Hashrate Asset Group (HAG) has established the world’s first sustainable, compliant and transparent Bitcoin standard computing power operating model. What is different from most cryptocurrencies on the market is that HAG has been filed with the SEC and is regulated by the SEC. Therefore, HAG token is a fully compliant security token. In a recent internal discussion, HAG’s CEO Harvey Chen and CFO Joe Su shared why the team chose to issue an SEC-registered STO and how HAG overcame the challenges to become the first SEC-registered project in the industry focusing on Bitcoin Mining.
1. Please briefly introduce Hashrate Asset Group (HAG) and explain how it operates.
CFO Joe: "HAG (Hashrate Asset Group) provides a way to invest in Bitcoin by owning computing power, with security and compliance that are usually only available to institutional investors. HAG Token is a security token that complies with US securities laws. Each HAG Token represents a base Bitcoin digital asset with a permanent mining computing power of 1 Terahash/s. In other words, holding HAG Token is equivalent to owning computing power and directly participating in Bitcoin Mining. Token holders receive monthly dividend payments in the form of WBTC according to the number of HAG Tokens they hold. After deducting basic operating costs such as electricity costs, 70% of the net income will be distributed to investors, and the remaining 30% will be used for the maintenance and update of mining machines to ensure that the permanent computing power level is maintained."
2. Why did HAG decide to conduct an SEC-filed STO?
CEO Harvey: "We have seen too many scams in the encryption world. The imperfect supervision and related laws have given scammers too many opportunities. This is not just a problem of investors losing money, It is even more harmful to the entire web3 industry, causing public misunderstanding and prejudice against blockchain technology. HAG chose to become an SEC-filed security token in order to provide investors with a safe, compliant, and trustworthy investment method. Set a positive example for the long-term development of the encryption industry.”
3. We know that HAG is the first Bitcoin Mining project to be registered with the SEC. In this process, there must be some challenges or difficulties. Can you share them?
CEO Harvey: “I think the biggest challenge is at the level of legal documents. Unlike general cryptocurrency issuance projects, there is almost no legal or compliance-related work. HAG has completed its filing with the SEC and is about to complete the PPM and make it public. Although the issuance of HAG is more relaxed than the IPO, you can still understand this process as the issuance of stocks by a listed company. It has extremely strict legal and internal review requirements. Our management team must accept due diligence by lawyers. . We also found a professional consulting company like Magic Circle to help us complete the tedious but necessary preparation of legal documents. As the first security token anchored to Bitcoin Mining’s computing power, HAG is fully compliant. Regulated by the SEC."
4. We know that HAG announced that it will cooperate with INX for STO issuance. Could you please introduce us to the decision-making process of choosing INX as an STO partner?
CFO Joe: “Our main considerations in choosing INX were security and compliance. INX launched the world’s first fully regulated platform to centralize investment and trading in security tokens, cryptocurrencies and financing services. Providing a safe and secure path to compliant trading across multiple asset classes in one place. Specifically, INX made history in 2021: becoming the first SEC-registered digital securities IPO, attracting over 7,300 retail and institutional investors We have raised US$83.6 million in fundraising income from investors. INX is a leader in this field and shares our persistent pursuit of compliance. Choosing INX to cooperate with us for STO issuance is in line with our commitment to security and compliance. promise."
5. What specific features or advantages of the INX platform make it the best choice for HAG?
CFO Joe: “First of all, the most important point is the security and compliance I mentioned above. We will work with INX to protect the legitimate rights and interests of investors; The second point is that INX has rich experience: their team consists of Composed of business, finance and technology veterans with a shared vision to redefine the world of regulated security tokens and crypto trading. INX completed the first SEC-registered digital securities IPO in 2021. In the Security Token space, INX It is both a leader and the most experienced professional player; The third point is investor friendliness: HAG greatly lowers the threshold for individual investors to invest in Bitcoin Mining by anchoring permanent Bitcoin computing power. In order to ensure this Convenience and good user experience, we fully believe in the professionalism of INX. INX promises to guarantee high standards and high quality products, competitive prices and excellent customer service; Finally, INX’s global resources: INX has locations all over the world In order to gain popularity and reputation, it has established independent regional communities in Europe, America, Asia and other places, with high user activity and loyalty. HAG hopes to make full use of INX’s community resources, organize more attractive online and offline activities, and enrich investor experience. In addition, INX’s industry network also allows us to contact more like-minded project parties and jointly explore the depth and breadth of Bitcoin investment.”
6. Could you please compare the potential advantages of investing in Bitcoin through owning computing power compared to other forms of cryptocurrency investment?
CFO Joe: “First, let’s compare Bitcoin with other cryptocurrencies. There is no doubt that Bitcoin, as the basic asset in the crypto world, has the longest history and the strongest consensus, and has the highest APY in 10 of the past 12 years. Investment products. No other cryptocurrency has these advantages. Investing in and holding Bitcoin for a long time is a healthy way of investment. Then we compare buying Bitcoin and Bitcoin Mining. We conducted it when conducting market research For comparison, starting from 2014, with the same principal invested, Mining's returns have been higher, with a return rate of almost 4 times that of buying Bitcoin directly. There are also some Bitcoin Mining company stocks on the market, and we have also compared them Their returns were found to perform even worse than buying Bitcoin directly. When the price of Bitcoin rises, these stocks rise less than Bitcoin; and when the price of Bitcoin falls, the prices of these stocks plunge. Therefore, participating in Bitcoin Mining is an investment The best way to use Bitcoin. Finally, let’s compare HAG with other cloud computing power mining products. Holding HAG means having the corresponding sustainable computing power, supporting a large amount of long-term investment, and being able to trade in the secondary market at any time. In order To capture the appreciation of investment value to the greatest extent, investors usually need a longer investment period. These are not satisfied by cloud computing products. They are usually small amounts, short-term, cannot be traded, and the price is affected by computing power and Bitcoin price. Big. In fact, HAG is grateful to every participant in the industry who is building the future of digital assets, and is confident that it will become the mainstay and make this future come true as soon as possible."
7. What do you think the future development trend of the cryptocurrency industry will be in terms of regulatory compliance?
CEO Harvey: "As the SEC's regulation of the cryptocurrency field becomes increasingly strict, we believe that if cryptocurrency wants to enter the public eye, compliance will become a trend in the industry. In 2022, people have witnessed the collapse of many Web3 companies and groups, and no one wants these things to happen again and again. HAG hopes to set an example in the industry and achieve a sustainable balance between the development and compliance of digital assets. It is imperative to establish a standard, regulated crypto investment system."
8. Could you please share what interesting plans HAG has recently?
CEO Harvey: "At this stage, our main energy is focused on the issuance of STO, and at the same time, through the OG system, we will reward early investors who enter our community. From now on, we will actively cooperate with the investor community and project parties, including but not limited to Other security token projects, Defi projects, etc. We think the LSD track spawned by the Ethereum Shanghai upgrade is very interesting. stETH has become the U.S. debt and basic interest-earning product of the Ethereum ecosystem. HAG wants to play this role in the Bitcoin ecosystem . We will continue to pay attention to industry trends and explore more forms of Bitcoin investment."
summary
HAG hopes to allow investors to invest in Bitcoin Mining in a safer way through legal compliance. This is why HAG chose to issue the first Bitcoin Mining STO registered with the SEC. Although this means preparing more detailed and rigorous legal documents and undergoing more rigorous scrutiny, their insistence on legal compliance has not wavered. Without appropriate regulatory measures, the cryptocurrency market is likely to see bad coins drive out good coins, leaving only scammers and speculators. This is not in line with HAG's vision for cryptocurrency and Web3. Only by embracing compliance can we protect the rights and interests of investors to the greatest extent. HAG has always believed in this.
About Hashrate Asset Group
Hashrate Asset Group is committed to creating the world's first sustainable, compliant and transparent Bitcoin standard computing power operation model. HAG Token allows investors to join the ecosystem and obtain real-time returns on investment. The HAG mining farm is located in the United States, and the team is composed of industry-leading professionals such as Bitmain, Goldman Sachs and TSMC.