Whitepaper

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Indice 1.A LETTER FROM OUR FOUNDERS p.03

2.BLOCKCHAIN’S ENERGY TRANSITION p.04

2.1 The problem we are solving p.04

2.2 Energy Transition is happening p.05

2.3 Our vision for a sustainable solution p.06

3.ASSET p.08

3.1 Mining equipment p.08

3.2 Infrastructure p.10

3.3 Operations management p.11

3.4 Renewable Energy Projects (REPs) p.13

3.5 Services p.14

4.ICO STRUCTURE - INITIAL CONTRACT OFFERING p.14 4.1 Token Description p.14

4.2 Token Allocation and Issuance p.15

4.3 Use of Proceeds p.15

4.4 Use of Cash Flow from Operations p.16

4.5 Token Strategies p.17

4.6 Legal Structure p.18

4.7 Timeline p.19

4.8 What you will GET from BMF Token p.20

4.9 Disclaimer p.22

5.TEAM p.23

Dear enthusiast,

18 months ago we had a dream: we wanted to participate in the Blockchain revolution. As our expertise was in infrastructure, particularly renewables, technology and digital marketing, we thought that designing and shipping mining equipment to all those who were passionate about the crypto world would have accomplished the objective of keeping the Blockchain really distributed. We started in Calenzano (Florence, Italy) by producing mining rigs, both GPU- and ASIC- based, and making them available to retail and business clients.

However, we immediately realised that scaling-up and reducing the environmental impact of the mining activities were the challenges that the Blockchain revolution was facing. So we built a farm, now the largest in Italy, to sustain more than 1,000 mining rigs, with its dedicated electrical infrastructure of more than 1MW, mostly from renewable sources.

Now we want to do even more, while keeping in mind our goal and leveraging our expertise in mining and renewable energy: through our ICO - Initial Contract Offering, we want to allow everyone to participate in our project, by purchasing our token. It is a mining contract, that allows anyone to benefit from the production of our mining rigs and renewable energy plants.

We firmly believe in our vision: so much that we will undertake a quarterly BuyBack plan for our tokens. Every three months, we will allow our clients to sell back their token to us, at an increasingly high price. You will find additional information in this whitepaper.

We want to make the Blockchain increasingly sustainable, and we are sure that our token is the right opportunity to reach ours and your objectives.

Gabriele Angeli, Gabriele Stampa

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A letterfrom our Founders

Gabriele AngeliFounder, Operations

Gabriele StampaFounder, Sales

Blockchain and mining have been on investors’ lips for the past few years, and they observed a huge spike of interest since 2017, along with the surge of the price of Bitcoin and other cryptocurrencies. Today, many think that Blockchain will revolutionize business and redefine companies and economies.

However, cryptocurrency mining, the fundamental architecture behind the Blockchain ecosystem, is an energy intensive activity and as such it comes potentially with a large carbon footprint, which requires attention. In order to perform their tasks, miners need to execute computationally-intensive algorithms on the Blockchain using a plethora of high-tech equipment, such as customized microprocessors or specialized Graphical Processing Units. The first who can solve a specific problem on the Blockchain gets a reward in Bitcoins (or whatever currency is being mined), hence the rush in employing powerful machinery that can allow to obtain such compensation.

As reported in several publications and online resources, the power required for worldwide crypto-mining activities has increased fivefold in less than a year, reaching an amount high enough to sustain the energy requirements of whole countries such as Peru, Portugal or Israel. This figure is growing exponentially, and is expected to double in the next twelve months, up to 150 TWh/year, as much as the yearly energy consumption of the entire Netherlands. This trend is, clearly,

2.1 THE PROBLEM WE ARE SOLVING

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Blockchain’sEnergy Transition

20

30

10

40

50

60 Israel Annual Energy Consumption

Portugal Annual Energy Consumption

Peru Annual Energy Consumption

70

80

0

Estim

ated

TW

h Pe

r Yea

r

Blockchain Energy Consumption

Source: bitcoinenergyconsumption.com

May ‘17 Jun ‘17 Jul ‘17 Aug ‘17 Sep ‘17 Oct ‘17 Nov ‘17 Dec ‘17 Jan ‘18 Feb ‘18 Mar ‘18 Apr ‘18 May ‘18

unsustainable, but is deemed to continue due to the rising difficulty of mining operations and the increased competition in the field. Miners need energy for executing computations and for cooling their equipment, but most of them do not really pay attention to where they draw it from – they simply care its cost is low enough. This leads to an exploitation of existing fossil-fuel and other non-renewable sources, regardless of the impact they have on the environment. The rising price of cryptocurrencies makes the investments in mining increasingly worthwhile and, as a consequence, increases the energy required to perform such operations, fueling a vicious cycle.

Furthermore, the rising price of oil – and, in general, its volatility – could unpredictably dampen the profitability of cryptocurrency investments, whose net gain is heavily reliant on fuel cost.

Many prominent publications have started raising the alarm about the dangers associated with indiscriminate energy consumption related to cryptocurrency mining, and we will not let this cry for help go to waste. The goal of our activity, therefore, is to make mining operations sustainable, both in terms of the profitability of your investment and in terms of environmental preservation.

Around two-thirds of global carbon emissions stem from energy production and use, which puts the energy sector at the core of efforts to combat climate change. A radical transformation is underway in the energy sector, switching from fossil-based to zero-carbon.As of today half of the annual power generation capacity additions comes from renewables, with the industry growing at record-high levels over the last decade. Renewables could make up two-thirds of the energy mix by 2050, with significantly improved energy intensity.

Cost of renewable energy generation has also reduced massively over the past few years, thanks to the rapid fall of the cost of technologies and the development of a larger-scale global industry, and there is now a general consensus on the competitiveness of renewables with fossil fuels. Renewables expect a +33% grow by 2022 and, as installation accelerates, the cost equation for renewables will just get better and better. For these reasons, the use of renewable energy to supply the consumption needs of the growing Blockchain ecosystem has become inevitable to guarantee sustainability of mining activities.

2.2 ENERGY TRANSITION IS HAPPENING

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While energy management practices are commonly being implemented in the sector, some have yet to integrate renewable energy sources and enabling technologies, such as solar and wind power with storage, into their energy management programs. This may be due to lagging perceptions about where renewables stand today in terms of complexity, cost, reliability, and performance. The renewables landscape has evolved dramatically in the past couple of years and it is now fully competitive and cost effective.Another interesting aspect is the potential upside deriving from overproduction of electrical energy from renewable sources due to inherent intermittency and unpredictability. Overproduction can be a serious threat to the grid, that’s why producers will even pay consumers to take the excess electricity off their hands. This could offer clean-energy plants another source of potential revenue, effectively turning Blockchain computing into a renewable subsidy—a good idea indeed.

Bitminer Factory idea dates back to November 2016, and our progress since then has been huge, with our first mining factory, now the largest in italy, completed and fully operational since April this year, after twelve months of hard work and dedicated refinements. We started with the idea of following the cryptocurrency wave, and we have ended up being at the forefront of innovation in the field, leading the way to a sustainable process for mining cryptocurrencies. Some publications are starting to suggest that renewable energies are the future of cryptocurrency mining, and we will be among the first in realizing such a dream.

Our sustainable solution is based on 4 key pillars:1. Committed usage of clean energy: we pledge to use an increasingly-

higher amount of energy from clean power sources, such as hydro and solar plants. We will place our decentralized mobile farming equipment close to eco-friendly sources, drastically reducing the amount of CO2 we would require if we used traditional energy plants;

2. Reuse of otherwise-wasted energy: energy plants all over the world, either renewable or not, often have energy left that is not used and goes to waste. We have set up partnerships that allow us to tap into these energy sources, minimizing the need of producing additional energy for our mining purposes, benefiting the environment while granting us a lower-cost power supply;

3. Flexibility through mobile mining units: our mining units can be easily moved around (think of them as “on-the-wheels” autonomous

2.3 OUR VISION FOR A SUSTAINABLE SOLUTION

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computing containers), therefore it will be easy for us to reach the plants that have the highest spare capacity from time to time, or new purposely built renewable power plants;

4. Diversification through Renewable Energy asset ownership: they will strengthen our position to achieve our goals. With 30% of the proceeds of the ICO, exceeding $20M, we will invest directly in the construction of Solar/Hydroelectric power plants. The 100% clean and renewable energy outcome will be used to directly power our mining equipment. Energy projects are capital intensive and require a significant scale: for this reason, we chose to invest in Energy projects only past the $20M mark, still maintaining our commitment to a greener mining solution if proceeds will be below $20M. Owning custom-designed renewable power plants will allow us to achieve even lower electricity cost for our operations, cutting out all the intermediaries between energy production and utilization. Furthermore, we will be able to sell energy to the national grid, generating an additional, stable stream of profits, to be used for our token-holder and for reinvestment in our operations.

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Electrical Infrastructure

Solar

Hydro

Mining Farm

Vault

DashboardApp

Token Holder

Electricity in e

xcess

Reinvestment

Reinvestment

Electricity Self-consumption Cryptos

Reinvestment

3.1 MINING EQUIPMENT

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Asset

To summarize, our solution allows you to diversify your investment on both mining and energy equipment. This will ensure the stability and sustainability of the solution going forward, reaching a point where the cheap and eco-friendly supply will be a key differentiator among the numerous competitors.

We will use GPU-based and ASIC-based equipment, to mine different cryptocurrencies.

GPU-BASED EQUIPMENTGPUs (Graphics Processor Units) were originally designed to improve and optimise the 3D graphics of the most demanding video games. They are much faster than the main computer processors (CPUs) at doing specific calculations, and, thus, are very suitable to mine cryptocurrencies. Furthermore, GPUs couple cutting-edge speed with high flexibility: they can mine dozens of different cryptocurrencies, executing various algorithms, and can adapt to changing market conditions, always working on the most profitable problems. We will use the most effective, cost-efficient and durable GPUs. While it is comparatively easy to identify the most effective models, our experience building mining farms in the last years allows us to have a competitive advantage with respect the other two parameters:- COST Following the incredible price increase of cryptocurrencies in the last 12 months, many people and organisations have entered the mining space, buying an unprecedented number of GPUs to be devoted to mining. The retail prices of the most sought-after models have clearly reflected such an interest, as shown in the chart below, reaching even 3x the usual prices – significantly undermining the expected ROI of most mining endeavours.Our previous experience, our size, and our existing connections with manufacturers and distributors, however, allow us to negotiate wholesale prices and reduce lead time – guaranteeing Token Holders a higher ROI.

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- DURABILITYObviously, a fast GPU that lasts few months is not the best investment; also, while abundant information is available online with respect to the speed of each card, no statistically-significant data is available with respect to the durability. How to find the right model and the right make for your investment? That’s where our experience kicks-in, as we have extensive historical data on sustained performance, temperature, and failure rate of dozens of different type of GPUs, so that we can be confident to choose only what is the best and will be the best for a longer time, ensuring much better ROI.

GPUs will then be overlocked and assembled in our proprietary P8 mining rig, designed to be the best balance between performance, reliability and compactness.

Apr 2017 Feb 2018

$639

$283

Base price $240

AMD RX580Retail Price

Source: www.marketrealist.com

3.2 INFRASTRUCTURE

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ASIC-BASED EQUIPMENTThere are many type of ASIC (Application-Specific Integrated Circuit) designed for mining, and we will focus on the ones that are able to mine Bitcoin, by far the cryptocurrency with the largest market cap.ASICs trade-in part of the flexibility that is typical of GPUs (in fact, they can usually run only one algorithm), but they are even faster in their calculations.As it happens for GPUs, sourcing the best components is critical, as lead times can be long and prices in the secondary markets routinely get to 2-3 times the regular prices. At Bitminer Factory, we already have hundreds of ASIC miners working every day, and ongoing business relationships with the main producers and distributors: we are ready to source and operate many more.

As we have seen, mining requires energy – a lot of it! Furthermore, the energy supply needs to be reliable and cheap, and we want it to be renewable.How can we do that? Thanks to our extremely experienced team (our founders designed and built plants for a total of 1000+ MWp, in the past), we have already secured multiple energy sources, both in Italy and Bosnia, with a hard-to-beat price of 0.055-0.075 €/kWh, which we expect to lower even further.Our machines will be co-located with the energy plants, to minimise the energy distribution cost and leverage excess energy right where it is created, and will be able to move whenever new, better opportunities will arise.

Finally, we have designed two proprietary housing solutions for our machines, Gigapod, to house up to 5000 units (GPU or ASIC), and Mobile Mining Unit (MMU), to house up to 300 units. We studied every detail of it in order to optimise:- COOLING AND RELIABILITY Thanks to CFD (Computational Fluid Dynamics) analyses, we designed ample paths to allow air in and out of the Gigapod and of the MMU, while consuming just a fraction of the total energy. An advanced filtering system will allow air to pass, blocking dust or other contaminants, ensuring reliable operations in any environment.- COMPACTNESS Each Mobile Mining Unit (MMU) can house up to 300 units (GPU or ASIC) in a compact footprint, while each Gigapod can house up to 5000 units.

3.3 OPERATIONS MANAGEMENT

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Furthermore, the MMUs can be moved cheaply and quickly, as they are base on standard containers. - MONITORINGA dense net of sensors are embedded in the Gigapods and in the MMUs, allowing our team to monitor performance, temperatures, power consumption, and state of each piece of equipment, thus letting us actively prevent and identify any hardware malfunctioning.- MAINTAINABILITYEach machine is accessible easily and rapidly, allowing for prompt maintenance when needed. A detailed dashboard and clear labels/indicators allow every operators to immediately locate the machines that need an intervention.

With the right equipment and the right infrastructure, it becomes key to operate each machine in the most effective way. Our approach towards operations management is based on 3 pillars:1. Leverage flexibility, especially by choosing the most profitable coins to

mine at every point in time, as well as the best locations to move our mining rigs to

2. Employ predictive maintenance tools and absolutely minimise downtime aggressivamente i tempi di fermo macchina

3. Ensure scalability of the investment, to drive token’s value and sustained earnings

The market of cryptocurrencies is characterised by high volatility when compared to traditional investments, and while there is a certain degree of correlation between the price of different coins, the long-term destiny of each coin is mostly independent from the others’. However, GPUs flexibility will allow us to hold such volatility in check:

1.

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following minute-by-minute the profitability level of dozens of coins, our proprietary control dashboard is able to switch each machine to work just on the problems that guarantee the highest ROI, keeping into account rewards, energy consumption as well as the liquidity typical of each coin.Furthermore, our mobile mining units will be able to move quickly and cheaply to any location where renewable power plants or excess energy are available at the cheapest prices.

We will employ the same control dashboard to optimise the way we carry out maintenance. We will analyse and model the data coming from all the sensors embedded in our Gigapod, blending them in with the historical information we have gathered in the last years, in order to identify early symptoms and predict the maintenance interventions that will be needed. Predictive maintenance will allow us to minimise both downtime and maintenance costs, driving ROI up.

Finally, scalability is key for us to ensure sustained return to our Token Holders. On the one hand, we will re-invest 20% of our Gross Margin into new equipment. This will allow us to grow quarter after quarter, acquiring new, cutting-edge hardware, as well as exponentially increasing the returns to our Token Holders (see chart below).On the other hand, to enable such exponential growth, each software tool we use and every piece of hardware we employ are selected having in mind that they need to function equally well at our “ICO soft-cap” level, at our “ICO hard-cap” level ($100M), as well as with future investments and re-investments that will make our farms even larger.

Y1 Y2 Y3 Y4 Y5

Projected token holders returnswithout reinvestement

Projected token holders returnswith reinvestement

2.

3.

3.4 RENEWABLE ENERGY PROJECTS (REPS)

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At Bitminer Factory, we are committed to:1. Make the Blockchain sustainable, by using renewable energy for mining

purpose2. Deliver outstanding ROI to our Token Holders.

Renewable Energy Projects will strengthen our position to achieve both the goals above.With 30% of the proceeds of the ICO, exceeding $20M, we will invest directly in the construction of Solar/Hydroelectric power plants. The 100% clean and renewable energy outcome will be used to directly power our mining equipment. Energy projects are capital intensive and require a significant scale: for this reason, we chose to invest in Energy projects only past the $20M mark, still maintaining our commitment to a greener mining solution if proceeds will be below $20M.

Owning custom-designed renewable power plants will allow us to achieve even lower electricity cost for our operations, cutting all the intermediaries between energy production and utilization. Furthermore, we will be able to sell excess energy to the national grid, generating an additional, very stable stream of profits, to be used for our token-holders and for reinvestment in our operations.

Our team is unique in allowing the delivery of such an ambitious pair: cutting-edge mining and custom-designed and built Renewable energy projects. In fact, among our founders, we have a total of 30+ years of experience building renewable power plants, for a total of 1000+ MWp installed in various continents.

Solar Project built by Bitminer Founders11MWp in Pernambuco, Brazil. Client: Enel Green Power

3.5 SERVICES

4.1 TOKEN DESCRIPTION

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We are developing dedicated Services to improve your BMF Token Holder’s experience. We want you to have real time access to our Assets Performance, both Mining and Renewables.

Our Development Team will work on a web Dashboard to ensure you have 24/7 access to our Operations data. You will be able to monitor technical and financial performance. Through Dashboard, you will be able to manage your BMF Tokens, assess your mining contracts’ returns, trade your BMF or participate in our BuyBack Plan. We want the functions that we intend to implement in our Web Dashboard to be available in a App as well.

Vault is a further project we have in mind: we want to be sure that your cryptocoins, while they are with us, remain safely stored in our systems. We have not started yet to develop such Services, but we will do so during the ICO Window.

Bitminer Factory are promoting an Initial Contract Offering (“ICO”), whereby Mining Contracts are offered to their Clients (“Token Holders”).The “BMF” token, an ERC-20 token built on the ETH platform, represents a Mining Contract between Token Holders and Bitminer Factory. Each BMF entitles the Token Holders to certain contractual rights that are outlined in this Whitepaper and comprehensively presented in our Terms and Conditions document (“T&C”).

Up to 100 million BMF with nominal value of 1$ per BMF are offered to potential Token Holders through this ICO - Initial Contract Offering. BMF will be offered at 20% discount to nominal value in a Private-Sale from

ICO StructureInitial Contract Offering

4.2 TOKEN ALLOCATION AND ISSUANCE

4.3 USE OF PROCEEDS

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25/5/18 to 20/6/18. The following discounts will apply afterwards: 18% from 20/6/18 to 20/7/18, 12% from 20/7/18 to 8/8/18, 6% from 20/8/18 to 20/9/18 and 0% until Hard Cap is reached. As our Mining Farm is a scalable project, Soft-Cap is set at $0.5M and Hard Cap is set at $100m. If Soft-Cap is not met, all Mining Contracts will be cancelled and payments returned to Token Holders. If Hard Cap is met, the ICO - Initial Contract Offering will be closed. ICO will be closed anyway on 30/9/18.Payments for BMF are accepted in BTC, ETH and EURO, following registration on Bitminer Factory website.

BMF will be allocated according to the pie chart below.

TokenAllocation

Token Holder

88%

10%2%

Management

Bounty

The above chart means that every 88 BMF purchased by Token Holders, 10 BMF will be issued to Bitminer Factory Management and 2 BMF will support our Bounty Program and marketing effort.All BMF tokens will be issued at the End of the ICO, on 30/9/18, to Token Holders who have purchased the tokens.

Funds raised through the sale of BMF tokens will be deployed as outlined in the table below:

4.4 USE OF CASH FLOW FROM OPERATIONS

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Particularly, use of Proceeds will vary depending on total amount of BMF sold. As Energy Projects are capital intensive investments, we will be able to invest in Renewable Energy Projects (REPs) only if more than $20m BMF are sold. In any scenario, we are committed to supply a significant portion of the electricity we need from clean sources. If we will not have sufficient scale to invest in our own REPs, we will work on Joint Ventures with clean electricity producers to ensure direct supply of electricity, via Power Purchase Agreements (PPAs). While portion of the Proceeds from the sale will cover our Marketing efforts and ICO - Initial Contract Offering structuring and distribution Fees, we aim at allocating part of the proceeds in R&D. This will make our technology development team funded to create the Services intended for this ICO - Initial Contract Offering. Particularly, we are working on a dashboard (made available both via Web and App) to provide Token Holders with real time control on their BMF tokens and on our Operations.

Our most significant operating expense will be electricity. We currently have access to Electricity Prices of 55-75€/MWh, which we expect to lower, and that we can deliver through either self-producing electricity or partnerships with electricity producers or manufacturers who have access to low-cost electricity supply. We expect electricity costs to absorb circa 15% or the revenue generated by our operations. A further 10% will cover maintenance, overheads and r&d expenses. We intend to reinvest up to 50% to our gross margin, if the crypo-market conditions remain favourable. Reinvestment may be in both REPs and Mining Assets. Management will issue Quarterly Reports available to Token Holders to inform on our investment strategies. From 50% to 100% (depending on the reinvestment factor) of the Cryptocurrencies generated

Use of Proceeds

BMF token sold 3,5M 20M >20M

Mining Equipment 79,0% 87,5% 60,0%

Marketing 10,0% 5,0% 3,5%

Infrastructure 3,0% 2,5% 2,0%

Energy Projects 0,0% 0,0% 30,0%

R&D 5,0% 2,50% 2,0%

Fees 3,0% 2,50% 2,5%

Total 100,0% 100% 100%

4.5 TOKEN STRATEGIES

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by our mining activities will be distributed to Token Holders. Operations will be continued until marginal revenues will be higher than marginal costs, i.e. until operations remain profitable. We are paying taxes in those countries where we have operating facilities, i.e. Italy and Bosnia. Corporate Tax on earnings is c. 27.8% in Italy and 10% in Bosnia.

BMF Token Holders may benefit from the mining contract embedded in the BMF Token by Holding It, Trading It or participating in our BuyBack Plan. Holders will benefit from yearly payouts in Cryptos that will be proportional to the amount of BMF each Token Holder has in relation to the overall amount of BMF Tokens in circulation.

BMF will be listed on selected Crypto-exchanges as well; we plan to implement on our website an in-house trading platform for BMF too, as we want to ensure liquidity for BMF. To boost liquidity and value, we developed a BuyBack Plan. Every quarter from the End of ICO (30/9/18), Management will issue quarterly operations reports to inform Token Holders on project status. Depending on crypto-market conditions, we will allocate part of the cash flow from operations to Buy Back existing mining contracts, namely BMF, thereby increasing market liquidity and token value. Buy Back will be reiterated every quarter. We aim at buying back BMF at 1.1$ per token at the end of Q1 and to increase buy back price by 10% (of nominal token value) each following quarter.

Despite we are calling it a “Buy Back”, the transaction will be a “barter” between two digital products: 1 BMF will be returned by its Token Holder in exchange for an amount of BTC or ETH equivalent to 1.1$ at the time of the first Buy Back. BuyBack will be paid out in BTC or ETH only. All conversion rates (BTC or ETH or any other coin to $) will be taken transparently on Coinmarketcap.com.

HOLD IT and receive Yearly Payouts

in Cryptos and benefit from AIM Listing

SELL IT BACK TO US Play it safe with our

BuyBack Plan

TRADE IT Trade your BMF on Exchanges

BMF

4.6 LEGAL STRUCTURE

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BUYBACK PRICE WILL INCREASE BY 10% EVERY QUARTER

Q10 Q5Q2 Q6Q3 Q7 Q9 Q10 Q11Y1 Y2 Y3

1Years

$

1.2

1.4

1.6

1.8

2

2.2

2.4

BB1.4$

BB1.8$

BB2.2 $

It is important for our Token Holders to understand that BMF tokens do not carry any participation rights in Bitminer Factory. BMF is not a digital form of a share in the company or any other form of securities issued by a company.

Our BMF Tokens represents a Mining Contract between our Clients and Bitminer Factory. Such contract is published on our website and every time a Client makes a transaction on our BMF is entering that Mining Contract. You can enforce our Mining Contract and you are given legal rights through our Mining Contract as specified in it. We do not think that any token that is sold as a security gives you any right stronger than the rights you get with our Mining Contract, by purchasing BMF. Tokens issued as securities currently face challenges in most jurisdictions.

You can purchase BMF in EUR, ETH or BTC. When you are purchasing BMF, you are buying a service, our BMF token, which carries the rights specified in our Mining Contract. You will receive an invoice from Bitminer Factory for your purchase. You will have access to any Token Strategy without any limitation. When we pay you out your yearly coin production, we are giving to you the product of the service you have initially purchased. When we buy back your BMF, we are purchasing your BMF with all the rights embedded in the Mining Contract.

4.7 TIMELINE

1 1 0 10 0 1 11 0 1 0

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We plan to list Bitminer Factory on the UK Alternative Investment Market after 3 years from the End of ICO. We aim at giving privileged access to the issuance of shares to those holding BMF at that time. Any issuance of shares will be undertaken according to laws valid in the chosen jurisdiction.

We are starting the sale of BMF on 25/5/2018 through a Private Sale to be shared with our Bitminer Factory Community. Our Community is large as we have sold more than one thousand miners to both business and retail Clients in Italy.

At the time of writing, there are already 1,200 supporters in our Telegram channel, our Facebook channel is followed by 7,000 people and we have been in the Italian and International press. The Private Sale will be published to our existing Community with a discount of 20% on BMF nominal price of 1$ until the 20th of June. From this date, we are starting our digital marketing campaign, which will advertise to the public, on a

* With privileged access to BuyBack plan

25th May 20t Jun 20th Jul 20th Aug 20th Sep 30th Sep

Private sale -20% Discount *

-18% Discount -12% Discount -6% Discount

End of ICO BMF issued

and listed on exchanges

First delivery

31st July 2018

Full delivery of Mining Assets and Services

End of 2018

4.8 WHAT YOU WILL GET FROM BMF TOKEN

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global scale, our ICO - Initial Contract Offering. Discount will be at 18% for the first month, 12% for the second month, and 6% between 20/8/18 and 20/9/18. ICO will end on 30/9/18 or earlier if Hard Cap of $100M is reached. All Token Holders will have received their BMF by the End of ICO - Initial Contract Offering, but we plan to implement the token distribution earlier on during the ICO - Initial Contract Offering.

We expect to deliver the first mining unit belonging to this project by 31/7/18, but it is not going to be our very first one: Bitminer Factory implemented its first mining unit for our Clients back in April 2017 in our Mining Farm in Calenzano (Firenze, Italy). As the large size of Bitminer Factory will require the development of dedicated infrastructure in Bosnia and other countries (a large “Gigapod” to house at least 5,000 miners with proper electrical connection), we plan to fully deliver the Bitminer ICO Mining Farm by the end of 2018. Bitminer Factory management team will issue monthly reports during the ICO - Initial Contract Offering and quarterly reports later on to inform all BMF Token Holders on project status.

Reports will be published on our website and digital channels, to ensure widespread access to Token Holders. Our BuyBack Plan will start at the end of Q1 from the End of ICO, i.e. on 31/12/2018 at a set price of 1.1$ per BMF, a 37.5% return in 6 months for our Private Sale Clients.

We have modeled the Bitminer ICO Project to compute the expected return from the BMF Mining Contract.

Our model takes into account the ICO - Initial Contract Offering Structure as presented in this Whitepaper, particularly Token Allocation, Use of Proceeds and Use of Cash Flow from Operations. Our assumptions on capital expenditure to supply mining equipment, required infrastructure and electricity may be subject to changes, but have been vetted by our team. Project success will vary with Bitcoin Price, given the nature of our operations.

The chart below gives you the return of each BMF after one year of operation, depending on BTC Price. E.g., if after one year from the End of ICO BTC Price is $14,000, we expect a BMF yearly return of 191%, i.e. BMF

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will be priced at least 1.91$. In the following table we computed the yearly payout for a Mining Contract (i.e. BMF) worth 100 at year zero, depending on BTC Price. A Yearly Performance Loss of 20% was assumed. E.g., if BTC Price will stabilise at $14.000 over the next 3 years, $100 spent on BMF Mining Contracts will be worth $455,32 in three years’ time.

Yearly Performance Reduction: 20%

Investement Calculator

$/BTC Years 0 Y1 Y2 Y3 Total return in 3Y

$ 10.000 100 108,41 86,72 63,93 259,06

$ 12.000 100 149,47 119,57 88,15 357,19

$ 14.000 100 190,53 152,42 112,37 455,32

$ 16.000 100 231,59 185,27 136,58 553,45

$ 18.000 100 272,66 218,12 160,80 651,58

$ 20.000 100 313,72 250,97 185,02 749,71

100%

200%

BMF

Ye

arly

Ret

urn

BTC Price8.000$

Payback: 18 months Payback: 8 months Payback: 6 months Payback: 5 months Payback: 4 months

Return will vary with expected BTC Price

BTC Price12.000$

BTC Price14.000$

BTC Price16.000$

BTC Price20.000$

67%

149%

191%

232%

314%

4.9 DISCLAIMER

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This presentation is for information purposes only. It should not be construed as on offer to sell, or a solicitation to buy any security or token as a security. By purchasing the BMF token or bartering it with your cryptocurrency, you are entering a mining contract with Bitminer Factory, which entitles you to certain rights on the digital services generated by the mining equipment we operate in our facilities. The BMF token does not entitles you to any distribution of dividends, interests, rights on shares in Bitminer Factory or any other form of right usually embedded in a financial security as defined in your jurisdiction. Bitminer ICO refers to an Initial Contract Offering whereby our mining services are offered to you. Bitminer Factory is a start-up; a large part of this presentation thereof consists of forward-looking statements relating to: plans and objectives of management for future operations or economic performance; conclusions and projections about current and future economic and political trends and regulations in the cryptocurrency and Blockchain space; and projected financial results from mining operations. Projected financial results and mining operations performance in this presentation are only a sample for potential future profitability and actual results could materially differ from forward-looking statements.

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Here at Bitminer Factory we are Entrepreneurial in our soul.

Gabriele Angeli, Founder, has a longstanding experience as a general contractor in the Oil&Gas and renewable energy industry, where his family business, Angeli Group (http://www.angelicostruzioni.it/) has been working for large corporates worldwide for over 50 years. Driven by his passion for videogaming, Gabriele founded with Gabriele Stampa Bitminer Factory, the largest mining operator in Italy. They now have the most appropriate experience to run the BMF ICO: over 18 months of hands-on business experience selling and operating Miners for both private and business Clients in Calenzano (Forence, Italy).

Gabriele Stampa is a Web Marketing Manager & Web Project Manager, skilled in multimedia and internet project development. He has a consolidated and global knowledge of the web and the strategies of web marketing; he is acquainted with the E-Business and the best practices for the start-up, growth, management and integrations of business projects on new media and internet.

Antonio Mazzitelli joined Gabriele A., Gabriele S. and Carlo to help them grow Bitminer Factory, by both improving the current business and assist the launch of this ICO. Antonio has 8+ years experience in Venture Capital and

Gabriele AngeliFounder, Operations

Fulvio MarianiRenewables

Gabriele StampaFounder, Sales

Fabio BulgarelliOperations

Antonio MazzitelliStrategy, Finance

Carlo MeccoliRenewables

Matteo FreriMarketing

Alessio BarniniTechnology

Alberto AngeliPartnerships

Zaccaria OrlandoOperations

Team

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Solar Project Development; he worked on investments in hi-tech start-ups and 100+MWp solar projects pipeline in Italy and UK. Antonio is a MSc in Industrial Engineering from Politecnico di Milano and is reading for the MBA at London Business School.

Carlo Meccoli, a partner in the Angeli Group, has 10+ years experience as Project Manager in the construction of infrastructure and technology projects, mainly renewable energy projects, with extensive technical experience in Italy and worldwide. As a qualified architect, he is specialised in zero-carbon construction and a long term consultant at “Abita” research centre at the University of Florence.

Alessio Barnini is our Head of Technology. He has more than 15 years of experience as a senior developer for web applications and IoT (internet of things). He collaborated with Siemens for Milan’s Expo 2015 to improve energy efficiency of the whole fair leveraging IoT tools.

There are more than 20 full time members and many more advisers in our team: we want to thank all our them for their fantastic job they do everyday at the Bitminer Factory.

Do reach out to us if you want to learn more about the Team, and please come and visit our facilities in Calenzano. You’ll find us in Via Zanella 12, Calenzano (FI), Italy.