Equity Research Lokotech: Subsidiary signs LOI for development of Kautokeino site

Arctic Core AS, a wholly owned subsidiary of Lokotech Group AS, has signed a partially binding Letter of Intent (LOI) with a leading U.S. blockchain infrastructure company for the joint development of its Kautokeino facility.

Under the LOI, the U.S. partner is granted exclusivity through June 2025 to complete limited due diligence, conduct on-site inspections, and finalize the structure of a potential joint venture.

The proposed agreement features a hybrid lease model, combining a fixed base rent with a variable component tied to actual energy consumption, spanning an initial five-year term with a five-year extension option.

Arctic Core is actively working with the local grid operator to explore expanding the site’s planned capacity from 2 MW to at least 5 MW. If finalized, the partnership would significantly scale Arctic Core’s footprint in Northern Norway.

The U.S. firm — one of the largest contributors to PowerPool’s global hashrate — brings substantial operational capabilities and deep sector experience to the project. Under the terms of the LOI, the partner will independently finance and develop critical infrastructure, including electrical systems and security solutions.

Operations are scheduled to commence following September 2025, subject to development milestones.

Read our latest research report on Lokotech here.

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