WEDBUSH Equity Research Financial Technology i ll\ 55(. 1 1. '5 SI.N 1.,(55( IS( '0 \IV. NORk ItOSION II II %I.° I SI I I A I' 0 I. I 5 I %I II 5% I I, I. I. Bitcoin Investment Trust (GBTC) Renewed Interest by Large Financial Institutions and Media; Reiterating OUTPERFORM and Raising BTC Price Target to $600 • We believe bitcoin and its associated blockchain technology have the potential to disrupt the existing financial infrastructure over the next several years, and believe the value of the bitcoin currency (BTC) will benefit from this trend. Please see our GBTC initiation report here. • We believe the value of bitcoin has started moving up recently as broad positive media coverage (page 3) has started to sway sentiment. • Large financial institutions continue to invest and investigate uses of bitcoin and its underlying technologies (e.g. Blockchain) at an increasing pace (p4). • We believe that Blockchain is to Bitcoin as Intranet is to Internet. We believe there may be some applications that narrowly use a distributed ledger without a valuable native token, but those will end up being a small part of the solutions the technology creates. We believe the reason financial institutions are insisting on -Blockchain not Bitcoin" is for internal and regulatory compliance. We expect that even the narrow solutions leveraging only a distributed ledger will end up being anchored on the bitcoin blockchain sooner or later. • We continue to observe consistent transaction growth, especially from applications such as remittance and multi-signature (pages 5.6). We are also witnessing an increase in payment fees over time, which should help supplant bitcoin issuing as the revenue source for the transaction processors running the bitcoin network. • We detail our valuation framework on pages 7-9 to arrive at our target of $600/BTC ($60/GBTC) - we employ a supply/demand methodology based on utilization of future applications. With bitco