HMONY: Significant purchase interest in Lokotech's Scrypt circuit boards (Hashblades)
Lokotech AS, a wholly owned subsidiary of Harmonychain AS, has, since our
participation at the Litecoin Summit in October and confirmation of Multi
Project Wafer (MPW) participation, experienced great demand and interest in
Lokotech's ASIC miners either as circuit boards (hashblades) or complete
For several reasons, Lokotech has expanded and explored the possibilities of
allowing smaller players to buy miners with fewer ASIC chips per unit at a lower
price point per miner.
Circuit boards will be healthy for Scrypt based networks as the network
validations (and hashrate) will be decentralized over many more nodes
(computers/circuit boards) and thus become a strong catalyst for
2. Re-use of existing infrastructure
Computers that used to work on Ethereum's Proof of Work (PoW)are now largely
idle, after Ethereum switched to Proof of Stake (PoS. They will potentially be
reusable with Lokotech's circuit boards/hashblades in existing computer
equipment that is no longer used for Ethereum. This is a huge market.
On 12 December 2022, the first informational video was posted on YouTube, and
since then we have received registrations from over 1,000 unique customers for
participation in a pre-sale at lokotech.no. The registrations are 100% organic,
and the customers have ranked themselves with an interest between 1 and 6,000
pieces, and have, upon request, been indicated a price at launch of between USD
1,999 and USD 2,199.
"We have so far spent zero funds on external marketing, and we believe we have
confirmed our hypothesis of a significant market interest also among smaller
players for what is likely to be the world's most energy-efficient Scrypt ASIC.
We can replace the entire existing Scrypt hash rate with a combined consumption
of around 80 MW. It's a big step in the right direction for blockchains that use
Scrypt as a hashing algorithm," comments co-founder and CFO Benjamin Miklozek
Harmonychain conducts research and development of a Scrypt blockchain data chip
system(Application Specific Integrated Circuit - ASIC) in Lokotech AS, develops
proprietary blockchain software such as Filecoin optimization, Scryptpool
software in closed beta, and owns certain intellectual rights in Harmonychain
AS. Furthermore, Arctic Core AS is developing a data center in Halden and has
land projects in Kautokeino and Øksnes which can hopefully be realized in the
coming years. The site in Kautokeino is regulated for business, while the site
in Øksnes has a conditional lease where new regulation is probably needed before
possible operation. The R&D Harmonychain group has limited turnover in 2022, but
a very comfortable liquidity of over NOK 60 million as of 1.1.2023. Currently,
Harmonychain is in discussions with potential financial partners about potential
models for growth cooperation. There is a risk that no transaction will result
from the process. If the testing by the ASIC company proves that the ASIC is as
energy efficient and economical as projected, the company currently plans to
finance the production of the ASIC circuit boards mentioned above by advance
payments from customers.
This information is mandatory in accordance with section 5-12 of the Norwegian
Securities Trading Act.
This information constitutes inside information and is subject to the duty to
provide information in accordance with the Market Abuse Regulation (MAR).
The message is published on behalf of Harmonychain AS by Ola Stene-Johansen,
CEO, at 12.45, 12th of January 2023.