DCG Summit

OCTOBER 2016

Bitcoin and Blockchain Technology Summit

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BY THE NUMBERS

•  120 attendees representing 62 portfolio companies and DCG subsidiaries

•  180 investors representing 120 VC’s, Family offices, funds, and corporate strategic partners

•  65 presentations and a total of 900 slides

•  992 one on one meetings with 2,200 individual agenda bookings via Guidebook

OCTOBER 2016

Digital Currency Group The epicenter of bitcoin and blockchain

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We believe that digital currency and blockchain technology is going to transform our financial markets and will drive positive

economic and social change globally

OUR MISSION

It is our mission to accelerate the development of a better financial system

We do this by building and supporting bitcoin and blockchain companies and leveraging our insights, network

and access to capital

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DCG TODAY

•  Three wholly-owned subsidiaries:

•  Grayscale Investments

•  Genesis Global Trading

•  CoinDesk

•  28 employees at DCG and our wholly-owned subsidiaries

•  Launching “DCG Corporate Network” in Q1 2017

Subsidiaries Portfolio

•  Investments in 88 companies

•  Adding ~2 companies per month

•  Global network spanning 25 countries; largest in industry

•  Over 1,000 employees in DCG family

Digital Currency •  Own BTC, XRP, ETC, ZEC

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•  C-Corp structure provides us with:

•  Flexibility

•  Opportunity to build a new investing/operating model

•  Permanent capital

•  Ability to raise money from strategic investors

•  Potential to take DCG public

WE ARE NOT A VC FUND

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OUR INVESTORS

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•  Target 2-5% ownership at seed stage (invest up to $200k)

•  Focus on strategic life cycle investments (invest up to $500k in Series A, $1 mm in Series B)

•  Join syndicates with other professional investors

•  Back the very best teams in our target markets

•  Minimize conflicts of interest

OUR INVESTING STRATEGY

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•  DCG portfolio has been the industry’s early VC pipeline

•  Continued success à continuing to build symbiotic relationship with professional investors

DCG FUNDING ANALYSIS

Announced Industry Deals $1.3 billion

Mining Operators $234 million

Non-Mining Deals $1.1 billion

DCG Companies $755 million

DCG companies raised

~70% of industry funding to date

DCG INVESTING SUCCESS

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1.  Blockchain Registry

2.  Core Infrastructure

3.  Enterprise Blockchain Solutions

4.  Identity & Compliance

5.  Payments 2.0

6.  Smart Contracts

7.  Trading & Tools

KEY INVESTMENT AREAS

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DCG PORTFOLIO IDENTITY

ENTERPRISE BLOCKCHAIN

SMART CONTRACTS ASSET REGISTRY

PAYMENTS 2.0 TRADING & TOOLS

CORE INFRASTRUCTURE

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2016 PORTFOLIO ADDITIONS

Blockchain Registry

Core Infrastructure

Enterprise Blockchain

Identity & Compliance

Payments 2.0

Smart Contracts

Trading & Tools

Bitmark Blockstream Bloq Chainalysis 4G Capital Lighting BitOasis

Everledger Jiko Services Enigma Civic Bitwala Rootstock Crypto

Facilities

Fluent Netki Gem Cloudwear Brave SurBTC

Skuchain Snapcard Revelator Custos Joystream

Tierion Elliptic Streami

Token Yours

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•  Supply chain

•  Trade finance

•  Identity & verification

•  Cross border payments

•  Digital currency as a speculative investment

WE ARE EXCITED ABOUT

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CROSS BORDER PAYMENTS -- ON/OFF RAMPS

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CROSS BORDERS PAYMENTS VIA BITCOIN

$0

$20

$40

Oct-15 Jan-16 Apr-16 Jul-16

Mill

ions

$0

$50

$100

$150

Oct-15 Jan-16 Apr-16 Jul-16 M

illio

ns

Source: Align Commerce, BitPesa, Korbit (Hyphen), Snapcard (MassPay)

Monthly Volume Cumulative Volume

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•  Holds ~1% of all bitcoin

BITCOIN INVESTMENT TRUST

$0

$70

$140

9/25/13 3/25/14 9/25/14 3/25/15 9/25/15 3/25/16 9/25/16

Mill

ions

Assets Under Management

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•  Ethereum

•  “Smart” Smart Contracts

•  Decentralized autonomous organizations

•  Initial Coin Offerings

WE ARE NOT EXCITED ABOUT…YET

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•  Blockchain, blockchain, blockchain -- hundreds of POCs

•  Business model for certain “blockchain” companies continues to be challenging; venture investing slowing

•  Growing number of companies hitting profitability

•  Bitcoin scaling debate rages on…and solutions being developed

•  Massive bitcoin transaction volume growth in India, Middle East, Nigeria, Russia, Venezuela

•  Digital currency becoming recognized as a new investable asset class, but little institutional investor interest beyond bitcoin

•  Central bank exploration into fiat digital currency; quiet on regulatory front

INDUSTRY STATE OF AFFAIRS

OCTOBER 2016

Development Building a global platform

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PORTFOLIO DEVELOPMENT

We connect our portfolio companies with our broad network to help fuel collaboration, growth, and development of this industry

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THE DCG NETWORK

Portfolio (88)

Academia Policy

Co-Investors (700) Corporate Partners (200)

Family Offices & Funds (100)

Institutions

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KEY PORTFOLIO INITIATIVES

In storage and compute credits to DCG portfolio companies, infrastructure partner for experimentation $2M

>1,000 Introductions to potential partners both within the DCG portfolio and the DCG network

In the last 12 months…

40 Events for our portfolio and partners, including workshops, working groups, and webinars, both in the US and abroad

150 New relationships with corporate partners developed – including presentations to boards, executives, and technology groups

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THE NEXT EVOLUTION

Insights on Every Startup and Consortium

Partnerships & POC Matching

Events & Exclusive Network

Announcing…

DCG Corporate Network

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JOIN US

Contact [email protected] for more information!