whitepaper

The Golden Standard of CryptoCurrency

Group of Companies

TABLE OF CONTENTS

Table of ContentsLegal Disclaimer

23

Introduction 5

BB3 ICO 68 Restrictions For Investors

9 Token Sale Guide

9 Use of Proceeds

Global Market Description 1011 Operational Scheme

12 Global Crypto Market

12 Blockchain DLT mapping

Currency Markets-Overview 1414 Market History

15 Navigating the Market

15 Our Competitive Advantages

16 Scalability of Blockchain & Mining

Power Demands of Digital Mining 1720 BaseBit Mining Farms

24 BaselBit Mining Opportunities

26 Internal Exchange for Crpto Units

29 Integration to Trade Platforms

BaselBit Modeling 31

32 Smart Contracts

34 Exchange Trade Platforms

eWallet Security 40

How we got here 45

Development Roadmap 4549 Roadmapping

50 Smart Mining Operations

Company Structure 5353 Company Information

54

55

Project History

Affiliates

Glossary 56

References 57

LEGAL DISCLAIMER

The purpose of this White Paper is to present BaselBit, its technology, business model and the BB3 token

of its affiliate BaselBit.ch for our Precious Metals value supported Cryptocurrency. The proposed ICO

for BB3 to all potential token holders will occur in Spring 2018. The information set forth below may

not be exhaustive and does not imply any elements of a contractual relationship. Its sole purpose is to

provide relevant and reasonable information to potential token holders in order for them to determine

whether to undertake a thorough analysis of the company with the intent of acquiring BB3 Tokens. All

relevant legal information is contained in the Token Purchase Terms and the Token Purchase Agreement.

This White Paper does not constitute an offer to sell or a solicitation of an offer to buy a security in any

jurisdiction in which it is unlawful to make such an offer or solicitation. Neither the Swiss FINMA nor the

United States Securities and Exchange Commission nor any other foreign regulatory authority has

approved an investment in the tokens.

The BB3 token can be categorized as a security as it entitles token holders to receive the profits from

mining operations. The token is, as such, subject to certain restrictions under Swiss and US security

laws. The BaselBit ICO is compliant with these rules and restricts access for US-citizens, greencard

holders and residents of the US to the category of “accredited investors”, pursuant to the US Security Act

Regulation D Rule 506 (b)(c) (4). All relevant legal information is contained in the Token Purchase

Terms and the Token Purchase Agreement.

Certain statements, estimates and financial information contained herein constitute forward-looking

statements or information. Such forward-looking statements or information concern known and

unknown risks and uncertainties, which may cause actual events or results to differ materially from the

estimates or the results implied or expressed in such forward-looking statements.

This English-language White Paper is the primary official source of information about BaselBit.ch and

the BB3 token. The information contained herein may be translated into other languages from time to

time or may be used in the course of written or verbal communications with existing and prospective

community members, partners, etc. In the course of a translation or communication like this, some of

the information contained in this paper may be lost, corrupted or misrepresented. The accuracy of

such alternative communications cannot be guaranteed. In the event of any conflicts or inconsistencies

between such translations and communications and this official English-language White Paper, the

provisions of the original English-language document shall prevail.

OFFER DISCLAIMER

The document is being issued by Global Clear Digital Investment Bank & Trust (the “company”) as

the parent company and is being provided for informational purposes only. No information set out or

referred to in this document shall form the basis of any contract.

These pages and presentation Pages & Slides (the “Pages & Slides”) do not constitute an offer or

invitation to purchase or subscribe for any securities of the Company and should not be relied on in

connection with a decision to purchase or subscribe for any such securities. The Pages & Slides and

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the accompanying verbal presentation do not constitute a recommendation regarding any decision to

sell or purchase securities in the Company.

The Pages & Slides and the accompanying verbal presentation are confidential and the Pages &

Slides are being supplied to you solely for your information and may not be reproduced or distributed

to any other person or published, in whole or in part, for any purpose. No reliance may be placed for

any purpose whatsoever on the information contained in the Pages & Slides and the accompanying

verbal presentation or the completeness or accuracy of such information. No representation or

warranty, express or implied, is given by or on behalf of the Company or its respective shareholders,

directors, officers or employees or any other person as to the accuracy or completeness of the

information or opinions contained in the Pages & Slides and the accompanying verbal presentation,

and no liability is accepted for any such information or opinions (including in the case of negligence,

but excluding any liability for fraud). All opinions and estimates contained in the Pages & Slides and

the accompanying verbal presentation are subject to change without notice and are provided in good

faith but without legal responsibility.

The Pages & Slides and the accompanying verbal presentation contain forward-looking statements,

which relate, inter alia, to the Company’s proposed strategy, plans and objectives. Such forward-

looking statements involve known and unknown risks, uncertainties and other important factors

beyond the control of the Company that could cause the actual performance or achievements of the

Company to be materially different from such forward-looking statements. Accordingly, you should not

rely on any forward-looking statements and the Company accepts no obligation to disseminate any

updates or revisions to such forward-looking statements. Any individual who is in any doubt about the

investment to which the Pages & Slides relates should consult an authorised person specialising in

advising on investments of the kind referred to in the Pages & Slides. Any investment, investment

activity or controlled activity to which the Pages & Slides relate is available only to Relevant Persons

and will be engaged in only with Relevant Persons. Persons of any other description, including those

that do not have professional experience in matters relating to investments, should not rely or act

upon the Pages & Slides.

The Pages & Slides should not be distributed, published, reproduced or otherwise made available in

whole or in part by recipients to any other person.The Pages & Slides and their contents are

confidential and should not unless otherwise agreed in writing by the Company be copied, distributed,

published or reproduced (in whole or in part) or disclosed by recipients to any other person.

The transaction and financial matters referred to in these Pages & Slides may not be suitable for

every investor and any offering may be restricted to those investors that meet certain criteria imposed

by applicable law or regulation. Transactions of the type described herein may involve a high degree

of risk and the value of such investments may be highly volatile. Such risks may include without

limitation risk of adverse or unanticipated market developments, risk of issuers default and risk of

liquidity. In certain transactions counter-parties may lose their entire investment or incur an unlimited

loss. This brief statement does not purport to identify or suggest all the risks (directly or indirectly) and

other significant aspects in connection with transactions of the type described herein, and counter-

parties should ensure that they fully understand the terms of the transaction, including the relevant

risk factors and any legal, tax, regulatory or accounting considerations applicable to them, prior to

transacting. Each recipient of the Pages & Slides is strongly urged to consult with its accounting, legal

and tax advisers before entering into any transaction. Global Clear Digital Investment Bank & Trust

expressly disclaims any advisory, fiduciary or similar relationship with the recipient.

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INTRODUCTION

When blockchain-crypto mining was still in its infancy, it was well distributed among a couple of

thousand private miners, governed by transparent rules and not harmful to the climate because its

energy requirements were microscopic. All that has changed: the exponential growth of

cryptocurrencies has led to a dramatic increase in the sector’s energy consumption and a

concentration of mining activities in countries with low social and environmental standards - where

electricity is produced using predominantly fossil fuels. Even worse, the concentration of mining power

in the hands of a couple of large corporations is distorting the formerly democratic decision-making

process in these networks: changes in protocols and hard forks are in danger of being influenced by

the economic interests of a few.

BaselBit has developed a system of Mobile Mining Units (MMUs) that can tap electricity directly at the

source: at hydro, solar, wind and fossil power plants in every corner of the planet. Our MMUs are

based on standard intermodal (sea) containers, equipped with mining hardware, communication and

industry 4.0 automation features, remote control capabilities and a break-through cooling system that

only makes up ~1% of the system‘s total energy consumption. Altogether it’s a high-tech solution that

can be seamlessly deployed globally and allows us to use the cleanest and cheapest energy mix

wherever it is available.

The flexibility of the MMU system helps us to fuse two of the most important sectors of the 21st

century: blockchain technology and renewable energies. Using the dynamics of exponential growth for

both, we promote climate preservation and the welfare of our token holders. It is the physical

incarnation of the blockchain spirit: a robust and decentralized system that can withstand disruptions

in government policies, price structures and the energy supply.

The solution BaselBit provides has all the necessary competitive advantages, follows a decentralized

approach and provides voting rights for an experience that has been under pressure from the

concentration of mining power.

The established Mining Farms in Switzerland, Canada and the Americas will provide a greater access

to mining development, and a steady stream of income for the collective organizations.

Separately each organization will administrate control of their geographically selected mining zone

while the parent holding Trust, Global Clear Digital Investment Bank & Trust, orchestrates the leverage

from the collective mining center facilities.

BB3 ICO DETAILS

The BB3 token is an BlockChain standard-based token with smart contracts and proprietaryblockchain. BB3 tokens grant their holders the right to:

1. receive 80% of the earnings of our proprietary mining operation in two steps:

i. 60% payed out immediately

ii. 20% reinvested to boost future payouts

Retained 20% for operational costs*

2. receive 20% of BaselBit’s n e t earnings with third-party operations

3. voting and veto rights in our town meeting format for important decisions of the company’s strategy involving all token holders.

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In Pre-ICO Tokens were offered for 31 days, starting on December 1st, 2017 and ending onDecember 31st, 2017.

BB3 ICO is conducted by BaselBit AG – a Swiss Fiduciary. The offering will be open to thepublic. Restrictions apply for Swiss and US-based investors.

Token Issue Volume max. 75 Million

tokens not distributed shall not be generated

Token Price at Issue $500.00 USD

Distribution 70% token holders 20% founders team7% BaselBit AG as reserve 3% Finder program

Finder program

BaselBit AG

founder team

token holders

Website www.BaselBitAG.com

www.baselbit.ch

Accepted form of payment BTC, ETH, credit cards

ICO Start Date January 20, 2018 , 12 PM GMT

ICO End Date December 31, 2018 , 12 PM GMT

Discounts Bonus period token price 01.20 - 03.20 $ 500.0003.21 - 07.20 $ 750.00

07.21 - 10.20 $ 1000.00

10.21 - 12.30 $ 1250.00

Token Issue Date January 20, 2018 , 12:00 PM GMTToken Release Date March 20, 2018 , 12:00 PM GMT

Use of proceeds 85% Investment in Mobile Mining Units (MMUs)

15% Research & Development and Administration

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RESTRICTIONS FOR INVESTORS

We are convinced that the global community deserves a share in the profits of crypto mining - not justa handful of anonymous players from oligopolistic cartels in authoritarian societies. We believe thatcrypto mining should be a decentralized, democratic, and evenly distributed operation - one that isopen to everyone who is willing to support the network and benefit from it.

Based on these principles we have created the BB3 token. This grants investors the right to receivethe full pay-out of our proprietary mining operation. As a consequence, the BB3 token can beclassified as a security in most jurisdictions. In compliance with Swiss and US security laws, holding atoken is strictly limited to three categories of investors:

• Investors outside Switzerland if

• they do not hold a US passport;

• are not in possession of a US Greencard;

• have no residence in the United States.

• Swiss nationals if they are qualified investors under the Swiss CIS, i.e. investors with a networth of more than 500,000 CHF who declare that they want to be treated as “qualifiedinvestors” (opt-in clause).

• accredited investors under the US Securities Act, Regulation D, Rule 506(b)(c), i.e. investorswith a net worth of more than $1m, excluding their primary residence, or with a net income ofmore than $200,000 (if married a combined income of $300,000).

These restrictions on holding tokens contradict our idea of giving everyone a fair chance to participatein our crypto-mining operation and the competitive advantages of the Mobile Mining Unit (MMU)system. However, we have to comply with security laws and regulations. In order to reconcilethese regulations with our concept of fairness, we are already working hard to turn the token into apublicly tradable asset. Right after the ICO, BaselBit will begin preparing a prospectus, register withthe SEC and apply for a listing as a security token on regulated exchanges. Afterward, the BB3 tokenwill finally be accessible for everyone – provided the SEC gives the green light.

Additional Disclosures

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TOKENS

BB3 Tokens are based on the BlockChain protocol, which determines that up to 75 Million

tokens will be issued with a secured price of $1,250.00. The final allocation is set up as follows:

• 83% investors

• 10% founders

• 5% BaselBit AG, e.g. for the remuneration of a dvisors, etc.

• 2% bounty program

Any tokens not allocated to investors, founders or the company shall not be created. In other wordsthe maximum token number can never exceed 75 Million, whereas investors participate with 83% or amaximum of 50,000,000 tokens, founders participate with 10% or a maximum of 5,000,000 tokensand the BaselBit company holds 7% or a maximum of 3,500,000 tokens (e.g. for the remuneration ofadvisors).

The tokens carry voting rights. From time to time, when BaselBit has to take strategic decisionsregarding mining operations, the company will bring these decisions to a vote with token holderswho have the right to veto the company’s proposals. A voting process will be installed based on theBB3 token’s smart contract.

The tokens carry the right to receive dividends from the mining operation. Dividends are calculatedsolely on the basis of the net profit of the mining operation. They are not based on BaselBit’s profit andloss statement (P&L), which might carry risks not related to the mining business. The BaselBit businessmodel for mining has two components:

Proprietary Operations (PO) where BaselBit invests in, owns and operates the MMUs

Token holders are the 100% beneficiary of the earnings of proprietary operations.

Third-Party Operations (TPO) where an independent company, such as a utility or an investment

fund, acquires the MMUs while BaselBit operates them. For this operation, BaselBit will be rewarded with a share of the mining revenues of which Dividends may be paid to Exchange Investors. In no instance does participating in any Coin Program convey ownership or licensingparticipation in any underlying Intellectual properties, licensing or sales.

For investors in the Exchange Operations, those Earnings in Proprietary Operations are comprised ofthe total rewards minus operation costs: such as, but not limited to, costs for electricity, rent/land leasefor containers, hardware replacements to ensure the continuity of BaselBit’s mining operation (stabilizethe MMU’s performance and counter e.g. difficulty increases or other efficiency losses directlyconnected to the mining process), depreciation and a handling fee for the company’s overhead). Thecalculation of earnings in Third-Party Operations depends on the agreement with the third party, butwill exclude depreciation.

As a community member of BB3 all consumers will be able to see values like:

• Global Transaction capability

• Growth and Appreciation of the Tokens held

• Income creation as a owners member of a global model

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USE OF PROCEEDS

We have calculated the cost of the ICO (legal advice, production of promotion materials, staff formarketing and communication, direct marketing expenses such as social media space, banners, paidarticles, etc.) to be $1.5m. A large portion of this amount was raised before we even launched ourwebsite and official pre-sale began. We expect to fully cover the cost of the ICO very early in April2018. Therefore, contributions raised during the core ICO will be used entirely for investments and forbuilding the company.

91% of the core ICO funds will be used for mining hardware, the construction of MMUs bycontractors and their deployment at locations with low energy prices. Investment per MMU isestimated to be between $100,000 and 150,000 at present. However, this could change due tochanges in hardware prices and market conditions. For every $10m of capital raised during thecore ICO, $9.1m will be invested in hardware, translating into 73 to 91 MMUs at presentconditions.

During the first couple of months of the roll-out, overhead and administrative expenses will not be fullycovered by mining revenues. As such, we will reserve 9% of the capital raised from the ICO for theroll-out phase (administration, research & development, legal proceedings for token status as a publiclyavailable security) and as a general reserve.

It is a goal of BaselBit to stay ahead of the competition and develop new potential ways of mining,increase efficiency and detect pockets of low-cost energy worldwide; to explore the possibility of usingMMUs as an energy sink at places and in times where renewable energies produce overcapacities; tointegrate the MMU system into smart grids; and finally to transform the purely mining-oriented MMUtechnology into a data-center technology with much broader applications in a developing blockchainmarket. To achieve these strategic goals, BaselBit has started a research and development (R&D)cooperation with a scientific institution in Germany and Blockchain in Switzerland. The budget forR&D is part of the administrative budget.

For the benefit of our investors, we plan to make the BB3 token available beyond accredited andqualified investors for a broader public. This requires developing a prospectus and involves acomplicated regulatory process with financial authorities in various jurisdictions. Our priorityjurisdictions are Switzerland, the US and potentially the European Union. We will allocate funds fromthe administrative budget for this process as well.

SUMMARY OF FUNDS USAGE

Pre-Sale $75M ICO budget

ICO Investment in Mobile Mining Units (MMUs)Administration, Research & Development,General Reserve, Legal Proceedings for Token Status as a Publicly Available Security

In the event the ICO raises a total amount of less than $5,000,000, the use of proceeds willgradually shift from investment in containers towards administration and marketing. In this case,BaselBit will focus on third-party business in order to maintain profitability for investors anddeliver returns.

The use of proceeds as put forward in this White Paper is set according to a schedule we feelcommitted to. Nevertheless, circumstances, legal proceedings, and disruptions in crypto markets,rewards and exchange rates might arise that could force BaselBit to deviate from its originalschedule.

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GOLD STANDARD HISTORY

On April 5, 1933, FDR ordered all Americans to deliver all gold coin, bullion or gold certificates to theFederal Reserve by May 1, 1933, for a set price of $20.67 per ounce. By May 10, 1933, the USGovernment had taken $300M in gold coin and $470M in gold certificates. A set price per ounce wasestablished by the US Government at $35 per ounce which held until August 1971.

On June 5, 1933, FDR took United States off the Gold Standard, which was a standard for US Bankingsince 1879.

On August 15, 1971, President Ricahrd Nixon announced that the USA would no longer convert dollarsto gold at a fixed value, thus abandoning the gold standard entirely. In 1974 President Form signedlegislation allowing americans to own gold bullion again.

When growth slows, so do most revenues, real estate prices, and demand for commodities. As a result,nearly all assets lose value.

The way to lessen—or even eliminate—a fall in portfolio value during an economic collapse is tounderstand asset correlation. You want to own assets that tend to move opposite of most otherinvestments.

Finding uncorrelated investments is not easy. You can count them on one hand. Some bonds do well,but certainly not all of them. Dividends will help, but they can’t make up for a big fall in the markets.

Gold, however, is largely uncorrelated to stocks and many other investments. And here’s an interestingfact the World Gold Council uncovered:

➢ Gold’s correlation to stocks drops during a recession.

This is a good thing since most stocks fall.

Notice what happens to gold’s correlation to other asset classes when the economy moves fromeconomic expansion to contraction (data from 2001 through 2018)…

Figure 1. Gold Price Performance . https://goldprice.org/de/gold-price-history.html 1

Gold already has a negative correlation to the S&P during periods of growth. In an economic collapse,the correlation grows even more negative.

This means that historically, gold will more often than not move in the opposite direction of stocks duringperiods of recession. And since stocks typically decline, gold is likely to rise.

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Here’s proof. There have been seven recessions since 1965. Notice how gold has performed.

In five of the seven recessions, the gold price rose. And three of those times it soared double digits. Inonly one recession did gold suffer a noticeable decline (-9.1% in 1990). Even in the midst of theeconomic collapse of 2008–2009, gold moved higher.

This makes sense when you think about it. A slowing economy stokes investor worry, and gold is anatural refuge in times of economic stress.

This has clear implications for investors. To preserve the value of your investment portfolio…

➢ Own a meaningful amount of gold before the next recession begins.

As the saying goes, you can’t buy flood insurance after the flood. You must buy it before trouble strikes.

So, is the next crisis on the horizon?

The Next Recession Is Inescapable

Recessions carry all sorts of social quirks. They are the stuff of bad conversation. They createwidespread job insecurity as layoffs hit the economy. Who wants to talk about possibly losing their job?

Worse, no one really wants to stick their neck out and say one is coming. Talk of economic collapse inthe popular media could itself cause stocks to sell off, undermine analyst’s recommendations, and forcepoliticians to admit their policies aren’t working.

There’s just no benefit in recession forecasting. If you’re right, you get blamed for bringing it on. If you’rewrong, you break an egg on your reputation. Predicting an economic collapse can be like guessing nextweek’s weather, so why bother.

Several recent studies confirm this. Here are a few of them…

➢ In a multi-country study of private-sector forecasts from 1989 to 1998, IMF researcherPrakash Loungani found that “the record of failure to predict recessions is virtuallyunblemished.”

➢ An update to the 2014 study “Fail Again? Fail Better? Forecasts by Economists During theGreat Recession” found that the “private-sector’s record of failure to predict recessionsremained intact through 2008 and 2009.”

➢ Another 2014 study found that one-year-advance growth forecasts from the Federal ReserveBank of New York and the European Central Bank from 2008 to 2012 showed “substantial over-optimism, averaging 1.6 to 2.4 percentage points above actual growth.”

Meanwhile, the Bank for International Settlements (BIS) expressed concern about the next recession,stating that “recessions triggered by financial crises are typically preceded by sustained episodes ofbubbly asset prices and debt-financed spending booms.”

Do we have bubbly asset prices? Have we experienced a debt-financed spending boom? The BISthinks so—which means the next recession may not only be close, but could be bigger than usual andcome with a difficult recovery.

Gold Can Save Your Portfolio from an Economic Collapse

Knowing that gold is not correlated to the stock market—and that stocks usually fall in a recession—andthat another recession will happen, it makes sense to buy gold now.

No prediction about future events or getting the timing right is required.

You don’t buy homeowner’s insurance based on a prediction of when your house could burn down. Youbuy the insurance to limit your financial loss in case your house burns down.

Regarding an economic collapse, there is no “in case”…

➢ The odds of another recession are 100%.

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History clearly shows this - Another recession is inescapable.

This makes gold an absolute portfolio necessity. I know many gold critics that own gold because of thisexact argument.

We don't have to predict the future in detail to justify buying gold. We are simply shielding the rest of ourportfolio from the strong likelihood of losses. Those who own a meaningful amount of gold stand agreater chance of winning in the next recession than those who do not.

When it comes to investing in gold, investors often see the world in black and white. Some people havea deep, almost religious conviction that gold is a useless, barbarous relic with no yield; it’s an asset norational investor would ever want. Others love it, seeing it as the only asset that can offer protectionfrom the coming financial catastrophe, which is always just around the corner.

Our views are more nuanced and, we believe, provide a balanced framework for assessing value. Ourbottom line: given current valuations and central bank policies, we see gold as a compelling inflationhedge and store of value that is potentially superior to fiat currencies.

We believe investors should consider allocating gold and other precious metals to a diversifiedinvestment portfolio. The supply of gold is constrained, and we see demand increasing consistent withglobal economic growth on a per capita basis. Regarding inflation in particular, we feel that theFederal Reserve’s decision to begin a third round of quantitative easing makes gold even moreattractive.

We see the Fed’s actions in the wake of the financial crisis as a paradigm shift whereby the Fed isattempting to ease financial conditions and encourage risk-taking by increasing inflation expectations.Its policies will likely result in continuous negative real interest rates because nominal rates will be fixedat close to 0% for the foreseeable future.

To be sure, gold isn’t the only asset with the potential to hold its value in inflationary times. For U.S.investors, at least, Treasury Inflation-Protected Securities (TIPS) offer an explicit inflation hedge.What’s more, TIPS tend to be less volatile than gold and, if held to maturity, are guaranteed to receivetheir principal back – barring a U.S. government default (which we see as incredibly improbable). Still,history shows that gold is highly correlated to inflation and has unique supply and demandcharacteristics that potentially lead to attractive valuations.

A unique store of value for more than a millennium, gold has served as a store of value and amedium of exchange. It has broadly managed to maintain its real value, even as various currencyregimes have come and gone. The reason is that the supply of gold is not at the whim of anygovernmental power; it is fundamentally supply constrained. Total outstanding above-ground goldstocks – the amount that has been extracted over the past few millennia – are roughly 155,000 metrictons. Each year mines supply roughly 2,600 additional metric tons, or 1.7% of the outstanding total.This is why gold can be thought of as the currency without a printing press.

The downside of gold is that it generates no interest. One ounce of gold today will still be only oneounce next year and the year after that. Because of this, gold is sometimes referred to as a non-productive financial asset, but we feel this characterization is misleading. Rather, we believe goldshould not be thought of as a substitute for equities or corporate bonds. These have equity or defaultrisk and therefore convey risk premiums.

Instead, gold should be thought of as a currency, one which pays no interest. Dollars, euro, yen andother currencies can be deposited to receive interest, and this rate of interest is meant to compensatefor the decline in the value of paper currencies via inflation. Gold, in contrast, maintains its real valueover time so no interest is necessary.

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Today, the forward-looking return on holding U.S. dollars, and most other major currencies, has beenartificially lowered by the Fed’s commitment to keep interest rates pegged at near zero for the next fewyears; real yields on U.S. government bonds are negative out to 20 years. In such a world, we believethe desire and willingness of investors to hold gold relative to other currencies increases dramatically,creating the potential for continued price appreciation.

Figure 2. Gold Price Scales . https://goldprice.org/de/gold-price-history.html 2

Of course, investors must also consider valuation, especially since some believe gold is overpriced.Figure 2 above shows the inflation-adjusted value of gold since 1973. There is no doubt that goldprices, which averaged $1,630 in August, are high. However, in inflation-adjusted terms, gold is 12%below its 1980 peak. Inflation in 1980 hit 15% year-over-year, and inflation today is running muchlower so some may question the validity of comparisons to 1980. While we believe that inflation overthe next several years is likely to be higher, on average of all the precious metals, gold is the mostpopular as an investment. Customers generally buy gold as a way of diversifying risks, especiallythrough the use of futures contracts and derivatives. The gold market is subject to speculation andvolatility as are other markets. Compared to other precious metals used for investment, gold has themost effective safe haven and hedging properties among a number of countries.

Gold’s relative scarcity, its portability (you can carry small bars, coins or jewelry), and its great demandin industrial applications, make it a highly desired commodity. Cryptocurrency has adopted some ofgold’s benefits with the creation of a bitcoin that is scarce: through the introduction of a digital coin thatcan be easily and effortlessly transmitted and by the creation of a distributed, decentralized blockchainthat aids business. Cryptocurrency also adds value by making one's transactions fast, secure andtransparent.

Recent cryptocurrency startups have succeeded in integrating physical gold into the blockchain. Goldhas always been a difficult asset to move. People would have to buy gold blocks and place them into asecure vault.

The process was clumsy, laborious, slow, expensive and vulnerable to hacking, among other problems.The blockchain makes the process quicker and easier helping to protect your gold, slashing expenses,

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allowing the asset to be moved effortlessly across borders, all the while shielding your investment fromtheft and loss.

It has been over the past 20 years and that the tail risks are for much higher inflation, this speaksmore to the outlook for the nominal price of gold.

BASELBIT GOLD BACKING FRAMEWORK

The following is a simple overview of the BB3 and BaselBit backing:

1. The Monetary Lien assets of physical precious metals (Gold and Silver) are lodged under Title ofOwnership in Switzerland, with full Collateral Deed of Assignments to GlobalClear .

2. The corporate pledge is a current market value of $2,500,000,000 with a standing registeredvalue, with supporting UCC filing for $1,000,000,000 to support the issuance release of a full ICOon BaselBits – BB3 crypto currenty to be created/minted backed by our precious metals value.

3. Mining / creating BaselBits- BB3 is just a process of completing the Ledger coding and issuing allsmart contracts for the full cold storage of the BB3 tokens.

4. The digital coins (BB3) that those investors now hold, act as an electronic currency backed by thephysical gold & silver for a stability most Crypto’s cannot offer before an investor purchase occurs.

5. Coin holders can use them in transactions and trades, in the same way that you use fiat currency.

Key Notes: This is an interesting new product. It appears to actually combine block chain technology with a new cryptocurrency coin 100% backed by physical gold and silver. The gold BaselBit will be equivalent to one gram of gold while the silver BaselBit will be equivalent to 50 grams of silver. (note: 1 troy ounce = 31.1 grams.)

THE BASELBIT DEBIT CARD

The majority of users holding BB3 will perform their transactions via the mobile or online paymentapplications.

However, as mobile payments still haven’t been fully adopted worldwide, you are able to get aBaselBit debit card and use it worldwide similar to the way you currently use Visa, MasterCard,American Express, etc.

It’s unique in that you can use it for any local currency without having to first sell your Tokens orliquidate a potentially appreciating asset holding before using it. When payments are processed at thepoint of sale, the exchange rate for local currency vs allocated Token value is automatically calculatedand the equivalent amount is debited from your e-wallet account value.

The BaselBit –BB3 card is a genuine revolution in card transaction payments.

GLOBALCLEAR POTENTIAL GOLD MARKET OPPORTUNITY: Disclaimer: Note this is not a current launch component for the USA or Switzerland, but it isan open opportunity, if BaselBit elected to procure any license rights to participate in thedirect commodity.

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1. Opening up a direct Bullion-Precious Metals network for the metal acquistion itself linked to theMinting / creating BaselBits- BB3.

2. If organized and launched BaselBit would be able to just a process the digitisation of the Title ofOwnership to that metal into an electronic Wallet.

3. Primary market participants then sell those digital coins into the secondary (retail) market.

4. That sale, is the selling of the Title of Ownership from the primary market participant to multipleretail investors.

5. The digital coins that those investors now hold, act as an electronic Bearer’s Title to the physicalgold & silver that’s backing it.

6. Coin holders can use them in transactions and trades, in the same way that you use fiat currency.

7. As the coins are electronic Bearer’s Titles to the physical precious metals backing them, investorsholding those coins can then redeem them at any time in exchange for the equivalent quantity ofphysical gold & silver that those coins represents.

8. Considering it is an appreciating asset holding it in bearer form could become quite valuable.When payments are processed at the point of sale, the exchange rate for local currency vsallocated gold or silver is automatically calculated and the equivalent amount of bullion is debitedfrom your e-wallet account.

9. No other “physical precious metals” debit cards are directly linked in this way to their bullionaccount. Other providers need you to first sell your gold and silver, after which you then have totransfer/load the realised cash onto your card.

Currency Markets-OverviewThe real market Opportunity is addressed in the 'weaknesses' in established crypto currencies (notprecious metals or “gold backed”). This type of key differentiator will allow BB3 to establish a solidmarket position in the landscape of hundreds of upstart ICO tokens floating the market.

Based on data from www.Coinmarketcap.com the present count of reported and traded Tokens/Coinsare at 1,442 with the most notable proving the demand for digital currency is never greater. The first15 listed alone list some remarkable factors:

# NameSymbol Market Cap Price Circulating Supply

Volume(24h)

1 Bitcoin BTC $231,076,503,280 $13,750.40 16,805,075 $12,640,500,000

2 Ethereum ETH $124,630,367,611 $1,284.80 97,003,711 $4,748,760,000

3 Ripple XRP $63,554,662,913 $1.64 38,739,142,811 * $1,839,230,000

4 Bitcoin Cash BCH $40,315,326,183 $2,383.59 16,913,700 $1,404,720,000

5 Cardano ADA $19,859,565,637 $0.765978 25,927,070,538 * $930,617,000

6 Litecoin LTC $12,658,221,061 $231.10 54,773,308 $594,302,000

7 NEM XEM $12,359,789,999 $1.37 8,999,999,999 * $104,015,000

8 NEO NEO $11,796,265,000 $181.48 65,000,000 * $1,383,400,000

9 Stellar XLM $10,579,961,778 $0.591366 17,890,717,048 * $337,785,000

10 IOTA MIOTA $9,427,082,703 $3.39 2,779,530,283 * $96,686,600

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# NameSymbol Market Cap Price Circulating Supply

Volume(24h)

11 EOS EOS $7,814,171,893 $12.89 606,379,642 * $792,107,000

12 Dash DASH $7,290,630,166 $932.26 7,820,383 $178,496,000

13 Monero XMR $6,479,631,671 $415.17 15,607,177 $264,210,000

14 TRON TRX $4,986,283,744 $0.075839 65,748,192,476 * $1,007,110,000

15 Bitcoin Gold BTG $4,322,430,376 $257.80 16,766,799 $1,613,290,000

Figure 3. CryptoCurrency Charting: https://coinmarketcap.com/all/views/all/ 3

These high flyers in the markets, like the top 9 with market caps in excess of $10 Billion, which isunheard of for companies with such little time in the market, especially Bitcoin, Ethereum, Ripple, andBitcoin Cash with market caps respectively of $231 Billion on top to $40 Billion for its Cash version.

OUR COMPETITIVE ADVANTAGES

We believe it's perhaps the single most important element of the ICO, BB3 and BaseBit. We cannotknow where the true market developing is heading, but Bitcoin is just about the biggest piece of Globalfinancial news EVERY day for the last four months, from its recent closing low of 3,250 on September14, 2017 at a high of nearly 20,000 on December 16, 2017 for a close of 19,650. The currentfluctuations are swings of nearly 1,000 to 1,500 during a day in trading, closing January 15, 2017 at$13,810.10 as quoted at www.Coinbase.com 4 .

Ethereum climbing over the exact same period moved from $213.91 on September 14, 2017 to itspeak on December 19, 2017 at $826.82, yet still moving presently to a high today closing at$1,290.04. The conclusion is that Digital currency is now mainstream and seemingly taking over themarket excitement in growth investing.

The true market excitement for GlobalClear Digital Investment Bank, BaselBit AG and BaselBit itselfin launching the ICO for BB3 is that NONE of those top rated Crypto-Currencies have any direct assetbacking let alone a Precious Metal secured value. This is the strongest proposition of our ICO and amajor market differentation unmatched today.

GlobalClear Digital Investment Bank and BaselBit AG deliver to BaselBit one of two competitiveadvantages: (a) The strength of an “existing” and “secured” precious metal securitization withinSwitzerland to underpin the BB3 token, and (b) a technology driven model that provides for a forwardthinking model intertwing the key elements of mining, with the considerations of todays energymarkets, (c) Own on Blockchain to avoid reliance of other networks.

The competitive advantage of many companies in this sector depends on the willingness of a handful ofregimes to tolerate cryptocurrencies, keep energy prices low and maintain friendly regulations. Thatis, obviously, the business model of an industry in its early stages.

Next generation mining operations will be climate friendly, more resilient against local pricefluctuations and regulatory changes, more profitable and more decentralized. Consequently BaselBit’stechnology-driven business model, which combines green energy sources with economic viability on aglobal scale, is part of this next generation.

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The uniqueness compared to many of the “Gold labeled Tokens” is that BaselBit and its BB3 isalready backed and supported by a long-standing Swiss Precious Metal asset portfolio, and not thatof Gold Certificates, Gold shares; instead the actual physical callable commodity.

In additon the Swiss Government itself is actively engaged with our parent collateral provider and thelikely deepened support within Europe, but specifically Switzerland is seemingly guaranteed.

The markets will not likely see another ICO, like that of the upcoming BB3, and as such we willseparate ourselves for the general market of Crypto’s and be pinned as a prime market digitalcurrency and exchange.

We bring a convergence of three (3) key factors for success against competition:

1. Our leading edge mobile data center technologies, running our own Blockchain.

2. Developing our own Mining Farms for developmental control, and stronger security within ourown Blockchain, along with the ancillary recurring income streams.

3. Front-line power negotiations and keeping connected to key alliances on the cutting edge ofnew disruptive market technologies for distributed energy.

All of which put BaselBit and the BB3 token at the absolute forefront of the new digital currency age.

THE POWER DEMANDS OF DIGITAL MINING

THE POWER CHALLENGE

The crypto mining business model is highly dependent on the energy supply. The price andavailability of electric power are the two most important factors for mining companies since thedeeper the mining the higher the power demand draw.

On a macro level, the hunt for cheap energy has lead to a concentration of mining operations incountries with low socio-economic and environmental standards, and therefore cheap fossil electricity.As a negative consequences of this low-cost, “dirty” energy, the mining of cryptocurrenciessignificantly contributes to climate change. The concentration of mining operations in a fewauthoritarian countries meanwhile, undermines the distributed ledger system and increases the risk ofmanipulations.

On a micro level, miners have become vulnerable to energy price fluctuations and regulatory changes.The competitive advantage of many companies in this sector depends on the willingness of a handful ofregimes to tolerate cryptocurrencies, keep energy prices low and maintain friendly regulations. Thatis, obviously, the business model of an industry in its early stages.

Next generation mining operations will be climate friendly, more resilient against local pricefluctuations and regulatory changes, more profitable and more decentralized. Consequently BaselBit’stechnology-driven business model, which combines green energy sources with economic viability on aglobal scale, is part of this next generation.

DIGITAL ENERGY CONSUMPTION

The information technology ecosystem is one of the largest consumers of electricity worldwide. Itconsumes about 1,500 TWh per year of electricity – enough to equal the power generated byGermany and Japan combined - or almost 10% of the electricity generated worldwide5. Within thesector, cloud computing alone accounts for 416 TWh6,7, roughly equivalent to the carbon footprint ofthe entire aviation industry, and it is growing fast: cloud computing doubles its energy consumption

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every four years. By 2020, it will grow to 1,400 TWh annually and could surpass China and the US,the world’s biggest electricity consumers, by 2030. Within the next decade, electricity might become ascarce resource, putting upward pressure on prices, if not globally then in certain places at certaintimes. The source of this bottleneck is the grid rather than power generation8.

The fastest growing application in cloud computing is cryptocurrency mining. The amount of energyconsumed by Bitcoin and Ethereum exploded within seven years from virtually zero in 2010 to 19.2TWh in 2017 – matching the energy produced by Iceland or Puerto Rico 9. The energy efficiency ofASICs and GPUs has risen quickly, but it has been outpaced by the increase in transactions andmarket cap. While this exponential growth provides excellentopportunities forminers to earn rewards,the powerconsumed by the information technology ecosystem also increases competition for energy.Only those with safe access to affordable electricity can put their chips to work.

GLOBAL ELECTRICITY MARKET

Unlike coal, oil and LNG, which can all be shipped around the world, there is no global market forelectricity. The electricity market is highly fragmented, consisting of thousands of regional subsystems invarious jurisdictions where overcapacities alternate with shortages. While global energy demandcontinues to grow dramatically, huge differences remain between industrialized countries and the restof the world. In its International Energy Outlook 2016 the US Energy Information Agency (EIA) projectsan increase of global electricity consumption by 69% within three decades, from 21.6 trillion kWh in2012 to 36.5 trillion kWh in 2040. While the demand for electricity in OECD countries will increase by atotal of 38%, demand in non-OECD countries will double – reflecting the difference in GDP growth of2.0% for OECD and 4.2% for non-OECD countries.10

Some of this growth in demand will be met by electricity generated from fossil fuels, but renewables willincrease their share of the energy mix from 25% to 33% between 2012 and 2040 and double theiroutput in absolute terms. Viewed over a period of 28 years, this does not appear to be disruptive.Disruption, however, is happening within the sector. On a global scale, 90% of all renewable energy ishydropower, which will – due to natural limitations – grow only marginally. That implies that all of theremaining growth will be contained in the non-hydro sector, i.e. wind and solar. The amount ofphotovoltaic electricity generated - private and utility scale - has grown exponentially from 100,000MWp in 2012 to 390.000 in 2017.

In other words, the fastest growing source of the global electricity supply over the next two decadeswill be the most unreliable and volatile source - and will depend on weather conditions that evensupercomputers cannot predict. This will have far- reaching repercussions: governments trying tostabilize energy markets will impose more regulations, and electricity prices will become distorted withlarge deviations between countries, energy sources and customer categories. In consequence, pricevolatility is growing as a result of both the laws of nature and government intervention.

These volatile conditions will prevail throughout the transitional period from a world powered by fossilfuels and centralized energy production to one where decentralized, renewable sources prevail. Overthe long term, the global electricity market will be governed by new technologies to balance, store andtrade energy between multiple intelligent - probably blockchain-driven - actors that can create a muchbetter equilibrium than regulation could ever achieve.

With this in mind, flexible players will be able to cope best with this new energy world.

PRICE DISTORTIONS & OPPORTUNITIES

Photovoltaic (PV) is the fastest-growing renewable energy source, a reflection of the decline ofmodule prices – from $76 USD per Watt peak (Wp) in 1977 to $0.35 USD in 2017. This collapse in

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prices was initially driven by technological improvements and then accelerated as a result of attractivefeed-in tariffs, economies of scale and Chinese competition. Meanwhile, feed-in tariffs followed thedrop in module prices: 1 kWh of PV energy generated earned $0.40 USD in 2005, while it currentlyearns $0.08 USD/kWh in most OECD countries. Beginning in the planet’s sun belt, country aftercountry reached grid parity in the last couple of years, i.e. solar power became as cheap as powerfrom the grid (production cost + transport and levies). This process has gone even further. In India,Chile and the Middle East, PV plants get paid as little as $0.03 to $0.04 Cents (USD) per kWhgenerated, which is only a slightly more than the price of dirty coal power.

While the average price of PV power is already low, certain conditions in the spot market can drivethem even lower, sometimes into negative territory. The very nature of wind and solar power, thedrivers of renewable growth, puts pressure on the existing power infrastructure and has severeconsequences for national grids and price structures. Power input fluctuates with the weather andsunlight and leads to over capacities on sunny afternoons or scarcities during calm nights. In otherwords, the massive expansion of wind and solar creates opportunities for extremely low prices perkWh.

EXAMPLES

• California. On a sunny spring day, the state produces so much solar energy that utilitycompanies have to give away gigawatts of solar power, even paying neighboring states toaccept it11.

• Germany. A similar overcapacity occurs when a storm hits Germany’s northern shores and on-and off-shore windfarms go into overdrive, producing excess capacity for Poland and France.

• Chile. Here, power prices have not been hit by forces of nature, but by the economic cycle. InChile’s Atacama desert, the place with the highest intake of solar energy per square meteron earth, the government promoted PV plants to provide electricity for the large mining industryin the north. When the commodity supercycle petered out after 2012 due to a slowdown inChinese demand, electricity prices collapsed and PV plants with a break-even of $0.14USD/kWh are selling at $0.04 USD now.

• India. PPV capacity increased tenfold from 300 MWp in 2010 to 3000 MWp in 2017, creatingexcess capacities at certain times and a collapse in electricity prices12. This collapseapplies to renewable as well as fossil fuels. Meanwhile, 1 kWh is on the market for $0.03 to$0.04 USD, and sometimes falls to $0.00 USD, especially in remote areas where energydemand is low.

While electricity prices in non-OECD countries are under pressure, the picture is much more diverse inthe OECD. European OECD countries introduced a range of taxes and levies on electricity prices –partly to finance legacy PV-projects that earn $0.20 to $0.40 Euro USD/kWh for the next 10 to 15years and partly to develop the grid and finance new power lines for renewable energies. Consumersin Denmark and Germany pay up to $0.30 and $0.40 USD/kWh, while power production at thesource costs $0.03 USD for coal or gas and $0.08 USD for the latest PV parks. Simultaneously,governments have introduced large exemption schemes in order to preserve the competitiveness oftheir industries so that smelters or car manufacturers can still purchase low-cost energy.

The regulatory regime of legacy feed-in tariffs, subsidies and exemptions has distorted the market andis highly vulnerable to policy changes. The European Commission, for example, has targetedGermany’s exemption system as a violation of European competition regulations and could even force thegovernment to change it. Furthermore, social institutions are putting pressure on a system that favors

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the interests of large companies over those of small consumers with lower incomes. Price changescould therefore come overnight - in both directions.

The European Union, India, Chile and the Middle East are only some examples of the distortions, risksand opportunities that affect the global electricity landscape. Our survey demonstrates that thesemarkets are undergoing a deep change that will force energy consumers to adapt within relativelyshort time frames.

SUMMARY

The exponential growth of energy consumption in the IT ecosystem is hitting an energy market intransition. The growth of renewables in the energy mix is creating imbalances in the grid – an unevendistribution of power in time and space. At certain times and in certain places, there is an abundanceof electricity straining the grid to its limits, while scarcity might prevail at other times. Theseimbalances trigger large fluctuations in spot market energy prices, regulatory responses, and pricedifferences between sectors, regions, time and climate zones.

As data centers are long term investments in infrastructure, they have a limited capability to adapt tochanges in the price structure of energy markets. Once built, they are tied to their location andmight lose competitiveness to other locations if price structures change. While new marketconditions might be lethal for traditional data centers, they offer vast opportunities for the global,flexible and intelligent mining operation that BaselBit is launching now.

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THE BaselBit APPROACH

OUR VISION

We believe that system innovation is imperative in order for cryptocurrencies to gain massacceptance. We believe that future mining operations need to be decentralized to reduce theirdependency on regulations from single governments, powerful individuals, and fossil or nuclearenergy.

Future crypto-mining operations need to reduce the systemic risks that result from being bound tocertain coins or mining pools. Thus, BaselBit strives to hand the decisive power back to the crypto-community. It must be possible for individuals to take part in crypto-mining without tremendousinvestments in hardware and technology. Besides broad ownership of mining operations, BaselBitstrives to involve the community in making decisions about key mining decisions. We therefore striveto reduce the hurdles for larger audiences to take part in the crypto-community.

By offering any one the ability to take part in securing the future of the blockchain technology,BaselBit is laying the foundation for the future of crypto mining by designing highly mobile low-maintenance mining units and by offering our community the right to vote for mining locations and forcoin choices.

OUR APPROACH

The technology that BaselBit has developed represents the next generation of data centers - modular,mobile, flexible, low-maintenance, data-driven and therefore designed for the challenges of the future.

Our flexibility strategy is based on three technologies:

• Our decentralized Mobile Mining Units (MMUs) offer industry 4.0 automation with littlemaintenance, are completely modular and have a scalable design. They manage a variety ofelectricity sources and are able to adapt to different climate zones. Built in a 20ft standardintermodal container, they have a proprietary, highly efficient and failsafe cooling system, anintake of more than 100 KW (depending on configuration) and can turn energy intocryptocurrencies or alternative data applications (for details see The Mobile Mining Unit , page25).

• Our central hub or Unified Mining Cloud (UMC) manages the automated, decentralizedoperation of mobile mining units worldwide. It supports our Mobile Mining Units (MMUs) infinding the optimal mining strategy depending on the traded price of the cryptocurrency, miningdifficulty, real-time energy price at location, hardware generation and many more factors.Besides data aggregation, control and optimization of MMUs, our UMC is also handling andsupervising all service & maintenance operations throughout the BaselBit network.

• Our global Smart Energy Sourcing (SES) identifies and secures locations with low energy prices.It is a database thatwe develop in a continuous process in cooperation with one of the mostrenowned scientific institutions for renewable energies in Germany. It combines knowledge ofprice structures for industrial users, feed-in tariffs for renewables, discounts for on-siteconsumption, grid fees, taxes, levies and exemptions - a proprietary, multi-dimensional systemthat helps us to identify the most efficient locations for processing data and miningcryptocurrencies.

Together, MMUs, UMC and SES build a complementary system: SES software helps us to identify themost efficient renewable energy sources around the globe, while the MMU technology allows us to

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direct computing power to exactly these spots in order to build a decentralized and robust system thatturns geographical flexibility into global cost leadership.

The global cost leadership of BaselBit relies on an exceptional data-based capability: with the help ofSES we don’t just identify attractive energy environments by country, we zoom into the micro level tofind the most efficient grid locations - directly at a transformer, a wind farm or a PV park.Furthermore, we know exactly whether the jurisdiction allows this on-site approach to avoid gridfees, levies and taxes on energy transportation. This surgical precision exploits the imbalances of theexisting energy system.

UNIQUE SELLING PROPOSITION

BaselBit has developed a fully automatized (“industry 4.0”), mobile mining unit inside CSC-certifiedintermodal (sea) containers that can be shipped to any location around the world within days (mosttransport routes) or weeks (transport between continents).

Lowest price for energy on the market. Our mining units use low-priced green energy directly at thesource - near the shore, in the desert or in other remote locations. This allows us to alwaysstrategically position our Mobile Minings Units (MMUs) in regions with a competitive supply of energyand provides us with leverage when negotiating with energy providers.

Maximum energy efficiency. Our mobility concept allows targeted placement of our mobile miningunits at sites where thermal energy is required - for heating buildings, greenhouses or warehouses.This way, we “recycle” the energy used for mining. With this strategy, we achieve revolutionary, lowelectricity prices.

Cutting-edge cooling technology. We have designed, developed and tested a radically new, self-regulating cooling system specifically designed for the blockchain mining industry. This patent-pendingcooling system achieves a best-in-class energy efficiency with a consumption of only ~1% of thesystem’s total energy consumption.

True scalability. Mass production & scalability has been deeply embedded into BaselBit’s DNA fromday one. Next to custom components developed by BaselBit (e.g. circuit boards for management orcooling systems), our Mobile Mining Units use a wide range of standardized components thatfacilitate themass production. Ourinvestmentin software is safeguarding our growth trajectory by providing thenecessary means to operate a large fleet of MMUs. Through our network of partner firms, we havebeen able to secure a prioritized access to components such as GPUs in large quantities.

Risk mitigation by design. According to recent benchmarking studies, the centralization of hashingpower in the hands of a few is a risk universally perceived as high by large- and small-scale miners13.However, since BaselBit is able to “mine” a broad set of cryptocurrencies, our mobile miningunits reduce this concentration of power, as well as the dependency on a single government (e.g.regulatory changes), single energy providers (e.g. energy shortages or rapid price increases) and singlecryptocurrencies (e.g. crash of single cryptocurrency).

Supporting the smart grid. Our mobile mining units are designed and built to operate at remotelocations (“industry 4.0”) near energy sources such as solar plants, wind turbines or hydropowerplants. Our mobile mining units can be integrated into a smart grid and flexibly take the load off ofthe energy grids.

The pivotal parameter for cryptomining is the electricity price, where rewards and the depreciation ofhardware are similar for every market participant. For commercial miners, the cost of data centerinfrastructure is equally important. We at BaselBit have addressed both of these cost drivers with ourconcept of Mobile Mining Units: it is a modular, simple, robust and highly cost-efficient framework forany data center operation with the flexibility and standardized size required for a globaldeployment strategy.

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OPERATING MODELS

We apply the combination of our Smart Energy Sourcing (SES) and our Mobile Mining Units(MMUs) in two business models: Proprietary Mining Operations (PMO) and Third-Party Operations(TPO):

PROPRIETARY MINING OPERATIONS (PMO)

We produce, own and operate the fleet of proprietary MMUs. Our margin is the margin after rewards,depreciation and energy prices. CAPEX is on BaselBit’s shoulders, financed by our ICO investors. Inturn, token holders are entitled to 100% of the earnings - of which BaselBit re-invests 25% in order toincrease BaselBit’s future market share and maximize future earnings growth. While ProprietaryOperations are highly profitable in itself, they also serve as a proof of concept that should help turnutilities (e.g. power plant operators) into clients. At this point, we are currently already engaged indiscussions with planners & operators of power plants that have approached BaselBit. Their interestlies in the operation of BaselBit’s Mobile Mining Units (MMUs) as part of a downstream verticalintegration to safeguard their profitability in a difficult energy market environment.

THIRD-PARTY OPERATIONS (TPO)

We produce and operate the MMUs, but these investments are carried by an external partner, thethird party. The third party can be an investment fund or a utility looking for an upgrade in itsprofitability. By refining electricity, a mere commodity, into sophisticated crypto-mining services theutility moves up the value chain and multiplies its revenues per kWh. With TPO, we offer ourexpertise in mobile crypto mining to a sector in need of revenues, leverage our own capital base andincrease returns for token holders. A percentage of the total mining revenues of the third party will beclaimed by BaselBit for operating the MMUs and BaselBit will pay 35% of the earnings of thisbusiness model to token holders.

CHALLENGES IN THE BLOCKCHAIN COMMUNITY

The ecological footprint of traditional mining operations is enormous – the total amount of energyconsumed in mining Ethereum and Bitcoin is as large as Nigeria’s consumption, a country with 180million inhabitants, about 2% of the entire population on earth. The Guardian stated back in July thata single Bitcoin transaction “devours as much energy as what powers 1.57 US households for a day– roughly 5,000 times more energy-hungry than a typical credit card payment”14. Traditional large-and small-scale mining operations get their power from regular grids - based on a traditional energymix. On a global level, that energy mix is still dominated by fossil fuels contributing to pollution andclimate change. For blockchain to fulfill its own vision and become the infrastructure for transactionsin the future, the technology needs to improve its energy consumption profile while maintaining itscore principles: the distributed ledger and a redundancy of capacities. That is a big challenge for theentire industry. However we - the BaselBit team - are convinced that we can help make the world abetter place with our mobile and flexible system which taps unused resources in the renewable space.

Besides our environmental ambitions we want to strengthen the original idea of blockchain andcrypto currencies: a distributed structure in the hands of many as opposed to oligopolistic clusters ofcomputing power in intransparent jurisdictions under authoritarian rule. The very nature of our mobilefleet of MMUs allows for a widely distributed system and the voting rights we give to the communityof token holders ensure that important decisions in mining are taken by the community and not bytycoons.

LONG TERM VISION

We believe that next generation energy grids need to be intelligent, dynamic systems connectinglegacy power stations with large scale renewables and networks of distributed producers andconsumers of energy. On the last mile, such a system relies on Advanced Metering Infrastructure(AMI) with smart meters as energy managers and intelligent machines as agents that buy and sellenergy via smart contracts, using household’s solar roofs as power stations and car batteries asstorage. In the energy world 4.0, the formerly uninvolved consumer of the 20th century becomes anactive player in a breathing and flexible energy organism, managed by smart contracts, paid incryptocurrencies15.

In such a world, the analysis of energy prices on a global scale is key for efficient crypto mining anddata center operations13. With Smart Energy Sourcing (SES), we are now laying the foundations forthe software infrastructure necessary to manage our crypto mining operation and maximize thepotential and flexibility of our Mobile Mining Units in order to become the leading player in the emergingworld of blockchain-based energy transactions.

SCALABILITY

According to a recent Cambridge study, many large miners are highly concerned with issues regardingthe scalability of their operations. We designed all our processes with this issue in mind, resulting inan all-around highly scalable concept. We deploy a modified, ISO-certified sea container that is adaptedto suit BaselBit’s needs right from the beginning. In partnership with well-established Chinese steelfactories, all of the container’s units are thoroughly prepared and equipped with most of the requiredhardware, including BaselBit’s proprietary sensor array, remote control mechanisms and BaselBit’shardware stacking system. At this point, BaselBit’s units can be filled with the computing hardware.Currently this step is undertaken in the EU, however we have plans for passing it on to productionsites in the future as well. After this final step, which is facilitated by BaselBit’s simple hardwarestacking system, the unit can be connected and can start working anywhere in the world, be it in aremote power plant, rural industrial area or even a container ship, using the ship’s onboard wifi andpower supply. Our team of international energy experts has furthermore helped us to create a powerhub that allows BaselBit’s modular data centers to be connected to virtually any high-power electricityin the world. Accepting the industrial standard of 380- 400 VAC via a set of adjustable connectors,BaselBit’s fleet remains flexible, can be used in any imaginable setting and can be dynamicallyadjusted to meet the required needs. In the post-deduction phase, a unit can even be economicallyused to solely transform excess energy such as excess power potentials from (off-grid) renewableenergy sources.

Given the low prices of standardized grid-tied inverters, PV farms often use these standard modulesin an array, creating an ideal low-voltage AC network for off-grid usage of PV power. After the primaryamortization phase, where units are in use 24-7, a 100% off-grid use case becomes profitable.

Figure 4. Scalability. Containers can be stacked in arrays to allow the best usage of available space and maintain an outstandingly small footprint for a comparable data center.

THE MOBILE MINING UNIT (MMU)

DEVELOPMENT PRINCIPLES

The BaselBit team has developed the core technology ranging from circuit boards to middleware toapplication software layers for the MMU based upon a clear set of development principles andguidelines:

• Mobility. The BaselBit vision can only be realized by ensuring that each and every component iscompatible with, and supports, our ruggedized mobility concept (e.g. protection of hardwarecomponents against vibrations and transport-related issues). This is largely realized by usingcomponents designed and revised in-house.

• Modularity. For the sake of scalability, modularity is one of BaselBit’s fundamental designstrategies. The modularization of functional units and the creation of a completely modularenvironment are essential contributors to the success of our Mobile Mining Unit (MMU)

• Cost-efficiency. The highest-performance device does not always provide the best value when energycost is a factor. Our goal is to create devices with the greatest ROI at the lowest overall risk. Thecore technology of the MMU has been developed to only include carefully chosen, well-engineered solutions with a clear focus on improved ROI over the life of the device.

• Maintainability. Keeping operational costs low is the key to success. Industry 4.0-drivenautomation approaches are therefore preferred over using human resources for hardwaremaintenance, wherever possible.

• Plug‘n‘play. Replacing, removing, adding, or moving units and devices should not affect theoperability of the system or any parts of it. To this end, a sophisticated plug‘n‘play system should bedesigned to track and balance connected components.

• Plug‘n‘mine. A fundamental development concept is that deployment of the MMU to full-scalemining should only take a few minutes once energy and network have been connected. Simplyplug in the device and mining will rapidly commence following the sequential startup sequence.

• Expandability. Simple, straightforward, function-based engineering allows for exponentialscalability, allowing for virtually unlimited expansion of our system. This ensures easy-to-control massproduction and a short time-to-market.

—Cooling optimization. Cooling is an essential factor for any data-center and is the greatestcomponent in determining its efficiency. A maintainable and error-proof system is the key toan autonomous mining operation. Therefore, we have created a largely passive, highly-efficient cooling system that keeps the unit running even at outside temperatures above 40°C. For special purposes, like hot climates, this system will be scalable without additionaladaption.

BaselBit MINING RACK

All racks are designed to meet the central goal of maximizing the gross energy efficiency of the whole unit. This involves optimizing arrangement of the different components at defined heights inside the racks, allowing for optimal airflow through the air ducts to reach all components that require cooling.

MODULARITY

Each BaselBit rack has its own power supplies, relays, network switches, and mining workers whichmake each rack completely independent and interchangeable. This way the rack can be assembledindependently of its location which ensures a high level of modularity and safety.

Racks in a Mobile Mining Unit can furthermore be readily exchanged or replaced. This ensures ascalable-build pipeline and that only minimal knowledge is required for physical installation, as onlynetwork and energy need to be connected to the rack to allow the mining process to begin.

EXPANDABILITY

The layers of the rack are highly expandable to match the needs of this rapidly evolving market. Thismeans that the rack can be expanded for ASICs, mining rigs, or any other kind of hardware, such astraditional hard drives, in order for the unit to remain adaptable to multiple applications and use-cases.Our BaselBit racks are designed and tested in our laboratory to optimize them towards maximumversatility in the field. To this end, we also maintain ongoing research and development to ensurecontinuous improvements in design and performance for future and already-deployed racks.

COOLING OPTIMIZATION

Based on aerodynamic simulations, field testing in various environments, and proof-of- concepttesting under thermal-imaging control, the racks and the placement of the GPUs have been optimizedfor ideal convective conditions. This specific placement ensures our superior cooling performance,allowing the racks to be placed next to each other without losing performance to heat.

MAINTAINABILITY

To ensure maximum flexibility and maintainability, all racks are placed on rails that have been welded intothe container during initial production. This enables precision movement of the racks along the shorthorizontal axis of the container, allowing for an optimal adjustment of rack-to-rack distances as well asideal positioning for maintenance.

Due to the modular design of each rack, modifications to the layout will trigger the BaselBit operatingsystem to execute automatic connection routing that ensure a seamless connection of the modularrack with the BaselBit network upon connection to the power line.

The end result is an easily maintainable, cost-efficient, expandable rack which can be deployed into aMobile Mining Unit without any on-site configuration.

OUR SOFTWARE INFRASTRUCTURE

SYSTEM OVERVIEW

Our main goals for the BaselBit software are reliability, modularity, maintainability and security. Due tothe physical separation of the different hardware components, the system is split into various softwarecomponents running on numerous devices. Therefore we have software components for the miningworkers and the automated supportive components. We have furthermore built software running on aserver system inside the MMU, called Unified Unit Control (UUC). The UUC is aggregating andcontrolling all information from control systems and workers inside the MMU. On top of the UUC is acloud-based application called Unified Mining Cloud (UMC). The UMC aggregates information fromUUCs and allows access to the system via multiple frontends. Frontends can be web-basedapplications or, in the future, mobile applications. To meet these requirements, all communicationbetween the system is based on RESTful APIs.

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REDUNDANCY

To prevent a single point of failure, the UUC runs in two different instances in the MMU. One of themis the master while the other is in slave (failover) mode.

Figure 5: Unified Unit Control. Master- Slave configuration.

Whenever one of them fails, this failure will immediately be reported to the Unified Mining Cloud(UMC). If the master instance fails, the slave instantly becomes master to make sure the central unitremains operational. Should both UUCs experience issues, all connected workers will shut downautomatically as a protective measure and only as a last (unlikely) resort.

SECURITY PROVISIONS

Security of our community members as well as data safety and availability are core values ofBaselBit. From the very beginning, we have put significant effort into designing and delivering asecure platform. This starts with a professional software development lifecycle and is complementedby well-organized operational security. However, we do not stop here. Bugs in software do exist andhuman errors occur. As such, we always aim to design our systems in ways that limit the impact ofpossible future incidents.

MMU SECURITY

Since MMUs will be distributed around the globe, and are not fixed in a single location, we put aspecial emphasis on security. The core idea is to not only build a safe system but to mitigate theimpact of hypothetical security breaches by design. This implies that the entire design within eachMMU is based on strict compartmentalization.

TRANSACTION AUTHENTICATION NUMBERS (TANS)

Password security cannot be solved entirely on the server side. The password has to be kept secreton the user side as well. However, this is known to be a common issue. In order to protect ourcommunity from unwanted actions, our system features transaction authentication numbers (TANs).TANs willbe required for critical actions like the withdrawal of funds. We also plan to include anadditional two-factor authentication by means of mobile TANs, software, or hardware securitytokens.

COMPANY STRUCTURE

BaselBit AG is a Swiss corporation, headquartered in Zug, the so-called “Crypto Valley” of Switzerland, whereplayers like Ethereum Project, Monetas, Bitcoin Swiss and Bancor have laid the foundations for a major blockchaincluster.

BaselBit is the market and operating company controlling the Token BB3 and its servicing.

Parent Trust company, as a holding entity, is Global Clear Digital Bank & Trust, as Delaware Statutory Trust.

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UUC

(master)

UUC

(slave)

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Our structure is very simple: Shareholders are the founders, nobody else. This in turn means that we don’t haveto satisfy the hunger of institutional investors for returns and can share the profits of our operations with our tokenholders in a fair and transparent way.

(more details)

SAMPLE OF – Need a list: Our clients and partners are the best players in the industry:

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Prime

MEX Exchange -a group of brokerage companies, licensed by FCA, ASIC and UAE. Their paid-in capital exceeds 322 million US dollars.

Halifax Investment Services Pty Ltd -a company with an ASIC license and offices in Sydney, Melbourne, Southport, New Zealand and the USA

JFD Brokers -a brokerage company, established in 2011. Itis regulated by CySEC (Cyprus}, FCA (United Kingdom), BaFin (Germany) and ACPR (France). Several years in a row JFD has been the best Forex broker in Germany, and has other prestigious awards in Europe.

MetaOuotes -specializes in software development for financial markets.The main products are MetaTrader 4 and MetaTrader 5 trading platforms for brokers that provide marginal trading on the Forex, CFD and futures markets. Their offices are located in Cyprus, China, Singapore, Australia, Turkey, Japan, Thailand, United Arab Emirates and Bulgaria.

Sw i ssquote -a well-known state bank. It is regulated by the Swiss Financial Market Supervision Service (FINMA} and is a member of the Association of Swiss Bankers.

Integral -an advanced eFX cloud platform. It combines the functions ofliquidity management, pricing, distribution and risk management and act as a technological partner of more than 200 financial institutions.Their offices are located in the US, UK, Singapore and Japan.

IG Group Limited -a major CFD provider. It has been on the market since 1974.

They serve 152,600 active customers around the world and have been the first who developed an online trading service and launch trading from the iPhone.

Exante -an investment company of the new generation. Itprovides access to financial instruments and markets and was founded in 2011 with head office in Malta.

Prime XM -one of the most popular technological solutions for theaggregation and distribution of Forex liquidity with 400+ customersaround the world.

SoftFx -an IT company that develops liquidity aggregator, feeder, bridge for banks, brokers and funds.

oneZero -the second largest aggregator of the FOREX/DMA industry, whose services are used by retail brokers, prime brokers, liquidity providers and banks. They have 300+ customers worldwide

Company Information

Global Clear Digital Investment Bank & Trust is incorporated in the State of Delaware under company registrationnumber 2016-6109526 and registered as a as a Statutory Trust.

BaselBit AG is a swiss fudiciary acquired for the offshore operational controls centralized in the Cyrpto Valley of Switzerland to maximize exposure and relationships.

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BaselBit and BB3 are registered and pending trademark of Global Clear Digital Investment Bank & Trust.

Registered Address:16192 Coastal HwyLewes, Delaware 19958

Office Locations:5340 Alla RoadPlaya Vista, California 90066

London:XXXXLondon UKLondon Head Office: +44 (0) 207 112 0000

Switzerland:XXXXSwiss Phone: +33 (0) 207 112 0000

USA:Los Angeles (USA): +1 424 295 6760

Toll Free: +1 877 637 7GCC (7422)

+ 1 844 446 8BB3 (8224)

Email:

General: info@baselbit.ch

Support: support@baselbit.ch

Websites:

Corporate Website: https://BaselBitag.com

https://baselbit.ch, https://gcdibt.com

Help and Support: https://help.baselbit.ch

Web Client Application: https://app.baselbit.ch

GLOSSARY

AC Air Conditioning

ACS Automatic Cooling System

ADS Automated Doorman System

AES Advanced Encryption Standard

AIC Automated Internet Connection

AMI Advanced Metering Infrastructure

API application programming interface

ASICs Application Specific Integrated Circuit

ASM Automated Security Module

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BTC Bitcoin

CAPEX Capital Expenditures

CPU Central

Processing Unit CSC

certificate Civil

Service Commission DB

Database

DDoS Distributed-Denial-of-Service

DHCP Dynamic Host Configuration Protocol

DNA Deoxyribonucleic Acid

DNS Domain Name System

DNSSEC Domain Name System

Security Extension ESB BaselBit Storage

Blockchain

EIA US Energy Information Agency

ETH Ethereum

BB3 BaselBit Token

GDP Gross Domestic Product

GMT Greenwich Mean Time

GPU Graphics Processing Unit

HD High Power Density

HMAC keyed-hash message

authentication code HTTP Hypertext

Transfer Protocol

HTTPS Hypertext Transfer Protocol Secure

ICO Initial Coin Offering

IP Internet Protocol

ISO International Organization for Standardization

KVA Kilo volt ampere

KW Kilowatts

kWh Kilo Watts per hour

LAMP Linux operating system, Apache Server, MySQL database, PHP

LED light-emitting diode

LNG Liquefied Natural Gas

LTE Long-Term Evolution

MD Medium Power Density

MMU Mobile Mining Unit

MWp Mega Watt peak

NGO Non-governmental organization

OECD Organisation for Economic Co-operation and Development

P&L Profit and Loss Statement

PCB printed circuit board

PM post meridiem

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PMO Proprietary Mining Operations

PO Proprietary Operations

PV Photovoltaic

R&D Research and Development

REST Representational State Transfer

ROI Return on Investment

SEC United States Securities and Exchange Commission

SES Smart Energy Sourcing

SSL Secure Sockets Layer

TAN Transaction Authentication Number

TPO Third-Party Operations

TWh Terra Watts per hour

UHD Ultra High Density

UMC Unified Mining Cloud

UMTS Universal Mobile Telecommunications System US

United States

USD US-Dollar

UUC Unified Unit Control

VPN Virtual Private Network

WIFI Wireless Local Area Networking

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REFERENCES

1 Figure 1. Gold Price Performance . https://goldprice.org/de/gold-price-history.html, wherein the history of Gold price stabilty within the past 16 years reflects a strong position.

2 Figure 2. Gold Price Scales . https://goldprice.org/de/gold-price-history.html, provides the historical reflection of sincethe move of President Nixon to abolish the Gold Standard.

3 Figure 3. CryptoCurrency Charting: https://coinmarketcap.com/all/views/all/, is a critical representation of the market capitalizations of top crypto currencies.

4 https:// Coinbase.com – providing current pricing data for bitcoin and Ethereum.

5„The Cloud begins with Coal“, Digital Power Group, 2013; the report was sponsored by the National Mining Association of the US in order to promote coal, but consumption figures are neutral regarding the source of energy

6 The Independent, http://www.independent.co.uk/environment/global-warming-data-centres-to-consume- three-times-as-much-energy-in-next-decade-experts-warn-a6830086.html

7 Prof. Ian Bitterlin, http://www.independent.co.uk/environment/global-warming-data-centres-to-consume- three-times-as-much-energy-in-next-decade-experts-warn-a6830086.html

8 https://www.techpowerup.com/234959/cryptocurrency-mining-consumes-more-power-than-17m- population-country

9 https://en.wikipedia.org/wiki/List_of_countries_by_electricity_consumption

10 https://cleantechnica.com/2014/07/22/exponential-growth-global-solar-pv-production-installation/ ; https://en.wikipedia.org/wiki/Growth_of_photovoltaics

11 https://qz.com/953614/california-produced-so-much-power-from-solar-energy-this-spring-that-wholesale- electricity-prices-turned-negative/.

12 https://www.solarplaza.com/channels/archive/11186/india-on-roll-to-be-a-solar-energy-super-power/

13 Hileman, Garrick and Rauchs, Michel, 2017 Global Cryptocurrency Benchmarking Study (April 6, 2017). Available at SSRN: https://ssrn.com/abstract=2965436 or http://dx.doi.org/10.2139/ssrn.2965436

14 https://www.theguardian.com/sustainable-business/2017/jul/13/could-a-blockchain-based-electricity- network-change-the-energy-market

15 http://www.energycentral.com/c/iu/next-generation-smart-metering-ip-metering; https://hbr.org/2017/03/how-utilities-are-using-blockchain-to-modernize-the-grid

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