Executive Summary / Key Takeaways

• C2 Blockchain, Inc. (CBLO) has strategically transformed into a development-stage blockchain infrastructure company, pivoting towards cryptocurrency mining and digital asset treasury management.
• The company is rapidly accumulating DOG Coin, a Bitcoin-native meme asset, with holdings surpassing 513 million and a stated vision to reach 1 billion DOG, positioning itself as a leading institutional holder.
• CBLO plans to establish a 14-megawatt Bitcoin mining facility in Atlanta, Georgia, leveraging energy-efficient ASIC S19 XP miners, though this initiative remains in its early stages without a secured site or equipment.
• Despite its strategic ambitions, CBLO faces significant financial constraints, including recurring losses and minimal cash reserves, which raise substantial doubt about its ability to continue as a going concern without further external financing.
• The company's reliance on highly volatile digital assets, its early operational stage, and a concentrated management structure present considerable risks, requiring investors to weigh high growth potential against significant uncertainties.

Forging a Future in Bitcoin-Native Assets and Infrastructure

C2 Blockchain, Inc. (CBLO) is emerging as a focused player in the evolving digital asset landscape, strategically positioning itself as a blockchain infrastructure and digital asset treasury management company. The company's overarching strategy centers on a Bitcoin-centric approach, highlighted by its aggressive accumulation of DOG Coin and ambitious plans for a 14-megawatt (MW) Bitcoin mining facility. This strategic pivot reflects a response to the burgeoning industry trend of institutional adoption of Bitcoin-related assets and the growing ecosystem of Bitcoin-native innovation.

CBLO's journey began with its incorporation in Nevada on June 30, 2021, and a significant corporate reorganization in April 2022, which saw it shed its shell company status by January 2025 to focus on building foundational systems for future cryptocurrency mining operations. Initially exploring broader digital asset opportunities, the company's strategic direction became sharply defined post-June 2025 with a decisive shift in its digital asset treasury. This historical evolution underscores CBLO's adaptability and its commitment to aligning with what management perceives as the most promising segments of the blockchain economy.

The Core Investment Thesis: A Billion-DOG Ambition

At the heart of CBLO's current investment thesis is its bold strategy surrounding DOG Coin, a meme-native digital asset built directly on the Bitcoin blockchain via the Runes protocol. This move represents a deliberate shift from holding a diversified portfolio of blockchain tokens, such as Cardano (ADA), to concentrating on a single Bitcoin-native asset class. Management believes this focus better positions the company for both stability and growth within its digital asset holdings.

CBLO's technological differentiation through DOG Coin is significant. As a Bitcoin-native asset, DOG Coin benefits from Bitcoin's robust security and extensive network effects. The Runes protocol, on which DOG is built, enables the issuance of new digital assets directly on the Bitcoin blockchain, integrating meme culture with the foundational security of Bitcoin. This integration is a key differentiator, as it offers a unique blend of cultural adoption and inherent scarcity, which management believes enhances its visibility and potential for long-term value. The company views DOG as a "Bitcoin-integrated asset with fixed supply, community adoption, and alignment with its treasury strategy".

The company has rapidly expanded its DOG Coin treasury, with holdings growing from over 32.7 million tokens on July 16, 2025, to more than 513 million by October 6, 2025. This aggressive accumulation has established CBLO as the largest institutional DOG holder in the public markets. CBLO's Chief Executive Officer, Levi Jacobson, has articulated a clear vision: "Our next target is clear - we are officially setting our sights on 1 billion DOG coins. This goal represents not only our confidence in the long-term potential of DOG, but our belief in the future of Bitcoin-native innovation". This strategy aims to redefine how public companies integrate on-chain assets into their balance sheets, drawing parallels to MicroStrategy (MSTR)'s pioneering Bitcoin treasury strategy.

Building the Foundation: Mining Infrastructure and AI Exploration

Beyond its digital asset treasury, CBLO is actively planning to establish a 14-megawatt Bitcoin mining facility. The proposed location in Atlanta, Georgia, is strategically chosen for its relatively low-cost electricity and environmental conditions favorable for equipment cooling. The facility is intended to be custom-designed with advanced ventilation and cooling systems to optimize the performance and longevity of its mining hardware. CBLO plans to deploy Application-Specific Integrated Circuit (ASIC) S19 XP miners, which are designed for cryptocurrencies utilizing the SHA-256 algorithm, such as Bitcoin.

While the mining operation is intended to be scalable, allowing for the addition of hardware as funding becomes available, it remains in the early stages. The company has not yet identified or secured a specific site, nor has it purchased any mining machinery or related infrastructure. Management estimates that a minimum of approximately $200,000 will be required to secure a location and commence limited operations with at least ten mining machines. Internal projections suggest that each Antminer S19 XP miner could generate approximately $1.59 in net daily earnings, with a projected investment break-even period of 2.5 to 3 years. However, these estimates are based on assumptions that "may not prove accurate," and there is no assurance of profitability.

CBLO has also initiated efforts to integrate artificial intelligence into its prospective infrastructure, including applications related to cryptocurrency mining analytics and decentralized AI. The company previously launched a beta version of an AI-powered crypto chatbot in May 2025, designed to offer trading insights by integrating blockchain analytics, machine learning, and real-time market data. However, development of this chatbot has been paused to reallocate resources to other business priorities, and it has not yet generated any revenue.

Financial Performance and Liquidity: A Development-Stage Reality

CBLO's financial performance reflects its status as a development-stage company. For the fiscal year ended June 30, 2025, the company generated a nominal revenue of $185, derived entirely from staking Cardano (ADA) tokens. This contrasts sharply with operating expenses of $222,780, which primarily included an $84,000 accrual for officer compensation and increased professional and administrative fees. Consequently, CBLO reported a net loss of $235,265 for the fiscal year ended June 30, 2025, a significant increase from the $30,020 net loss in the prior fiscal year. The company also recognized an impairment expense of $12,668 related to its ADA holdings and a nominal loss of $2 from cryptocurrency sales.

As of June 30, 2025, CBLO's financial position was constrained, with only $9 in cash and cash equivalents. Total assets stood at $75,551, including $62,474 in cryptocurrency (ADA tokens at that time), while total liabilities amounted to $84,000, primarily accrued officer compensation. This resulted in a stockholders' deficit of $8,449. Net cash used in operating activities for the fiscal year ended June 30, 2025, was $149,333, driven by increased corporate expenses. Net cash used in investing activities was $62,474 for cryptocurrency purchases.

To fund its operations, CBLO has relied heavily on financing activities, which provided $211,786 in net cash for fiscal year 2025, primarily from common stock sales ($223,000) and proceeds for shares payable ($50,000), partially offset by the repayment of a $61,214 related-party loan. Subsequent to June 30, 2025, the company fully divested its ADA holdings at an approximate loss of $12,668, using the proceeds to acquire DOG Coins. CBLO has also secured additional funding through a convertible promissory note with Quick Capital, LLC, yielding net proceeds of $47,000, and a promissory note with Coventry Enterprises LLC, providing gross proceeds of $170,000. An Equity Line Agreement with Coventry commits them to purchase up to $10.00 million of common stock over 36 months, with CBLO issuing 5.00 million commitment shares as an inducement. These financing efforts are critical, as the company's recurring losses and minimal cash balance raise "substantial doubt about our ability to continue as a going concern".

Competitive Landscape: Carving a Niche in a Crowded Field

CBLO operates within a highly competitive cryptocurrency mining and digital asset sector, facing established players such as Marathon Digital Holdings (MARA), Riot Platforms (RIOT), and Hive Blockchain (HIVE). These larger competitors often boast extensive mining capacities and more diversified operations. Marathon, for instance, is known for its large-scale Bitcoin mining and blockchain infrastructure, demonstrating stronger revenue growth driven by expanding capacity. Riot Platforms focuses on high-performance mining rigs and rapid deployment, while Hive Blockchain pursues a diversified approach across mining and other blockchain solutions.

CBLO's competitive positioning is primarily anchored in its strategic focus on Bitcoin-native assets, particularly DOG Coin, and its planned emphasis on energy-efficient mining. While CBLO may not match the sheer scale or immediate market penetration of its larger rivals, its sustainability-driven market positioning could attract eco-conscious investors and partners. The company's planned use of ASIC S19 XP miners, while common, is intended to be part of a custom-designed, energy-efficient facility, which could lead to lower operational costs compared to competitors with less optimized infrastructure.

However, CBLO's smaller scale presents vulnerabilities. It may face materially higher costs per unit compared to larger operations, impacting profitability and cash flow, especially in competitive bidding for resources. The company's reliance on a single officer and director, Levi Jacobson, for all management and oversight also limits its management resources compared to competitors with broader executive teams and formal audit committees. Furthermore, CBLO's concentration in DOG Coin, while strategic, exposes it to significant concentration and volatility risks inherent in meme-driven assets, a risk not as pronounced in more diversified competitors.

Indirect competitors include traditional financial institutions exploring digital asset services and emerging technologies like proof-of-stake protocols, which could reduce the demand for energy-intensive mining. The broader industry trend of AI and data center expansion, which drives demand for energy infrastructure, could indirectly benefit CBLO's efficient mining operations by potentially lowering energy costs or creating new opportunities for energy-efficient solutions.

Risks and Uncertainties: The Path Ahead

Investing in CBLO involves a high degree of risk, as explicitly stated by the company: "Any investment in the Company involves a high degree of risk, and investors may lose some or all of their investment". The most pressing concern is the "substantial doubt about our ability to continue as a going concern" due to its limited operating history, lack of substantial revenues, accumulated losses, and dependence on external financing. If CBLO cannot secure sufficient funding, it may be forced to cease operations.

The company's reliance on highly volatile cryptocurrencies, particularly DOG Coin, exposes its financial results to significant market fluctuations. While the shift to DOG Coin is strategic, its value is influenced by online popularity and speculative interest, making it inherently unpredictable. The planned Bitcoin mining facility faces substantial execution risks, including the challenge of securing a suitable site, obtaining necessary permits, and acquiring expensive equipment. There is "no assurance that it will become operational or profitable".

Further risks include potential dilution from future equity issuances, the rapid obsolescence of mining hardware, and the absence of a formal cybersecurity risk management program, which heightens vulnerability to cyber threats given its reliance on third-party custodians for digital assets. The company's non-binding agreements for potential investments and acquisitions also carry no guarantee of completion, adding uncertainty to its growth prospects.

Conclusion

C2 Blockchain, Inc. stands at a pivotal juncture, embarking on an ambitious strategy centered on becoming a significant player in the Bitcoin-native asset space through its aggressive DOG Coin accumulation and planned Bitcoin mining infrastructure. The company's vision to reach 1 billion DOG coins, coupled with its focus on energy-efficient mining, presents a compelling narrative for investors seeking exposure to the evolving digital asset economy and Bitcoin's expanding ecosystem. This strategic clarity and the potential for technological differentiation through Bitcoin-native assets form the core of its investment thesis.

However, CBLO's early development stage is marked by significant financial and operational hurdles. The company's recurring losses, minimal cash reserves, and dependence on external financing underscore the substantial risks involved. While the strategic pivot to DOG Coin and the plans for a mining facility offer a clear direction, their successful execution and eventual profitability are far from assured. Investors considering CBLO must carefully weigh the high-growth potential driven by its Bitcoin-centric strategy and technological focus against the inherent volatility of the cryptocurrency market, significant funding requirements, and the operational challenges of a development-stage enterprise. The company's ability to secure additional capital and successfully execute its mining and digital asset management initiatives will be paramount in determining its long-term viability and the realization of its ambitious vision.