fully representative sample across different stages of the Bitcoin cycle.

Growth Plan

ORAX is currently in the early phase of scaling its Paraguayan platform. The site is operating at approximately 2 MW of active load, while the underlying electrical and physical infrastructure has been designed and prepared to support a gradual ramp-up to around 8 MW, with technical potential to reach 8–10 MW under the existing power framework. The platform is used exclusively for proprietary mining; no third-party hosting capacity has been commercialised to date.

The core development path for the company is therefore straightforward: first, to fully utilise the existing site up to its 8 MW design capacity, and second, where feasible, to explore further expansion of the available electrical capacity on similar economic terms. In other words, growth is defined primarily as the progressive “filling” of the current location with additional ASIC hardware, rather than as geographic diversification or a shift into client-hosting services.

Strategically, ORAX intends to follow a consistent sequence: mine BTC, hold it on the balance sheet, use part of this BTC as collateral for loans to cover operating expenditure, and build capacity ahead of the expected 2028 halving. The company explicitly does not plan to systematically sell mined coins to finance day-to-day operations. Instead, operating costs are expected to be funded largely through BTC-backed loans disbursed in USDT and, where appropriate, additional mining-oriented financing, allowing BTC holdings to grow through the cycle.

This approach is anchored in management’s view of the next halving cycle. ORAX’s planning assumes that by the time of, and especially after, the 2028 halving, the Bitcoin price will reach at least USD 125,000 per BTC. The company’s objective is to enter that period with a fully built-out 8 MW site, a modern ASIC fleet and a substantial BTC reserve accumulated at a structurally low unit cost. Once the targeted post-halving price levels are reached, ORAX expects to sell only the portion of its BTC necessary to repay outstanding loans and interest, retaining the remaining coins and the physical infrastructure as long-term assets.

Within this context, debt financing – particularly BTC-backed lending – is viewed as the primary growth channel because it allows ORAX to keep all of the mining margin and upside. Hosting large external clients is considered a secondary, optional lever that would be activated only if, by a defined internal deadline, the platform cannot be fully filled with the company’s own equipment. Even in that case, such arrangements would be designed as complementary to, and not a replacement for, the core mine-and-hold growth strategy.

Projected BTC accumulation over the 14-month 8 MW phase

Once ORAX scales its Paraguayan site to 8 MW of active load, management expects the mining operation to stabilise at roughly 6.06 BTC per month under current network conditions. In the base planning case, the company assumes a reference BTC price of USD 90,000 (≈EUR 77,400) for internal mark-to-market of monthly production and structures operating financing around that level.

Monthly BTC production and operating financing at 8 MW

In practical terms, each month at 8 MW ORAX:

• mines about 6.06 BTC,

• recognises a production value of about USD 545.7k / EUR 469.3k (at USD 90k/BTC), and

• requires approximately USD 222.7k / EUR 191.6k of cash to cover direct production and operating costs, funded via a BTC-collateralised loan in USDT.

Consistent with the mine-and-hold strategy, ORAX’s intention is not to liquidate the entire BTC balance to realise this surplus. Instead, the company expects to:

• sell only as many coins as necessary to repay all loans and interest once the targeted price level (≥USD 125k/BTC) is reached;

• retain the remaining BTC as a long-term treasury asset; and

• continue using part of the BTC reserve as collateral for future operating loans, while owning outright both the 8 MW infrastructure and the associated mining hardware fleet.

Alternative financing route and contingency repayment scenario

In parallel to the base-case 14-month facility, ORAX is also evaluating an alternative financing option under tighter terms, namely a shorter-tenor loan with an indicative interest rate of 23.1% p.a. and an 8-month maturity. Under this structure, management expects that during the 8-month operating window the expanded capacity would allow the company to repay approximately 50–55% of the total repayment obligation (principal plus accrued interest) from operating profit generated over the period, while maintaining the mine-and-hold approach as the core treasury framework.

For the remaining balance at maturity, ORAX considers two practical repayment paths.

• Asset sale scenario. If required, the company can sell a portion of the newly acquired ASIC fleet. Mining hardware of the S21-class is globally traded and remains liquid in secondary markets, particularly when equipment is already installed and operational. Under this scenario, the expected resale value of the purchased equipment is intended to cover the residual repayment amount without relying on future BTC price appreciation.

• Bank refinancing scenario. As an alternative, ORAX can refinance the short-term loan through a conventional bank facility once the expansion is executed and the asset base is fully reflected on the balance sheet. At that stage, the company expects to have sufficient tangible collateral in the form of mining infrastructure and equipment to support a materially lower-cost facility, with collateral coverage (fixed assets versus new borrowing) exceeding 250%, improving lender comfort and reducing pricing versus the initial short-term instrument.

Description of the Loan

ORAX Assets Management Corp. is seeking a capex facility of EUR 3,600,000 to finance the expansion of its Paraguayan mining site from approximately 2 MW to 8 MW of active electrical load. The loan is intended exclusively for the purchase, import and deployment of additional ASIC mining equipment and related site adaptations, corresponding to roughly 6 MW of incremental capacity. The facility is not designed to refinance historical losses or fund ongoing operating expenses; those are expected to be covered through BTC-backed working-capital loans secured against mined BTC.

Purpose and use of proceeds

Loan proceeds will be used to finance:

• acquisition of approximately 1,710 Bitmain Antminer S21 PRO units (or machines of similar efficiency class) corresponding to the additional 6 MW;

• international logistics and customs clearance for these units (sea freight, insurance, brokerage, local transport);

• installation, racking, power distribution and network integration at the Paraguayan site;

• initial servicing, spare parts and minor site adaptations needed to operate the expanded 8 MW configuration.

In substance, the facility bridges the capital requirement between ORAX’s existing 2 MW infrastructure and the fully built-out 8 MW setup on which the company’s financial projections and growth plan are based.

Alternative financing option

ORAX is prepared to consider an alternative structure with a shorter maturity and a higher coupon. This option is intended as a pragmatic execution path if the lender prefers faster capital turnover and earlier de-risking through shorter duration.

Alternative option – indicative terms

Under the alternative 8-month, 23.1% p.a. structure, management expects that the expanded capacity would allow ORAX to cover a material portion of the overall repayment obligation during the operating window through operating profit, reducing end-of-term dependence on BTC price appreciation. Any remaining balance at maturity can be addressed via the company’s contingency paths described in the growth-plan section, including partial resale of newly acquired ASIC equipment (highly liquid secondary market) or refinancing through a conventional bank facility once the expanded asset base is fully reflected on the balance sheet.