Glossary | Hashrate, Bitcoin Mining and Hashrate-Backed Securities

A

ASIC#asic

An application-specific integrated circuit is a piece of computer hardware designed and manufactured to perform a single function, in this case running the SHA-256 hashing algorithm that secures the Bitcoin network. Modern Bitcoin ASICs are produced by a small number of manufacturers (Bitmain, MicroBT, Canaan) and are several orders of magnitude more efficient than general-purpose hardware. They are the fundamental unit of production in industrial Bitcoin mining.

In finance termsAn ASIC is to Bitcoin mining what a drilling rig is to oil and gas, the capital asset that produces the commodity, with an effective economic life of three to five years before it is outcompeted by the next generation of hardware.

Why it matters to institutionsASIC generation and price determine the cost basis of every unit of hashrate an issuer can deliver, and therefore the achievable yield on a hashrate-backed note.

ASIC efficiency (J/TH)#asic-efficiency

ASIC efficiency measures how many joules of electricity an ASIC consumes to produce one terahash per second of computational work. Lower numbers are better, with current top-tier machines operating in the 14 to 18 J/TH range. Efficiency directly translates into the marginal cost of producing one terahash and is the single most important specification when evaluating a Bitcoin miner.

In finance termsJ/TH is the fuel-burn rate of a mining machine, equivalent to specific fuel consumption for a jet engine or heat rate for a power plant.

RelatedASIC, J/TH, W/TH, Energy intensity

Why it matters to institutionsFleet efficiency is the dominant driver of unit economics, and a one-J/TH improvement can materially change the breakeven hashprice of a portfolio.

B

Base (L2)#base-l2

Base is an Ethereum Layer 2 network built by Coinbase on the OP Stack, used by Omnes as the settlement venue for the tokenized Omnes Mining Note. Layer 2 networks inherit Ethereum's security while offering significantly lower transaction costs and higher throughput. Base provides the regulated, institutional-friendly environment in which OMN tokens are issued, held in custody, and transferred between whitelisted investors.

In finance termsBase functions as the central securities depository for OMN, where ownership records are maintained, transfers are settled, and corporate actions are executed.

Why it matters to institutionsChoice of settlement layer determines counterparty risk, finality, and the regulatory posture of the entire offering.

Bitcoin custody#bitcoin-custody

Bitcoin custody is the safekeeping of private keys controlling Bitcoin on behalf of a third party, typically by a regulated financial institution. Institutional custody arrangements use multi-signature wallets, hardware security modules, geographically distributed key shards, and segregated cold storage. Custody is the single most important operational control for any Bitcoin-denominated security.

In finance termsBitcoin custody is the digital equivalent of a tri-party custody arrangement at a global custodian bank, with segregated client assets and independent attestation.

Why it matters to institutionsCustody quality determines whether a tokenized product can be held inside a regulated fund or insurance balance sheet at all.

Bitcoin halving#bitcoin-halving

The Bitcoin halving is a programmed event that occurs every 210,000 blocks (roughly every four years) and cuts the block subsidy in half. The most recent halving in April 2024 reduced the subsidy from 6.25 BTC to 3.125 BTC per block, and the next is expected in 2028. Halvings are the central scheduled event in Bitcoin monetary policy and the dominant driver of miner revenue.

In finance termsThe halving is a hard-coded supply shock comparable to a programmed reduction in OPEC quota, except it is fully transparent, dateable, and not subject to political negotiation.

Why it matters to institutionsHalving cycles structure long-horizon Bitcoin revenue forecasts and define the maturity windows in which hashrate-backed notes are most attractive to issue.

Block fee#block-fee

A block fee is the sum of transaction fees that users pay to have their transactions included in a Bitcoin block, paid to the miner that produces that block. Fees vary with network congestion and the willingness of users to pay for priority inclusion. As the block subsidy declines through successive halvings, fees become an increasingly important component of total mining revenue.

In finance termsBlock fees are the variable, demand-driven component of miner revenue, analogous to spot tariffs on a toll road or congestion charges on a payment rail.

Why it matters to institutionsFee revenue determines whether mining economics remain robust into the late 2020s and 2030s, when block subsidies fall below the cost of production for marginal miners.

Block reward#block-reward

The block reward is the total Bitcoin paid to a miner for producing a valid block, equal to the block subsidy plus all transaction fees included in that block. As of 2026, the subsidy is 3.125 BTC and fees vary block by block. The block reward is the gross revenue line for any Bitcoin mining business.

In finance termsThe block reward is the top-line per-unit revenue of a mining operation, equivalent to the wellhead price of a barrel of oil produced.

Why it matters to institutionsThe block reward sets the headline revenue against which efficiency, uptime, and cost of power are measured to derive returns on a hashrate-backed note.

Block subsidy#block-subsidy

The block subsidy is the fixed amount of newly issued Bitcoin paid to a miner for producing a valid block, currently 3.125 BTC per block after the April 2024 halving. The subsidy is hardcoded in the Bitcoin protocol and halves every 210,000 blocks until reaching zero around the year 2140. It is the primary mechanism by which new Bitcoin enters circulation.

In finance termsThe block subsidy is Bitcoin's coupon, paid in protocol-issued tokens rather than fiat currency, with a fully predictable, decreasing schedule.

Why it matters to institutionsSubsidy schedule is fully deterministic, which makes long-dated cashflow modelling for a 36-month hashrate-backed note unusually clean compared with commodity production.

C

Cents per kilowatt-hour#cents-per-kwh

Cents per kilowatt-hour is the unit price of electricity, the single largest variable cost in Bitcoin mining and the primary driver of mining margins. Industrial Bitcoin miners typically secure power purchase agreements between two and six cents per kilowatt-hour. Every cent of difference in the input price translates into hundreds of dollars of margin per machine per year.

In finance termsThe cost of power in cents per kilowatt-hour is the cost of goods sold for a mining operation, equivalent to feedstock cost for a refinery or fuel cost for a power generator.

Why it matters to institutionsPower cost is the most diligence-intensive line in any hashrate-backed structure and the variable most likely to be misrepresented by an undercapitalised counterparty.

Compartment (Luxembourg)#compartment

A compartment is a legally segregated, ring-fenced pool of assets and liabilities inside a Luxembourg securitisation vehicle, isolated from every other compartment in the same vehicle. Creditors of one compartment have no recourse to the assets of another, even though all compartments share a single legal entity. Compartments are the structural device that allows a single issuer to support an unlimited number of distinct, independently bankruptcy-remote offerings.

In finance termsA compartment is to a Luxembourg securitisation vehicle what a series is to a Delaware series LLC or a sub-fund is to a Cayman SPC, a legally enforced asset and liability silo.

Why it matters to institutionsCompartment segregation is the precise legal mechanism that allows OMN investors to be insulated from any other product issued by the same Luxembourg vehicle.

Curtailment#curtailment

Curtailment is the deliberate shutdown of mining machines, usually because the price of electricity is higher than the value of the Bitcoin those machines would produce. Miners with flexible power agreements curtail during peak grid demand to capture demand-response payments or to avoid economically negative production. Curtailment is the operational expression of marginal-cost discipline.

In finance termsCurtailment is the energy equivalent of a refinery dialling down throughput when crack spreads turn negative, an optimisation tool that protects gross margin.

Why it matters to institutionsCurtailment policies materially affect realised uptime and therefore the realised yield of any hashrate-backed instrument.

Custody attestation#custody-attestation

A custody attestation is a third-party report confirming that a custodian holds the assets it claims to hold, often signed onchain by the custodian's wallet. Attestations may be produced by auditors, the custodian itself, or by cryptographic proof-of-reserves protocols. Frequent attestations turn custody from a trust-based to a verification-based relationship.

In finance termsA custody attestation is the digital equivalent of a custodian's statement of holdings, but verifiable in close to real time by any holder of the security.

Why it matters to institutionsContinuous attestation reduces the operational due diligence burden on institutional investors and supports auditor sign-off at year-end.

D

Difficulty adjustment#difficulty-adjustment

The difficulty adjustment is the Bitcoin protocol's automatic recalibration of mining difficulty every 2,016 blocks (about two weeks) to keep the average block interval at ten minutes. If total network hashrate rises, difficulty increases at the next adjustment, and vice versa. This mechanism is what makes Bitcoin issuance independent of how much hashrate is competing to produce blocks.

In finance termsDifficulty adjustment is a self-correcting throttle that holds supply growth constant regardless of how much capital chases the opportunity, comparable to an automatic stabiliser in monetary policy.

Why it matters to institutionsDifficulty growth is the single biggest model input when projecting forward returns on a hashrate-backed instrument.

E

EH/s#eh-s

Exahash per second (EH/s) is a unit of computational power equal to one quintillion (10 to the 18) hashes per second. The Bitcoin network as a whole operates at several hundred EH/s, and the largest single mining facilities are measured in the single-digit EH/s. EH/s is the standard unit for discussing network-wide and large-fleet hashrate.

In finance termsEH/s is to Bitcoin mining what million barrels per day is to oil production, the macro unit of total productive capacity.

Why it matters to institutionsEH/s is the right resolution for sizing a hashrate-backed product against total network share and for assessing dilution risk over a fixed tenor.

Energy intensity#energy-intensity

Energy intensity is the amount of electrical energy required to produce a unit of Bitcoin mining output, typically expressed in joules per terahash or kilowatt-hours per Bitcoin. Lower energy intensity means more output per unit of electricity consumed. Trend improvements in energy intensity track the broader story of ASIC efficiency gains over time.

In finance termsEnergy intensity is the productivity ratio of a mining business, equivalent to barrels per energy-equivalent unit input at a refinery.

Why it matters to institutionsEnergy intensity is increasingly a reportable ESG metric for funds with sustainability mandates, and a key consideration in diligence of mining counterparties.

Energy mix#energy-mix

Energy mix is the breakdown of energy sources powering a mining operation by fuel type, such as hydro, wind, solar, nuclear, gas or grid average. Mix is the central data point for ESG reporting and for any sustainability-linked overlay on a hashrate-backed structure. Sophisticated issuers publish energy mix on a facility-by-facility basis with third-party verification.

In finance termsEnergy mix is the carbon-intensity equivalent of fuel sourcing disclosure for an integrated energy company, with the same implications for scope-2 and scope-3 emissions accounting.

Why it matters to institutionsEnergy mix determines whether a hashrate-backed product can be held inside an Article 8 or Article 9 SFDR fund or a mandate with explicit carbon constraints.

F

Fee market#fee-market

The fee market is the auction in which Bitcoin users bid against each other in transaction fees for limited space in the next block. Fees rise when demand for block space exceeds supply and fall when the network is quiet. Over a multi-year horizon, the fee market is expected to provide an increasing share of total miner revenue.

In finance termsThe fee market is the volatile, demand-driven component of miner revenue, structurally similar to spot freight rates or short-dated power markets.

Why it matters to institutionsThe post-subsidy revenue model for Bitcoin mining depends on fee market maturation, which is a key qualitative variable in long-horizon return models.

H

Hashprice#hashprice

Hashprice is the daily revenue, expressed in US dollars or Bitcoin, that one unit of hashrate (typically one terahash per second) is expected to earn from block rewards and fees. It is a function of the Bitcoin price, the block subsidy, the fee market, and total network difficulty. Hashprice is the single most important real-time indicator of Bitcoin mining profitability.

In finance termsHashprice is the spot price of the underlying commodity that a hashrate-backed note produces, analogous to a real-time spot price for refining margin or a power spark spread.

Why it matters to institutionsHashprice is the most common revenue benchmark in industrial mining, and any hashrate-backed product should be modelled against hashprice scenarios with explicit sensitivities.

Hashrate#hashrate

Hashrate is the total computational power being used to mine and validate Bitcoin blocks, measured in hashes per second. It is the aggregate output of every ASIC contributing to Bitcoin's proof-of-work consensus. Hashrate is simultaneously a measure of network security, an indicator of competitive intensity in mining, and the unit of production that backs hashrate-backed securities.

In finance termsHashrate is the productive unit of the Bitcoin economy, comparable to total installed generation capacity in a power market, with each unit of hashrate competing for a share of a fixed daily Bitcoin issuance.

Why it matters to institutionsHashrate is the underlying productive asset of the Omnes Mining Note, and the precise quantity, location, and counterparty of hashrate determines the credit profile of the security.

Hashrate derivative#hashrate-derivative

A hashrate derivative is a financial contract whose payoff is linked to the future value of hashprice, network difficulty or mining revenue rather than the spot Bitcoin price. Hashrate derivatives are used by miners to hedge revenue and by investors to gain pure-play exposure to the mining sector without holding equity. The market is small but growing as institutional infrastructure matures.

In finance termsHashrate derivatives are to Bitcoin mining what crack-spread or spark-spread derivatives are to refining and power generation respectively, instruments that isolate the production margin from the underlying commodity.

Why it matters to institutionsA developing hashrate derivatives market is a precondition for risk transfer, hedging, and ultimately tighter pricing of hashrate-backed primary issuance.

Hashrate-backed security#hashrate-backed-security

A hashrate-backed security is a financial instrument whose return is contractually backed by a defined amount of Bitcoin mining hashrate over a fixed term. The Omnes Mining Note is one example, with each note backed by one petahash per second of hashrate over 36 months. The structure delivers Bitcoin-denominated yield without requiring investors to own or operate mining infrastructure.

In finance termsA hashrate-backed security is an asset-backed note in which the underlying productive asset is computational capacity rather than receivables, real estate, or commodities inventory.

Why it matters to institutionsHashrate-backed securities are the first instrument that allows mandates with strict legal-form requirements to access Bitcoin mining economics directly.

Hashrate futures#hashrate-futures

Hashrate futures are standardised, exchange-traded contracts to buy or sell a defined quantity of Bitcoin hashrate at a specified future date. They allow miners to lock in forward revenue and allow speculators or fixed-income investors to gain leveraged exposure to mining economics. Settlement is typically cash-settled against a published hashprice index.

In finance termsHashrate futures are the most direct analogue to forward contracts on electricity or shipping, instruments that allow producers to monetise future capacity at known prices.

Why it matters to institutionsA liquid hashrate futures curve allows issuers to hedge the variable-yield component of a hashrate-backed note and is a structural enabler for fixed-coupon variants.

Hosted mining#hosted-mining

Hosted mining is the arrangement in which a customer owns or contracts for ASIC machines while a third-party operator houses, powers and maintains them inside a mining facility. The customer pays a hosting fee and retains the Bitcoin produced. Hosted mining lets investors and issuers access industrial-grade infrastructure without taking on real-estate, power-procurement or operational risk.

In finance termsHosted mining is structurally similar to a tolling agreement at a refinery or a co-location arrangement at a data centre, in which the asset owner pays a fixed fee for processing while retaining the output.

Why it matters to institutionsHosting contract quality, especially uptime guarantees and power escalators, is the operational backbone of any hashrate-backed structure that sources capacity externally.

J

J/TH#j-th

J/TH (joules per terahash) is the standard efficiency metric for Bitcoin ASIC miners, measuring electricity consumed for each terahash per second of hashing power produced. Best-in-class machines in 2026 operate in the 14 to 18 J/TH range. Lower is better, and the trend over a decade has been a steady decline from above 100 J/TH to under 20.

In finance termsJ/TH is the specific energy consumption of a mining machine, equivalent to grams of CO2 per kilometre for a vehicle or pounds of fuel per kilowatt-hour for a generator.

Why it matters to institutionsJ/TH is the single most predictive specification when comparing fleet quality between competing mining counterparties.

L

Liquidation cascade#liquidation-cascade

A liquidation cascade is a self-reinforcing chain of forced sales triggered when falling collateral prices force leveraged positions to be closed, which pushes prices lower and triggers further liquidations. Cascades are most acute in markets with concentrated leverage, thin order books and automated liquidation engines. They are the dominant tail risk in crypto-collateralised lending markets.

In finance termsA liquidation cascade is the digital-asset version of a margin call doom loop, structurally similar to the forced deleveraging that drives equity market crashes and 2008-style fire sales.

Why it matters to institutionsHashrate-backed notes that target zero leverage and physical collateral are designed precisely to be insulated from this failure mode.

M

Mempool#mempool

The mempool is the queue of unconfirmed Bitcoin transactions waiting to be included in a future block, maintained by every full node. Its size and the fee distribution within it determine how much users must pay for timely inclusion. A persistently congested mempool drives the long-run fee market.

In finance termsThe mempool is the order book for Bitcoin block space, with size and bid distribution determining clearing fees in the same way as an order book determines clearing prices in a financial market.

Why it matters to institutionsMempool dynamics are an early-warning indicator for fee revenue acceleration, which is a key driver of mining economics through and beyond the next halving.

MiFID II professional investor#mifid-ii-professional

A MiFID II professional investor is a client who meets the experience, knowledge and balance-sheet criteria set out in Annex II of EU Directive 2014/65/EU, allowing them to access private placements. The category covers regulated financial institutions, large undertakings meeting size tests, and certain elective opt-ups. MiFID II professional status is the standard eligibility threshold for institutional crypto offerings sold in the European Union.

In finance termsMiFID II professional status is the European equivalent of US qualified purchaser status, the gatekeeper for sophisticated-investor private placements.

Why it matters to institutionsEligibility under MiFID II is the front gate for OMN and any other Luxembourg-issued hashrate-backed product in Europe.

Mining facility#mining-facility

A mining facility is a purpose-built data centre that houses, powers and cools Bitcoin ASIC miners at industrial scale. Modern facilities range from small immersion-cooled sites to gigawatt-scale campuses co-located with power generation. Site quality, redundancy and contract terms with the grid are the principal operational variables.

In finance termsA mining facility is the productive plant in which raw inputs (power and capital) are converted into Bitcoin output, comparable to a refinery, a smelter, or an industrial data centre.

Why it matters to institutionsFacility diligence drives the operational risk component of any hashrate-backed credit assessment, including power procurement, site security and disaster recovery.

Mining note#mining-note

A mining note is a debt security whose return is linked to the Bitcoin produced by a defined quantity of mining hashrate over a fixed maturity. Mining notes typically pay no coupon and instead distribute the accrued Bitcoin (net of fees) at maturity. The Omnes Mining Note is one example of this instrument class.

In finance termsA mining note is closest in form to a zero-coupon, commodity-linked structured note, with the bullet payment denominated in Bitcoin rather than fiat or a basket of commodities.

Why it matters to institutionsThe mining note structure delivers the legal form of a regulated security while preserving the economic exposure of physical Bitcoin mining.

Mining pool#mining-pool

A mining pool is a coordinated group of miners that share their combined hashrate and split the resulting block rewards proportionally to each contributor's hashrate. Pools smooth the otherwise highly variable income of an individual miner. Pool selection is an operational decision with consequences for revenue variance, censorship resistance and counterparty exposure.

In finance termsA mining pool functions as an income-pooling cooperative, similar to a syndicate of producers selling into a common offtake agreement and dividing the proceeds.

Why it matters to institutionsPool concentration and pool counterparty quality are first-order considerations in operational diligence of a hashrate-backed product.

N

Nakamoto coefficient#nakamoto-coefficient

The Nakamoto coefficient is the minimum number of independent entities required to control a majority of a blockchain's hashrate or staking power, used as a measure of decentralisation. A higher coefficient signals a more decentralised, censorship-resistant network. The metric is closely watched by regulators evaluating systemic risks in proof-of-work systems.

In finance termsThe Nakamoto coefficient is the decentralisation equivalent of a Herfindahl-Hirschman index, with higher values denoting lower concentration risk.

Why it matters to institutionsDecentralisation metrics are increasingly used in fund-level risk frameworks for digital asset exposure.

NAV#nav

Net asset value (NAV) is the value of a fund's or note's assets minus its liabilities, divided by the number of units outstanding. For a tokenized hashrate-backed note, NAV is the sum of accrued Bitcoin, residual hashrate value and cash held in the compartment, less fees and other accrued liabilities. NAV is reported regularly and may be verified onchain through custody and asset attestations.

In finance termsNAV is the universal per-unit measure of value in fund accounting, and the basis on which subscriptions, redemptions, and performance measurement are calculated.

Why it matters to institutionsReliable NAV reporting is a precondition for inclusion in investor accounting systems, fund-of-fund vehicles, and prime brokerage margining frameworks.

Network difficulty#network-difficulty

Network difficulty is a numerical measure of how hard it is to find a valid Bitcoin block, recalibrated by the protocol every 2,016 blocks to target a ten-minute block interval. As total hashrate rises, difficulty rises in lockstep, leaving the issuance rate constant. Difficulty growth is the main mechanism by which new mining capacity dilutes the revenue of existing capacity.

In finance termsNetwork difficulty is the dilution factor for hashrate revenue, equivalent to total industry capacity in a commodity production model where supply is fixed by protocol.

Why it matters to institutionsDifficulty trajectory is the single most important multi-year assumption in any hashrate-backed return model.

Nonce#nonce

A nonce is a 32-bit number that miners change repeatedly when attempting to produce a block header whose hash falls below the current difficulty target. Each guess is a single hash and counts toward total hashrate. The search for a valid nonce is the literal work in proof of work.

In finance termsThe nonce search is the elementary production step in Bitcoin mining, the same way one barrel produced is the elementary unit in oil production.

Why it matters to institutionsUnderstanding the nonce search is the basis for understanding why hashrate is a meaningful productive asset and not an abstraction.

O

Omnes Mining Note (OMN)#omn

The Omnes Mining Note (OMN) is a tokenized debt security issued under Luxembourg securitisation law, with each note backed by one petahash per second of Bitcoin hashrate over a 36-month tenor. Series 1 targets a US$50 million raise with a US$100,000 minimum subscription, a flat 3.75% all-in expense ratio, and no performance fee. All mined Bitcoin accrues over the tenor and is distributed to investors at maturity, with NAV and custody balances independently verifiable onchain.

In finance termsOMN is a zero-coupon, Bitcoin-denominated, asset-backed structured note issued through a Luxembourg compartment, with a fixed 36-month bullet payment.

Why it matters to institutionsOMN is the first hashrate-backed note designed end to end for MiFID II professional investors, with Luxembourg legal form, Big Four audit, and an institutional custodian.

Onchain attestation#onchain-attestation

An onchain attestation is a cryptographically signed statement, published to a public blockchain, in which a trusted party attests to an offchain fact such as a reserve balance or audit result. Because the attestation is timestamped and immutable, it is independently verifiable by any third party. Attestations are the foundation of trustworthy reserve-backed and asset-backed tokens.

In finance termsAn onchain attestation is the digital equivalent of a counter-signed custodian statement or auditor letter, but verifiable by the holder in real time without privileged access.

Why it matters to institutionsOnchain attestations reduce the cost and time of operational due diligence and provide continuous evidence for trustee, depositary, and audit reporting.

P

PH/s#ph-s

Petahash per second (PH/s) is a unit of computational power equal to one quadrillion (10 to the 15) hashes per second. One PH/s is the unit of hashrate backing a single Omnes Mining Note, and is roughly equivalent to the output of a small modern mining facility. Petahash is the natural scale at which institutional structured products are denominated.

In finance termsPH/s is the unit denomination of an OMN, the productive-asset analogue to a megawatt-hour in a power-backed structured note.

RelatedHashrate, EH/s, OMN, Mining facility

Why it matters to institutionsPH/s is the right unit at which institutional ticket sizes (US$100,000 minimum and above) can be cleanly mapped to a defined productive asset.

Professional investor#professional-investor

A professional investor is an individual or institution that meets the regulatory criteria of experience, expertise and financial capacity required to access non-public offerings under local law. In the European Union, the test is set out in MiFID II Annex II. Equivalent regimes exist in the United Kingdom, Switzerland, Singapore, Hong Kong, and the Cayman Islands.

In finance termsProfessional investor is the global umbrella for the sophisticated-investor classification, equivalent to qualified purchaser and accredited investor regimes in the United States.

Why it matters to institutionsProfessional-investor classification is the gating control for OMN eligibility and for almost all institutional crypto offerings.

Proof of work#proof-of-work

Proof of work is the consensus mechanism that secures Bitcoin by requiring miners to expend computational effort to find a valid block header hash. The mechanism is economically rational because the only way to subvert the network is to expend more energy and capital than the entire honest network combined. Proof of work links Bitcoin's security directly to verifiable, costly physical resources.

In finance termsProof of work is a security model anchored in real-world cost of capital, comparable to physical collateral underpinning a secured loan.

Why it matters to institutionsThe economic robustness of proof of work is the basis on which Bitcoin is treated as a credible reserve asset by institutional allocators.

R

Reserve-backed token#reserve-backed-token

A reserve-backed token is a digital asset whose units are claims on a defined pool of offchain reserves held by a custodian and verifiable through attestations. Stablecoins are the most familiar example. Hashrate-backed notes share the structural feature of having a defined, attested asset pool behind every issued unit.

In finance termsA reserve-backed token is a digital bearer instrument over a custodied reserve pool, structurally similar to a money-market fund unit or a depositary receipt.

Why it matters to institutionsReserve-backed structures require continuous attestation, segregation, and disclosure standards that are now expected by every institutional buyer of tokenized products.

S

Securitisation vehicle#securitisation-vehicle

A securitisation vehicle is a legal entity whose sole purpose is to acquire, hold and refinance assets by issuing securities whose returns are linked to those assets. In Luxembourg, securitisation vehicles operate under the Securitisation Law of 22 March 2004 and may be organised as funds or companies with multiple ring-fenced compartments. The Omnes Mining Note is issued through a Luxembourg securitisation fund.

In finance termsA securitisation vehicle is the textbook special-purpose entity used in asset-backed securities issuance worldwide, with Luxembourg providing one of the most robust legal frameworks.

Why it matters to institutionsThe Luxembourg securitisation framework is the most institutionally accepted European legal form for structured tokenized debt and a familiar wrapper for credit committees.

Security agent#security-agent

A security agent is an independent third party appointed to hold and enforce security interests granted to noteholders, ensuring impartial administration of collateral. For OMN, the security agent holds pledges over both the mined Bitcoin and the underlying hashrate on behalf of all noteholders. The role is a standard feature of secured debt structures across global capital markets.

In finance termsThe security agent is the structural counterpart to a corporate trustee or collateral agent in a syndicated loan or secured bond, providing impartial enforcement.

Why it matters to institutionsAn independent security agent transforms the credit profile of a hashrate-backed note from unsecured exposure to genuinely secured exposure.

Settlement layer#settlement-layer

A settlement layer is the blockchain on which the final, authoritative record of asset ownership and transfers is maintained. For OMN, Base serves as the settlement layer. The choice determines latency, cost, jurisdictional exposure, and the security model on which the security ultimately depends.

In finance termsA settlement layer is the digital-asset equivalent of a central securities depository, with the same load-bearing role in the integrity of the post-trade lifecycle.

Why it matters to institutionsSettlement layer choice is examined by every institutional buyer, depositary and auditor of a tokenized security.

Subsidy halving#subsidy-halving

The subsidy halving is the periodic 50% reduction in the Bitcoin block subsidy, hardcoded to occur every 210,000 blocks (roughly every four years). The next halving is expected in 2028 and will reduce the subsidy from 3.125 BTC to 1.5625 BTC per block. The schedule is fully deterministic and known in advance.

In finance termsThe subsidy halving is the most predictable supply event in modern finance, comparable to a fully transparent, multi-decade dividend schedule.

Why it matters to institutionsAligning note tenors to the halving cycle is one of the cleanest ways to manage cashflow sensitivity in a hashrate-backed product.

T

Tokenization platform#tokenization-platform

A tokenization platform is a regulated technology provider that issues, manages and transfers blockchain-based representations of traditional financial instruments. Platforms typically provide whitelisting, transfer restrictions, corporate actions, and integration with custodians and registrars. Omnes uses Tokeny as the tokenization platform for OMN.

In finance termsA tokenization platform is the digital-asset equivalent of a transfer agent, registrar, and depositary participant rolled into a single regulated service provider.

Why it matters to institutionsPlatform quality determines whether transfer restrictions and corporate actions are enforced reliably enough to satisfy regulators, depositaries and auditors.

Tokenized debt security#tokenized-debt-security

A tokenized debt security is a debt instrument whose ownership records and transfers are maintained directly on a public blockchain, while the underlying legal form remains a regulated security. The token is the security, not a derivative of it. Tokenization compresses post-trade infrastructure into a single shared ledger while preserving the legal protections of traditional debt.

In finance termsA tokenized debt security is structurally identical to a conventional bond, with the difference being that the registrar and central securities depository are replaced by a public blockchain.

Why it matters to institutionsTokenized debt securities are the first form of digital-asset exposure that fits cleanly inside the legal and accounting frameworks of regulated institutional investors.

Treasury bond comparison#treasury-bond-comparison

A treasury bond comparison frames a hashrate-backed note alongside a sovereign bond by measuring tenor, denomination, distribution profile and underlying risk against the same fixed-income benchmark. The Omnes Mining Note is a 36-month bullet instrument denominated in Bitcoin, distinct from a US Treasury both in payment currency and in underlying risk. The comparison is useful for understanding where a hashrate-backed note fits inside a multi-asset portfolio.

In finance termsThe treasury bond comparison is the same exercise an investment committee runs for any new fixed-income style instrument, mapping it onto the duration, currency and credit axes of a traditional bond portfolio.

Why it matters to institutionsAnchoring a novel instrument against a familiar benchmark accelerates investment committee approval and clarifies portfolio fit.

U

Uptime#uptime

Uptime is the percentage of a measurement period during which a mining facility's hashrate is actively contributing to the Bitcoin network. Industrial facilities target uptime above 95% on an annualised basis, accounting for scheduled maintenance, grid events and curtailment. Realised uptime translates directly into realised Bitcoin output.

In finance termsUptime is the equivalent of a load factor for a power plant or a utilisation rate for an industrial asset, the headline operational KPI of the production unit.

Why it matters to institutionsUptime is the single biggest operational lever between contracted hashrate and realised distributions on a hashrate-backed note.

W

W/TH#w-th

W/TH (watts per terahash) is an alternative efficiency metric for Bitcoin ASICs, measuring the continuous power draw required to sustain one terahash per second of hashing. It is numerically related to J/TH (one J/TH equals one W/TH at steady state). Some operators prefer W/TH because it maps directly onto facility power planning.

In finance termsW/TH is the steady-state power-draw equivalent of fuel-burn rate for a generator, used to size facility power contracts and budget electricity costs.

Why it matters to institutionsW/TH determines how much of a facility's installed power capacity is consumed per unit of hashrate produced, which drives facility sizing and contract design.

Whitelisted transfer#whitelisted-transfer

A whitelisted transfer is the movement of a permissioned token between two wallet addresses that have both passed the issuer's investor eligibility checks. Whitelisting enforces KYC, AML and investor-classification rules at the token-contract level. Any attempted transfer to a non-whitelisted address is rejected onchain.

In finance termsWhitelisting is the technical implementation of transfer restrictions familiar from Rule 144A or Regulation S private placements, enforced automatically rather than through paper covenants.

Why it matters to institutionsWhitelisting is the operational guarantee that a tokenized security cannot end up in an ineligible wallet, which is a non-negotiable requirement for compliance teams.