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Investor Memo

FlareWorks

Turning stranded flare gas into Bitcoin, then scaling through an RWA DAO

On remote oilfields, natural gas still gets burned off because it's stranded—too far from pipelines, uneconomical to transport, or trapped behind infrastructure constraints. It's waste and friction for producers. For Bitcoin mining, it's an opportunity: the cheapest, most underutilized energy on the planet, already on site.

FlareWorks is building an industrially simple but financially powerful platform: convert stranded/flare gas into electricity and mine Bitcoin using standardized, modular "MW pods." This isn't a science project. The model has already been proven at meaningful scale.

Executive Summary

FlareWorks is building the lowest-cost, fastest-to-scale Bitcoin mining footprint in Canada by monetizing stranded flare gas—energy that is currently wasted because it cannot be economically transported or sold.

The thesis is simple:

  1. 1Energy is the moat in proof-of-work.
  2. 2Stranded flare gas is the cheapest energy available in many regions because it's treated as a waste stream.
  3. 3Bitcoin is the only global settlement layer that can monetize remote compute in real time.

We have a validated operational proof-of-concept (≈1.3 MW) and secured access to additional flare field rights that can expand to 50 MW with capital. Expansion is linear: we replicate standardized deployment modules, MW by MW, site by site.

The Edge: Power Cost Wins Mining

Mining economics are mostly power. With stranded gas, we target ~$0.03/kWh, while industrial grid power is often far higher; the U.S. industrial average was 8.65¢/kWh in Oct 2025.

At 3¢/kWh

$262,800/yr

per MW electricity cost

At 8.65¢/kWh

$757,740/yr

per MW electricity cost

Savings

~$495k

per MW-year

This is the foundation: cheap, off-grid energy is the moat. Hashrate is just the conversion layer.

Proof of Concept: The Playbook Works

FlareWorks is anchored by an operator relationship that has already executed the deployment playbook on Canadian flare fields:

Live Power

~1.3 MW

Hashrate

~100 PH/s

Fleet

~600 S19K Pro

Power Cost

~$0.03/kWh

Cost per BTC

~$45-50k

Annual Output

~5-7 BTC

What matters: the operator can secure and expand stranded gas rights, and scaling is fundamentally a matter of capital + procurement lead times.

The Rollout: Standardized 1 MW Pods

FlareWorks scales by deploying repeatable "pods" (gensets + container + electrical + networking + ASICs). The math is deliberately simple.

Target 1 MW pod capex: ~$1.6M

  • Generators: ~$950k per MW (e.g., 3 × 325 kW gensets)
  • ASICs: ~300 × S21-class target (~65 PH/MW)
  • Balance-of-system: container + switchgear + networking + setup

The real pacing factor: generator procurement. Lead times are typically ~3–6 months, so we build the pipeline and scale in waves.

The Structure: Two Entities, Clean Roles

To raise serious capital and keep Phase II credible, we split execution from governance.

PHASE I — NOW

FlareWorks Labs LLC

The operating company. Signs site agreements, purchases equipment, deploys pods, and runs miners. This is where institutional capital goes first.

Raises through: institutional equity, equipment/project finance, mining-native structured exposure

PHASE II — AFTER SCALE

FlareWorks DAO

The network coordination layer. Governs expansion policy, reporting standards, and treasury strategy. Becomes the compounding layer once MW scale is established.

Token: $FLARE (Phase II)

Why $FLARE Exists: The RWA Coordination Layer

Institutional capital gets you to scale. The DAO keeps you compounding.

$FLARE governs:

  • Which sites and MW get built next
  • Expansion pacing and policy
  • Treasury allocation
  • Reporting/verification standards

Value accrual is fee-driven and disciplined:

  • Labs pays the DAO a platform coordination fee (per MW-month / per site)
  • The DAO treasury accumulates capital
  • Governance may allocate treasury to reinvestment, reserves, or discretionary open-market buybacks

This is not marketed as yield. It's a treasury and policy engine backed by real operating activity.

Risks (Honest Assessment)

Key Risks

  • Generator lead times and supply chain
  • Operational uptime in remote regions
  • Regulatory and permitting variability
  • Commodity volatility (BTC price / difficulty)
  • Counterparty and site access risk
  • Token regulatory design risk (Phase II)

Mitigations

  • Redundancy and standardization
  • Disciplined procurement pipeline
  • Diversified site portfolio over time
  • Strong reporting and telemetry
  • Conservative treasury policy

What We're Raising (Phase I)

We're raising institutional capital into FlareWorks Labs to:

  • Lock generator procurement (lead-time critical)
  • Deploy MW pods against a growing pipeline of stranded-gas rights
  • Expand hashrate using advantaged ASIC sourcing
  • Scale field ops, monitoring, and uptime

Milestones that unlock Phase II:

  • MW deployed and operational performance proven at multiple sites
  • Standardized reporting and verification
  • Platform fee policy defined
  • DAO readiness for $FLARE launch

FlareWorks is building a simple, repeatable machine:

stranded flare gaspowerBitcoinscale

If you understand Bitcoin and you understand infrastructure, you understand why this wins.

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This memo is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. All projections and forward-looking statements are subject to risks and uncertainties.