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Investment Compared to Commodities, Bitcoin’s Market Price is Dislocated Management Relative to its Marginal Production Cost Division Oil, Gold and Bitcoin: Marginal Production Cost versus Current Market Price 8000 a Marginal Production Cost Current Market Price (% above marginal production cost) J $6,517 7000 (+350%) ° 6000 | 5000 + 4000 | 3000 + 2000 $1,278 $1200-1700 (+50%) s,s, ¢ 1000 | $850 0 4 Crude Oil (WTI) Gold Bitcoin = Bitcoin tokens possesses no physicality, a criteria for traditional commodities. = Compared to other commodities, Bitcoin’s market price stands far above its marginal production cost. — Gold miners’ and oil drillers’ revenues stand 50% and 8% above their marginal production costs, respectively. — Bitcoin miners’ revenue per bitcoin stands approximately 350% above their electricity expenditures. (1) Peter C.B. Phillips, Shu-Ping Shi and Jun Yu, “Testing for Multiple Bubbles: Historical Episodes of Exuberance and Collapse in the S&P 500,” International Economic Review, Oct 28, 2015. Source: Investment Strategy Group, Bloomberg. 16 HOUSE_OVERSIGHT_025679