Risk statement

London BTC Company Limited (the Company) holds or may hold treasury reserves and surplus cash in Bitcoin from time to time. Bitcoin is a type of cryptocurrency or cryptoasset. Whilst the board of directors of the Company considers holding Bitcoin to be in the best interests of the Company, the board remains aware that the financial regulator in the United Kingdom (the "Financial Conduct Authority" or "FCA") considers investment in Bitcoin to be high risk. However, the board of directors of the Company consider Bitcoin to be an appropriate store of value and growth for the Company's reserves and, accordingly, the Company is or may be exposed to Bitcoin from time to time.

Cryptocurrencies (such as Bitcoin) are unregulated in the United Kingdom. As with most other investments, the value of Bitcoin can go down as well as up, and therefore the value of the Company's Bitcoin holdings can fluctuate. The Company may not be able to realise its Bitcoin exposure for the same as it paid in the first place or even for the value the Company ascribes to its Bitcoin positions due to these market movements. And because Bitcoin is unregulated, the Company is not protected by the United Kingdom's Financial Ombudsman Service or the Financial Services Compensation Scheme.

Investments in Bitcoin carry significant risks. These risks include (but are not limited to):

1. the value of Bitcoin can be highly volatile and therefore investors in Bitcoin must be prepared to lose all money invested in Bitcoin;
2. the Bitcoin market is largely unregulated. There is a risk of losing money due to risks such as cyber-attacks, financial crime and counterparty failure;
3. the Company may not be able to sell its Bitcoin at will. The ability to sell Bitcoin depends on various factors, including the supply and demand in the market at the relevant time. Operational failings such as technology outages, cyber-attacks and comingling of funds could cause unwanted delay; and
4. cryptoassets are characterised in some quarters by high degrees of fraud, money laundering and financial crime. In addition, there is a perception in some quarters that cyber-attacks are prominent which can lead to theft of holdings or ransom demands.

Prospective investors in the Company are encouraged to seek their own professional legal, financial and tax advice before making investments in the Company.