Equity Research Lokotech Group: Crypto case set for commercial breakthrough

As cryptocurrencies and blockchain-technology is increasing in both acceptance and interest globally, Lokotech Group AS is set for commercialization of its Scrypt mining hardware Hashblade in 2025. Combined with revenues from newly acquisited mining pool Powerpool.io, growth is expected increase from 2025 and onwards.

Providing interesting exposure to the crypto space

Norwegian company Lokotech Group AS (“Lokotech” or “the Company”) is a management and holding company that through subsidiaries specializes in blockchain and tech infrastructure, particularly in designing high-performance Application-Specific Integrated Circuits (“ASIC”) tailored for Scrypt-based cryptocurrency mining, but also eligible for advanced AI training applications. Beyond hardware, Lokotech has expanded into mining operations through a majority acquisition of the mining pool PowerPool.io which enables Lokotech to align its high-performance hardware with optimized pool services, enhancing the synergy and effectiveness of its products in an integrated mining ecosystem.

Increasing efficiency in crypto mining

Lokotech’s ASIC miner, Hashblade, represents a cutting-edge development in Scrypt ASIC mining technology, engineered to optimize performance across energy efficiency, versatility, and compatibility with standard hardware configurations. Hashblade operates on a higher efficiency level compared to competing hardware. This performance enables miners to achieve high output with a significantly reduced environmental footprint, an important differentiating factor as energy efficiency becomes a pivotal metric for cryptocurrency infrastructure investments​. Hashblade is expected to launch commercially in early Q3 2025, with approx. USD 850,000 already registered in pre-sales. Combined with steady revenues from Powerpool following the ongoing Crypto-frenzy, and an increasing acceptance for cryptocurrencies globally, we expect revenues and profitability to grow from 2025 and onwards.

Valuation upside given shift from R&D to commercialization

Up until now, Lokotech has been putting its focus on development of the Hashblade. As commercialization approaches, the Company is shifting focus on growing sales and profitability. With great potential to quickly increase its market share on the ASIC market we anticipate a net sales CAGR, 2024-2034, of 57.9%. With an improved gross margin as Hashblade sales volumes increase, we expect a positive EBITDA- and net result in 2026, given that the Company succeeds in raising enough capital to start mass production of Hashblade.

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