Operational update on re-design of the Scrypt-ASIC
Reference is made to stock exchange announcements on 28.06.2021 and 29.06.2021. Lokotech AS, a wholly owned subsidiary of Harmonychain AS, has on Monday 16.08.2021 had an update meeting with the ASIC Designers.
The design of the ASIC has been improved so that it is now more power efficient, and is now assumed to be competitive, even though the production costs are still above what we have initially communicated. Preliminary simulation shows a performance of as much as 9.95MH/s per 0.984 Watt, which corresponds to only 0.099 Joules per Megahash (0.099 J/MH). This is more than 10 MH per Joule. This is significantly more power efficient than any other Scrypt miner that exists today, including Bitmain’s L7. This means that potential customers can operate significantly more miners on their available power capacity. The goal is to offer a product with a higher hash rate and lower power consumption at a lower price than what is available on the market today.
The launch of Bitmains L7 has led to increased competition in the Scrypt hardware market. In addition, global chip manufacturers have increased their prices. Furthermore, prices for cryptocurrencies, such as Dogecoin and Litecoin, were very volatile in 2021. We expect this volatility to continue. In this environment, it is currently difficult to estimate what the company’s sales revenues and financial result can be expected to be in 2022 and onwards.
The company continues its efforts to improve the ASIC design. As previously announced, the company will consider various strategic alternatives in relation to the further development process.
For more information, contact: 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 mining. 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).
This information constitutes inside information and is subject to disclosure requirements in accordance with the Market Abuse Regulation (MAR). The announcement is published on behalf of Harmonychain AS by Ola Stene-Johansen, CEO, at 21.56, 16 August 2021.