Faraday Future Plans to Spin-Off its Crypto Flywheel Assets into an Existing Listed Company for Independent Fundraising and Operations, Building a Dual-Listed Company Structure - Seite 2

C10 Treasury Performance Highlights – Positive Mark-to-Market; 20% Active Allocation Outperformed the C10 Index

The Company also announced the recent performance of its C10 Treasury, which completed its first two rounds of digital asset allocations over the past two weeks totaling approximately $7 million.

Within the overall portfolio, the actively managed 20% allocation achieved performance surpassing the C10 Index average. Notably, all four core digital assets selected in C10’s active allocation outperformed the overall C10 Index and every coin that outperformed the Index was proactively chosen.

Spin-off Intended to Address Two Concerns with Five Areas of Potential Value

The Spin-Off is designed to address two core concerns:

• Independent Capitalization: C10 Treasury’s future financing would be conducted through a new entity, without diluting FFAI’s share capital.
• Operational Focus: With the gradual separation between the two teams, each team could be more focused. The FFAI team would be more focused on advancing the EAI Flywheel strategy, particularly the delivery of FF and FX products.

The independent listing plan could bring the Company the following five dimensions of value:

• Economic and Capital Value: The independent operation of the C10 business will help unlock its value and is expected to become a value amplifier for FFAI, generating returns to support FFAI’s EAI EV flywheel strategy..
• Strategic Value: The separately listed entity can operate in a broader strategic space, helping to build an innovative bridge between Web2 and Web3 industries.
• Business Focus: As an independent listed entity, C10 will have greater freedom and focus, capturing Web3 era opportunities more quickly.
• Financial Clarity: Independent financial systems will empower the dual flywheels to progress in parallel, driving more refined management, faster and more effective decision-making, and ensuring sustainable long-term growth.
• Organizational Appeal: As a future-oriented innovation platform, an independently listed company holding C10 assets could be more attractive in gathering top global Web3 talent.