Anovary

Message from the CEO Tim Holtan

As the CEO of Riverland Energy Cooperative, my primary focus, after safety, is ensuring stable rates. Since 82% of our members are residential, most energy use occurs during a 4-hour window each day. Consequently, our system must be sized to meet the peak load demand during these short periods. These peak hours may occur just one day a month or several, depending on the season.

To maintain stable rates, we need to reduce demand during these peak hours or make more efficient use of our system during the other 20 hours of the day. By spreading energy usage evenly across all 24 hours, we can maximize system efficiency, known as the load factor.

One key approach is attracting commercial and industrial members who utilize the system outside peak hours and are capable of adjusting their usage as needed. Some current members already reduce their demand at our request during peak times. For example, our new member, Anovary—a bitcoin hosting provider—perfectly aligns with this strategy. Being 100% dispatchable, Anovary can shut down their operations at any time, enabling us to fully utilize the infrastructure during off-peak hours and scale back during peak demand.

It’s important to note that Anovary is not a data center, as data centers require nearly 100% uptime and dedicated capacity, which limits flexibility. Anovary’s operational model allows us greater efficiency without requiring additional infrastructure investment.

Regarding cyber security, Anovary’s operations are entirely independent of Riverland’s systems. Riverland’s responsibility ends at the meter, with no shared data connection. Their facilities are physically near substations but have no special or direct connection to our substations beyond what any adjacent member would have. Riverland and Anovary each independently manage their own systems, meaning both have the ability to stop their own operations whenever needed.

Thank you for your time, and I hope this clarifies some of your questions.

ANOVARY Community Statement: Addressing Questions About Our Bitcoin Mining Operations

ABOUT ANOVARY
Anovary is established in Delaware, and headquartered in Dallas, Texas. Our core business is Bitcoin mining hosting, which includes building mining facility infrastructure, hosting client machines, and providing daily operations and maintenance. It's important to clarify that Anovary does not own any Bitcoin mining machines—all mining revenue belongs to our clients. We do not serve only a single client; while we have large clients with long-term partnership agreements, our hosting services are open to local, national, and international clients.

CURRENT PROJECT OVERVIEW AND ENERGY COMMITMENT
Currently, working with Riverland Energy Coop, we have eight project sites with 22 mining containers deployed, with a peak energy consumption of 44MW. Regarding the energy supply concerns raised by local residents, we make this solemn commitment: Anovary's operations will have absolutely no negative impact on the local community's power supply. We will never let our business operations affect the electricity stability of any single household. This is not only our commitment but also Riverland Energy Coop's requirement. All project planning has undergone rigorous stability studies by Riverland Energy Coop. Furthermore, we have assisted Riverland Energy Coop in upgrading the local electrical infrastructure, thereby increasing the overall available electricity in the region.

VALUE AND ASSURANCE FOR THE COMMUNITY
We fully understand the local community's concerns. The following three key facts ensure that Anovary's operations onlybring benefits to the local community:
1. Flexible Load Response and Grid Support (Curtailment)
Regarding Anovary's Bitcoin mining operations, while we are a large electricity consumer, based on Bitcoin mining's inherent curtailable characteristic, we have explicitly stated in our agreement with Riverland Energy Coop: all our electrical load voluntarily serves as peak-shaving resources to help the grid reduce peak loads during high-pressure periods. This has been verified at our Chippewa Valley site—from last October to present, we have achieved 100%response rate with power shutdown within 10 seconds for all grid requirements, without missing a single instance. Furthermore, our operations management software includes a dedicated management portal for Riverland Energy Coop. If Riverland staff detect that the system has not responded in time, they have the highest priority operational authority to manually shut down our operations. This ensures that the entire operation can respond immediately when the grid needs it. From the very beginning of planning, Riverland has always prioritized ensuring local electricity stability.

2.Securing Power Capacity and Upgrading Regional Grid
The concept of "limited grid power" requires some explanation. The grid's capacity to supply electricity during the same time period is limited, and this limitation is reflected in regional allocation. The allocation from the main grid through large power plants to various distributive coops is quota-based. If Buffalo County doesn't use this portion of the main grid capacity, it could be allocated to other counties. However, without customer demand, Riverland Energy Coop cannot pre-allocate more capacity to a designated region. Rather than saying Bitcoin mining consumes electricity, it's more accurate to say Anovary's operations help the region "capture" and secure more power resources while facilitating power system upgrades. Therefore, when regional demand increases in the future, Riverland will be more prepared because Buffalo County has already secured this capacity. Our operation essentially provides a 1:1 backup for local power demand. When infrastructure issues arise, our electrical load becomes an important guarantee ensuring local families and businesses have available electricity. This is Riverland Energy Coop's requirement, and we respond unconditionally.
3.Strategic Reserve for Economic Development
Because Buffalo County now possesses these secured power resources, on one hand, it has sufficient redundancy to address the growing electricity demands of households, farms, and businesses. On the other hand, in future economic development, this provides strong support for local business attraction—we can provide sufficient power resources with extremely short lead times. Anovary commits to Riverland Energy Coop that a portion of the capacity we use will serve as an "economic reserve." When local development needs arise, this can be permanently returned to local use as rapidly deployable power resources. At that time, we will coordinate with Riverland Energy Coop to relocate this load to new areas. This essentially creates a pre-built buffer for regional economic development, which is also a forward-thinking requirement that Riverland has proactively established for regional development and stability.

TECHNOLOGICAL INNOVATION AND ENVIRONMENTAL FRIENDLINESS
To better integrate into this community, we have made technical efforts that distinguish us from traditional mining facilities:
1.Fully Enclosed Liquid Cooling System, Eliminating Noise Concerns
Unlike traditional air-cooled Bitcoin mining facilities with fan walls, our mining containers employ a heat exchange circulation liquid cooling system. Therefore, the noise pollution often mentioned in the news does not exist at our sites. We use a fully enclosed liquid cooling system with only small fans at the top to facilitate plate heat exchanger cooling. Given Wisconsin's regional temperatures, the fan utilization rate is very low.
2.Closed-Loop Pollution-Free Design and Heat Energy Secondary Utilization
Although our sites are located outdoors, our entire circulation system is fully enclosed, using antifreeze for internal circulation without any interaction with the external environment. There are no water supply or discharge requirements, producing no pollution whatsoever. Furthermore, because the mining containers generate substantial heat energy, we have the capability to reuse this heat energy for secondary value. As a simple example, if local farmers are interested in building greenhouses next to mining containers to grow off-season crops, we are very willing to discuss cooperation, using mining container heat to empower local traditional industries and create new opportunities.

A LETTER TO THE COMMUNITY
I personally have over ten years of experience in the oil and gas industry in Texas and have spent considerable time living in farming rural areas. I fully understand the concerns that rural community members and farmers have about these new industries. I can assure everyone that Anovary has come here to join this community and create value, promoting regional economic development. We hope to become part of the community and are always ready to contribute whatever help we can provide.
Sincerely,
ANOVARY Management Team

FAQs/Talking Points

Anovary- Anovary is established in Delaware, and headquartered in Dallas, Texas.

What do they do? - Bitcoin mining hosting company

Who owns the sites? - Riverland owns the property and leases it to Anovary. Everything on the mining site is owned by Anovary.

How much electricity does each 40ft X 8ft box use? - 2 MW capacity 770,000Kwh per month.

How many sites and where? - We are currently working on 8 sites for a total of 44 MW of connected load. The sites are Arcadia and Alma shop. Substations include Maxville, Mondovi, Cream, Lookout, Simonson, and Krause.

What is this costing the Riverland members? - All upfront installation and upgrade costs are paid by Anovary. No cost to Riverland members.

How will this benefit the members of Riverland? - They will be using energy when the rest of the system doesn’t need it. This increases the load factor which helps pay for the infrastructure of the entire system. The revenue from Anovary will help pay for system upgrades that would have been spread amongst the entire membership. Not only upgrades that impact the Anovary sites, but the entire system.

If we are short capacity, why are we doing this? - All the load is completely dispatchable and controllable. When electricity needs are high on the rest of the system, they will control their load.

What if capacity is needed to serve a large expansion at an existing location other than bitcoin? - The load on the bitcoin will be lowered to ensure there is enough capacity to serve existing loads.

How will this affect the water supply? - This is a closed loop system, so no additional water is required. The system is filled with the same solution used in residential and commercial heating for freezing requirements.

How often are workers at the sites? - Inspections require an Anovary employee to visit each site daily.

How much noise do they make? – The noise level is equivalent to a home central air conditioning unit.

Does this affect my neighboring property? – The containers are not permanent structures so they should not affect property value any more than the substation itself.

Is there a physical security risk like attracting thieves? – This can always be a risk at any location. These sites have security cameras outside and alarms inside if the structure is breached.