Mr. Tim Chan reports

UNIVERSAL DIGITAL INC. ANNOUNCES BITCOIN TREASURY STRATEGY ACROSS NORTH AMERICA AND ASIA

Universal Digital Inc. has launched its bitcoin treasury strategy, which will form a core pillar of the company's capital allocation framework. As an initial step, the company has commenced the orderly divestment of its existing altcoin holdings, with the proceeds to be reallocated toward bitcoin accumulation under a new reserve model.

The goal of this strategy is to enhance long-term net asset value and align the company with global trends in institutional digital asset adoption. Universal Digital views bitcoin as a complementary reserve asset and plans to implement the strategy in a transparent and phased manner.

As part of this initiative, the company plans to collaborate with publicly listed companies across Asia to implement bitcoin treasury models, leveraging the region's growing institutional and retail interest in digital assets and its increasing openness to blockchain-based financial innovation. According to Chainalysis, Eastern Asia accounted for approximately 8.9 per cent of global on-chain cryptocurrency transaction volume between July, 2023, and June, 2024, with the bulk of activity driven by institutional and professional investors in markets like Japan, South Korea and Hong Kong.

In furtherance of this regional focus, on June 12, 2025, the company entered into a non-binding memorandum of understanding (MOU) with GFA Co. Ltd., a Tokyo Stock Exchange-listed diversified financial and technology group. The MOU sets out a partnership framework for jointly advancing bitcoin-based corporate finance models in Japan.

Under the MOU, the companies will jointly explore:

• Introducing bitcoin reserve models to Japanese-listed companies;
• Structuring capital raising tools such as warrants and market-based offerings to finance bitcoin acquisitions;
• Enhancing governance, investor relations and custody frameworks for digital assets.

The MOU also sets the stage for broader collaboration in Japan's digital economy, including joint investments in public companies, the development of blockchain-based corporate structures, initiatives that connect bitcoin adoption with cultural IP and Web3-driven consumer ecosystems. The MOU was entered on an arm's-length basis and there are no related party interests between Universal Digital and GFA.

"Our bitcoin treasury strategy marks a deliberate shift in how we manage capital -- by holding bitcoin as a long-term treasury asset, we aim to enhance balance sheet strength and align with the evolving global financial landscape," said Tim Chan, chief executive officer of the company. "The framework we've established with GFA enables us to explore extending this model to Asia, where digital assets are gaining traction among public companies and institutional investors."

"Universal Digital's and its management's experience with the crypto and bitcoin treasury combined with our expertise on the Japanese markets makes us a strong team. I look forward to working closely with Universal Digital to introduce bitcoin reserve model to Japanese-listed companies," stated Gen Matsuda chief executive officer of GFA Co.

The MOU is non-binding and provides a framework for further negotiations and joint structuring discussions.

About Universal Digital Inc.

The company is a Canadian investment company focused on digital assets, businesses, and private and publicly listed entities that are involved in high-growth industries, with a particular focus on blockchain, cryptocurrencies and cryptocurrency technologies. The company aims to provide shareholders with long-term capital growth through a diversified investment approach, and to participate in the transformation of global finance through the integration of digital asset strategies.

We seek Safe Harbor.