Environmentally friendly HD, starting a Bitcoin mining business utilizing solar power.

## Utilizing Solar Power for BTC Mining

Environmental Friendly Holdings (3777) announced on the 28th that the board of directors has resolved to commence the green coin mining business.

After the completion of the solar power plant, they plan to utilize the waiting period of 2 to 3 years before connecting to the power company's transmission network to conduct Bitcoin mining. They will install a power storage system (BESS power plant) alongside the solar power plant, aiming to create an innovative revenue model that combines renewable energy and cryptocurrency.

The company has already concluded a basic agreement with an energy product on July 7, and will start the mining business with a demonstration phase using a 32MW scale solar power generation facility. The consolidated subsidiary EF Investment will be responsible for the demonstration project, while EF Energy will handle the full-scale development phase. The Bitcoin generated by the construction and operation of the mining farm is planned to be sold and operated through domestic cryptocurrency exchange operators.

Eco-Friendly HD is a company focusing on solar power generation and aims to strengthen its competitiveness in the next-generation renewable energy field. They also plan to expand into perovskite solar cell business and are establishing a showroom and sales base in Tokyo, with plans to build a domestic manufacturing factory. They are also considering utilizing manufactured panels for repowering their own power plants and for their own mining business.

A plan to acquire Bitcoin (BTC) through its subsidiaries EF Energy and EF Investment has also been announced in preparation for the start of operations. The acquisition amount and timing are yet to be determined, and management and sales will be conducted through domestic exchange operators according to market conditions. The investment amounts and procurement methods for the construction of power plants, installation of BESS, and purchase of mining machines are currently under review, and details will be disclosed as soon as they are finalized.

The entry of Japanese listed companies into the cryptocurrency business is expanding. On July 14, textile manufacturer Kitabou announced that it would reallocate 1 billion yen of its M&A funds totaling 30.2 billion yen to the cryptocurrency business, with 800 million yen allocated for Bitcoin purchases and 200 million yen for mining operations. The company plans to utilize renewable energy for its own mining and outsourcing equipment manufacturing.