Poolin nets another $10 million via bitcoin hashrate token sales backed by institutions

Poolin, one of the world's largest bitcoin mining pools, has announced that several notable crypto VCs have invested $10 million in its proprietary bitcoin hashrate token.

The firm said on Monday that it has issued another 100,000 units of its pBTC35A token with a lock-up period of 30 days to institutional backers including Three Arrows Capital, Hashkey, Fenbushi, FBG Capital, IOSG, Mindfulness Capital and Ledger Prime.

Each pBTC35A is backed by one terahashes second (TH/s) of computing power racing on the bitcoin network with a power efficiency of 35 watt per TH/s.

The sales comes weeks after Poolin sold a first batch of 100,000 units of pBTC35A to retail investors and raised $10 million at the time.

Poolin said the newly raised capital is used to reimburse the cost of bitcoin mining equipment that the firm has placed in advance to power up the tokenized hashrate.

As The Block reported last month, Poolin rolled out a protocol called Mars as an experiment to connect proof-of-work mining with decentralized finance (DeFi).

Investors who stake pBTC35A or the trading pair of pBTC35A against USDT in one of the two liquidity pools on the Mars Protocol can receive rewards in the form of the Mars governance token as well as Wrapped BTC (wBTC).

The calculation is based on the amount of bitcoin that the underlying hash rate can mine at the network's current difficulty after deducting a set electricity cost of $0.058 per kWH and Poolin's 2.5% fees.