El Salvador: Tokenized Mining Revenue ($2M)
Revenue-share instrument issued under the local framework with consumer-protection focus. Operating SPV channels bitcoin-mining cash flows; venue KYC/AML and multi-sig treasury policies. An anonymized practitioner case.
Snapshot
$2,000,000 Investors
560 qualified Timeline
~4 months (plan → TGE) Stage
Issuance Platform
Bitfinex Securities ES Status
Revenue distributions enabled Anonymized
Context & Objectives
Issuer: Operating SPV for BTC-mining facility in El Salvador seeking compliant access to global qualified investors while prioritizing consumer protections.
- Fund CAPEX/opex via revenue-share token rather than equity or secured debt.
- Automate quarterly distributions from BTC mining proceeds (after costs).
- Enforce transfer controls and geography filters through the venue stack.
Structure & Jurisdiction
Operating SPV issues revenue-share tokens granting a pro-rata right to a defined % of net mining revenue.
El Salvador framework with venue-aligned disclosures and consumer-protection emphasis.
Multi-sig wallets for operations; conversion policy for BTC→USD to fund distributions and reserves.
Key Terms (Indicative)
| Offering size | $2,000,000 |
| Payout basis | X% of Net Mining Revenue (after power, hosting, fees), quarterly |
| Term | Open-ended with call/step-down options |
| Eligibility | Qualified/Professional investors; KYC/AML required |
| Transferability | Whitelist & geography filters; venue-only secondary |
| Reporting | Monthly ops KPIs; quarterly distribution statements |
Provider Stack
Bitfinex Securities ES (subscription, registry, corporate actions)
Venue-integrated provider (IDV, sanctions, PEP, geography blocks)
Operational multi-sig; segregated distribution account
Wire rails for distributions; BTC treasury conversion policy
Offering memo, revenue-share agreement, risk factors
Hashrate & production attestations; wallet proofs
Revenue & Distribution Mechanics
- Gross mining proceeds (BTC) → network fees deducted → conversion per treasury policy.
- Operating costs (power, hosting, maintenance, pool fees) → Net Mining Revenue.
- Distribution waterfall: fees → reserves → investor revenue share → residual to operator.
- Proofs: wallet statements, pool dashboards, and hashrate reports attached to quarterly packs.
Investor Funnel
- Teaser & data room with ops KPIs and risk factors.
- Venue KYC/eligibility; subscription e-docs executed.
- Funds received → tokens allocated to whitelisted wallet/custody.
- Monthly ops update; quarterly distribution to investor bank accounts.
- Optional matched orders in venue windows among whitelisted investors.
Compliance & Controls
Tiered SoF/SoW for larger tickets; periodic refresh.
Blocked jurisdictions; venue-level IP & documentation checks.
Multi-sig approvals; withdrawal limits; incident playbooks.
Volatility, energy dependency, difficulty changes; transparent fee schedule.
Secondary & Liquidity
Venue-approved bulletin/matched windows only; transfers restricted to whitelisted wallets. Pricing informed by recent distributions and forward hashrate projections.
Timeline (Plan → TGE)
| Phase | Workstreams | ETA |
|---|---|---|
| Design | Revenue metric, treasury policy, venue alignment | 2–3 weeks |
| Docs & setup | SPV docs, offering memo, wallet policies, payout rails | 3–4 weeks |
| Subscription | Investor onboarding, allocations, go-live | 2–3 weeks |
| TGE & Ops | Mint/allocate; begin monthly ops reporting | 1 week |
Costs (Indicative)
| Legal & docs | Offering memo, revenue-share agreement, risk disclosures |
| Platform & KYC | Venue setup + per-investor checks |
| Ops (ongoing) | Wallet ops, reporting, distributions |
| Audit/attest | Hashrate/production attestations |
Unit economics vary with power price, difficulty, and BTC price; disclosures should address sensitivity ranges.
Key Risks & Mitigations
Stress-testing; reserve policy; transparent KPI reporting.
Fixed-price PPA/hedges; redundancy; maintenance SLAs.
Multi-sig, withdrawal limits, incident playbooks.
Venue geography filters; periodic legal review.
Downloads
This case is anonymized; downloads are generalized templates.
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