BTQ Technologies Issues Year-End CEO Letter to Shareholders

Rhea-AI Summary

BTQ (Nasdaq: BTQ) issued a Year-End CEO letter outlining 2025 progress toward commercial post-quantum products across three pillars: QCIM secure elements, Quantum Secure Systems and Networks, and QPerfect neutral atom platforms. Key developments include a USD 15 million development and joint investment agreement with ICTK for QCIM, the asset acquisition of Radical Semiconductor, exercised option to acquire QPerfect with its MIMIQ emulator and QLU middleware, pilot QSSN deployments in Korea, and regulatory momentum including a DoD deadline to replace legacy cryptography by Dec 31, 2030. The letter reports technical milestones such as a 20x reduction in physical qubit requirements and targeted QCIM performance metrics for mass deployments.

Positive

• USD 15 million development and joint investment agreement with ICTK
• Asset acquisition of Radical Semiconductor to bolster silicon leadership
• QPerfect MIMIQ emulator licensed to leading quantum groups globally
• QCIM target: up to 5x AES throughput and ~1 million signatures/sec
• QPerfect QLEO upgrade delivering >100x GPU speedups versus CPU

Negative

• Fault tolerance requires hundreds of thousands to millions of qubits
• DoD directive excludes procurement of quantum key distribution technologies
• Commercial deployment depends on evolving PQC standards and certifications

Key Figures

Development agreement size USD 15 million Development and joint investment agreement with ICTK for QCIM platform

Security chips to upgrade 25+ billion chips Estimated security chips to be upgraded over the next 5 years

DoD PQC deadline December 31, 2030 Deadline to replace legacy cryptography across DoD systems

AES throughput target Up to 5x Target AES throughput improvement for QCIM secure element

Signature throughput target Approximately 1 million signatures/second Target digital signature rate for QCIM secure element platform

Qubit requirement reduction 20x reduction Drop in physical qubits needed for cryptanalytically relevant algorithm

Physical qubit target Less than 1 million qubits Physical qubits required for cryptanalytically relevant algorithm

Simulation speedup Over 100x faster QLEO GPU‑accelerated simulations vs CPU‑only runs

Market Reality Check

$5.12 Last Close

Volume Volume 1,735,026 is 0.56x the 20-day average, indicating subdued trading activity pre-letter. low

Technical Shares at $5.74 are trading below the 200-day MA of $7.63 and well under the $16.00 52-week high.

Peers on Argus

No peer stocks with momentum or same-day headlines were flagged, suggesting BTQ’s -4.01% move was stock-specific rather than part of a sector rotation.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 18	Strategic investment	Positive	+1.6%	Investment in Keypair to co-own PQC IP and secure Korean infrastructure.
Dec 15	ETF inclusion	Positive	+7.5%	Added to Defiance Quantum ETF, broadening institutional and retail visibility.
Dec 03	Research coverage	Positive	+8.8%	Delphi Digital report validating Bitcoin Quantum as quantum-safe network.
Nov 24	Index inclusion	Positive	+13.4%	Added to MSCI Canada Small Cap Index, signaling market growth and liquidity.
Nov 18	Product upgrade	Positive	+24.8%	Launch of GPU‑accelerated QLEO emulator with NVIDIA CUDA‑Q compatibility.

Pattern Detected

Recent BTQ headlines have generally seen positive price alignment, especially around index inclusions, partnerships, and research coverage.

Recent Company History

Over the last six weeks, BTQ issued multiple growth-focused updates, including index additions, partnerships, research coverage, and an IP-focused investment. News on Nov 18 (GPU‑accelerated QLEO), Nov 24 (MSCI Canada Small Cap inclusion), and Dec 3 (Delphi Digital Bitcoin Quantum coverage) all saw notable positive price reactions. The Dec 15 Defiance Quantum ETF addition and Dec 18 Keypair IP investment also aligned positively, framing today’s year-end CEO letter within a consistent narrative of expanding platforms, visibility, and commercial reach.

Market Pulse Summary

This announcement outlines BTQ’s year-end progress across three pillars: quantum-secure hardware, secure networks, and neutral-atom platforms. It highlights a USD 15 million development agreement, regulatory deadlines such as December 31, 2030 for DoD cryptography upgrades, and technical gains like over 100x simulation speedups. Investors may watch for concrete revenue traction from pilots, further standards recognition, and updates on commercialization of QCIM, QSSN, and QPerfect offerings.

Key Terms

post quantum cryptography medical

"transition from classical encryption to post quantum cryptography represents one of..."

Post quantum cryptography is a set of encryption methods designed to keep digital data and communications secure even if powerful quantum computers become capable of breaking today’s common codes. For investors, it’s like upgrading a bank vault before new tools arrive: companies that adopt or provide these protections reduce the risk of data breaches, regulatory penalties and business disruption, while laggards may face greater operational and reputational exposure.

quantum key distribution technical

"not use or procure quantum key distribution and related technologies which require..."

Quantum key distribution is a way of creating and sharing secret encryption keys using the laws of quantum physics, typically by sending tiny particles of light so that any eavesdropping automatically changes them and can be detected. Investors care because it promises much stronger, tamper-evident protection for sensitive data and communications—like a lock that signals if it’s been picked—affecting the value of cybersecurity, telecom and defense technologies as quantum computing advances.

secure element financial

"Korea's leading secure element manufacturer, to develop the QCIM secure element..."

A secure element is a tamper-resistant hardware component—like a small locked safe inside a device—that stores sensitive data (such as cryptographic keys and payment credentials) and performs critical operations like authentication and digital signing. Investors care because the presence and quality of secure elements reduce the risk of fraud, regulatory trouble, and costly breaches, enhancing a product’s trustworthiness and the company’s long-term value.

NIST regulatory

"crypto agile support for FIPS 203/204/205 and CNSA 2.0."

National Institute of Standards and Technology (NIST) is a U.S. government agency that creates technical standards, testing methods and best-practice guidance for measurements, technology and cybersecurity. For investors, NIST guidance matters because companies that comply can lower operational and regulatory risk, speed product validation, and build customer and partner trust—similar to using a trusted blueprint that makes a product safer and easier to sell.

matrix product states technical

"MIMIQ uses Matrix Product States to enable fast, numerically precise simulation..."

A way to represent the complex state of many interacting quantum bits using a chain of small matrices that capture how parts of the system are correlated, like encoding a long recipe by stacking a few reusable cards instead of writing every step out in full. It matters to investors because this compact representation is a key tool behind quantum computing, advanced materials simulation and some machine‑learning methods, so improvements can lower costs and speed development for companies working on next‑generation computing and diagnostics.

fault tolerant technical

"fault-tolerant algorithms cannot be tested on hardware that does not yet exist..."

Built to keep operating when parts fail, fault tolerant describes systems, equipment, or processes designed so a single problem won’t cause a full shutdown. For investors, fault tolerance matters because it reduces the risk of costly outages, regulatory penalties, or lost revenue and can signal stronger management and lower operational risk—similar to a ship with watertight compartments that stays afloat even after damage.

digital signatures technical

"Digital signatures underpin every authenticated transaction, identity credential..."

A digital signature is a secure electronic stamp attached to a document or message that proves who sent it and that the content hasn’t been altered. Think of it like a tamper-proof wax seal and signature combined for files; it matters to investors because it helps ensure disclosures, contracts, and filings are authentic and unmodified, reducing fraud risk and legal uncertainty around important corporate information.

quantum error correction technical

"it would be quantum error correction. Following the first demonstration..."

Quantum error correction is a set of methods for detecting and fixing mistakes in quantum computers by encoding fragile quantum information across multiple physical parts, much like using multiple copies or checksums to protect a sensitive digital file. For investors, it matters because reliable error correction is a key technical milestone that determines whether quantum machines can scale from experimental devices to practical tools that could disrupt computing, encryption, drug discovery and other industries.

AI-generated analysis. Not financial advice.

VANCOUVER, BC, Dec. 29, 2025 /PRNewswire/ - BTQ Technologies Corp. ("BTQ" or the "Company") (Nasdaq: BTQ) (CBOE CA: BTQ) (FSE: NG3), a global quantum technology company focused on securing mission-critical networks, today issued a Year-End Letter to Shareholders from its Chief Executive Officer and Chairman, Olivier Roussy Newton.

Dear Shareholders,

As we close 2025, I want to reflect on a year defined by one thing: turning the "quantum era" from a future headline into deployment, standards leadership, and measurable commercial pathways.

It is increasingly clear that the transition from classical encryption to post quantum cryptography represents one of the most significant security shifts in the history of the internet. It is the most consequential technology transition I have seen in my lifetime, with implications that extend beyond technology and into national security and geopolitical stability. The cryptographic systems that protect global communications, financial transactions, identity, and critical data were designed for a pre-quantum world. That foundation is now approaching a mandatory upgrade. This transition requires the coordinated replacement of cryptographic standards, software systems, and underlying hardware across the infrastructure that underpins modern civilization. As governments recognize cryptographic resilience as a matter of strategic sovereignty, financial institutions, cloud providers, blockchains, and enterprises are now moving from research and planning toward deployment.

This year we saw advances in several trends that strengthen the mandate of our company. The physical qubit count required to run a cryptographically relevant quantum algorithm dropped ~20x this year, compressing timelines that many assumed would stretch another decade. Quantum error correction crossed critical thresholds in rapid succession with repeatable correction cycles, logical gates that preserve encoded information and quantum processors capable of performing thousands of two-qubit operations. The Pentagon issued a memorandum directing all DoD components to inventory cryptography across every system and replace legacy encryption by EOY 2030. And perhaps most striking is the timing of all this. We enter the age of cryptographically relevant quantum computers at the same time as mass-scale tokenization of financial assets. The infrastructure most vulnerable to quantum attack is the same infrastructure now being built to carry the next generation of global finance. As these trends continue to mature, we are already seeing more urgency to transition towards post-quantum cryptography.

BTQ was built around a simple view of how this transition actually happens. Quantum capability will arrive on the same internet that already moves money, identity, and access for critical systems. The only way to make that transition durable is to upgrade cryptography without breaking the infrastructure that depends on it, and to pair that migration with hardware that can execute new algorithms at scale.

That is why our strategy remains focused on three pillars: Quantum Secure Systems and Networks, QCIM Hardware Acceleration and Secure Elements, and QPerfect Neutral Atom Platforms. Together, these form a holistic, full stack combination of software and hardware designed to define the post quantum cryptography and quantum computing transition for the global infrastructure that underpins modern civilization.

BTQ is executing on this vision by assembling a world class team spanning silicon design, embedded systems, applied cryptography, and software engineering. This effort is focused on commercializing secure, full-stack platforms that enable organizations to protect their most important assets as they navigate the global transition to post quantum cryptography.

1) QCIM and Secure Element Commercialization: Building certifiable silicon for the post-quantum transition

Physical hardware and secure elements for the 25+ billion security chips to be upgraded over the next 5 years represents a core segment of our business that we are extremely excited about. Every internet-connected device will require transition to new and evolving post-quantum cryptographic standards to protect their communications, a problem our hardware team has been laser focused on solving. The Pentagon recently issued a memorandum directing all DoD components to inventory cryptography across every system type, including national security systems, weapons systems, cloud infrastructure, mobile devices, physical access control, IoT, and unmanned systems. The directive sets a firm deadline of December 31, 2030 for replacing legacy cryptography with all PQC deployments requiring approval and alignment with NIST-approved algorithms. Notably it also commits DoD Components to not use or procure quantum key distribution and related technologies which require quantum internet infrastructure.  OMB Memorandum 23-02 extends similar requirements across the federal ecosystem and into defense supply chains. After eight years of standards development, clear mandates, defined timelines are now in place. The next five years represent a critical PQC migration window, and our QCIM architecture is built precisely for this moment, delivering ultra efficient, crypto-agile hardware that large-scale migrations demand.

This year, BTQ entered a USD 15 million development and joint investment agreement with ICTK Co., Ltd., Korea's leading secure element manufacturer, to develop the QCIM secure element platform across design, validation, tape outs, certification, and productization. Target metrics include up to 5x AES throughput, approximately 1 million digital signatures per second, sub microjoule energy per operation, and crypto agile support for FIPS 203/204/205 and CNSA 2.0.

We strengthened our silicon leadership through the asset acquisition of Radical Semiconductor. Following that acquisition, Radical's co-founders joined BTQ to lead silicon product and hardware security, and their CASH processing-in-memory cryptographic acceleration architecture is now positioned as an engine within QCIM, deliverable as synthesizable IP, a discrete co-processor, and future chiplet configurations.

Radical Semiconductor co-founders Sean Hackett and Zach Belateche from Stanford University are joined by their top cryptographer, Anne Reinders from Intel Labs, to lead this initiative. All three leaders have a storied history of designing and delivering semiconductor and cryptography products, including novel cryptographic chips, novel AI chips, and performant security software. They will work alongside our Taiwan hardware team, led by Ethan Chen, former research fellow at Foxconn, to advance QCIM development through partnerships with ITRI, ICTK and TSMC. Our expanded global hardware team brings together the silicon design, cryptography, and manufacturing expertise required to commercialize across high-security, mass-market applications.

2) Quantum Secure Systems and Networks: Moving from concept to repeatable deployments

We have entered a time of heightened sensitivity by governments over the importance of quantum technologies. In what has become recognized as a national security imperative by the United States, the EU, and China, post-quantum cryptographic standardization processes are moving into implementation phases across both the private and public sectors via top-down government mandates. Among the several noteworthy developments in quantum technologies this year was the 20x reduction in physical qubit count required to run a cryptanalytically relevant quantum algorithm, which is down to less than 1 million physical qubits. It's perhaps ironic that we enter the age of cryptographically relevant quantum computers at the same time as the mass-scale tokenization of financial assets, seen through the proliferation of stablecoins and recent SEC authorization for tokenization services. These events underscore the importance of our technology within BTQ and creates the ideal environment to deploy our technologies to secure both centralized and decentralized critical networks.

This year we advanced two proof-of-concept deployments for the Quantum Secure Stablecoin Network (QSSN) in Korea, intentionally spanning both commercial and banking channels. With Danal, Korea's leading mobile carrier billing provider, we are integrating quantum secure settlement and issuer-level controls that can be added to existing payment rails while preserving the consumer and merchant experience. Those issuer controls include minting and burning, velocity limits, and list management. With Finger Inc. Group, a banking solutions developer serving major Korean banks, we are introducing PQC services into partial banking networks to validate high volume settlement in a regulated context. Together, these pilots are designed to be a repeatable blueprint for market scale rollouts that maintain operational continuity while upgrading core controls and compliance. We also expanded quantum safe verification into high throughput ecosystems. In partnership with Bonsol Labs, BTQ demonstrated the first implementation of NIST standard PQC signature verification on Solana, using verifiable computation to address on-chain resource constraints while maintaining performance.

We also saw QSSN recognized in the United States Securities and Exchange Commission's U.S. Post Quantum Financial Infrastructure Framework (PQFIF) and advanced by QuINSA as a global standards initiative, reinforcing our regulator-aligned design philosophy and interoperability roadmap.  We expect to see the continuation of private and public organizations adopting QSSN to participate in the burgeoning digital asset revolution while remaining compliant with cryptographic mandates.

This regulatory traction reflects an important property about QSSN's architecture. While it originated as a Quantum Secure Stablecoin Network, it solves a much broader problem. Digital signatures underpin every authenticated transaction, identity credential, and access control system on the internet. All of which are vulnerable to quantum attack. QSSN provides a modular framework for migrating these systems first to post-quantum cryptography, and ultimately to quantum cryptography as fault-tolerant hardware matures. This path helps organizations achieve PQC compliance today while preserving a clear upgrade route to quantum encryption protocols such as one-shot signatures.

Within decentralized networks, we delivered Bitcoin Quantum Core, demonstrating end to end Bitcoin operations using NIST standardized ML DSA signatures in place of quantum vulnerable ECDSA, including wallet creation, transaction signing, verification, and mining. This milestone matters because it translates quantum risk from abstract debate into real migration work: testnets, audits, wallet and exchange integrations, and repeatable migration tooling.

External validation also accelerated this year. Delphi Digital published in depth coverage describing Bitcoin Quantum as a "quantum canary" network and highlighting our focus on real world testing of NIST PQC signatures, quantum native proof of work research, and institutional migration playbooks.

3) QPerfect and Neutral Atom Platforms: Accelerating the path from emulation to fault tolerant systems

This year, aptly named the International Year of Quantum Science and Technology, designates the end of the first century since the discovery of quantum mechanics. It's been a year of accelerated progress across the industry but if there was one topic that has attracted most attention, it would be quantum error correction. Following the first demonstration of beyond break even performance using error correction in late 2024, this year saw outstanding road blocks fall in rapid succession including repeatable error correction cycles, the execution of logical gates while preserving encoded information, and a fully fault tolerant non-Clifford gate. Fault tolerance comes with overheads, and in order to unlock high impact scientific and commercial applications, we'll need quantum computers capable of controlling hundreds of thousands to millions of qubits. At BTQ we've made meaningful strides to achieve this by both reducing the quantum resource requirements to solve commercially interesting problems for provably secure transactions,  and expanding our business line to include a quantum control and emulation platform. We are one step closer towards delivering fault-tolerant application-specific quantum devices (FASQ) to the market and are leading the race for near-term commercially interesting applications.

We exercised our option to acquire QPerfect, a Strasbourg based neutral atom company whose MIMIQ emulator and Quantum Logical Unit (QLU) middleware address two central bottlenecks: large scale design and testing, and fault tolerant control. Neutral atoms have emerged as a leading architecture for fault-tolerant systems. Unlike superconducting qubits which are individually manufactured and which require cryogenic cooling and specialized wiring, neutral atoms are designed identically by nature and can be trapped and cooled using lasers. Because the laser traps can be moved using high speed spatial light modulators, the architecture is dynamically reconfigurable enabling efficient qubit rearrangement in 3D that proved decisive in breakthrough demonstrations this year of dozens of repeated error correction cycles and fault tolerant universal logical gates. As hardware leaders now scale physical qubit counts into the thousands, the bottleneck shifts to software. Algorithm design, gate optimization, and fault-tolerant control all become critical, which is what QPerfect's technology directly addresses.

Our Quantum Logical Unit (QLU) is a multi-layered framework that accelerates the path from algorithm to fault-tolerant execution. Its foundation, MIMIQ, is one of the industry's most advanced quantum emulators. MIMIQ uses Matrix Product States to enable fast, numerically precise simulation of circuits with thousands of qubits and millions of gates, outperforming competitor emulators on most metrics. Fault-tolerant algorithms cannot be tested on hardware that does not yet exist and MIMIQ lets engineers design, optimize, and validate quantum programs at scale before physical execution. The QLU adds the control layer that keeps quantum systems stable at scale. For neutral atom architectures, this means orchestrating laser pulses, atom rearrangement, and error correction in real time across hundreds or thousands of qubits. As mentioned, this is the critical layer that translates fault-tolerant algorithms into reliable physical operations, and the component that most hardware-focused companies have yet to solve. MIMIQ is already licensed to leading quantum groups across Europe, Asia, and North America, including active collaborations with QuEra and Quantinuum (both advancing to Stage B of DARPA's Quantum Benchmarking Initiative) which positions BTQ not as a competitor to hardware leaders, but as a provider of the software infrastructure they require.

In November, our QPerfect division announced a major upgrade to QLEO (Quobly Logical Emulator Online) in partnership with Quobly, integrating GPU acceleration and full NVIDIA CUDA-Q compatibility. This release, powered by QPerfect's MIMIQ engine, is designed to deliver over 100x speedups versus CPU only simulation and gives developers an on-ramp to widely deployed GPU infrastructure for hybrid quantum classical workflows.

Beginning in July, BTQ's expanded quantum software team in Australia entered into a joint venture with QPerfect on developing one shot signatures (OSS). OSS is a communications protocol combining PQC and quantum computing that enables one party to delegate a digital signature to another, one time, before it self destructs, and has applications for provably single use payments, restricted access to private records, blockchainless smart contracts, and quantum money, all without the need for a quantum internet. The venture is driving full stack development of OSS in a fault tolerant Rydberg atom quantum processor as part of a broader mission to think beyond the use case of cracking codes to delivering socially and economically beneficial cryptographically relevant quantum computers.

We reinforced these activities with foundational research collaborations. BTQ and Macquarie University published peer reviewed results in Physical Review Research and PRX Quantum, the latter also with the University of Sheffield, on efficient ways to perform quantum error correction and universal gates for quantum computing. These results, presented at conferences at TCG Crest and CERN, leverage cavity coupling with qubits to significantly reduce overheads when performing parity checks in high performing qLDPC codes and code switching for non-Clifford gates. This obviates the need to swap or shuttle distant qubits in these steps, thus simplifying control pathways and aligning with neutral atom roadmaps. We also announced a collaboration with the University of Cambridge to advance inverse design quantum photonic devices for next generation computing and secure communications, with a defined path toward prototype fabrication, validation, and productization. Finally, in May BTQ signed an MOU with the French photonic quantum computing company Quandela, and is using data from their state of the art discrete variable photonic processor to design and test BTQs quantum proof of work protocol based on coarse grained boson sampling published earlier this year in Quantum Science and Technology.  

Capital Markets Visibility and Financial Flexibility

As our execution has broadened, so has visibility with global allocators. BTQ was included in Korea's SamsungActive KoAct Global Quantum Computing Active ETF, expanding exposure with Asia Pacific investors allocating to companies across post quantum security, secure hardware, and quantum platforms.

BTQ was also added to the Defiance Quantum ETF (NASDAQ: QTUM), which seeks to track the BlueStar Machine Learning and Quantum Computing Index, broadening visibility with both institutional and retail investors following the quantum theme.

BTQ was more recently included in the MSCI Canada Small Cap Index, effective November 25, 2025, following MSCI's October index review, a meaningful benchmark recognition for the Company's growth and market presence.

BTQ also ended the third quarter with ample liquidity of C$39,389,812 in cash available which gives the company runway to execute across its strategic priorities. We also maintain a universal shelf registration to preserve strategic flexibility for disciplined strategic investments, co-development arrangements, or opportunistic M&A that accelerates commercialization, without indicating an immediate financing requirement.

Looking Ahead to 2026

Our priorities are clear:

• Deliver test silicon and ready-made designs for Quantum Compute in Memory (QCIM), using a highly-efficient chip design technique called "compute-in-memory", first pioneered by the AI revolution, and used by BTQ to accelerate quantum encryption. This year, our team will deliver hardware to our first customers on physical circuit boards for testing, integrate our products with design partners in mission critical use-cases (aerospace, defense, OEMs, etc.), and make strong headway on industry-specific certifications to rapidly commercialize our products.
• Expand QSSN from proof of concept into repeatable, regulator aligned deployments with issuers and market infrastructure, building on the Danal and Finger blueprints. As a company we see QSSN as the largest deployment of quantum secure technology for the largest addressable market immediately, global payment systems and the digitization of fiat currencies.
• Progress Bitcoin Quantum from demonstration to public testnet and mainnet, audits, and enterprise pilots, while continuing to publish migration tooling that institutional partners can operationalize. Bitcoin Quantum is an at scale deployment of quantum cryptography for the safeguarding of the world's largest decentralized uncorrelated store of value, which imperatively needs to be secure. As a company, we foresee further quantum based stores of value developing.
• Advance QPerfect's QLU and emulator to optimize algorithmic gate counts and parallelization for cryptographically relevant quantum computations like OSS, and to design and emulate high performing fault tolerant gates targeted toward single module neutral atom quantum architectures.
• Continue to add leading technical talent to our teams in Australia, Taiwan, Korea, Canada, United States, Europe with new jurisdictions planned for 2026.

2025 validated our direction: standards alignment plus real deployments and hardware performance is the only credible path to quantum readiness at internet scale. I am proud of the team's execution and grateful for the support of our shareholders as we build BTQ into the long term leader in quantum era security and infrastructure.

This represents one of the most transformative moments in the evolution of technology in our lifetime and on behalf of our employees, partners, and Board of Directors, we want to thank you for your trust and continued support.

Sincerely,

Olivier Roussy Newton
Chief Executive Officer and Chairman
BTQ Technologies Corp.

About BTQ
BTQ Technologies Corp. (Nasdaq: BTQ | Cboe CA: BTQ | FSE: NG3 ) is a vertically integrated quantum company accelerating the transition from classical networks to the quantum internet. Backed by a broad patent portfolio, BTQ pioneered the industry's first commercially significant quantum advantage and now delivers a full-stack, neutral-atom quantum computing platform with end-to-end 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 Disclaimer

This press release and letter contains forward-looking information ("FLI") within the meaning of applicable Canadian securities legislation. FLI is based on the reasonable assumptions, estimates, analysis, and opinions of management made in light of its experience and its perception of trends, current conditions, and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made. FLI includes, without limitation, statements about the Company's plans and objectives for 2026, including expansion of Quantum Secure Systems and Networks (QSSN) deployments, QCIM hardware commercialization timelines (e.g., test silicon delivery and certification), QPerfect neutral atom platform advancements, research partnerships, and anticipated markets for post-quantum cryptography solutions. Words such as "expect," "anticipate," "intend," "plan," "goal," "believe," "seek," "estimate," and variations of such words and similar expressions identify FLI.

FLI is subject to risks, uncertainties, and other factors that could cause actual results to differ materially from expected results. These risks include, but are not limited to: technological risks related to qubit scalability and quantum error correction; market adoption delays for quantum-secure networks; competition in fault-tolerant quantum systems; geopolitical tensions affecting supply chains; regulatory changes in quantum standards or cryptography mandates; cybersecurity threats and data breaches; financing availability and capital market volatility; intellectual property disputes; and general economic conditions impacting the quantum technology sector. For a more comprehensive discussion of risks, please refer to the Company's most recent Management's Discussion and Analysis ("MD&A") and Annual Information Form ("AIF") filed on SEDAR+ at www.sedarplus.ca.

Undue reliance should not be placed on FLI, which is not a guarantee of future performance and is subject to a number of uncertainties and assumptions, including but not limited to: continued progress in quantum error correction and hardware scalability; timely adoption rates of post-quantum cryptography standards by governments and enterprises; access to sufficient funding for research and development; and stable global economic conditions. These assumptions may prove to be incorrect, and actual results may differ materially. The Company does not undertake to update any FLI, except as required under applicable securities laws.

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SOURCE BTQ Technologies Corp.

FAQ

What did BTQ announce about a partnership with ICTK on December 29, 2025?

BTQ announced a USD 15 million development and joint investment agreement with ICTK to develop the QCIM secure element platform.

How does the DoD deadline announced in 2025 affect BTQ (BTQ) customers?

The Pentagon set a deadline to replace legacy cryptography by December 31, 2030, accelerating demand for PQC-capable hardware like BTQ's QCIM.

What are BTQ's QCIM target performance metrics for secure elements?

QCIM targets include up to 5x AES throughput, about 1 million digital signatures/sec, and sub-microjoule energy per operation.

What strategic acquisitions did BTQ complete to strengthen hardware and emulator capabilities?

BTQ acquired Radical Semiconductor assets and exercised its option to acquire QPerfect, adding silicon IP and the MIMIQ emulator/QLU middleware.

What pilots has BTQ deployed for the Quantum Secure Stablecoin Network (QSSN)?

BTQ ran QSSN proof-of-concept pilots in Korea with Danal (mobile billing) and Finger Inc. Group (banking solutions) for settlement and PQC services.

What technical progress did BTQ highlight on quantum resource requirements in 2025?

The company cited a 20x reduction in physical qubit counts needed for cryptanalytically relevant quantum algorithms, now under 1 million physical qubits.