Edgemode, Inc.: From Crypto Mining to High-Performance Computing Colocation

Introduction
Edgemode, Inc. ("Edgemode" or the "Company") filed its annual 10-K for the fiscal year ended December 31, 2024. After years of undercapitalized Bitcoin mining, the Company completed a transformational acquisition in April 2025—purchasing Synthesis Analytics Production Ltd. ("SAPL") and pivoting to high-performance computing (HPC) colocation services in Scandinavia. In this post, we break down the key highlights of Edgemode’s business, strategic assets, financial performance, risks, and what it all means for prospective investors.

Warren.AI 💰 3.0 / 10

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1. Business Model & Strategic Rationale

Originally incorporated in 2011, Edgemode attempted digital asset mining through 2023 but lacked scale. On April 7, 2025, the Company closed a share exchange with SAPL—an England & Wales private company—and acquired 100% of its infrastructure assets via issuance of approximately 1.26 billion Edgemode shares. SAPL rebrands to EdgeMode Europe Ltd. and carries:

• A 95 MW Power Purchase Agreement (PPA) with Marviken One AB, Sweden
• A 10-year lease on a 1,050 sqm data hall plus 28 sqm office space in Marviken, Sweden
• A Freehold plot of land (20,000 sqm) earmarked for a future 75 MW data center
• Water cooling rights via Baltic Sea access—crucial for immersion cooling

Strategic Goals:

1. Build a 20 MW Tier III-equivalent data center (“20 MW Center,” est. $70 M capex)
2. Secure anchor HPC colocation clients; first is Cudo Ventures for 1 MW slot
3. Expand into 75 MW gross capacity facility ("75 MW Center," $400–$470 M) on adjacent land
4. Leverage derivative IP for heat-recovery sales to local utilities

Edgemode’s pivot aims to replace selfmining volatility with predictable, dollar-based recurring revenue from colocation, AI/ML, and cloud computing workloads.

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2. Infrastructure & Operational Framework

Facility Development & Agreements
• Building Lease (SAPL / Marviken One): 1,050 sqm data hall, 28 sqm office, $30K/month, expires Dec 2034
• Land Purchase (SAPL / Marviken Two): 20,000 sqm, $1.75 M promissory note to Marviken Two
• Cooling Agreement: Access to Baltic Sea water for immersion cooling

Power
The PPA covers 95 MW of capacity—guarding against spot price volatility and securing green or baseload power. HPC colocation margins hinge on power costs; this long-term PPA is a competitive advantage.

Customers & Contracts
• Cudo Ventures Ltd.: Master Services Agreement for 1 MW, $75,887/month
• Standard HPC colocation terms: fixed electric capacity fees, equipment security, maintenance pass-throughs, and service level commitments (99.9%+ uptime).

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3. Financial Overview (2024 vs. 2023)

Key metrics (year ended Dec 31):

• Revenue: $0 (no mining/dis t illation of HPC revenue yet)
• Operating Expenses: $1.41 M vs. $3.36 M (–58%)
• Net Loss: $(1.59 M) vs. $(3.01 M)
• Cash: $0.1 K vs. $0.3 K
• Total Assets: $1.5 K vs. $20.6 K (crypto mining equipment impairment)
• Total Liabilities: $4.7 M vs. $3.15 M
• Stockholders’ Deficit: $(4.72 M) vs. $(3.13 M)

Cash Flow Highlights:
• Operating: +$17.7 K (vs. +$42.2 K)
• Investing: –$4.6 K (crypto asset purchases)
• Financing: –$13.3 K (note repayments)

Convertible Notes & Derivatives:
1800 Diagonal Lending notes defaulted—converted to equity and triggered derivative liability accounting. Derivative losses of $1.8 M recognized in 2024.

Going Concern & Liquidity:
• Cash of ~$100 at year-end
• $4.7 M payables
• Requires $2 M just to kick off HPC ops; $70–$450 M for builds
• Substantial doubt about continuation without capital raises

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4. Risk Factors & Corporate Governance

Top Risks:

1. No Revenue & Capital Needs: No HPC revenue to date; must raise millions to build facilities
2. Single-Customer Concentration: Cudo Ventures accounts for 100% of HPC backlog initially
3. Competition: Equinix, Digital Realty, Switch + private colos + ex-miners converting to HPC
4. Power Cost & Supply: Power outages, rate increases, carbon regulations could erode margins
5. Construction / Supply Chain: Inflation, component delays, cost overruns, permitting risks
6. Technology Shifts: New AI-optimized hardware or edge computing trends may alter data center demand
7. Regulation & ESG: Evolving EU regulations (NIS2, carbon taxes, water discharge), cybersecurity mandates
8. Governance & Controls: Material weaknesses in internal controls, no independent board—Governance improvements needed

Board & Management:
• Charlie Faulkner (CEO) & Simon Wajcenberg (CFO) founded Edgemode, former advisors at NorthBlock Capital
• Dr. Niclas Adler (CTO) leads SAPL and Scandinavia operations; veteran of AI/HPC technologies

Internal Controls:
• Material weaknesses in financial controls and related party transaction approvals
• No audit committee; OTC Pink listing = limited oversight

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5. Investment Thesis & Valuation

Bull Case:

• Early mover on immersion-cooled HPC in Northern Europe
• Secured long-term PPA & turnkey build site
• Growing demand for AI/ML HPC capacity + hyperscalers in Scandinavia

Bear Case:

• No proven HPC revenue, untested management build capability
• Capital markets tightening; building requires $70–>$450 M
• Execution risk: construction, permitting, customer signing, power delivery
• Governance / financing risk: small OTC listing, limited transparency, going concern

Valuation & Score (1–10): 3.0
Given zero revenue, steep capital requirements, and early execution risk, Edgemode is a high-beta play on HPC colocation in Europe. While structurally attractive, it requires massive funding and flawless execution. We assign a conservative 3.0 out of 10.

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6. Conclusion & Next Steps

Edgemode’s bold pivot from crypto mining to HPC colocation is strategically sound—leveraging clean power and immersion cooling IP in Sweden. Yet, without meaningful revenue or capital in place, it remains a speculative venture. Prospective investors should watch:

1. Fundraising Updates: Can Edgemode secure the $2 M seed and longer-term $70 M+ financing?
2. Customer Pipeline: Beyond Cudo, will major hyperscalers or AI firms commit?
3. Construction Milestones: Ground-breaking on 20 MW Center, commissioning of first MW by April 2025.
4. Governance Boost: Appointment of independent board members & audit committee

Until these catalysts materialize, the stock trades at a deep discount to replacement cost—and remains an all-or-nothing bet on execution.

Stay tuned to our blog for monthly updates on Edgemode’s funding, construction, and customer traction.