CateWebb

Further major updates with @IonicDigital and their tenant @nscale that has massive potential impacts on the company which is likely why Sachem Head capital has rapidly transitioned to an activist position pushing for urgent control. Let's break this into 3 main sections: 1: Ionic digitals Equity terms 2: Nscale emergent crisis 3: What does this all mean? 1: Let's discuss some context. Barely two weeks ago Sachem Head Capital disclosed a non-activist stake of 9.99% in @IonicDigital after being an original funding group starting with 6.92% stake. Let's discuss some key aspects of the original funding that has @IonicDigital on the ropes and which has forced Sachem to act early. Part of this funding round include two major provisions in the terms many folks didn't discuss much including myself but have immediate and massive implications. Those two provisions are: Annual dividend & Redemption clause. See page 32 of Q2 2026 quarterly filing by @IonicDigital The preferred stock Dividend begins accruing a 12% annual interest on January 15th 2027 which are a quarterly cash payment. These payments non-firm locked in obligations; however, the board can skip payments if they cannot afford; however, they roll into the next quarter and are owed in full by end of the fiscal year. This amounts to roughly $49 million in Mezzanine Equity financing payments. The Redemption clause is just as important but far far more dangerous with Sachem moving to an activist stance. The parties under the Mezzanine Equity are entitled to a 150% automatic and non-voidable conversion of cash payment for their preferred stock value on June 26th 2028 unless a trigger event occurs earlier. There are two triggers, time and change of control. Time is clear; however, change of control has nuance. This could be a sale of the company, a merger, or a majority of the board changing over. If for example this is triggered by Sachem and Allies forcing a majority of the board to change, sale of the company, or merger in 2027 Sachem would see their initial investment go from $120 million to upto $187 million depending on accrued dividends. ---------------------------------- 2: This brings us to @nscale which just over the past two weeks has seen a major crisis unfolding that is getting worse day after day. Brief summary of events. March of 2026 Nscale raised $2 billion in private funding. By Spring of 2026 OpenAI pulled out of the Stargate project with NScale. In June 2026 Nscale reported a net loss of $1 billion on $140 million in revenue. In sept 2026 NScale filed their S-1 prospectus outlining $103 billion in contract backlog; however, just $2.6 billion was active/running with the remaining $100.4 billion being tied to unbuilt, energized, and frozen capacity. Nscales West Virginia (Monarch) campus is also substantially delayed. 460 MW of obligations owed to @AnthropicAI has been delayed due to Nscale not having financing for the buildout. Now in October 2026 @nscale has faced massive issues. The Flagship UK datacenter saw the majority of it's power delivery delayed from 2027 to no earlier than 2030 and beyond. This caused @Microsoft to pull their contract for 50MW of the 90MW of compute from NScale representing a devasting loss. Nscale is also facing delays from @IonicDigital which has been unable to even begin work on providing the additional 466 MW of agreed power to Ward County due to changes to ERCOT and PUCT laws and regulations. @IonicDigital has also not advised how they will fund the $600 - $800 million project in compliance with Texas rules under Senate bill 6 Section 37.0561(h) signed into law Sept 2026. Nscale has saw their IPO value transition from a lofty $30-$35 billion down to $16-$19 billion with a stagging 7-1 ratio on net losses to revenue. Based on these delays, I see a $2.2 - $5 billion near-term loss on revenue for nscale and thus far neither @IonicDigital nor @nscale have confirmed ward county is generating revenue from the AI compute. ---------------------------------------- 3: This brings us back to Sachem moving from a passive to activist stance. Sachem has over $120 million tied up on their original investment plus tens of millions more since @IonicDigital hit the market. Sachem knows ionic is contractually obligated to build the 466 MW upgrade for @nscale ; however, they also know that doing so drains liquidity Ionic cannot afford, delays payments on dividends worth 12% annually on Pref A shares. Sachem is also seeing the crisis for Nscale and hyperscalers in general. @IonicDigital cannot afford to lose Nscale and if Nscale can't complete the buildout and goes bankrupt or pulls from ward county ionic cannot afford to even maintain the site or complete upgrades that are valued at nearly $2 billion. Sachem is now likely going to attempt to secure near term dividend payments and also begin the process of forcing the redemption clause to get 150% of their Pref class A share value + Interest. In order for this to happen, Sachem needs to stop @IonicDigital from draining the accounts. Which we have seen @IonicDigital sell off just shy of 30% of their BTC HODL in 2 weeks. Going from nearly 3,000 BTC to 2,105 BTC today. Sachem, and likely the other investors need @IonicDigital to maintain nearly $600 million in liquid capital to pay out the 150% clause + the interest owed. As such, with Nscale suffering major financial and operation issues I am moving up the timeline I originally discussed. I would expect companies involved to push to secure their profits before nscale IPO's into a crash or is unable to pay due to major operational failures that are draining their fiscal ability to pay bills. I will continue to monitor events and advise as this develops. 10-Q: sec.gov/ix?doc=/Archives/edg… Nscale delays: techstrong.it/ai/nscales-35-…

While institutional investors (large $200k + trades) for @IonicDigital are selling and the retail fodder are gobbling it up without understanding they are being used as liquidity. 🤦‍♂️The big fish are enjoying selling into the small fry and high worth individuals today in the leadup to the financials releasing.

With the formal registration with the SEC for @IonicDigital for @CelsiusNetwork victims a reminder of how price discovery works for July 28th trading. For the first roughly ten minutes @jpmorgan will be matching buyers/sellers to establish enough liquidity is available for trading. Once that is confirmed the starting price will be established. So while your share price is listed as $20 under your Odyssey account (don't forget to transfer to your broker) the established trading price can be higher or lower. The $20 was the established price from ch.11 to value claims, y'all are moving into trading soon. I give no suggestion how you proceed. Merely suggest you do what you feel is in your best financial interests and don't be swayed by unrealistic expectations either direction. sec.gov/Archives/edgar/data/…

Wait wait I can't 🤦‍♂️😂 @IonicDigital spent from 2022-2025 to finally energize the nearly 120,000 ASIC they had sitting in boxes, which the first CEO made a joke about. Then within less than 8 months are back to the deployed rig levels of the Ch.11 after spending over $1.5 billion between pre ch.11 acquisitions, build out, expenses, and have generated basically no net profit since everything was tied to FASB. 🤦‍♂️ Not to mention, they've been using the Cedarvale shutdown for now 4, months straight to justify losses. How long will they beat that dead 🐎?

Monthly BTC mining update for @IonicDigital which the victims are @CelsiusNetwork. According to Wallet data on @arkham Ionic had the following metrics. Ionic Saw a low of 0.29 BTC for Dec 2nd 2025. CY25 results YTD. Ionics BTC rewards in relation to BTC price performance. Hopefully @IonicDigital can provide some clarity for shareholders. As it's rather shocking to track this performance for going into the 2nd month while nobody has shared what is occurring. While the handover was anticipated, public statements insinuated Q2-3 2026. Not sure if @GWAM_Abbate would be able to comment at this time. But would be great to potentially hear some meaningful details.

With $BTC continuing to stay suppressed @IonicDigital which is the startup created by forcing victims of @CelsiusNetwork to invest during Ch.11 has saw substantial reductions in BTC output well before the scheduled handover to @nscale for Q3/2026. The Nov 2025 Average daily BTC Mined has fallen to 1.96 from 3.17 in October a peak in FY25 of 4.85 in March. There has been a substantial decoupling effect for a while, but really appears to have taken effect once BTC dipped below $109,000. While @IonicDigital has been perfectly content to run unprofitable for years, mining BTC in the red likely hoping for FASB adjustments which favored them briefly on their FY24 substantially redacted/partial audit. With the announcement of the Lease & attempting to get listed, I suppose they need to finally start being somewhat fiscally responsible. Data sourced directly from @arkham

Holy production collapse for @IonicDigital mining just 1.76 BTC. Ionic has also lost $43 million in under 30 days using the same FASB guidelines they used to pump their paper profits for FY24. To date from January 1st 2025 thru Nov 6th 2025 Ionic has earned $123.4 Million in revenue, with an estimated energy expense using FY24 reports, known rigs, and rates puts them around $104.3 million in direct energy expenses. Leaving just $19 ish million in Gross to cover Admin, SGA, and other expenses. With this market slump Ionic is down -$25.23 Million ONLY accounting for energy.

⚠️Ionic Digital Monthly update & Questions for the board. The month of October 2025 was not great for @IonicDigitaloutside of the Lease agreement for FY26. Ionic well outside of even my generous estimations ending the month at 98.13 BTC down -4.13%. They did manage to not make any public sales according to @arkham data. Daily Average ended -7.22% compared to Sept 2025, and down from the March 2025 peak by -34.73% over just 7 months. Monthly revenue was down -3.37%; however, effective EH/S was up 6.39%. So they are still pushing. Revenue per TH/Ss was down in oct to $1.98 per TH/S according @TheBlock__ and @Dune Based on available data excluding the substantial cost of management & board (Except Abbate and Oliver) They barely saw $1.2 million after just their energy costs. $9.93 Million in Energy against $11.2 Million in revenue. Definitely a substantial monthly loss after all other costs are accounted for. With the recent price adjustments on BTC, Ionic has suffered substantial production losses. Falling to just 1.99 BTC per day on Nov 3rd __________________________ In regards to general business questions / concerns for the future. It would be great if @IonicDigital could provide more guidance on what the future business plans actually are for shareholders. It's understandable @GWAM_Abbate and @owiener are still under a heavy NDA so any update would come from the main company. The lease revenue will be good; however, it's in cash and nearly 65% of the revenue generating assets/energy capacity will belong to others. It's also not going to be a straight $200 million in net profit, but likely more in the range of $165 - $180 Million after landlord expenses are taken into consideration. That would put the business a little over $30-$40 million up on average annual revenue (ish) while saving roughly $72 million (year is estimated to close around $125 million in energy expenses) in energy expenses associated with the rigs to be retired once the facility is handed over. So well the Net income will increase, it'll still not be ground shattering. So what is the next plan? You have over 80,000 private investors from @CelsiusNetwork That have no idea what the business is supposed to be now. @IonicDigital has not been functionally even similar to the company the CH.11 advertised to them, and convinced victims to approve. One of the key conditions and promotion points was receiving Cedarvale from @corescientific and after less than 1 year of operation, the company has opted to lease the entire site away to include the Sub station on property for exclusive use of the tenant based on standard NNN agreement structures and thee established outline for the site the tenant has published.

The month of October 2025 was not great for @IonicDigital outside of the Lease agreement for FY26. Ionic well outside of even my generous estimations ending the month at 98.13 BTC down -4.13%. They did manage to not make any public sales, so we'll have to see what they remote as we know a few hundred BTC are in undisclosed wallets. Daily Average ended -7.22% compared to Sept 2025, and down from the March 2025 peak by -34.73% over just 7 months. Monthly revenue was down -3.37%; however, effective EH/S was up 6.39%. So they are still pushing. Based on available data excluding the substantial cost of management & board (Except Abbate and Oliver) They barely saw $1.2 million after just their energy costs. $9.93 Million in Energy against $11.2 Million in revenue. Definitely a substantial monthly loss after all other costs are accounted for. With the recent price adjustments on BTC, Ionic has suffered substantial production losses. Falling to just 1.99 BTC per day on Nov 3rd

Mate you are attempting to play semantics, your own plea agreement clearly states you pled guilty to Failure to maintain ANTI-Money Laundering" Program. You also Pled guilty to actively and willfully aiding and abetting actions that caused MSB to fail to develop and implement the ANTI-Money Laundering Program. That is, very much a Money Laundering conviction, which you pled guilty too. You didn't just make a mistake, you had been warned for an extended period of time, that Binance was not within compliance, and you willfully ignored proper guidance. Your plea agreement is riddled with you being warned consistently about the companies willful and intentional avoidance of legal requirements, which you had full authority and ability to enforce. But you didn't. A pardon does not remove your conviction, you are still a Felon. You clearly have not taking any actual accountability for your actions, and merely pled to receive the lessor charges and sentence. Can play all the word games you like. It does not void your actual charges. Plus, a Pardon does not grant you immunity for life. You likely will continue to conduct illegal activities, and it'll be just a matter of time.

We are likely getting to the end of even this level of transparency with @IonicDigital considering lease agreement will pull almost 65% of their revenue generating assets off the blockchain. But I did want to do brief update on Oct Thus far. Currently production has averaged 3.28 down -3.6% from Sep 2025. The monthly estimate based on present observations continue to lead to less than optimal results. Based on what I am tracking, the model is pointing towards the 101.5-103. Down from 104.4 from 10 days ago. I will say, it's going to be a substantial loss for shareholders of @IonicDigital when the majority of their transactions will shift off the public ledger. Ionic has already proven over nearly 2 years they are incapable of providing timely, accurate, or really any details about the business victims of @CelsiusNetwork are majority shareholders of the the company. While victims are held hostage, insiders profit, and leverage their position for their own interests. I can't say what the future holds here, but I will say having less access to information, is definitely not going to be a positive for victims. End of month update will come early next month once all data is available on the different blockchain accountability trackers.