Bitmine Immersion Technologies, Inc. Issues Letter to Shareholders Highlighting Corporate Strategy and Outlook - Seite 2

Pecos, Texas - Our Joint Venture in Pecos, Texas has also become operational. We have one 800 KW container at the site, plus approximately 30% ownership of the remaining site. Our container is 50% full, with additional machines being delivered to reach full capacity in the next two (2) weeks. Fully deployed at current payout and difficulty rates, we expect about 1.25 Bitcoin of revenue from Pecos monthly from our self-mining portion. The Joint Venture consists of 6 containers with a capacity of 4.4 megawatts. Currently, the Joint Venture portion is fully utilized by a combination of approximately 200 self-mining miners and over 800 miners supplied by a hosting client. We are working aggressively to locate additional hosting clients and/or procure additional miners for self-mining to refill the Joint Venture portion when the current hosting agreement expires in March 2024. With respect to the portion of the site operated by the Joint Venture, we are expecting that, beginning next year, our share of Bitcoin earnings will be around 1-2 Bitcoin per month, based on the current payout and difficulty rates, although the Bitcoin earnings could be used by the Joint Venture to correct some operational issues and expand the capacity of the site, rather than distributed out to the Joint Venture partners in the near term.

Kentucky - We recently purchased 1,050 miners for installation at a co-location site in Kentucky. Approximately 975 began hashing on November 1, 2023, while we are working through installation and warranty issues on the remaining 75 miners. We expect to have all 1,050 running in the next few weeks. This is our highest revenue site, where we are on a run rate to mine 5-6 Bitcoin per month, based on current difficulty and payout rates.

Mining Recap - We have 1,400+ machines running, with another 200+ machines coming online imminently. We expect that we will be able to run some of these machines will be running as "super-overclocked", at 150-175% of their normal rated hashing power. This overclocking of these machines allows us to obtain an additional 50 to 75% more Bitcoins per month than would otherwise be possible.

Looking at 2024, we remain focused on profitably mining Bitcoin and being good stewards of the company's capital. We are continuing to evaluate the strategic deployment of additional mining machines. Additionally, we are continuing to explore the expansion of our equipment resale division. Lastly, we are actively pursuing strategic merger and acquisition opportunities. Our status as a public company provides us with options to use our stock as currency in acquiring other companies or assets, and we have had several discussions with other companies in situations where we feel a combination would be beneficial to our current shareholders. We are not currently conducting any formal discussions, but we sincerely hope we can deliver a value-added business combination in the next year.