The hashrate glossary.

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 terms

An 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 institutions

ASIC 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.

Related

ASIC efficiency, J/TH, Mining facility, Hashrate

ASIC efficiency measures how many joules of electricity an ASIC consumes to produce one terahash per second of computational work. Lower numbers are better: current top-tier machines are rated below 15 J/TH, and hydro-cooled models near 12 J/TH (manufacturer specifications). 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 terms

J/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.

Why it matters to institutions

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

Related

ASIC, J/TH, W/TH, Energy intensity

Base is an Ethereum Layer 2 network built on the OP Stack, on which OMN ownership is mirrored. Layer 2 networks inherit Ethereum's security while offering significantly lower transaction costs and higher throughput. Transfers of OMN between whitelisted investors are recorded on Base, and the issuer's Noteholder Register remains the definitive record of title.

In finance terms

Base carries the onchain mirror of the issuer's Noteholder Register; the register, not the chain, is the record of title.

Why it matters to institutions

Choice of settlement layer determines counterparty risk, finality, and the regulatory posture of the entire offering.

Related

Settlement layer, Tokenization platform, Whitelisted transfer, OMN

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 terms

Bitcoin 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 institutions

Custody quality determines whether a tokenized product can be held inside a regulated fund or insurance balance sheet at all.

Related

Custody attestation, Security agent, Reserve-backed token, Onchain attestation

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 terms

The 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 institutions

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

Related

Block subsidy, Subsidy halving, Hashprice, Fee market

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 terms

Block 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 institutions

Fee 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.

Related

Block reward, Fee market, Mempool, Block subsidy

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 terms

The 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 institutions

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

Related

Block subsidy, Block fee, Hashprice, Mining pool

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 terms

The 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 institutions

Subsidy schedule is fully deterministic, which makes long-dated cashflow modelling for a hashrate-backed note with a fixed maturity unusually clean compared with commodity production.

Related

Bitcoin halving, Subsidy halving, Block reward, Proof of work

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 terms

The 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 institutions

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

Related

Energy mix, Curtailment, Mining facility, Hosted mining

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 terms

A 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 institutions

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

Related

Securitisation vehicle, OMN, Tokenized debt security, Security agent

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 terms

Curtailment 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 institutions

Curtailment policies materially affect realised uptime and therefore the realised yield of any hashrate-backed instrument.

Related

Cents per kilowatt-hour, Uptime, Energy mix, Hashprice

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 terms

A 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 institutions

Continuous attestation reduces the operational due diligence burden on institutional investors and supports auditor sign-off at year-end.

Related

Bitcoin custody, Onchain attestation, Reserve-backed token, NAV

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 terms

Difficulty 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 institutions

Difficulty growth is the single biggest model input when projecting forward returns on a hashrate-backed instrument.

Related

Network difficulty, Hashrate, Hashprice, Proof of work

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 close to 1,000 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 terms

EH/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 institutions

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

Related

Hashrate, PH/s, Network difficulty, Mining facility

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 terms

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

Why it matters to institutions

Energy intensity is increasingly a reportable ESG metric for funds with sustainability mandates, and a key consideration in diligence of mining counterparties.

Related

ASIC efficiency, J/TH, W/TH, 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 terms

Energy 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 institutions

Energy 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.

Related

Cents per kilowatt-hour, Energy intensity, Mining facility, Curtailment

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 terms

The 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 institutions

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

Related

Block fee, Mempool, Block reward, 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 terms

Hashprice 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 institutions

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

Related

Hashrate, Hashrate derivative, Network difficulty, Block reward

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 terms

Hashrate 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 institutions

Hashrate 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.

Related

Hashprice, EH/s, PH/s, Network difficulty

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 terms

Hashrate 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 institutions

A developing hashrate derivatives market is a precondition for risk transfer, hedging, and ultimately tighter pricing of hashrate-backed primary issuance.

Related

Hashprice, Hashrate futures, Hashrate-backed security, Network difficulty

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 carrying a notional allocation of one petahash per second of hashrate over 730 days. The structure delivers Bitcoin-denominated yield without requiring investors to own or operate mining infrastructure.

In finance terms

A 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 institutions

Hashrate-backed securities allow mandates with strict legal-form requirements to access Bitcoin mining economics directly.

Related

Mining note, Tokenized debt security, Hashrate, OMN

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 terms

Hashrate 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 institutions

A 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.

Related

Hashrate derivative, Hashprice, Network difficulty, Hashrate

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 terms

Hosted 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 institutions

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

Related

Mining facility, Uptime, Cents per kilowatt-hour, Mining pool

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. The newest machines are rated below 15 J/TH, and hydro-cooled models near 12 J/TH (manufacturer specifications). Lower is better, and the trend over a decade has been a steady decline from above 100 J/TH to below 15.

In finance terms

J/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 institutions

J/TH is the single most predictive specification when comparing fleet quality between competing mining counterparties.

Related

ASIC efficiency, W/TH, ASIC, Energy intensity

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 terms

A 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 institutions

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

Related

Hashprice, Reserve-backed token, NAV, Settlement layer

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 terms

The 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 institutions

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

Related

Fee market, Block fee, Mining pool, Block reward

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 terms

MiFID II professional status is the European gatekeeper for sophisticated-investor private placements, broadly comparable to US categories such as accredited investor or qualified purchaser, though the tests differ.

Why it matters to institutions

Eligibility under MiFID II is the front gate for OMN and any other Luxembourg-issued hashrate-backed product in Europe.

Related

Professional investor, OMN, Whitelisted transfer, Tokenized debt security

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 terms

A 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 institutions

Facility diligence drives the operational risk component of any hashrate-backed credit assessment, including power procurement, site security and disaster recovery.

Related

Hosted mining, Uptime, Energy mix, Cents per kilowatt-hour

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 terms

A 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 institutions

The mining note structure delivers the legal form of a debt security while preserving the economic exposure of physical Bitcoin mining.

Related

Hashrate-backed security, OMN, Tokenized debt security, Securitisation vehicle

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 terms

A 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 institutions

Pool concentration and pool counterparty quality are first-order considerations in operational diligence of a hashrate-backed product.

Related

Mining facility, Hashrate, Block reward, 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 terms

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

Why it matters to institutions

Decentralisation metrics are increasingly used in fund-level risk frameworks for digital asset exposure.

Related

Hashrate, Mining pool, Proof of work, Settlement layer

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. Where an issuer reports NAV, its offering documentation sets how and how often.

In finance terms

NAV 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 institutions

Reliable NAV reporting is a precondition for inclusion in investor accounting systems, fund-of-fund vehicles, and prime brokerage margining frameworks.

Related

Custody attestation, Onchain attestation, Reserve-backed token, Tokenized debt security

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 terms

Network 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 institutions

Difficulty trajectory is the single most important multi-year assumption in any hashrate-backed return model.

Related

Difficulty adjustment, Hashrate, Hashprice, EH/s

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 terms

The 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 institutions

Understanding the nonce search is the basis for understanding why hashrate is a meaningful productive asset and not an abstraction.

Related

Proof of work, Hashrate, Network difficulty, Block reward

The Omnes Mining Note (OMN) is a tokenized debt security issued under Luxembourg securitisation law, with each note carrying a notional allocation of one petahash per second of Bitcoin hashrate over a 730-day term. Tranche 1 of Series 1 is US$50 million, with a US$100,000 minimum subscription, a total expense ratio of 3% included in the price of the note, and no performance fee. The Bitcoin mined with the notes' hashrate, or paid in its place, accrues over the tenor and is distributed to noteholders at maturity.

In finance terms

OMN is a non-interest bearing, Bitcoin-denominated, secured structured note issued through a Luxembourg compartment, repaid in a single distribution at the end of its 730-day term.

Why it matters to institutions

OMN is a hashrate-backed note designed end to end for MiFID II professional investors, with Luxembourg legal form, independent audit, and an institutional custodian.

Related

Mining note, Hashrate-backed security, Tokenized debt security, Compartment

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 terms

An 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 institutions

Onchain attestations reduce the cost and time of operational due diligence and provide continuous evidence for trustee, depositary, and audit reporting.

Related

Custody attestation, NAV, Reserve-backed token, Tokenization platform

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 notional hashrate allocation per Omnes Mining Note, roughly the output of a handful of current-generation mining machines. Petahash is the natural scale at which institutional structured products are denominated.

In finance terms

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

Why it matters to institutions

PH/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.

Related

Hashrate, EH/s, OMN, Mining facility

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 terms

Professional investor is the global umbrella for the sophisticated-investor classification, broadly comparable to US categories such as accredited investor or qualified purchaser, though the tests differ.

Why it matters to institutions

Professional-investor classification is the gating control for OMN eligibility and for almost all institutional crypto offerings.

Related

MiFID II professional, OMN, Whitelisted transfer, Tokenized debt security

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 terms

Proof 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 institutions

The economic robustness of proof of work is the basis on which Bitcoin is treated as a credible reserve asset by institutional allocators.

Related

Hashrate, Nonce, Network difficulty, Nakamoto coefficient

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 terms

A 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 institutions

Reserve-backed structures require continuous attestation, segregation, and disclosure standards that are now expected by every institutional buyer of tokenized products.

Related

Custody attestation, Onchain attestation, Bitcoin custody, Tokenized debt security

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 terms

A 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 institutions

The Luxembourg securitisation framework is the most institutionally accepted European legal form for structured tokenized debt and a familiar wrapper for credit committees.

Related

Compartment, Tokenized debt security, Security agent, Mining note

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 a pledge over the issuer's Bitcoin custody accounts and a pledge over its claims under the hashrate purchase and custody agreements, on behalf of all noteholders. The role is a standard feature of secured debt structures across global capital markets.

In finance terms

The 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 institutions

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

Related

Securitisation vehicle, Compartment, Bitcoin custody, Tokenized debt security

A settlement layer is the blockchain on which transfers of a tokenized asset are recorded. For OMN, Base carries the onchain mirror; the issuer's Noteholder Register remains definitive. The choice determines latency, cost, jurisdictional exposure, and the security model of the onchain record.

In finance terms

A settlement layer is the digital-asset counterpart of post-trade settlement infrastructure; for OMN it records transfers, while title rests with the issuer's register.

Why it matters to institutions

Settlement layer choice is examined by every institutional buyer, depositary and auditor of a tokenized security.

Related

Base, Tokenization platform, Whitelisted transfer, Onchain attestation

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 terms

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

Why it matters to institutions

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

Related

Bitcoin halving, Block subsidy, Fee market, Hashprice

A tokenization platform is a 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 terms

A tokenization platform is the digital-asset equivalent of a transfer agent and depositary participant rolled into a single service provider.

Why it matters to institutions

Platform quality determines whether transfer restrictions and corporate actions are enforced reliably enough to satisfy regulators, depositaries and auditors.

Related

Whitelisted transfer, Settlement layer, Base, Tokenized debt security

A tokenized debt security is a debt instrument whose ownership is recorded in the issuer's register and mirrored on a public blockchain, where the token can carry transfer restrictions. For OMN, the Noteholder Register kept by the issuer is the definitive record of title, and the token is a convenience representation.

In finance terms

A tokenized debt security has the legal form of a conventional note. The blockchain mirrors the register and can enforce transfer restrictions; it does not replace the register.

Why it matters to institutions

Tokenized debt securities are the first form of digital-asset exposure that fits cleanly inside the legal and accounting frameworks of regulated institutional investors.

Related

OMN, Mining note, Securitisation vehicle, Tokenization platform

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 730-day 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 terms

The 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 institutions

Anchoring a novel instrument against a familiar benchmark accelerates investment committee approval and clarifies portfolio fit.

Related

Mining note, Tokenized debt security, NAV, OMN

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 terms

Uptime 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 institutions

Uptime is the single biggest operational lever between contracted hashrate and realised distributions on a hashrate-backed note.

Related

Mining facility, Curtailment, Hosted mining, Hashrate

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 terms

W/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 institutions

W/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.

Related

J/TH, ASIC efficiency, ASIC, Mining facility

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 terms

Whitelisting 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 institutions

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

Related

Tokenization platform, MiFID II professional, Professional investor, Tokenized debt security