TIDMQBT 
 
23 May 2022 
 
                      Quantum Blockchain Technologies Plc 
                           ( "QBT" or "the Company") 
 
                         Update on Bitcoin Mining R&D 
 
The board of Quantum Blockchain Technologies (AIM: QBT) is pleased to update 
shareholders on the current progress of its Bitcoin ("BTC") mining research and 
development ("R&D") activities. 
 
Highlights 
 
  * Bitcoin mining testing commenced using knowledge-based algorithms 
  * Bitcoin mining to follow shortly after completion of current testing 
  * Quantum computing simulations generating positive results, and 
  * New patent applications to be filed as soon as practicable 
 
Bitcoin Mining 
 
The Company has moved from simulation testing and has started live experimental 
BTC mining on its IT R&D platform, using a standard version of the SHA-256 
algorithm. The main purpose of the mining activity is to collect real time data 
to populate the Company's existing Big Data database, which is then utilised by 
the R&D team with machine learning and data analysis tools. The Company is 
pleased to report that this development has led to the first two 
knowledge-based algorithms, which govern the SHA-256 computation, being 
deployed, with mine testing now taking place. 
 
This is the final step of nearly a year's work by one of the Company's two 
Machine Learning Teams. A third Machine Learning Team, which started work 
earlier this year, to develop an alternative solution to the two Machine 
Learning methods, has already delivered some innovative results. Both 
approaches (Method 'A' and Method 'B') have a "probabilistic element" approach, 
which over time, represents a "deterministic superiority". During testing, 
Method 'A' has improved the performance in speed and energy consumption 
significantly compared to existing crypto mining hardware. Taking exact 
measurements is part of QBT's mining testing programme. 
 
The second knowledge-based mining approach (Method 'B') will need the 
availability of a proprietary ASIC chip which, if successful, probabilistic 
mining could be improved by several factors compared to today's deterministic 
BTC mining using commercial ASIC chips.  Theoretical analysis is currently 
showing a material improvement, but experimental testing is required to 
quantify it on a large number of real mining cases. The Company is, therefore, 
assessing its competitive approach using GPU and FPGA chip technology, instead 
of ASIC, such is the expected potential of this new approach. 
 
Subject to the confirmation of current testing, it is expected that two new 
patent applications will be filed as soon as practicable. 
 
More importantly, the Company expects to shortly commence real Bitcoin mining 
using Method 'A', performed on the latest generation of GPU and FPGA. 
 
Quantum Computing 
 
Work on the Quantum version of the SHA-256 algorithm is ongoing, and it is 
expected that a patent application will be filed once the Company achieves 
theoretical confirmation. Importantly, the Company has been performing 
simulations on an extremely scaled down simulated Quantum version of the SHA256 
algorithm, which have produced exact results (instead of approximate results 
which are more typical with this type of computation) for the first time - a 
milestone achievement for QBT. 
 
During the next two months, the Company is aiming to get theoretical evidence 
of whether the number of Qubits available on the next generation of commercial 
quantum computers (expected to be released into the market in 2023), will be 
enough to sustain the Company's full SHA-256 computation. 
 
Second patent 
 
The current directions taken by both R&D teams of cryptography and ASIC design 
are now more oriented on extreme silicon energy optimisation techniques, to 
stress the limit of the physical properties of a 5nm ASIC, for which a leading 
world-class ASIC design research organisation has been engaged. 
 
The filing of the second patent for the SHA-256 optimisation has been put 
temporarily on hold. This is pending results of the performance of potential 
improvements which the Company believes are an alternative to an existing 
patent, and within a similar speed and energy consumption order of magnitude. 
An update on this patent will be released once a decision has been reached. 
 
Francesco Gardin, CEO and Executive Chairman of QBT, commented: "QBT is 
addressing an opportunity which represents a step-change for the Bitcoin mining 
industry, and where our competitors have invested several years, hundreds of 
researchers and engineers, as well as tens of millions of pounds. After just 
one year, QBT is already in a position to start its knowledge-based Bitcoin 
mining, using what we believe to be a unique and novel approach. The results of 
our Bitcoin mining endeavours during the next few months will determine the 
real value of our approach. 
 
"At the same time, we continue to improve the chip design of ASIC based 
traditional mining by optimising the SHA-256 algorithm and its silicon 
implementation. Our Quantum Computing team has now successfully achieved its 
first correct quantum computation of a reduced size version SHA-256 and is now 
scaling up to the full SHA-256. 
 
"The complexity of the task makes predicting the timeframe for publishing new 
results and operational updates difficult. We have over 20 world-class experts 
working in our R&D team to achieve these results. We will endeavour to 
communicate more frequently with our shareholders. We strongly believe that our 
efforts are taking QBT into a new direction of Bitcoin mining and ask for 
shareholders' patience until these efforts are rewarded by success." 
 
                                    -ends- 
 
This announcement contains inside information for the purposes of Article 7 of 
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law 
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed 
in accordance with the Company's obligations under Article 17 of MAR. 
 
For further information please contact: 
 
Quantum Blockchain Technologies Plc 
Francesco Gardin, CEO and Executive Chairman                            +39 335 
296573 
 
SP Angel Corporate Finance (Nominated Adviser & Broker) 
Jeff 
Keating 
+44 (0)20 3470 0470 
Kasia Brzozowska 
 
Leander (Financial PR) 
Christian 
Taylor-Wilkinson 
+44 (0) 7795 168 157 
 
About Quantum Blockchain Technologies Plc 
 
QBT (AIM: QBT) is an AIM listed investment company which has recently realigned 
its strategic focus to technology related investments, with special regard to 
Quantum computing, Blockchain, Cryptocurrencies and AI sectors. The Company has 
commenced an aggressive R&D and investment programme in the dynamic world of 
Blockchain Technology, which includes cryptocurrency mining and other advanced 
blockchain applications. 
 
Glossary of Terms: 
 
ASIC: An Application-Specific Integrated Circuit is an integrated circuit chip 
customized for a particular use, rather than intended for general-purpose use. 
ASIC chips are typically fabricated using metal-oxide-semiconductor (MOS) 
technology, as MOS integrated circuit chips 
 
Big Data: Big data refers to the large, diverse sets of information that grow 
at ever-increasing rates. It encompasses the volume of information, the 
velocity or speed at which it is created and collected, and the variety or 
scope of the data points being covered 
 
FPGA: A field-programmable gate array is an integrated circuit designed to be 
configured by a customer or a designer after manufacturing - hence the term 
"field-programmable". The FPGA configuration is generally specified using a 
hardware description language (HDL), similar to that used for an 
application-specific integrated circuit (ASIC). 
 
GPU: A graphics processing unit (GPU) is a computer chip that renders graphics 
and images by performing rapid mathematical calculations. 
 
Probabilistic Approach: A probabilistic approach doesn't guarantee to find 
always the solution, but when it does, it takes far less computational steps. 
When applied to a large number of mining attempts, the overall number of steps 
will be considerably less, but solution will be fine in, say 90% of cases. 
 
Pool Mining: As part of bitcoin mining, mining "pools" are a network of miners 
that work together to mine a block, then split the block reward among the pool 
miners. Mining pools are a good way for miners to combine their resources to 
increase the probability of mining a block, and also contribute to the overall 
health and decentralization of the bitcoin network. 
 
SHA-256: Secure Hashing Algorithm (SHA)-256 is the hash function and mining 
algorithm of the Bitcoin protocol, referring to the cryptographic hash function 
that outputs a 256 bits long value. 
 
Qubit: A classical bit can be in two states, it can be either zero or it can be 
one. A quantum bit or qubit, however, can be in a sort of zero state and in a 
one state at the same time. This situation is called a superposition of 
(quantum) states. Qubits have some very particular properties: for instance, it 
is not possible to make copies of qubits. 
 
 
 
END 
 
 

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