Liquidity
What we do
Introducing scalable returns from the data center industry
For investors aiming to optimize capital deployment within the dynamic Bitcoin mining and HPC sectors, challenges persist.
Our innovative product offers institutional lenders direct exposure to scalable returns from compute infrastructure. Unlock the full potential of your capital with us.
Scalable returns
Our platform unlocks opportunities in data center infrastructure, providing access to attractive yields from AI and Bitcoin.
Collateralized
Our opportunities are secured by both on-chain and off-chain collateral. Additionally, we have an adjustment mechanism in place to account for any missed hashrate deliveries.
Flexible payouts
With our streaming product, we offer flexible payment schedules tailored to meet your needs, whether daily, weekly, or monthly.
Vetted operators
Our partnership includes some of the world's biggest data center operators, selected through a stringent due diligence that screens for financial health, credentials, and operational quality.
How the Revenue streaming product works
Block Green provides lending, hedging, and, as we'll explore here - revenue streaming solutions.
Block Green connects institutional lenders directly to returns from data center operators, offering access to lending and streaming opportunities with proactive monitoring of daily revenue delivery.
The following example below is the Bitcoin streaming product.
Funding flow
The funding flow from liquidity providers works as follows:
Opportunity selection
Miners join the platform by submitting essential KYM information, including financials, operational data, energy sourcing, and strategy.
Access to KYM report
Liquidity Providers gain access to a KYM report for each opportunity. This report contains due diligence material provided by miners, along with the credit scoring issued by the Protocol.
Liquidity allocation
After due diligence, Liquidity Providers enter into a mining rewards streaming agreement with miners through the designated Opportunity.
Funds release
Once liquidity is allocated across opportunity tranches, miners receive notifications to post collateral and redirect the hashrate. Following these steps, liquidity is released.
Reward reception
The protocol actively monitors the supplied hashrate and distributes daily rewards to Liquidity Providers.
Architecture flow
Reward Redemption flow:
Hashrate delivery
The Miners transfer the bitcoin collateral to the multi-sig collateral wallet. The Miners redirect their hashrate to the BG accounts paying out rewards to the capital pool.
Daily reward
Payments are paid out daily via rewards to the protocol Rewards Pool. During the length of the agreement, the mining rewards produced under the streaming agreement are distributed to all LP’s
Reward monitoring
Block Green’s protocol monitor the daily hashrate and adjust for hashrate deviations. During the length of the agreement, the mining rewards produced under the streaming agreement are distributed to all LP’s
Funds returned
The return is the delta between the drawdown and the sum of all rewards received by the Rewards pool
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