From the moment Hashrate Asset Group (HAG) unveiled plans to launch a Security Token Offering (STO), our community’s interest spiked, leading to a wealth of questions about HAG and the STO process. Recognizing this curiosity and the need for clear, understandable information, we have compiled this in-depth FAQ. This FAQ is designed to provide insights into HAG’s operations and investments. We aim to demystify this intricate, yet captivating industry, helping you gain a deeper understanding of HAG’s functioning and the potential our STO tokens hold. So, let’s explore the dynamic operations of HAG and the promising prospects of our STO tokens.
1.How does HAG manage the mining equipment backing the STO tokens? What are the steps taken to ensure efficient and continuous operation?
We will utilize 30% of net yield from the Bitcoin mining as resources to maintain or update HAG mining equipments. Currently, HAG collaborate with mining farms and they serve the onsite maintenance. In fact, our management team acquires such maintenance capability as well, so we will review the job or physically participate if needed. In fact, such maintenance standard is specified in the contract between HAG and the mining farm.
2.How does HAG calculate the net yield for STO token holders?
The net yield will be defined in the Master Token Agreement.
“Net Yield” is the gross Bitcoin yielded from mining operations minus the following:
a)electricity used in mining;
c)mining pool commission fees;
d)mining facility operating costs and overhead;
e)other direct costs of mining;
f)taxes incurred by Company;
g)listing fees on the INX ATS and any other trading forum
h)Anticipated Paying Agent fees and costs for Periodic Distributions].
In computing Net Yield:
a)neither management fees (if any) nor the Company’s general administrative costs will be subtracted from gross Bitcoin yield; and
b)income tax of HAG Holders that the Company is required to withhold will be netted from individual distributions and not subtracted from Gross Yield
3.How does HAG manage electricity costs to maximize the profitability of Bitcoin mining?
The HAG management team are the early investor of Bitmain, hence they have the know how of mining industry. Fisrt of all, HAG collaborate with the top mining farms that provide reasonable price on electricity but with proven records on equipment management. In fact, compared with electricity cost, the loss from poor maintenance cost much more, and HAG will renew the mining equipment before its expected service life. Of course, HAG will get involved in the maintenance duty to ensure the right of HAG holder. Secondly, the mining equipment is planned to setup in the US with much more transparency on electricity policy.
In addition, Biden’s proposal on charging additional tax to Bitcoin mining is rejected by the Congress.
4.What is the estimated return on investment for HAG STO tokens? How does the dividend payout process work and how often are dividends paid out?
Because of the legal compliance, we could not predict the return of any financial asset including HAG. However, feel free to join our community that might have some discussion about the potential returns. The dividends will be on a monthly basis. The detailed process for dividends distribution will be disclosed in our PPM. The PPM will disclosed before the launch of HAG. If course, we will ensure every process is safe, legitimate, and correct.
5.How does HAG ensure the security of its tokens and the underlying assets?
The security of token itself will distributed by INX’s Transfer Agent with required licenses. For the security after distribution to the Holder, Holder might take your responsibility to keep the token safe. Of course, holder could contact INX or HAG, and we will do our best to provide available assistance.
6.Can HAG tokens be traded freely on the secondary market? If so, how to ensure the liquidity?
HAG could be traded freely on the secondary market. Because of the compliance, such secondary market is currently separated from the crypto market. Security token is the future for its compliance, so the liquidity will have huge space to grow. Furthermore, compared with direct investing in mining pool and the liquidity of underlying RWA security token, the liquidity of security token like HAG is much better. Besides, HAG security token is based on ERC-1404 which is applicable to ERC-20. Therefore, the future application scenario especially the ERC-20 DeFi will be prospective.
7.What are the future plans for HAG?
The short-term plans:
a)Get the mining equipment online and let holder start recieving dividends.
b)Make sure the mining farm’s operation is done beyond satisfaction and achieve the economy of scale gradually.
c)Keep communicating with holders/potential holders and make sure our practices are transparent at reasonable level.
The longer-term plans:
- Increase the partnerships with other mining farms to better achieve the economy of scale and diversification.
b) Collaborating with institutions from different countries/regions to find out any potential they could have with HAG. The pool will get deeper and deeper.
c) Start talking with DeFi project and looking for any potential collaboration.
1)Will HAG disclose the financial report?
Yes, we will.
2)How often does HAG release financial reports, and what information is included in these reports?
Since HAG is SEC-filed company, so we will follow SEC’s rules on the financial information disclosure that HAG fits.
3)Are HAG’s financial reports audited by an independent party? If so, who conducts these audits?
For the financial report auditing, HAG will do so, and we are in the process of interviewing the candidate to conduct the audit request by SEC in the future.
4)How can investors access HAG’s financial reports?
It will be on HAG website.
5)How does HAG ensure transparency in its financial reporting?
HAG is a SEC-filed company, so we follow US SEC’s rule. The audit on the financial information will be conducted. The result will be on HAG website publicly.
Company: Hashrate Asset Group
Contact Person: Alpaga YANG
Telephone: +65 80388730