Data centers
What we do
Enable data center operators to access upfront capital and revenue-based liquidity via institutional lenders.
We provide data center operators with tailored lending and revenue streaming solution denominated in fiat and Bitcoin to enhance performance and efficiency.
Based on future revenue
Our platform computes the present value of future data center revenues.
Attractive cost of capital
We provide access to substantial pools of Bitcoin and fiat liquidity via institutional lenders in our partner network.
Hedge and unlock liquidity
We specialize in unlocking liquidity for CAPEX and hedging strategies.
Trusted & transparent
Our protocol caters exclusively to accredited and AML-vetted institutional liquidity providers.
How the Revenue streaming product works
Block Green provides access to both traditional lending as well as revenue-streaming products.
Revenue-streaming is a comparatively novel financing approach, which Block Green has pioneered in the past years.
With our proprietary model we derive the spot value of the hashrate provided by the miner. The Cost of Capital for the miner is determined by the implied discount rate when computing the Present Value.
This discount rate is influenced by demand/supply factors within the protocol, as well as the miner's risk rating.
Funding flow
The funding flow from investors works as follows:
KYM
Miners onboard by submitting the required information for KYM. This includes financials, operational data, energy sourcing details, and their overall strategy.
Hashrate valuation
Based on the KYM information, we model the future value of the hashrate, estimating the opportunity's size, duration, and discount rate.
Opportunity creation
Upon approval of the terms, the Block Green protocol generates the opportunity and the corresponding Opportunity Vault on the platform.
Available liquidity
Once the Opportunity Vault is funded, the miner must post on-chain collateral to the Collateral Wallet.
Hashpower redirection
The liquidity transfer is triggered when the protocol receives confirmation that the hashrate has been redirected to the dedicated Rewards vault.
Architecture flow
Reward Redemption flow:
Launch
The entire amount of liquidity is released once the miner's hashrate has been redirected to the Rewards Vault and the security has been deposited into the collateral vault.
Monitoring
The protocol actively monitors the hashrate provision throughout the length of the agreement, programmatically matching the hashrate and reward flow with the linked pool parameters.
Collateral adjustments
In the case of deviations from the agreed-upon hashrate, the protocol automatically balances the amount by using BTC payments/deductions against the on-chain collateral.
Closing agreement
Upon completion of the agreement, the pool is liquidated, and any remaining collateral is returned.
know your miner
Know Your Miner (KYM) is our screening process for the introduction of new opportunities on the Block Green protocol. We only partner with highly financially robust mining operations. Their adequacy is determined based on three frameworks:
Proprietary credit scoring
The Proprietary Underwriting Scoring model is based on a due diligence process involving, financial statements, peer comparison, mining performance KPIs, geographical and grid diversification, state of inventory, supplier agreements, and more.
Sustainability index
Block Green’s Sustainability Index is under development together with industry partners. The first framework will focus predominantly on the energy source(s) used and resulting emissions. Already today, a growing share of the sites of leading Bitcoin miners are connected to renewable energy sources. However, many of these sites cannot yet guarantee a renewable baseload. We are also supportive of Bitcoin mining based on natural gas flaring.
Although the burning of natural gas cannot be considered renewable it should be considered sustainable, as there is no alternative industrial usage and the polluting gas in its methane form (not burned) is more harmful for the environment so burning the gas is actually a net positive. A comprehensive thesis on mining sustainability and energy usage is being worked on currently.
Predicted Bitcoin value
Our forecasting and valuation harnesses multiple data sources, both public and proprietary. We are working with key actors in the Bitcoin mining ecosystem to predict the future value of hashrate as accurately as possible.
Some Criteria
- Mining site operations
- Equipment
- Existing mining capacity
- PPA
- Energy mix
- Financials