20190110 whitepaper final - batmine, green crypto mining€¦ · industrial mining farm is...

BatMine Whitepaper

Telegram channel: https://t.me/batmineICO of 31

CONTENTS 1. Introduction................................................................................................................... 3

2. BatMine Company Overview ............................................................................................ 5

3. Crypto Mining Industry Overview ..................................................................................... 6

4. The BatMine Strategy ..................................................................................................... 8

4.1 Revenue Generator 1: Mining of Cryptocurrency .................................................... 8

4.2 Revenue Generator 2: Mining as a Service (MaaS) ................................................ 9

4.3 Revenue Generator 3: Custodial Services ............................................................. 9

4.4 Revenue Generator 4: Hardware Sales ................................................................ 10

5. BatMine Revenue Distribution ......................................................................................... 11

6. BatMine ICO ................................................................................................................. 12

6.1 ICO Introduction ............................................................................................... 12

6.2 The ICO Summary ............................................................................................. 13

6.3 Summary of Benefits for our Investors ................................................................. 13

6.4 BatMine ICO Raised Funds Allocation ................................................................... 14

6.5 BatMine Token Allocation ................................................................................... 15

7. Investment Rounds ....................................................................................................... 16

8. ICO Technical details ..................................................................................................... 17

9. Bounty Rewards Program ............................................................................................... 18

10. Our Team ..................................................................................................................... 19

10.1 Key Team Members ........................................................................................... 19

10.2 Advisory Board Members .................................................................................... 20

11. Our ICO and legality ...................................................................................................... 22

12. FAQ ............................................................................................................................. 25

13. Disclaimer .................................................................................................................... 28


1. Introduction BatMine is more than just another crypto mine. It is Blockchain Applied Technology (BAT) at its best,

crafted to an art by skilled Cyber artisans and Blockchain professionals. We are creating the most

advanced, profitable, fastest and sustainable crypto currency mine that ever existed. A Mine which you

can join and become a member of our BatMine community. We will bring this amazing opportunity to

life together, and build the BatMine for visionaries – our Community.

We are building BatMine in Europe, one of the safest and crypto friendliest jurisdictions in the world.

BatMine is a singular creation based on new generation, high capacity BTC, LTC, ETH and other

currencies‘ mining equipment and mostly GREEN energy.

For BTC mining we may use some of the upcoming miners that feature up to 55 Th/s and an ultra-low

electricity consumption, or similar equipment if by the time of launch there are better alternatives on

the market.

In addition, we offer MaaS (Mining as a Service), Custodial Services and sales of Mining hardware

including our inhouse developed miners.

We realize the vital importance of combining low electricity cost, low electricity usage per miner, and

high hash speeds for the profitability of the mine. In order to become the leaders in the market, we

collaborated with a first-class chip and miner design company. We united in this ambitious vision and

worked with their R&D department on a singular creation – a new LTC/ETH chip with 10nm, 5M scrypt

hash per chip and an ultralow energy usage of 0.5W/M hash power. This is the miner we will use for

LTC and ETH mining, and which we will sell to the market.

BatMine’s goal is to raise 19 million EUR in ETH, BTC or EUR from which 90% will be used directly to

fund its mining operations.

In exchange for their investment investors will LEGALLY receive their share of the 30% profit sharing

for a period of 10 years (until March 2029), and complimentary BATM tokens which hold the same

benefits as any other transferable ERC20 Token. BATM tokens are utility tokens that can be exchanged

for any of our services and therefore can result in extra benefits for our investors.

To legally distribute profit sharing we use a structure called a Silent Partnership, under Czech (EU) Law.

A Silent Partnership is a legal agreement where one party receives an investment (your ICO

contribution), and the second party receives a set share of the profit (in our case your share of the

total 30% profit sharing) for an agreed period of time (in our case 10 years). Our lawyers have verified

this structure with the Czech National Bank, who confirmed that we can offer this structure in its current

form.


The Alpha Omega in crypto at this point in time are of course Security Token Offerings (STOs) which

would in theory allow for tokenized profit sharing. Regretfully there is no legal crypto / token security

framework yet that legally guarantees the rights of investors to receive the promised profit sharing,

which is why many people have not received their promised profit shares in many ICOs that took place.

Our Silent Partnership structure provides both the legal right to profit sharing, plus ERC 20 Utility tokens

that can be fully used to exchange for goods and services from the Company. After usage these tokens

are burned.


2. BatMine Company Overview We strive for full transparency and therefore we disclose our full Company structure.

BatMine is a project from:

Blockchain Applied Technology Ltd

Mara Gidik street N21, et,1

8000 Burgas

Bulgaria

And it’s 100% subsidiary company Blockchain Applied Technology Ltd., Rybna 24, 110 00 Praha 1,

Czech Republic, that will be established within one week after the ICO ends.

We have chosen Bulgaria and the Czech Republic for several reasons. First and foremost, both are

stable European jurisdictions.

There are several reasons why we have chosen to set up our parent company in Bulgaria. The first is

a stable European legal jurisdiction with crypto legislation that allows us to legally operate the mining

facilities, and repatriate profits derived from profitable mining operations and hardware sales worldwide.

The flat tax rate in Bulgaria is 10%, the lowest effective rate in Europe. Labor costs are low, and quality

team members are readily available.

The Czech Republic has a stable economy, low-cost electricity rates through strategic Partnerships with

local energy providers, and a legal structure that allows us to pay profit sharing to investors. The Czech

Republic has a moderate climate leading to less cost for cooling and heating the facilities, moderate-

to-low labor costs, and is the sixth safest country in the world. We plan to build our first mine in the

Czech Republic. For a mine it is very important that services like Internet and electricity are reliable and

are provided continuously. The Czech Republic has heavily invested in building a reliable backbone for

both networks, so that BatMine and all stakeholders can be ensured of a fully functional mining facility.

All activities under this ICO, including but not limited to token management, marketing, operations,

technical development, management, hardware sales and mining operations, will be executed in these

countries.

Profit sharing will be distributed worldwide from Bulgaria over any and all profits made by any of the

current and future companies in the BAT Group.


3. Crypto Mining Industry

Overview There are several ways to mine crypto currencies; the most profitable are industrial mining followed by

cloud mining.

Right now, there are several ways to get involved in crypto mining:

• Home Mining,

• Cloud Mining, and

• Industrial Mining Farm.

Home mining is currently not profitable, mostly due to high electricity cost.

Cloud Mining is suitable for mostly private individual mining, while Industrial Mining functions as

corporate business facility. These methods have their advantages and limitations.

Cloud Mining is often not transparent:

• No control over the equipment and its maintenance;

• No contact to the equipment suppliers, no overview of pricing and equipment models;

• No knowledge of the real mining capacity;

• No overview of spending and costs;

• Often the location of the Mining Facility is anonymous.

Industrial Mining Farm is considered the most profitable and lucrative method to mine crypto currency

via ASICs mining hardware although other options are developing. There is a global shift towards

industrial – scale data center mining by mining groups, mining equipment manufacturers, cloud mining

providers and investors. Only in the past year alone the global power for the industrial mining machinery

has grown 147 times.

An Industrial scale mining farm like BatMine is expensive to set up and manage, and due to the high

costs inaccessible to most of the private miners and even companies. The solution is to build

crowdfunded Industrial Scale Mining Farm.

Industrial Mining is expensive and requires a higher level of expertise and resources.

• Significant investments in equipment and infrastructure are required for the profitable mining.

• High volumes of electricity are used. Even though electricity is bought wholesale, the amounts

are still high.

• IT Mining experts and other specialists are needed to work full time on the Mining Farm.


In the last 12 months several ICOs for crypto mining operations have been issued. Some are scams

(like Snowball Mining) or appear to provide conflicting information (like Veritas). Miner One pays over

7 cents of electricity per KwH compared to 4 cents that we will pay. That was one of the reasons why

they had to stop mining for now. Keep in mind that Miner One pays taxes in Sweden, which are relatively

high (22%) compared to taxes in Bulgaria (10%). IceRock Mining and Ambit Mining pay 3 and 4,5 cents

per KwH respectively, but they use equipment with 16 Th/s, compared to our 55 Th/s. That is why we

feel confident that those factors matched with a safe legislative jurisdiction make us more competitive.

And best of all, we contractually commit to profit sharing in a secure way to investors.


4. The BatMine Strategy Due to the unregulated ICO landscape that caused investors in prior ICOs to either receive none of the

promised token dividends, or outright lose money, BatMine has chosen for a business model that

provides certainty and transparency to its contributors to the fullest extent.

The basis of our ICO legal framework is the Silent Partnership model of investing, explained in detail in

Chapters 1, 7 and 12. This framework allows us to legally offer profit sharing to investors. Profits are

shared for a period of 10 years, until March 2029. Profit sharing is done monthly over any and all

realized profits from BatMine. The Hard Cap is 19 million EUR and the Soft Cap is 1 million EUR.

Our BATM tokens are provided to investors as a gift. We will create 350 million ERC 20 compliant Utility

tokens. For every ETH invested, as investor you receive 750 BATM tokens. Those tokens can be

exchanged for any and all services and goods offered by BatMine.

After the successful ICO, BatMine plans to place a mining facility in the Czech Republic. The facility can

house 12,000 miners of which up to 10,000 miners (depending on how much we raise) will be purchased

from the proceeds of this ICO.

BatMine will be located in a location which:

1. Is secure and allows for rapid response should anything happen;

2. Has a cooler climate;

3. Allows for sufficient, mostly green, energy supply at around 4 cents per kwh;

4. Has the infrastructure required for a commercial mining operation.

The BatMine mining location will function as head office for all mining activities. A separate office will

be opened in Prague, Sofia or other suitable city for day-to-day commercial operations. We believe that

for several reasons including cost optimization and availability of multi-language speaking personnel, it

will be better that the sales and customer service centers will be located in a capital city rather than a

rural location where mining conditions are optimal for mining.

4.1 Revenue Generator 1: Mining of Cryptocurrency

The Company will initially mine BTC, LTC, ETH, and a mix of proof-of-work based coins and scrypt-

algorythm based coins. Which exact coins we mine depends on the assessment of the profitability per

coin over the current and projected future period. We keep a close eye on the market and when we

see that one or more altcoins start producing better than what we mine at that moment, we can switch

quickly to mining those coins.

We plan to use a variety of miners with focus on hash power, availability of spare parts, life expectancy,

ability to switch mined currencies, and energy usage.


Mining is a competitive activity and therefore sustainability and profitability of the mine is of key

importance. Miners need to be replaced regularly and with miners with ever-increasing computing

power to handle the growing difficulty level. For this reason, 25% of all profit will be used to replace

broken miners with newer and stronger ones as they become available, and 20% of all profit will be

used, in correlation with our partners, to develop the next generation of miner chips and miners, so

that we can remain competitive and earn on revenue from chip and miner sales too. In case the cost

of miners that need to be replaced with new ones is larger than the projected 25% in a given month,

we will use a part of the R&D budget to ensure that our output remains optimal.

4.2 Revenue Generator 2: Mining as a Service (MaaS)

To customers that don’t want to own and operate equipment, we offer our MaaS services. Customers

can start mining within 12 hours and receive their first revenue within 45 days, and then every 30 days

after. MaaS services can only be obtained through BATM tokens which ensures continuous usage of

the tokens.

We will provide to our customers the hash power they require to mine crypto coins with dedicated MaaS

miners. Rather than focusing on coins where mining competition is steep, our customers can choose

from a portfolio of coins that they can mine. In this way customers can flexibly mine those coins that

provide the best yield in a given period, thereby increasing the output. Our customers decide which

coins they want to mine with the hash power they purchased. We mine both proof-of-work based coins

and scrypt-algorythm based coins.

Our packages are complete because you benefit from our low electricity, state-of-the-art facility, and

economy-of-scale savings that we have. Our packages can be obtained with BATM.

Our packages include:

1. Our dedicated miner(s) installed at our state-of-the-art co-location in a safe jurisdiction,

2. Specialized technicians managing the miners 24/7/365,

3. Continuously provided electricity,

4. High-speed Internet connection,

5. 24/7 access to your miner results,

6. Monthly distribution of your mined profits.

4.3 Revenue Generator 3: Custodial Services

BatMine will provide hosting and mining management services to those customers that either want to

buy and use our hardware, or that have their own miners already and that want to host them in our

location. You receive the total mined amount minus a monthly fixed fee which includes any and all

costs, in the currency / currencies in which they are mined.


Our aim is to provide a non-stop solution for all custodial services and with a low threshold so that

anyone can earn on mining. Because of the future size of our operation you benefit from lower costs

for miners, infrastructure, electricity and costs, so that you make the most revenue out of the mining

you can.

You can mine different coins at the same time (pending technical ability of your miners) Custodial

services from BatMine are simple and straightforward.

1. You either buy miners from us or send us your equipment.

2. Our highly skilled technicians install the miners.

3. We operate, maintain and manage them.

4. Every month we distribute to you all mined coins minus a fixed fee per month for the Custodial

Services package per miner.

Custodial Service Packages can be paid in EUR, BTC and any other currency we mine, and include:

1. A place for your miner(s) at our co-location in a safe jurisdiction and 24/7 security,

2. Specialized technicians managing the miners 24/7,

3. Inexpensive and continuously available electricity,

4. High-speed Internet connection,

5. 24/7 access to your miner(s) results,

6. Monthly distribution of your mined output.

4.4 Revenue Generator 4: Hardware Sales

We will work with our main vendors that provide us with their state-of-the-art mining equipment. In

addition, we also develop and market our own miners and chips which we will offer to wholesale and

retail customers. Investors share in all of the profits we make over the sale and distribution of these

miners and chips and can buy them at advantageous prices.


5. BatMine Revenue Distribution The BatMine revenue distribution model is simple and straightforward.

BatMine will generate revenues from:

1. Mining of crypto currency,

2. Mining-as-a-Service,

3. Custodial Services,

4. Hardware sales.

The profit (income in mined cryptocurrency + received fiat/crypto -/- costs and tax reserve) is

distributed as follows:

• 30% is distributed to our Silent Partners that invested in the project, for a period of 10 years

(until March 2029),

• 33% is used to replace hardware,

• 20% is used for further development of our own miners, and

• 17% remains in the Company and will be used for other Company cost and expansion.

In case at times less hardware replacement or R&D costs are needed than the dedicated percentages

of the distributable revenues, then these gains are shared 50-50 between the Silent Partners and

BatMine.

All revenues are distributed monthly on the 15th (or the first working day after) of the month following

the previous calendar month. Revenues are distributed in the currency in which they are received from

the market. Hence BTC revenue is paid in BTC, ETH in ETH, and EUR in EUR. If it will be possible we

will develop smart contracts for automatic distribution.


6. BatMine ICO 6.1 ICO Introduction

Blockchain technology is indeed revolutionary and we do believe it is the future, but there are still things

to be perfected. Two of those things are energy efficiency and overall costs.

Bitcoin or any other currency mining can get very expensive and can drain a lot of electricity. As an

example, we would like to mention the problems during the peak moments back in December 2017

until January 2018 when a lot of new people were coming in and a lot of trading was going on. With

the former speed and efficiency transactions were getting stuck in the system, causing people to wait

for weeks until their transaction went through.

If you needed your transaction to go through without problems, you had to pay $50-100 in transaction

fees, which we can all agree, should not be happening.

As we believe and hope, blockchain will go mainstream soon and the peak moments we experienced

in the past will be nothing compared to the load of transactions coming our way. We, as miners, need

to get faster in mining and cheaper in energy costs – and that’s exactly what BatMine offers. We aim

to become the most efficient, sustainable and profitable mine in the history of blockchain, and we invite

you to participate in making it happen.

Blockchain is a technology that we are fully committed to and we are dedicated to implement to the

maximum. Although the technology is relatively young, we foresee that it will become the standard,

just like the Internet became the standard of the world.

The benefit of ICOs is the elimination of the middleman between an investor and a Company creating

the project. Banks, financial advisors, venture capitalists and angel investors have long and arduous

procedures, and even then, the results are far from certain. The costs of preparations, fees and equity,

are high and the focus is typically solely on the return of investment rather than the use case of the

product or service itself.

Regarding the costs, the same applies to running mines and platforms. The costs are high. Blockchain

technology will change this. We can create our own platform on the Ethereum blockchain where

payments are fast, immediate and secure. All profit-sharing payments are processed through the

Blockchain from our designated wallets which results in lower payments themselves as the fees for one

transaction are significantly lower. Blockchain also allows us to include the general public as a direct

partner. Such approach gives people an opportunity to participate in an interesting, otherwise

unreachable project which is mutually beneficial for both them and us. The more people participate,

the quicker the mine grows and the more beneficial it becomes for all people included.


In conclusion, an ICO enables us to collect the needed funds quickly and securely so we can move

forward and the BatMine community.

6.2 The ICO Summary

Our goal is to raise 19 million EUR in ETH and EUR through this ICO. The Soft cap is 1 million EUR

which will cover the approximate expenses for one project. The more we raise, the more mining

equipment will be purchased, resulting in bigger profits for investors. The exchange rate that will

estimate the final number of ETH and EUR needing to be raised will be established two days before the

start of the Whitelist round. 90% of the raised capital will be directly used to build and operate the

BatMine(s).

As a main component of our ICO we offer to the investors 30% profit sharing. Our approach is fully

legal and allows eligible investors to participate in the profit-sharing opportunity. Profits will be directly

linked to any and all profits created as a result of the successful ICO. All details will be clearly stated in

the Silent Partnership Agreement which will be signed by every participant. The Silent Partnership

Agreement will remain valid from the end of the ICO until March 2029. Revenue is paid out monthly

and in the crypto designation in which they were mined.

So, if our mining profit (income -/- expenses and tax reserve) is 1,000 BTC and 1,000 ETH, profit

sharing is 300 BTC and 300 ETH over that month. In addition, investors receive, based on their

individual investment relating to the total raised amount, their share of the 30% profit sharing over any

profits the Company makes, for example over hardware sales, MaaS services and Custodial services.

These profits are paid in the crypto and/or fiat currency in which they were received.

Contributors will also receive a gift of BATM Tokens for every ETH contributed (BATM tokens are fully

functional ERC20 utility tokens) through a smart contract. Among others, the BATM Tokens can be

exchanged for any and all services including hash power, MaaS and others.

Investors can invest in ETH and EUR. The Hard Cap is in EUR and therefore the conversion rate to ETH

is yet to be calculated. This will be calculated two days before the start of the Whitelist round to limit

the potential effect of course fluctuations. An average conversion rate of these two days will be

calculated and will be announced on our social media.

6.3 Summary of Benefits for our Investors

Investors’ interests will be secured via a Silent Partnership Agreement through which they receive their

share of the profit, sharing in total 30% in any and all profits the Company generates, for the period

of 10 years (Until March 2029). The profit sharing will be distributed among all investors based on the

amount of ETH they contributed. The Silent Partnership Agreement can be transferred at any time the

investor chooses, pending our approval to ensure that our confidential data, or our profits, are not

provided to competitors or people involved in criminal activities. For the transfer of your Silent


Partnership Agreement, please contact us via our email and we will help you with the approval and KYC

process, which is neither lengthy nor challenging.

In addition to the Silent Partnership Agreement, and as a gift, investors will receive BATM Tokens for

every ETH they invested. BATM Tokens are Utility Tokens that can be exchanged for any of BatMine’s

current and future services.

Benefits for investors include:

• Profit sharing in all of the companies’ future profits for a period of 10 years (until March 2029),

• Transferable Silent Partner Silent Partnership Agreements,

• BATM Tokens as a gift for every 1 ETH invested plus bonuses,

• Tokens can be exchanged for all services including packages for MaaS (hash power, electricity

and related costs) and Custodial services packages,

• Upon prior notification, the mine can be visited so that you can see the operation real-time,

• Monthly disbursement of profit share to investors.

6.4 BatMine ICO Raised Funds Allocation

Construction and mining includes: building and maintenance of the co-location including ventilation and

fire installations, miner equipment, office setup, technical back office setup, and the cost for the first

year of operation of electricity, nominal salaries for the mine operators, spare parts, travel expenses,

sales office expenses and related costs. RD includes: any and all activities needed to further develop,

co-develop and produce our own chips and miners. Marketing includes: any marketing and PR related

costs to promote the project and gain customers. Operations includes: any costs not covered by the

above.


6.5 BatMine Token Allocation

In total 70% of the tokens are sold. We reserve 15% of the tokens. For Bounty, Airdrop and Advisors

we reserve 10% of tokens, although we expect to burn most of them; this is only an estimate of tokens

we may need for this purpose. The team is rewarded for their hard work over the last 1.5 years with

5% of the tokens.


7. Investment Rounds Three rounds of the ICO will be conducted. The first round is dedicated to Private investors, the second

round to Whitelist participants, and the third round to Crowdround participants. There are several

bonuses that apply to each round based on in which round will you participate and/or when you will

invest.

For Private investors, the token bonus is 30%. For Whitelisted participants the token bonus is 20%.

Crowdround participants will obtain bonuses ranging from 10% to 0% depending on when they have

invested within the Crowdround process. The exact bonuses for all rounds are listed in Chapter 9.

Round 1: To join the Private investors round, you must contribute at least 200 ETH. To participate in

this round, please contact us on [email protected]. The Private investors round begins on

02.01.2019.

Round 2: To join the Whitelist you will have to perform a KYC registration. Registration will be in

February. The Whitelist round starts in March and ends in March. The minimum investment for Round

2 (Whitelist Round) is 5 ETH.

Round 3: The Crowdround round will begin in March. The Crowdround will end in March or after the

hard cap is reached. The minimum investment for the round 3 is 2 ETH.

KYC procedures apply for all Rounds. Required information includes your full name, email address, date

of birth, ETH wallet public address from which your investment will be sent (and where we later send

our tokens), a scan of the front side of your passport or your ID Card, in case of an ID card also the

back of the document, then a clear photo of your face while holding the same scanned submitted

document (selfie). This is to confirm your identity.

Please follow our social media channels like Facebook, Twitter and Telegram. For security reasons, we

will post all important information and updates related to the ICO ONLY on these channels. For

additional information or questions, our admins and chat team can assist you.


8. ICO Technical details Token name BATM

Token type ERC 20

Token supply 350,000,000 BATM

Token use

BATM Tokens are utility tokens that can be exchanged for all BatMine

services including exchanging them for mining services and custodial

services

Purchase options ETH

Token Gifting 750 BATM Tokens are gifted to investors for every 1 ETH invested.

Unsold tokens Non-sold and/or non-distributed tokens will be burned

Hard cap 19,000,000 EUR in ETH

Soft cap 1,000,000 EUR in ETH

ICO duration 02.01.2019 to March

ICO Time schedule

Date Description

02.01.2019 – February Private investors round

February Whitelist registration

March Whitelist round

March Crowdround

Bonuses

Date Bonus Time

March

(Whitelisted participants only) 20%

March 10%

March 5%

March 3%

March 0%

Lock up All tokens will be locked up until then end of the ICO (until March) or

after the Hard Cap is reached, plus 15 days.

Silent Partnership

Agreement (SPA)

Silent Partnership Agreements will be electronically signed with every

participant. Silent Partnership Agreements are transferable.


9. Bounty Rewards Program We have developed Airdrop and Bounty Programs, for which we have reserved (together with the

reward for Advisors) 10% or 35,000,000 tokens of our total Token Supply. Our Partner for the BatMine

Bounty Program is Bounty0x.

In exchange for Bounty Tokens, investors must become a valuable member of our community. The

more you help to promote and advance the concept the bigger “Proof of Care” allocation you will

receive. Please visit our Medium channel for more information. The link can be found on our website

or on Telegram/ Twitter channel.

These are the links to our official channels:

Website: www.batmine.io

Telegram: https://t.me/batmineICO

Twitter: https://twitter.com/batmineico

Medium: https://medium.com/batmine

Facebook: https://www.facebook.com/BatMineICO/


10. Our Team BatMine has assembled a team of entrepreneurs and experts with a proven track record to advise and

develop the Company in building out our business. BatMine invested a lot of resources and time in

finding the right business formula for the mine to become and remain profitable. Our team is very eager

to implement that formula.

10.1 Key Team Members

Pius Lam – Founder & CEO

Pius has more than 25 years of experience in the IT & Telecommunication businesses, and data center

operations. He is the Senior Partner at Hong Kong based investment banking boutique “Synergy Capital

Partners Limited”. Pius has extensive experience in Pre-IPO Restructuring, Mergers and Acquisitions,

Corporate Rescues and Turnaround, Strategic Advisory, and Investor Relations services to growth

companies. He is a strong leader with wide experience in setting up profitable companies in the USA,

China and Europe. He holds a master’s degree in economics and Finance from SUNY - Binghamton

University with a full scholarship. Pius is actively involved in the crypto industry since 2013. He will

preside overall day-to-day operations which includes all sectors and fields of the business, including

operations, marketing, business development, finance, human resources, etc. Besides reporting to the

Board of the Directors, his main responsibility is to increase BatMine’s profitability and growth.

Dan H. Park - COO

Dan is an entrepreneur with significant executive experience in the Telecom- and IT sectors. As the

Country Manager of a leading international telecom Company in Korea he developed solid management

and organizational skills for setting up new ventures. He is active in the crypto industry since 2014 and

has invested in bitcoin and other alt-coins ever since. Dan holds an MBA degree from Boston University.

Besides overseeing the daily operations, his main focus is to execute the operational part of the business

plan. He will maintain the workflows of the mining farms and decides which altcoins beside BTC should

be mined in order to maximize the profits of the operations. Dan will also lead the development of new

products and services in order to sustain a healthy ecosystem within the BatMine community.

Riva Yu – CFO

Riva is the Chief Financial Officer from BatMine. She is a CPA chartered finance professional with over

10 years of experience with large scale companies and leadership positions including CFO positions.

Her previous experience includes financial accounting, management accounting, internal control audit

& assurance, and system application controls. Within BatMine, Riva will be responsible for building a

strong financial framework, corporate governance procedures, and accounting standards.


Richard Tang – Business Development Director

Richard is the Chairman and co-founder of ETN Singapore Private Limited, director & board member of

Mobifone Global Singapore Pte Ltd, FutureTel Private Limited, TrustPay SG Pte Ltd, ETN Cambodia

Investment Ltd & Future Engineering & Gold Mining Co., Ltd (Myanmar).

In his early career he was the regional manager in Keppel T&T covering Indo-China and Chief Operating

Officer with a wholly owned listed Singapore listed subsidiary, Next-Generation Satellite

Communications Ltd, Telemedia Communications Pte Ltd. Prior to these Mr. Tang founded Nuera

Communications Asia Pacific, (a wholly owned subsidiary of USA, San Diego based Nuera

Communications Inc., a subsidiary of Audiocode, Inc.) manufacturer of carrier class VoIP gateways and

soft-switch. In early 2006, he also seeds funded two other VoIP sessions border controller and media-

servers’ developers in the USA, Sansay Inc. and Netsapiens Inc. respectively. Richard will drive the

growth of BatMine commercially.

Olga Kuznetsova – Proposal Expert

Olga is a successful Proposal Manager with 18 years of IT experience including 12+ years of extensive

experience in Federal Proposal Management providing direct management support for the delivery of

high-quality, competitive Responses/Proposals to prospects within the U.S. public sector. Olga received

her master’s degree in Electrical Engineering from the Kama Polytechnical Institute in Russia and moved

to the US in 2001. She worked for the large US companies including Oracle and Equifax.

Silvie Tripes – Web design & Graphics

Silvie is an experienced web- and graphic designer with 10+ years of experience in web design, gaming

creation- and marketing, corporate sales and graphic design. Silvie holds a master’s degree in Business

Law from Masaryk University Brno. Silvie will ensure our website and online presence is professional,

up to date and great looking.

10.2 Advisory Board Members

Kyle Wong – Blockchain Advisor

Kyle Wong, Ph.D. and CFA, is the Chief Operating Officer of the Blockchain Association of Hong Kong,

a non-profit organization dedicated to the promotion of blockchain technology in Hong Kong and to

encourage its adoption in the financial market. The Association is one of the largest Blockchain

organizations in Hong Kong. He is also the advisor to several blockchain projects, including Distributed

Machine Learning (DML), which applies machine learning models to mobile devices while protecting

users’ privacy using blockchain technology. DML successfully completed an ICO in April 2018. Kyle

received his M.S. and Ph.D. degrees in Applied Physics from Cornell University. He received his B.S.

degree in Physics and Mathematics at the University of Wisconsin-Madison. He is also a trained Corda

developer. Corda is a distributed ledger platform specially designed for the financial sector.


Tomas Sekera – Legal Advisor

Tomas is a corporate and public Law expert with more than 25 years of legal experience in, among

other, Company security policy, areas of legislation and criminal law, security procedures and processes

– i.e. protection of personal data and identity, data traffic and location data, inside information, trade

and bank secrets, electronic signature, conflict of interest, CCTV, biometrics, GDPR and ICO related

legislation. Tomas has a master’s degree in business law from the University of Hradec Kralove and an

MBA from the Prague International Business School.

Thomas Wong - IDC/Cloud Computing Advisor

Thomas has been active in the Networking- and telecommunications industry for over 30 years. He

witnessed and experienced the transformation of IT industry from ATM/Frame relay to MSTP/MPLS;

mainframe to PC and its recent evolvement to Cloud Computing.

Thomas currently holds the position of Executive Director of One Asia Ltd., Prior to One Asia, he was

General Manager of Equinx (Nasdaq:Eqix) in China. Thomas is also one of the founders of Hogan

Datacenter which was founded in 2007 as one of the first carrier neutral Datacenter with international

standard in China.


11. Our ICO and legality Currently, the features of regular token sales, also called TGE’s or ICOs, are frequently discussed,

banned or severely limited in jurisdictions around the world. For this reason, we asked our legal partner

to see if there is a way to offer a fully legal Silent Partnership and bonus Coin Offering that also allows

for a legal form of revenue sharing with investors. We have created a completely legal framework to

do this. The BatMine approach ensures to our clients a level of certainty in an otherwise volatile and

ever trend-changing market.

We have opted for the Silent Partner structure with gifted Tokens, executed through a Silent Partnership

Agreement.

From the available sources and the best of our knowledge the Silent Partnership legal framework used

in an ICO format has not been previously fully examined by any state authority. Further to this, our

Partners have filed a Qualified Question to the Czech National Bank (“CNB”) as the Czech legal system

which is fully harmonized with the relevant EU laws.

The first question submitted was: Is it possible to publicly offer, via the Internet, to the general public

a possibility to conclude a Silent Partnership Agreement within the meaning of § 2747 of Act No.

89/2012 Coll., Civil Code, as amended (hereinafter referred to as the "NOZ") with the capital Company,

without this offer being considered as an investment instrument or investment security?

Questionnaire's position: Yes, since by to conclusion of the Silent Partnership Agreement within the

meaning of § 2747 NOZ, the Silent Partner commits themselves to the contribution to the Company for

the whole term of the Agreement and the Company undertakes to pay a share in profit to the Silent

Partner, and this contractual relationship does not display the features of an investment instrument

pursuant to Section 3 (1) of Act No. 256/2004 Coll., on Capital Market Undertakings, as amended (

hereinafter referred to as "ZPKT"), and it does not display the features of an investment security

pursuant to Section 3 (2) of the ZPKT, since the Silent Partnership Agreement is not a security within

the meaning of Section 514 et seq. NOZ, according to which the security is a document with which the

right is connected in such way that it cannot be applied or transferred without that particular document

after such document is issued.

Since the rights and obligations arising from the Silent Partnership Agreement can be exercised or

transferred without the document (instrument) in question, for example by a contract assignment or

even verbally (the Silent Partnership Agreement does not require a written form), the Silent Partnership

Agreement does not fulfil the basic definition of a security, not even a book-entry security (there is no

right incorporated in the Silent Partnership Agreement) nor any form of derivative.

The Questionnaire intends to publicly offer the conclusion of a Silent Partnership Agreement to an

unknown group of people via the Internet and considers that this offer is not a public offer within the


meaning of the relevant provisions of the ZPKT, as well as the offer of an investment instrument or

investment security and therefore is not subject to the statutory obligations expressed in the ZPKT in

relation to the public offers.

The Czech National Bank answered as follows:

On December 6th, 2017 you asked the CNB whether it is possible to publicly offer to the general public

a Silent Partnership Agreement with a capital Company without this offer being considered as a public

offering of investment instruments under the ZPKT.

We acknowledge that the offer to enter into a Silent Partnership Agreement that meets the conditions

defined in your inquiry (i.e. it shall not meet the definition of a security) will not be considered as a

public offer under Section 34 et seq. ZPKT. However, we advise you to assess the contemplated

intention also in terms of compliance with the Investment Companies and Investment Funds Act (Act

No. 240/2013 Coll.), In particular its § 15 and § 98, in relation to the exceptions in § 2 of this Act.

The above response to your submission has been prepared by the relevant CNB expert department, or

upon the materials prepared by the relevant CNB expert department. Sending of response was done

by the Department of Communication section of the office.

The second question submitted was as follows:

Question: It is possible to publicly offer, via the Internet, to the general public a possibility to conclude

a Silent Partnership Agreement within the meaning of § 2747 of Act No. 89/2012 Coll., Civil Code, as

amended (hereinafter referred to as the "NOZ") with the capital Company, without this offer being

considered as a forbidden collection of funds from the public pursuant to Act No. 240/2013 Coll., on

Investment Companies and Investment Funds ((hereinafter referred to as the „ZISIF“)?

Questionnaire's position: Yes, since by to conclusion of the Silent Partnership Agreement within the

meaning of § 2747 NOZ, the Silent Partner commits themselves to the contribution to the Company for

the whole term of the Agreement and the Company undertakes to pay a share in profit to the Silent

Partner. In the present case, the acquisition of cash deposits intended to finance its own commercial

activities (the Silent Partner participates in the business), this contractual relationship fulfils the

exemption according to § 2 let. (a) point 1 of the ZISIF.

Therefore, the rights and obligations arising from the Silent Partnership Agreement do not fulfil the

definition of inferiority for the subordination of this relationship under the ZISIF regulation, nor under

the regulation under § 15 ZISIF on asset management comparable to individual portfolio management.

The questionnaire intends to publicly offer the conclusion of a Silent Partnership Agreement to an

unknown group of people via the Internet and considers that this offer is not prohibited collection of

cash funds within the meaning of the relevant provisions of the ZISIF and is therefore not subject to

the statutory obligations expressed in the ZISIF in relation to public offer.


The CNB answered as follows:

On December 8, you asked the CNB whether it is possible to publicly offer to the general public a Silent

Partnership Agreement with a capital Company without this offer being considered as a underhand

collective investment fund under the ZISIF. You also claimed that „the collection of cash deposits

intends to finance Company‘s own business“.

We acknowledge that the activity of collecting funds to finance non-financial business activities (e.g.

brokering the purchase or sale of goods, renting of such goods, etc.) is excluded from the scope of the

ZISIF* and therefore cannot be considered as an underhand collective investment fund under the ZISIF.

* / § 2 písm. (a) ZISIF: "This Act does not apply to the activities consisting of (a) collecting 1. cash,

when the main purpose of it is to finance its own production, trade, research or the provision of its own

services other than financial and for the further management of that cash funds or assets acquired for

such funds (...) ".

The above response to your submission has been prepared by the relevant CNB expert department, or

upon the materials prepared by the relevant CNB expert department. Sending of response was done

by the Department of Communication section of the office.


12. FAQ What is the BatMine project?

BatMine aims to become the most profitable crypto mine in existence. We combine safe, predominantly

European locations, an excellent team, low cost, mostly green energy, unrivalled hash power of up to

55 TH/s for our BTC miners, and LTC miners with the best cost/performance ratio. We optimize

switching between the currencies we mine to maximize the yield of the BatMine for all of us. Apart from

using our hash power you can also use your own! You can buy our miners and run them at our BatMine

location. All proceeds minus a fee for electricity, operation, service and management are yours. Our

safety, low cost electricity, and high hash rate will make your mining significantly more profitable. We

also provide Mining as a Service (MaaS), Custodial Services and hardware sales of mining equipment.

In what way is the BatMine project different than other Mining ICOs that

took place?

Location, guaranteed profit sharing, and hash power. Most mines are located in countries with difficult

or even hostile environments. Things can change there, and fast. Our mines will be located in the

European Union, one of the most crypto mining friendly and stable regions in the world. Unlike any

other prior mine, or ICO in fact, we offer legally binding and legally valid profit sharing. Our Investment

contract, closed between BatMine and the investor under Czech (European) Law, guarantees Investors’

right on profit sharing. To date many ICOs regretfully did not distribute promised profit sharing due to

“legal force major” and “legislation issues”. With BatMine you can be sure you get your share over any

and all monthly profit. Our hash power is up to 55Th/sec, nearly the double of the Antminer S9 used

almost everywhere in the existing mines. We co-developed the technology and feel very confident that

all above factors will result in increased profits for all stakeholders.

How is it possible that BatMine’s hash power is close to double or even triple

the current standard?

Every business model has a “golden grail” and in the mining business the main profit denominator,

apart from low pricing of electricity and other costs, is an as high as possible hash power. Therefore,

we have worked closely with vendors in China and Europe to jointly develop miners that can take on

the mining power needed in the future. We will both use and sell these miners, and also offer them in

our custodial packages to token holders.

How will the funds be used that are raised?

All funds that are raised are used directly and solely to build, equip and operate the mines, and to sell

our miners to the public.


What are the benefits for BatMine investors?

BatMine investors will be informed about each step we perform to become and remain the most

profitable mine. Investors receive transferable Silent Partnership Agreements. Many ICOs offered profit

sharing and then did not distribute those profits due to “regulations”. In our case, with a Silent

Partnership Agreement your profit sharing is legally guaranteed for an irrevocable period of 10 years.

In addition, you receive tokens for every ETH invested (or its countervalue in other currencies) and

these can be exchanged for our services so that in addition to profit sharing related to the contract,

you also can make profits on our services through the tokens.

You offer legally compliant profit sharing. How does it work?

When we started the ICO we wanted to offer a legal framework that would take the illegality and

uncertainty of profit sharing away. Our legal Partners proposed a framework that does exactly that. In

our case, instead of a SASP or token sale Agreement we electronically sign a legally compliant Silent

Partnership Silent Partnership Agreement (SPIA) under Czech European Law with every investor, under

which the Silent Partner invests in the business in return for a share of profits. A Silent Partner can be

either an individual or a legal entity. The Silent Partnership Agreement guarantees the right of the

investor on profit sharing over any and all profits made by the Company. Profit sharing will be done

every calendar month and is guaranteed for a period of 10 years. In addition to the above, the investor

is also gifted tokens, which are ERC 20 tokens that can be exchanged for any and all of the company’s

current and future services.

What is a Silent Partnership Silent Partnership Agreement?

A Partnership Silent Partnership Agreement (SPIA) that in case of our ICO will be signed under Czech

(European) Law with every investor, is a contractual agreement in which the Silent Partner invests in

the business in return for a share of profits. A Silent Partner can be either an individual or a legal entity.

The Silent Partnership Agreement guarantees the right of the investor on profit sharing over any and

all profits made by the Company.

Where will you build your mine(s)?

The first mines are planned to be built in the Czech Republic or Bulgaria, depending on how much is

raised, which has a direct effect on the size of the mine we start with. Both jurisdictions are mining

friendly, are European countries with stable legal and economical basis, and have good taxation

climates.

What do you pay for electricity, and what hash power will your miners have?

Real cost for electricity will be around 4 cents per KwH, depending on the location. Hash power is up

to 55 Th/sec for BTC miners and LTC miner chips have a capacity of 12nm and 0.5W/M script hash.


Can we meet you on crypto conferences?

Absolutely, we look forward to meeting you! Please join our Telegram channel at

https://t.me/batmineICO which is our ONLY official channel and where we will keep you up to date

with all information about roadshows, pitches, presentations, launches, mine visits and other meets-

and-greets.

When are the rounds and what are the bonuses per round?

02.01.2019 – March Private investors round

February Whitelist registration 20%

March Whitelist round

March Crowdround 10%-0%

Is there a lock up for the tokens?

Yes, the tokens will be locked up for 15 days after the ICO rounds ends.

What type of tokens do you have and what can we do with them?

BATM tokens are ERC 20 tokens that can be exchanged for all current and future products and services

from BatMine

How many tokens are created and what happens with unsold and/or

undistributed tokens?

We will create 350 million BATM tokens. Unsold and/or undistributed tokens will be burned

In which currencies do you accept investments?

In ETH or in its countervalue in EUR. Fiat currency payments can be made per credit card or bank

transfer.


13. Disclaimer Please read the following notification properly before using the Whitepaper, Website and / or entering

into the Agreement as defined in the Agreement on Silent Partnership (hereinafter referred to as the

“SPICO”). This notice applies to all persons who are using the Whitepaper, the Website and / or are

entering into the Agreement as defined in the SPICO. Please note this document may be changed or

updated.

The Website is carried out by Blockchain Applied Technology Ltd, a Company incorporated and existing

under the laws of Bulgaria (hereinafter referred to as the “Company”). The Company also draws your

attention, that the document named “BatMine Whitepaper” (hereinafter referred to as the

“Whitepaper”) accessible through the website www.BatMine.io (hereinafter referred to as the

“Website”) does not constitute any relations between you (hereinafter referred to as “you”, the “User”

or the “Partner”) and the Company. Using the Website and / or entering into the Agreement is possible

only after accepting the Terms & Conditions as an inseparable part of the Agreement (hereinafter

referred to as the “Terms”) and Privacy Policy. In case that you do not understand or disagree with any

part of this Disclaimer, Whitepaper, the Agreement, Privacy Policy and / or the Terms, please stop using

the Website and do not enter into any relationship with the Company.

Before using the Website and / or entering into the Agreement read carefully all the information set

out in this Disclaimer, Whitepaper, the SPICO, Terms and Privacy Policy and ensure that you are aware

of all potential risks and carefully consider and evaluate all risks associated with the Silent Partnership

legal framework as described in the Agreement, as well as with the respective business activities of the

Company.

You acknowledge that the “ICO project” designation has a specific meaning described in the Agreement

and related documents, and that it does not represent an “initial coin offering” (of crypto-currency for

sale) as it may be known to someone.

You also acknowledge and are fully aware that the Website is under continuous modifications and may

go through certain changes perpetually. It is your responsibility to follow the Website and check on

updates unless otherwise agreed.

By using the Website, you acknowledge that you have read all conditions of use, particularly the Terms

and all the other documents that constitute the Agreement, you acknowledge that you fully understand

them and fully agree to be unconditionally bound by them.

You acknowledge that the Company will strive to ensure the accuracy of the information listed on the

Website and the in the Whitepaper although it will not hold any responsibility for any missing or wrong

information. The Company provides all information as is. You understand that you are using any and

all information available here at your own risk.


The Company shall take no responsibility for any errors that may appear in the Agreement, Whitepaper,

Website, and / or any other Company‘s related documents. In no event shall the Company be liable for

incidental or consequential damages arising from the use of the Agreement, Whitepaper, Website, and

/ or any other Company‘s related documents.

All information provided by the Company nor the Company Representatives nor any other person

regarding the Company and/or ICO project and all related information have the nature of forward-

looking statements. Neither the Company nor the Company Representatives nor any other person

represents, warrants and/or undertakes that the actual future results, performance or achievements of

the Company will be as provided in any forward-looking statements. The actual results, performance

or achievements of the Company may differ materially from those anticipated in the forward-looking

statements. Any kind of negative publicity may materially and adversely affect the business results of

the Company.

You acknowledge and are fully aware of the fact that your participation in the “ICO project”, which

means entering into the SPICO with the Company as described in the SPICO may lead to full loss of

your contribution under the circumstances predicted by the relevant laws or by the SPICO. Furthermore,

you are fully aware of the fact and accept, that any results reached in the past do not guarantee future

profits.

We strongly recommend you seek out an independent financial, tax and legal advice before engaging

in any sort of business endeavor with the Company.

The Company does not accept any responsibility for any damage or loss resulting from any use of the

Website or BATM Tokens. You assume all liability and risk for such activities.

You shall not have any claim of any nature whatsoever against the Company for any damage or loss

ensuing from any of your activity associated with the use of the Website or BATM Tokens. The Company

is not obliged to compensate any damage or loss ensuing from any your activity associated with the

use of the Website or BATM Tokens.

The Company’s aggregate liability arising out of or related to the Agreement, whether arising out of or

related to breach of contract, tort or otherwise, shall not exceed the total of the amounts paid by you

to the Company pursuant to the Agreement, Terms or any other accompanying documents. Neither the

Company nor its representatives shall be liable for consequential, indirect, incidental, special,

exemplary, punitive or enhanced damages, lost profits or revenues or diminution in value, arising out

of or relating to any breach of the Agreement, Terms or any other accompanying documents.

Only the Company is bound by all juridical acts towards third persons. You are neither entitled, nor

obliged to act in representation of the Company, or even perform any activity beyond the fulfilment of

the obligations ensuing from the Agreement, Terms or any accompanying documents.


The Agreement, Terms, Whitepaper, Website, and any other related documents, and parts thereof

must not be reproduced or copied without the Company's written permission nor be used for any

unauthorized purpose. Contravention will be prosecuted.

The Company shall not be held liable to and shall not accept any liability particularly for (but not limited

to):

1. any unauthorized or illegal use of the Website or BATM Tokens,

2. any hacker attacks to the Website or any resources which are related to the Website or BATM

Tokens,

3. any act of any state or government, especially for any regulatory action imposed,

4. any delay in securing any permit, consent or approval required by the Company,

5. any information on the Website in case such information is not free of errors or is inaccurate,

6. the Website in case that the server or service is not free of viruses or other detrimental

elements,

7. any possible interruption of functionality or traffic of the Website;

8. any loss or damage of any kind whatsoever arising from reliance on any information contained

in the Agreement, Terms or any accompanying documents or from any misunderstanding,

mistake or inaccuracy in information contained in such documents.

To the extent allowable under the applicable laws, you and/or any User shall indemnify, defend, and

hold the Company and / or its subsidiaries, affiliated parties, employees, agents, successors, and

permitted assignees harmless from and against any and all claims, damages, losses, suits, actions,

demands, proceedings, expenses, and / or liabilities (including but not limited to reasonable attorneys’

fees incurred and/or those necessary to successfully establish the right to indemnification) filed /

incurred by any third party against the Company arising out of a breach of any warranty, representation,

or obligation hereunder.

You and/or any User shall not have any claim of any nature whatsoever against the Company for any

failure by the Company to carry out any of obligations of the Company under the Terms as a result of

causes beyond control of the Company, including but not limited to any strike, lockout, shortage of

labor or materials, delays in transport, hacker attacks on the website or any resources which have any

relation to the Project as described in Terms and / or Agreement, accidents of any kind, any default or

delay by any sub-contractor or supplier of the Company, riot, political or civil disturbances, the

elements, by an act of state or government including regulatory action imposed, any delay in securing

any permit, consent or approval required by the Company, for the supply of products under these

Terms or any other authority or any other cause whatsoever beyond absolute and direct control of the

Company.

You acknowledge that the Company is not obliged to provide a refund or other compensation for any

reason, especially for any BATM Tokens which remains unused for any reason. Donation of BATM tokens

does not and is not intended to present an exchange of cryptocurrencies or conventional currencies for


any form of ordinary shares of the Company and the holder of BATM tokens is not entitled to any form

of dividend. The BATM tokens are in its nature “vouchers” which only entitle their holders to certain

rights within the Terms. BATM tokens as well as the Agreement are not intended to constitute securities

in any jurisdiction, yet you acknowledge and undertake to consider before entering into the Agreement

on Silent Partnership whether or not it may constitute security pursuant to the security laws in your

jurisdiction and/or any jurisdiction which you are subject to (e.g. citizens or tax residents of the United

States of America, etc.).

The Company makes no warranty whatsoever with respect to the BATM Tokens, including any (i)

warranty of merchantability; (ii) warranty of fitness for a particular purpose; (c) warranty of title; or

(iii) warranty against infringement of intellectual property rights of a third party; whether arising by

law, course of dealing, course of performance, usage of trade, or otherwise.

In no way shall the Agreement, Terms or any accompanying documents entitle any you and/or any

User to use of any intellectual property accessible via the Website or provided to you in connection to

the use of the Website and or to the ICO project (especially related to the Website or BATM Tokens)

other than basic use of such IP rights to the extent od for the purposes predicted by the Website or

other or the Agreement, Terms or other relevant documents.

You understand that the Company does not act as a tax agent of User; you and any User shall carry

their tax obligations solely under the applicable laws of the country and location they reside in.

Under no circumstances has the Company a duty to enter into Silent Partnership Agreement or any

other contractual relationship with any subject. The Company has the right to refuse any payment.

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