Edge Capital: Market Update We believe the recent sharp sell-off in digital assets has been largely driven by broader global risk-off sentiment. • Global crypto sell-off + commodity weakness (gold & silver pulling back after a strong rally) • Competitive pressure in AI following the rapid evolution of OpenAI/ChatGPT • Concerns that large U.S. tech firms may see margin compression — many mega-cap names are down ~30% in the past month At the same time, fears that pressure on digital asset treasuries would force selling created a reflexive cycle. That dynamic encouraged directional shorts from hedge funds and accelerated downside momentum. However, positioning data tells an important story: • Open interest and futures positions have shrunk significantly — in some cases 50% to 3x reductions across exchanges • Leveraged positions have been massively flushed out • Many long positions appear to have already been cleared In our view, this was primarily a sentiment-driven deleveraging event — not a structural bubble collapse. NOT INVESTMENT ADVICE. NOT an offer to sell any securities or constitute a solicitation of an offer to purchase any securities.