What can go wrong.

A Montblanc mandate is a halving-cycle bitcoin-denominated engagement, sized to run from sign-date to the next halving. Daily production is recorded on the public ledger in BTC; settlement to your hardware wallet happens on-chain monthly, in BTC. The USD value of that BTC fluctuates with the spot market and can fall materially over short or long periods.

Historically, bitcoin has moved through drawdowns of 50–80% within single cycles. A halving-cycle mandate is designed to accumulate through those drawdowns, not avoid them. Clients who cannot tolerate large bitcoin-denominated swings should not allocate.

Our production cost is driven primarily by electricity and hardware efficiency. At present blended electricity cost (~$0.06/kWh) and a current-generation SHA-256 ASIC fleet, we produce bitcoin below market. If bitcoin falls sharply or network difficulty rises faster than efficiency gains, that spread compresses.

Well-capitalised fleets continue producing through these regimes; historically, spread compression precedes network difficulty downward adjustments that restore margin. Marginal operators capitulate first. We model conservative and base cases against sustained compression and run with a balance-sheet buffer for such periods.

Clients continue accumulating BTC throughout — the question is the USD-equivalent value of that accumulation, not whether distributions continue.

Montblanc Capital Ltd is registered in Dublin, Ireland. Production runs across two jurisdictions: the UAE and Northern Europe. Both have been supportive of bitcoin and industrial-scale mining to date, but regulatory regimes can and do change.

Running across two jurisdictions reduces exposure to any single regulatory change, but does not eliminate it. In the event of a material regulatory action affecting production, the affected facility may be paused, relocated, or wound down, with client distributions reflecting the reduced capacity.

Material regulatory changes affecting clients will be disclosed in writing within a reasonable time of the change.

Day-to-day uptime in industrial bitcoin mining is typically in the 97–99.5% range; Montblanc publishes its actual uptime monthly. Brief outages from grid events, pool failovers, and planned maintenance are expected and priced into projections.

A catastrophic event — a facility fire, a multi-week grid collapse, a hardware supplier insolvency mid-shipment — could materially reduce production for a defined period. We hold redundancy across two sites, multiple pool relationships, and a business-continuity reserve sized to bridge foreseeable operational gaps.

Catastrophic operational events will be disclosed to clients at the first available opportunity, with a remediation path and a revised production estimate.

Electricity suppliers set the single largest cost input for production. Disputes, price changes, or supplier insolvency at a facility can temporarily halt production at that site. We maintain multi-site redundancy to mitigate single-supplier failure.

Mining pools aggregate hashrate and distribute block rewards. A pool insolvency or operational failure could delay settlement of rewards accrued to our hashrate. We split our fleet across multiple pools, with the split published on the verification record.

Client bitcoin is held at third-party custodians and self-custodied withdrawal destinations. Custodian failure, cyber-attack, or loss of keys is a residual risk that applies to all third-party bitcoin custody.

Montblanc Capital is founder-led and operating at boutique scale. Client capital is not diversified across a 100-person organisation; it is concentrated under a small founding team. Our current state is published openly and updated regularly.

Continuity risk exists. In the event of a material incapacitation of either founder, a continuity plan is in place to protect client positions and continue settlement — documented in the client agreement. This is a mitigating plan, not an elimination of risk.

We view the founder-led structure as an alignment feature: every client relationship is run by people accountable to that client by name. Operating businesses and treasuries considering large mandates should understand that they are relying on a named pair of operators, not an institution.