What is BTCHV, Why It’s Valuable, and How Investors Can Purchase, Trade, and Stake Tokens
Recently, Bitcoin prices have held steady above $50,000, topping out at over $60,000. The enthusiasm for Bitcoin mining has increased under the bull market’s soaring coin prices, with the stocks of the top four mining companies rising by 5,000% in the past 12 months. Why? Miners seek to accumulate a future stream of Bitcoin payments at a more predictable price. With prices rising, mining is increasingly attractive. Meanwhile, most investors, even accredited investors, don’t have the expertise and financial resources to buy expensive mining machines like those used by institutions. Most investors don’t even know what bitcoin mining is or why they should care about it.
In this context, hash rate coins have become an investor’s ticket to enter the crypto world in general, and mining in particular. Said differently, hash rate coins can deliver a steady, daily stream of bitcoin for an investor.
With this in mind, Apifiny Hash Hive developed the first standard, perpetual Bitcoin hashrate token suitable for institutional and retail investors.
The bitcoin bull market has sparked a mining boom, but mining is still limited to a niche group of bitcoin miners, outside of the public consciousness. Why? There are several challenges blocking broader investment: cost of mining machines, the difficulty of joining mining pools and mining farms, and regional anti-mining policies (e.g., China) where the machines and their electricity sources are located. The market is in dire need of a compliant, trusted, and perpetual standard bitcoin hashrate that enables everyone to participate in the benefits of mining.
Recently, Hash Hive, a wholly-owned subsidiary of digital asset trading network Apifiny, launched Hash Hive Standard Hashrate Token (BTCHV), the world’s first perpetual, compliant, and standardized bitcoin hashrate token. Each BTCHV is anchored with 0.01 terahash per second (TH/s) of bitcoin mining hashrate, and investors can directly purchase or stake BTCHV for mining, with participants receiving a daily bitcoin bonus corresponding to the staked mining hashrate.
The Apifiny Hashrate Service team is composed of experienced mining veterans, all of whom have built and managed mining farms in the United States. Among them, Apifiny CEO Haohan Xu, and executive and compliance teams consisting of experts from top tech and financial institutions, including Goldman Sachs, Google, Bank of America Merrill Lynch, Tower Research, FINRA, Deloitte, and others.
CFO Erez Simha has extensive experience in finance, M&A, SEC reporting, risk management, legal and investor relations, and has served as COO and CFO of a number of companies, including Stratasys (Nasdaq: SSYS) and Orbotech (Nasdaq: ORBK).
Jason Jiang, CTO, was formerly VP and Chief Architect at Goldman Sachs, where he was responsible for quantitative trading, market making, and custom algorithmic research. He previously served as VP of Financial Modeling and as Software Development Manager at Blackrock, where he designed and built the Blackrock Fixed Income Analytics System (ANSERTM) from the ground up. In addition, well-known industry leaders such as Andrew Banhidi, former CTO of Bank of America Merrill Lynch Global Securities, and Raymond Walintukan, former Director of Operations for Bitmain and Bitdeer, are also Apifiny team members.
Hash Hive standardizes bitcoin mining hashrate, staked and secured in a trust, and tokenizes mining hashrate into BTCHV. Hash Hive is a bridge between bitcoin mining and public investors, making bitcoin mining more decentralized, and allowing everyone to participate in the benefits of mining — daily Bitcoin rewards.
Each BTCHV is collateralized by 0.01 terahash per second (TH/s) of bitcoin mining hashrate, and token holders can stake BTCHV to receive a daily bitcoin allocation corresponding to the staked mining hashrate. They can also trade BTCHV on the secondary market on select exchanges. In short, BTCHV abstracts bitcoin hashrate into a standardized, perpetual, free-floating pass-through, which holders can choose to mine or trade.
BTCHV Standard Hashrate Token is compliant, safe, and secure.
Not all countries support bitcoin mining. If miners operate in countries that are not mining-friendly, such as China, the miners and their hashrate face the risk of being shut down at any time. Non-compliant and untrustworthy Bitcoin mines operating illegally in their home countries present great risk to investors and are a high risk way to buy hashrate power.
To allow everyone to safely participate in mining, BTCHV solves the above problems by creating a compliant, trusted, and perpetual standard bitcoin hashrate, using the following standards.
BTCHV is not simply tokenizing miners or machines. It is a standard unit of mining input that will never change. Hash Hive ensures that BTCHV is independent of the miner / miner machine lifecycle, and instead guarantees the hashrate:
- BTCHV’s hashrate is hosted with a trustworthy third-party custodian, DaoTrust. providing customers with compliant, professional and efficient asset custody, asset digitization, legal support and trust services. DaoTrust was granted a Trust or Company Service Provider License on March 19, 2019. This license allows a person to operate trust or company services in Hong Kong under Chapter 615 of the Anti-Money Laundering and Terrorist Financing Ordinance.
- Standard hashrate is based on the standard hashrate of the mining machines consisting of S17 Pro-53T models and above. The daily hashrate is stable above 179PH/S, providing strong support for the stable operation of BTCHV
- 100% ownership and assignment power of the mining machines used to issue hashrate tokens, with no franchise model or leased mining machine model.
The mining machines used to issue BTCHV hashrate tokens are located in regions such as the United States and Canada where regulatory environments are stable and mining-friendly, and electricity costs are relatively low compared to other regions.
BTCHV allocates mining machines across trusted mining farms in different regions to mitigate risks such as power failure. In the future, the hashrate generated by each mining farm will be no higher than 10% of the BTCHV total. I.e., we will have at least 10 farms, with none producing more than 10% of the BTCHV total.
- BTCHV tokenizes only part of its hashrate and reserves no less than 20% of backup hashrate to ensure that the tokens can be fully hashrate-anchored in the event of network-wide hashrate fluctuations, power failures, or equipment failures.
- BTCHV’s hashrate is audited quarterly by a third-party organization.
- BTCHV will only be issued when the actual bitcoin mining hashrate is obtained.
- The standardized target for BTCHV is 42J/TH.
BTCHV: Staking and Mining
BTCHV will be available for U.S. accredited investors and retail investors in most countries. BTCHV’s energy costs are currently $0.06/kWh with a 3% power loss. The total initial issuance hashrate size is 20 PH/s with 2,000,000 tokens in total. and will be made available for trading for users in most other countries. Each BTCHV is collateralized with 0.01 terahash per second (TH/s) of Bitcoin mining hashrate.
|Total hashrate of initial issuance||20PH/s|
|Total BTCHV of initial issuance||2,000,000|
|Anchored Hashrate||1 BTCHV= 0.01TH/s|
The first release of BTCHV will be an ERC20 standard token on the Ethereum Chain. Users will be able to stake BTCHV for mining on Apifiny.com. Mining proceeds can be traded freely through Apifiny’s GBBO exchange, with no fee for taker
Orders. GBBO is the world’s best bid and offer service from digital asset trading network Apifiny. It connects exchanges directly or through market makers, sharing liquidity and creating a unified worldwide marketplace based on a large virtual “global order book” for price discovery across over 20 exchanges.
To enable more users to enjoy the benefits of mining, BTCHV will methodically expand its mining sites organically or through acquisition, and will issue BTCHV in various batches as detailed in the chart below.
BTCHV aims to be a trusted, compliant financial product that brings bitcoin mining into the traditional financial world for the first time:
(1) Standardization of hashrate
Today, the mining market is inefficient and high risk due to the lack of a market mechanism with unified standards and transparent information. However, each BTCHV is collateralized with a full inventory of effective hashrate, anchoring 0.01 TH/s of bitcoin mining capacity, providing \transparency and security.
(2) Perpetuity of hashrate
BTCHV anchors the hashrate instead of the mining machine. This separates the token value from the life cycle of the mining machines and provides a perpetual hashrate. Users can keep participating in mining as long as they hold BTCHV. This enables investors to extend the time and revenue from mining.
(3) Everyone can participate in mining with BTCHV
Due to the mining boom, mining machines and mining costs are getting higher and higher, making it hard for new people to begin mining.vNow users can participate in mining as long as they have BTCHV, without having to worry about screening mining machines and mining farms,. In addition, users can trade BTCHV at any time without restriction, which greatly improves liquidity.
How to Get BTCHV
I. BTCHV Quick Buy
1. BTCHV will be listed on the world’s top exchanges. After BTCHV issuance, users can buy tokens on the BTC Hash Hive page (apifiny.com/hashhive). You will need to register and authenticate your Apifiny account. Start by clicking on the top right to login/register.
2. Prepare the assets used to buy BTCHV. We currently support USDT and USDC. Click ‘Deposit’ to top up.
3. Click ‘Buy BTCHV’, enter the amount of USDT/USDC you want to convert, then you can see the amount of BTCHV available.. Click ‘Confirm’ to complete the purchase.
*Note: due to changes in market prices, the actual quantities sold may be different from the estimation you see, please refer to the actual.
II. Stake BTCHV for mining
For BTCHV in your wallet, click ‘Stake’, enter the amount you want to stake, and click ‘Confirm’ to complete the staking. Next, you can wait for the BTC to be mined.
*Daily mining output is settled at 20:00 (UTC+8) and assets staked/redeemed on the same day are not counted as mining.
III. Withdrawing BTC rewards
When the user reward pool shows that there are BTC mined out, click ‘Claim’, confirm the quantity, and click ‘Confirm’ to withdraw the reward to your wallet.
* BTCHV is not available for non-accredited US users for either deposit or withdrawal.
IV. Redeeming BTCHV
When a user wants to withdraw all staked BTCHV:
- Click ‘Redeem’
- Enter the amount you want to redeem, and then
- Click ‘Confirm’ to complete the redemption.
As cryptocurrencies are gaining mainstream recognition, the hashrate tokenization industry is gradually globalizing. Among the many factors affecting hashrate, such as coin price, mining machines, electricity price, system, legal and policy environment, regulatory certainty and stability are important factors affecting the sustainable development of hashrate, which is an important consideration for us to choose to place mining machines in the US.
The Bitcoin hashrate track is still in its early days and the dividend period has not yet fully arrived, so the future is promising. Compared to physical miners and cloud hashrate, hashrate coins lower the threshold for mining, allowing everyone to enjoy the dividends of mining, while having better liquidity, further promoting the development of the hashrate market. We foresee hashrate coins becoming the trendsetter for the mining industry. In this favorable environment, standard hashrate coins like BTCHV, which have both investment properties and are backed by bitcoin mining rewards, will win the favor of more users and enhance the liquidity of hashrate assets.