BTQ Technologies Corp.

BTQ provides strategic advisory support and QSSN as core PQC security infrastructure for the iM Bank initiative on the Kaia mainnet, advancing post-quantum migration across global financial infrastructure

• BTQ has been selected as the core post-quantum cryptography security technology provider for South Korea's first bank-led KRW stablecoin proof-of-concept, delivering its Quantum Secure Stablecoin Settlement Network ("QSSN") for the initiative.
  
   
• BTQ is providing strategic advisory support and helping coordinate implementation across the partnership with iM Bank and Finger, supporting the integration of post-quantum protections into regulated digital money infrastructure.
  
   
• Built on the Kaia mainnet, the proof-of-concept is connected to the blockchain ecosystems originally developed by Kakao and LINE, linking the initiative to two of the largest messaging and digital platform ecosystems in Korea and Japan.

VANCOUVER, BC, May 6, 2026 /PRNewswire/ - BTQ Technologies Corp. ("BTQ" or the "Company") (Nasdaq: BTQ) (CBOE CA: BTQ), a global quantum technology company focused on securing mission-critical networks, today announced that it it has been selected as the core PQC security technology provider through its Quantum Secure Stablecoin Settlement Network ("QSSN") in a proof-of-concept with its Korean strategic partner, Finger Inc. ("Finger"), and iM Bank, a leading Korean commercial bank, for South Korea's first bank-led Korean won stablecoin infrastructure incorporating post-quantum cryptography ("PQC").

The proof-of-concept represents more than a technical pilot. It marks an important step in bringing next-generation quantum security into banking infrastructure within Korea's regulated financial system. In addition to providing QSSN as the core PQC security framework, BTQ is contributing consulting and strategic coordination across the three-way partnership, helping align the project's security architecture, implementation approach, and long-term post-quantum migration objectives.

"Post-quantum migration requires more than a cryptographic upgrade. It requires coordination across infrastructure, implementation, and institutional stakeholders," said Olivier Roussy Newton, Chief Executive Officer of BTQ Technologies. "In this initiative, BTQ is providing both strategic advisory support and QSSN as the post-quantum security architecture, while helping lead coordination across the three-way partnership. We believe this proof-of-concept demonstrates how financial institutions can begin integrating quantum-resilient protections into digital money systems in a practical and operationally viable way."

South Korea's First Bank-Led PQC Stablecoin Infrastructure Initiative

BTQ is working alongside iM Bank and Finger on a three-way initiative to validate the issuance and distribution infrastructure for a Korean won stablecoin. In addition to supplying QSSN as the PQC security layer, BTQ is providing consulting support and helping to guide coordination across the partnership as the parties evaluate how to integrate post-quantum protections into bank-led digital asset infrastructure.

The proof-of-concept will validate several key components, including real-time reconciliation between bank reserves and blockchain-issued supply, a global-standard smart contract architecture, connectivity to global infrastructure for overseas distribution, and the integration of a PQC-based dual-signature security structure. By applying BTQ's PQC signature architecture alongside the existing ECDSA cryptographic framework, the system is designed to preserve operational continuity for financial institutions while proactively addressing future quantum computing threats.

Built on Kaia Mainnet

A notable feature of the proof-of-concept is that it will be implemented on the Kaia mainnet, one of Korea's leading Layer 1 blockchain networks. Kaia was created through the merger of Klaytn, the blockchain originally developed by Kakao, and Finschia, the blockchain associated with LINE. Kakao and LINE sit at the center of two of the largest messaging and digital platform ecosystems in Korea and Japan, respectively, making Kaia a significant piece of regional digital infrastructure.

Klaytn previously participated in the Bank of Korea's CBDC pilot ecosystem, and the Bank of Korea has continued to advance CBDC testing through initiatives such as Project Hangang.

By combining BTQ's PQC technology with blockchain infrastructure tied to the Kakao and LINE ecosystems, the proof-of-concept is intended to establish a model that aligns institutional-grade security, blockchain scalability, and evolving regulatory requirements for digital money infrastructure.

QSSN as the Security Layer

The PQC security foundation for the initiative is BTQ's Quantum Secure Stablecoin Settlement Network, or QSSN, a quantum-secure network architecture designed for stablecoin, tokenized deposit, payment, and digital asset infrastructure. QSSN is designed to protect critical issuer functions, including stablecoin issuance, burning, transfer authority, upgrade control, and administrative permissions, by integrating PQC-based signatures while maintaining existing user experience and operational workflows.

BTQ has previously announced that QSSN was highlighted in the U.S. Post-Quantum Financial Infrastructure Framework ("PQFIF") as a model architecture for post-quantum digital money infrastructure. The Company has also positioned QSSN as a standards-oriented initiative advanced through QuINSA and aligned with emerging post-quantum financial infrastructure requirements.

Addressing the Harvest-Now, Decrypt-Later Risk

The timing of the proof-of-concept reflects the growing urgency surrounding the "Harvest-Now, Decrypt-Later" risk, in which attackers may collect encrypted financial data today and decrypt it later once sufficiently advanced quantum capabilities emerge. Global institutions are already accelerating post-quantum migration. The U.S. National Institute of Standards and Technology ("NIST") has finalized its first set of post-quantum cryptography standards, including ML-DSA, ML-KEM, and SLH-DSA, while major technology companies and financial institutions continue to define their own post-quantum transition timelines.

BTQ's QSSN addresses this challenge through a dual-signature design that allows existing ECDSA-based infrastructure to operate in parallel with NIST-aligned PQC signatures such as ML-DSA. This approach enables banks and payment infrastructure providers to begin a phased transition toward quantum-safe security without disrupting existing systems.

Expanding BTQ's Korean Ecosystem

BTQ continues to expand its Korean ecosystem across digital assets, payments, banking infrastructure, and hardware-based security. In October 2025, BTQ announced that Finger had joined Danal as an early participant in BTQ's QSSN pilot program, with the initiative expected to progress from proof-of-concept toward commercialization under QuINSA-aligned guidelines and broader industry frameworks such as PQFIF.

The commencement of the iM Bank proof-of-concept represents an important commercial signal for BTQ, indicating that demand for post-quantum migration among Korean financial institutions is beginning to move from policy discussion toward infrastructure-level implementation. As Korea advances both quantum technology policy and stablecoin-related regulatory discussions, BTQ believes QSSN is well positioned at the intersection of regulated finance, digital asset infrastructure, and post-quantum security.

About iM Bank

iM Bank is a South Korean commercial bank and a subsidiary of DGB Financial Group. Headquartered in Daegu, iM Bank presents itself as a financial companion for customers and traces its roots to Daegu Bank, which was established in 1967 as Korea's first regional bank. For more information, please visit https://www.imbank.co.kr/

About Finger Inc. Group

Finger supplies and develops financial IT solutions to provide optimized money management strategies for employees and corporate customers. Providing "Smartphone Financial Services", "Corporate Cash Management Services" for businesses, "Private Wealth Management Services" for private consumers.

Since the year 2000, Finger has accumulated a number of awards and patents regarding its businesses. Based on its Mobile Enterprise Application Platform(MEAP) Orchestra and its funds management system using screen-scrapping technologies, Finger was the first company in Korea to deliver a smartphone banking banking-service. For more information, please visit http://www.finger.co.kr/

About BTQ

BTQ Technologies Corp. (Nasdaq: BTQ | Cboe CA: BTQ) is a quantum technology company focused on accelerating the transition from classical networks to the quantum internet. Backed by a broad patent portfolio and deep technical expertise, BTQ is advancing a full-stack, neutral-atom quantum computing platform spanning hardware, middleware, and post-quantum security solutions for finance, telecommunications, logistics, life sciences, and defense.

Connect with BTQ: Website | LinkedIn | X/Twitter

ON BEHALF OF THE BOARD OF DIRECTORS

Olivier Roussy Newton

CEO, Chairman

Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

Forward Looking Information

Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares. Forward-looking statements or information often can be identified by the use of words such as "anticipate", "intend", "expect", "plan" or "may" and the variations of these words are intended to identify forward-looking statements and information.

The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.

Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company's research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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SOURCE BTQ Technologies Corp.

New research shows the real near-term Bitcoin quantum risk lies in signatures, not mining, reinforcing BTQ's focus on Bitcoin Quantum, QCIM, and quantum-native consensus

• BTQ published "Kardashev Scale Quantum Computing for Bitcoin Mining", a new arXiv paper by Pierre-Luc Dallaire-Demers, showing that while Grover's algorithm offers a theoretical shortcut, quantum Bitcoin mining is physically and economically impractical once real-world hardware, error correction, and energy costs are included.
  
   
• The paper finds that even in a highly favorable scenario, competitive quantum mining would require roughly 10^8 physical qubits and 10^4 MW of power, while at Bitcoin's January 2025 mainnet difficulty the requirements rise to about 10^23 qubits and 10^25 watts, approaching the energy output of a star.
  
   
• The findings reinforce that the real near-term quantum threat to Bitcoin is not mining, but signature vulnerability, supporting BTQ's work on Bitcoin Quantum, its quantum-safe Bitcoin architecture designed around post-quantum cryptography and more resilient transaction design.
  
   
• The research also strengthens BTQ's long-term case for Quantum Proof of Work ("QPoW"), its quantum-native, classically verifiable consensus model, by showing that trying to accelerate legacy Bitcoin mining with quantum hardware is a dead end, while consensus designed specifically for quantum systems may offer a more credible and energy-efficient path forward.

VANCOUVER, BC, April 6, 2026 /CNW/ - BTQ Technologies Corp. ("BTQ" or the "Company") (Nasdaq: BTQ) (CBOE CA: BTQ), a global quantum technology company focused on securing mission-critical networks, today announced the publication of a landmark research paper establishing the first end-to-end physical cost estimate for using quantum computers to mine Bitcoin.

The paper, titled "Kardashev Scale Quantum Computing for Bitcoin Mining," by Pierre-Luc Dallaire-Demers, is now available on arXiv and represents one of the most rigorous analyses to date of the real-world economics of quantum Bitcoin mining.

Public discussion around "quantum threats to Bitcoin" often conflates two very different issues: attacks on Bitcoin's elliptic-curve digital signatures, which are genuine and increasingly urgent, and quantum-accelerated mining using Grover's algorithm, whose practical severity has long been debated in theory but not rigorously costed in physical terms. This paper helps resolve that ambiguity with quantitative clarity.

"This paper does something the industry has needed for years -- it prices the quantum mining question end to end and closes it," said Pierre-Luc Dallaire-Demers. "To push mining into non-trivial consensus effects, one must invoke astronomical quantum fleets operating at energy scales that lie far above present-day civilization. The real cryptographic crisis is the signature vulnerability, and that clock is already ticking."

Rather than stopping at Grover's theoretical quadratic speedup, the paper introduces an open-source resource estimator that models the full quantum mining stack, including reversible double-SHA-256 oracles, surface-code magic-state distillation factories, fleet-scale qubit logistics, and the timing constraints imposed by Nakamoto consensus.

Key Findings

Quantum Bitcoin mining remains impractical even in the best-case scenario

Even under the most favorable partial-preimage setting studied, a superconducting surface-code fleet would still require approximately 10^8 physical qubits and 10^4 megawatts of power -- roughly comparable to the output of a large national electricity grid.

At real Bitcoin difficulty, the requirements become astronomical

At Bitcoin's January 2025 mainnet mining difficulty, estimated requirements rise to approximately 10^23 physical qubits and 10^25 watts of power -- approaching the energy output of a star.

Grover's theoretical advantage collapses in the real world

While Grover's algorithm offers a quadratic search advantage in theory, that benefit breaks down once oracle construction, error correction, and fleet overhead are included. In practical terms, quantum mining is not a credible near-term threat to Bitcoin's proof-of-work consensus.

The more urgent threat is signature vulnerability

By contrast, quantum attacks on Bitcoin's elliptic-curve signatures using Shor's algorithm remain a genuine and much more immediate concern, reinforcing the need for post-quantum cryptographic infrastructure.

Why This Matters

BTQ believes the distinction clarified by this paper is critical. The more relevant quantum challenge for Bitcoin and digital asset infrastructure is not the mining layer, but the authentication layer.

That view is consistent with BTQ's broader strategy.

Through Bitcoin Quantum, BTQ has been developing and testing a quantum-safe Bitcoin architecture designed to address vulnerabilities at the signature and transaction level. The Company previously launched the Bitcoin Quantum testnet, a live environment for demonstrating how Bitcoin-like systems can migrate toward post-quantum cryptographic standards, including NIST-standardized ML-DSA signatures and more resilient transaction designs such as BIP 360 (Pay-to-Merkle-Root).

BTQ believes the findings in this paper strengthen the rationale for that work. If Grover-based mining is not a practical quantum path, then the priority shifts more clearly toward securing wallets, signatures, and authentication systems before large-scale quantum capability arrives.

At the same time, the paper supports a broader conclusion: if the quantum acceleration of classical mining collapses under real physical cost, the logical long-term alternative is not to force quantum hardware onto legacy proof-of-work systems, but to build consensus around computational tasks that quantum systems perform natively and efficiently.

That is the rationale behind BTQ's Quantum Proof of Work (QPoW) initiative.

Unlike Grover-based approaches that attempt to speed up classical SHA-256 mining, BTQ's QPoW is designed around quantum-native computational tasks that better match the strengths of quantum hardware from the outset. In BTQ's view, this is an important distinction. The paper shows that using quantum computers to mine classical Bitcoin more efficiently is not a practical path. QPoW, by contrast, is based on the idea that quantum systems may still play a meaningful role in consensus when the work itself is designed for quantum hardware rather than retrofitted to classical mining assumptions.

BTQ's previously published materials indicate that, in modeled comparisons, QPoW can be materially more energy efficient than equivalent classical sampling-based methods while remaining classically verifiable. This supports BTQ's broader thesis that the future of digital money may require not only quantum-safe authentication, but also new consensus architectures designed specifically for the capabilities of quantum machines.

Performance Comparison

Grover-based Bitcoin mining

• Requires approximately 10^8 qubits and 10^4 MW even in a highly favorable scenario
• Scales to approximately 10^23 qubits and 10^25 W at Bitcoin's January 2025 mainnet difficulty
• Conclusion: theoretically interesting, physically and economically impractical

BTQ's Bitcoin Quantum

• Focused on the real near-term issue: post-quantum authentication and signature security
• Demonstrates how Bitcoin-like systems can migrate to quantum-safe cryptography
• Provides a live test environment for post-quantum Bitcoin infrastructure

BTQ's Quantum Proof of Work (QPoW)

• Built as a quantum-native consensus model, not a retrofit of legacy mining
• Designed around computational tasks better suited to quantum hardware
• Designed to be classically verifiable
• In BTQ's published modeled comparison, a quantum sampler consumes approximately 0.25 kWh over a 10-minute block interval, versus approximately 390 kWh per block per miner for a classical equivalent sampling-based setup, implying an energy advantage of approximately 1,560x
• Conclusion: a more credible long-term framework for quantum-era consensus than attempting to accelerate classical Bitcoin mining

"Quantum computing may reshape digital money, but not by making legacy Bitcoin mining practical," said Christopher Tam, President and Head of Innovation at BTQ Technologies. "What matters now is securing authentication and preparing Bitcoin-like systems for the post-quantum era. Longer term, this research also strengthens the case for quantum-native consensus architectures such as QPoW, where the work is designed for quantum systems from the start rather than forced onto a classical framework."

Key Takeaways

• Quantum mining is not a near-term issue for Bitcoin
• Signature vulnerability remains the more urgent cryptographic challenge
• Bitcoin Quantum provides a practical framework for post-quantum Bitcoin migration
• QPoW strengthens BTQ's long-term position around more energy-efficient, quantum-native consensus systems

The paper, "Kardashev Scale Quantum Computing for Bitcoin Mining," is now available on arXiv.

About BTQ

BTQ Technologies Corp. (Nasdaq: BTQ | Cboe CA: BTQ) is a quantum technology company focused on accelerating the transition from classical networks to the quantum internet. Backed by a broad patent portfolio and deep technical expertise, BTQ is advancing a full-stack, neutral-atom quantum computing platform spanning hardware, middleware, and post-quantum security solutions for finance, telecommunications, logistics, life sciences, and defense.

Connect with BTQ: Website | LinkedIn | X/Twitter

ON BEHALF OF THE BOARD OF DIRECTORS

Olivier Roussy Newton

CEO, Chairman

Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

Forward Looking Information

Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares. Forward-looking statements or information often can be identified by the use of words such as "anticipate", "intend", "expect", "plan" or "may" and the variations of these words are intended to identify forward-looking statements and information.

The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.

Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company's research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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SOURCE BTQ Technologies Corp.