Harmonychain AS half year report 2021
In the first half of the year, Harmonychain carried out a capital increase of NOK 110 million gross. This capital increase made it possible for the wholly owned company Lokotech AS, to continue the development of a Scrypt Application Specific Integrated Circuit (ASIC) for use in a Scrypt supercomputer both internally and in collaboration with North American engineers with experience from this. Lokotech AS has also entered into a framework agreement with Keytouch Technology AS for future possible production of a Scrypt computer and associated hardware. This framework agreement may form the basis for future production of a Scrypt supercomputer as well as associated hardware such as our smart power supply unit.
The board proposes the following coverage of the loss of NOK 2,868,326 in the parent company: Transferred from other equity. The group’s result for the first half of 2021 amounted to a loss of NOK 6,091,341.
Events after 6/30/2021:
On 29th July 2021, Lokotech AS was informed that the company’s SkatteFUNN application had been approved by the Research Council of Norway. The application covers research and development costs associated with Lokotech’s main investment. The support amounts to up to 19% of amounts up to NOK 25 million per year.
On 16th August 2021, preliminary simulations received by Lokotech AS indicate that the design of Scrypt ASIC’s most important component has been improved so that it is now assumed to be more power efficient. However, one does not get exact figures on the actual performance of an ASIC until a physical prototype is made and this physical ASIC is tested.
On 6th September 2021, Arctic Core AS received confirmation of the purchase of a property for the development of a data center of 995 square meters of indoor area in Halden. The property was 100% financed by equity. Final documentation is expected around 30 September 2021, and we expect to take over the property around 16 November 2021. The property is part of a former industrial property, and has access to transformers on site. It requires some development in the work to scale operations to the desired level. We plan to use the property for our own hardware, test units and / or hosting high-performance computer hardware for third parties. The Harmonychain Group plans to offer services for customers who want to establish traditional data centers, HPC and blockchain verification in Norway. The data center industry in Norway is experiencing increasing demand due to good infrastructure and environmentally friendly energy. We are also looking for more relevant properties for rent or purchase.
The company has per 15th September 2021 bank deposit of approx. 83 MNOK after adjustment for the purchase price of the property in Halden.
For more information, contact:
Bjørn Zachrisson, Chairperson of the Board, Harmonychain AS, zachrisson@harmonychain.com
Ola Stene-Johansen, CEO Harmonychain AS, osj@lokotech.no
www.harmonychain.com
About Harmonychain AS: Harmonychain is a diversified blockchain company that focuses on sustainable blockchain systems. The management and the board have experience from the IT sector, the strategy department of the Research Council of Norway (NTNF), academia and finance. We focus on environmental improvements (reduction of energy consumption and CO2 emissions) in blockchain verification. Harmonychain owns 100% of the subsidiaries Arctic Core AS (datacenter and blockchain verification) and Lokotech AS (Scrypt ASIC miner). This information is subject to the disclosure requirements pursuant to Section 5-12 in the Norwegian Securities Trading Act.