o 1: : 5 : : ¢ Investment oldman Compared to Commodities, Bitcoin’s Market Price is Dislocated yr Relative to its Marginal Production Cost Division Oil, Gold and Bitcoin: Marginal Production Cost versus Current Market Price 8000 = Marginal Production Cost Current Market Price (% above marginal production cost) $6,517 7000 (+350%) ® 6000 | 5000 4000 | 3000 2000 $1,278 $1200-1700 (+50%) ss " | 1000 $57 $850 {+8%) $52.5 0 1 Crude Oil (WTI) Gold Bitcoin = Bitcoin tokens possesses no physicality, a criteria for traditional commodities. = Compared to other commodities, Bitcoin’s market price stands far above its marginal production cost. — Gold miners’ and oil drillers’ revenues stand 50% and 8% above their marginal production costs, respectively. — Bitcoin miners’ revenue per bitcoin stands approximately 350% above their electricity expenditures. (1) Peter C.B. Phillips, Shu-Ping Shi and Jun Yu, “Testing for Multiple Bubbles: Historical Episodes of Exuberance and Collapse in the S&P 500,” International Economic Review, Oct 28, 2015. Source: Investment Strategy Group, Bloomberg. 16 HOUSE_OVERSIGHT_025679