tZERO, a leader in blockchain innovation and liquidity for digital assets, announced that its wholly-owned, FINRA member broker-dealer subsidiary, tZERO ATS, has entered into an agreement with Liquid Mining Funds (through the proposed securities issuer, LMX) to enable the potential secondary trading of digital securities.
LMX’s digital securities are expected to represent a $15 million equity interest in Liquid Mining Funds, subject to holders of interests in the Liquid Mining Funds electing to convert such interests to LMX digital securities. The Liquid Mining Funds are sponsored by Realio, a blockchain-enabled issuer, fund manager, and technology provider for institutional-grade digital assets that partnered with tZERO ATS in March 2021. The funds are focused on investing in bitcoin mining development and operations. Any potential trading of LMX securities on the tZERO ATS is subject to customary due diligence, applicable regulatory holding periods, and compliance with other applicable regulatory requirements.
tZERO CEO Saum Noursalehi stated, “We are excited to enable Liquid Mining Funds’ related digital securities to trade on the tZERO ATS, providing investors a simpler way to invest in bitcoin mining development and operations.”
Bitcoin mining revenues more than doubled to over $50 million per day in late March 2021 from $20 million in mid-December 2020, as the price of bitcoin increased to a peak of $60,000 per coin. In light of bitcoin’s historic appreciation, investors continue to seek exposure to this asset class through alternative investments, such as investments in bitcoin mining. Certain bitcoin mining went public recently, providing funds like Liquid Mining Funds with opportunities to invest in those assets and provide investors an alternative way to be exposed to bitcoin through structured investments in bitcoin production-related activities.
Realio launched Liquid Mining Fund I in August 2020, with Fund I already returning 50 percent of invested capital within six months from the initial investment, and Fund II closing in May 2021.
Realio Co-founder and CEO Derek Boirun said, “LMX is a truly unique opportunity that monetizes the combined predictability of real estate with the asymmetric upside potential of bitcoin mining operations. We are excited to enable the potential secondary trading of the LMX digital securities and believe that tZERO ATS is at the forefront of providing continuous liquidity for private companies and assets.”