DELEGATION OF AUTHORITY POLICY

DELEGATION OF AUTHORITY POLICY 

BITCOIN CAPITAL RESERVE LIMITED 
ACN 689 640 266 

Document Version: 1.0 
Effective Date: 8 October 2025 
Next Review Date: 8 October 2026 
Approved by: Board of Directors 

1. PURPOSE AND SCOPE

1.1 Purpose 

This Policy establishes clear delegation of decision-making authority within Bitcoin Capital Reserve Limited (Company or BCR), enabling efficient Bitcoin treasury operations while maintaining appropriate governance controls. 

1.2 Application 

This Policy applies to: 

(a) All Directors; 

(b) CEO, CIO, CTO and other officers; 

(c) All financial transactions and commitments; 

(d) Bitcoin acquisition and treasury activities; and 

(e) Operational decisions affecting the Company. 

1.3 Objectives 

(a) Enable efficient Bitcoin acquisition and treasury operations; 

(b) Establish clear approval thresholds; 

(c) Ensure appropriate oversight of material decisions; 

(d) Protect shareholder interests; 

(e) Maintain compliance with NSX Listing Rules and Corporations Act. 

2. DELEGATION PRINCIPLES

2.1 Core Principles 

(a) Speed and Flexibility: Bitcoin markets operate 24/7 – delegation enables timely decisions; 

(b) Clear Authority: Everyone knows who can approve what; 

(c) Appropriate Oversight: Material decisions require Board approval; 

(d) Accountability: All delegated authority includes reporting requirements; 

2.2 Authority Hierarchy 

Board of Directors (Ultimate Authority) 
         ↓ 
    CEO (Executive Leadership) 
         ↓ 
CIO (Bitcoin Strategy) | CTO (Operations & Security) 
         ↓ 
Day-to-day Operations 

3. BOARD RESERVED POWERS

The Board retains exclusive authority for: 

(a) Bitcoin transactions exceeding $10 million; 

(b) Debt financing arrangements exceeding $25 million; 

(c) Annual budgets and strategic plans; 

(d) Major custody arrangement changes (>25% of holdings); 

(e) CEO appointment and remuneration; 

(f) Material regulatory matters; 

(g) Related party transactions above materiality; 

(h) Changes to governance policies; 

(i) Declaration of dividends. 

4. BITCOIN ACQUISITION AND DISPOSAL AUTHORITY

4.1 Authority Levels – Summary Table 

*Subject to immediate Board notification and ratification within 48 hours 

4.2 CEO Authority 

The CEO has delegated authority for: 

(a) Individual Bitcoin acquisitions up to $10 million; 

(b) Cumulative Bitcoin acquisitions up to $20 million per calendar month; 

(c) Emergency Bitcoin disposal up to $2 million (immediate Board notification required); 

(d) Operational custody decisions; 

(e) Service provider agreements up to $1 million annually. 

4.3 Board Approval Required 

Board approval required for: 

(a) Individual Bitcoin acquisitions exceeding $10 million; 

(b) Monthly cumulative acquisitions exceeding $20 million; 

(c) Any planned Bitcoin disposal (regardless of amount); 

(d) Material changes to Bitcoin acquisition strategy; 

(e) Changes to custody arrangements affecting >25% of holdings. 

4.4 Emergency Liquidity Provisions 

In genuine emergency liquidity situations only: 

(a) CEO may dispose up to $2 million Bitcoin; 

(b) Board must be notified immediately (within hours); 

(c) Board ratification required within 48 hours; 

“Emergency” means: Immediate liquidity required for debt obligations, regulatory requirements, or critical operational needs that cannot be met through other means. 

5. 5. MONITORING AND COMPLIANCE

5.1 Compliance Monitoring 

Company Secretary monitors: 

(a) Adherence to approval thresholds; 

(b) Proper documentation of decisions; 

(c) Timely reporting to Board; 

5.2 Annual Review 

Board reviews annually: 

(a) Appropriateness of authority levels; 

(b) Effectiveness of delegation; 

(c) Incidents or breaches; 

5.3 Breach Consequences 

Breaches of this Policy may result in: 

(a) Formal warnings; 

(b) Reduction of delegated authority; 

(c) Suspension or termination; 

(d) Legal action if fraud or gross negligence; 

(e) Reporting to regulators if required. 

6. 6. POLICY ADMINISTRATION

6.1 Ownership 

• Board: Ultimate responsibility 

• CEO: Implementation and day-to-day administration 

• Company Secretary: Monitoring and reporting 

• All Personnel: Compliance with requirements 

6.2 Review and Updates 

This Policy reviewed: 

(a) Annually by Board; 

(b) After material breaches; 

(c) Following regulatory changes.