AUSTIN, TX – October 29, 2024 – Ionic Digital Inc., a leader in digital infrastructure and cryptocurrency mining (“Ionic” or the “Company”), met with an Ionic shareholder and other parties that participated (but were not selected) in the Celsius Network LLC chapter 11 auction process, including Figure Markets and GXD Labs (collectively, the “Group”), who are seeking governance changes, and new commercial arrangements with Ionic Digital regarding its Bitcoin mining operations and the trading of Ionic Digital shares on a startup’s Alternative Trading System (ATS).
Ionic reaffirmed its strong momentum and prospects and reminded the Group that it is focused on maximizing shareholder value, and is diligently implementing the Celsius plan of reorganization, which the majority of Celsius creditors voted in favor of and was approved by the Bankruptcy Court (the “Court”) on December 29, 2023.
During the meeting, Ionic’s board and management heard from the Group regarding proposed governance changes and an alternative operating path forward for the Company. The Company and its board are fiduciaries for stockholders and are prepared to fully consider any and all actionable proposals from its shareholders. Ionic and its board will, with the assistance of its counsel and advisors, fully assess the Group’s proposal in due course.
Although the Company will fully consider the Group’s concepts, the proposal lacks critical detail about how the Group would ultimately achieve it, and significant aspects of the proposal do not appear likely to achieve the Company’s priorities. Moreover, significant aspects of the proposal are inconsistent with the Celsius creditor backed and Court-approved plan of reorganization. Further, the Company is committed to the interests of Ionic’s shareholders and maximizing shareholder value, and the Group’s proposed actions will likely divert substantial company resources away from priorities that benefit shareholders.
Specifically, as it implements the Celsius creditor-backed and Court-approved plan, the Company is prioritizing the following:
• Identifying and executing options to provide maximum liquidity for shareholders in a regulatory compliant manner
• Maximizing shareholder value through operational excellence, including finalizing an independent assessment of the Company’s Bitcoin mining management arrangements, overseen by an outside expert • Completing an audit by Q1 2025 and moving swiftly to meet its objective of becoming a public company • Ensuring the listing of Ionic Digital’s stock is on a trusted, regulatory compliant national securities exchange that will provide shareholders with a liquid market for the Company’s stock
• Communicating often, transparently, and informatively with shareholders
The Company intends to share ongoing updates for its shareholders at ionicdigital.com/press-release. About Ionic Digital
Ionic Digital is a best-in-class Bitcoin miner and emerging innovator in energy monetization. With facilities across North America, Ionic expects to have the ability to deploy up to 13.7 exahash to the Bitcoin Network. For more information, visit ionicdigital.com and follow us on X at @IonicDigital.
