DDCDDC Enterprise

The July 2025 senior secured convertible loans carry conversion and redemption mechanics that the headline conversion price does not describe. Each term below is quoted to the filing it comes from. Terms of this kind have been amended once already, so confirm against the issuer's most recent filing before relying on any of them.

In plain terms: the note's conversion price tracks the market price at a discount, so its dilution is fixed in dollars ($22.65M of face) but not in shares. The lower the price at conversion, the more shares the same debt becomes, which is why no share envelope can be stated in advance. Separately, 20% of any new financing must first repay this note at a 105% premium.

Alternate conversion

88% of the lowest VWAP in the 20 trading days preceding conversion, amended from 94% of the lowest VWAP over 10 trading days. As filed 2025-09-26, 6-K, waiver and forbearance.

Warrant anti-dilution

Full ratchet. SPA Exhibit 10.3, Section 2(b), filed with the 6-K of 2025-07-01.

Original issue discount

5%. $25,000,000 subscribed for $26,315,789 of principal. SPA dated 2025-06-16, initial closing 2025-07-01.

Conversion price as stated

DIVERGES FROM THE CONVERSIONS IN THE SAME FILING. The FY2025 20-F, accession 0001213900-26-045881 states the conversion price as $13.65 and does not mention the September 2025 forbearance amendment, while reporting conversions executed at $6.60 to $9.70. The amended alternate-conversion mechanic in the row above is what those executed prices reflect. Both figures are reported here as filed and neither is reconciled, because the filing does not reconcile them.

Note collateral

The note is separately secured by cash and Bitcoin in its own collateral account under the July 2025 security agreement. The pledged quantity is not disclosed, so the encumbered share of the reserve cannot be stated. FY2025 20-F, accession 0001213900-26-045881. This is not the 601 coins below: those secure the third-party loans and answer to different creditors.

Collateral release condition

Release of the collateral is conditioned on a loan-to-value ratio at or below 60 percent for five consecutive business days. prospectus, accession 0001213900-26-007463. This is the term that makes the Anson collateral price-linked: the same fall in Bitcoin that raises the ratio is what keeps the coins pledged, so the pledge tightens exactly when the reserve is worth least. The 60 percent is a release condition, not a maintenance covenant, so a decline in Bitcoin locks the collateral in rather than calling it. SPA, accession 0001213900-25-063293.

Equity line, same counterparty

A $200,000,000 equity line with the same counterparty exists under the SPA dated 2025-06-16. Undrawn it is not a claim, and nothing on this page prices it. FY2025 20-F, accession 0001213900-26-045881.

Financing redemption

The holder may require redemption out of 20% of the gross proceeds of any future financing, at 105% of the principal amount being redeemed. FY2025 20-F Note 18, filed 2026-04-21.

Warrant exercise price

PENDING. The warrants strike at a VWAP measured on the SPA date of 2025-06-16, and no filing held here states the resulting price. This page does not derive it from market data, so it stays pending until a filing states it.

The note sits in the claim stack at its filed carrying value, and Senior Claims % on this page is computed from that balance sheet. The mechanics above move the share count rather than the claim, so none of them is priced into that figure.

Items that sit outside the Anson note, quoted to the same annual report. Nothing here is derived.

Bitcoin-secured loans

Loans of RMB 356,500,000, about $51,000,000, owed to several third-party creditors and secured by 601 of the company's Bitcoin. FY2025 20-F, accession 0001213900-26-045881, Note 15 footnote (iii) and Note 12 footnote (ii).

Satoshi Strategic preferred

NO LONGER A CLAIM. It converted in full in April 2026. 6-K, accession 0001213900-26-046214.

Two pledges, two counterparties, one annual report. The 601 coins above secure the third-party loans in Note 15. The Anson note has its own collateral account of cash and Bitcoin, in an amount the filing does not state. They are separate pledges and must not be read as one, and because the Anson quantity is undisclosed the total encumbered reserve cannot be stated at all.

A security interest is not a separate claim. The loans are already in the claim stack as debt, and the coins are collateral for them rather than an additional call on the reserve. They are recorded here because an encumbered coin is not freely available to the common, which is a fact about the reserve that Senior Claims % does not carry.