FAQs
Find clear answers to common questions about our technology, operational scaling, and strategic investment advantages.
To allay your concerns.
We understand that as potential investors reviewing this information memorandum, you may have concerns about risk, transparency, and long-term value. We have focused on what we believe are key areas of concern; operational security, financial safeguards, market volatility revenue stability, technology resilience and most importantly corporate governance. We have outlined how Terrahash’s structure and strategy are designed to protect capital, ensure accountability, and deliver sustainable returns.
What is the corporate governance framework
Terrahash operates under a robust corporate governance framework built on transparency, accountability, and independent oversight. The board includes experienced executives and independent directors who oversee compliance, risk management, and strategic decision-making to protect investor interests.
How will returns to investors be guaranteed and payments made?
Loan repayment and income protection are guaranteed through a transparent, automated revenue management system directly tied to mining operations. Repayment is secured by the project’s actual mining output, ensuring that all income flows remain traceable, controlled, and protected from diversion or mismanagement.
We used an average Bitcoin price of USD 114,000 (USD 100,000 pre-halving and USD 125,000 post-halving) as the basis for revenue calculations. Even in a –30% price and +30% difficulty scenario, the 15% return to investors is still covered.
Mechanisms include:
Dual-custodian structure & direct wallet control: Two custodians manage all proceeds. One sells 80% of mined BTC for investor payments and operations, while the other holds 20% as reserve. Mining rewards go into a multi-signature wallet jointly managed by the lenders’ representative, Terrahash, and the custodians.
Transparent tracking: Real-time mining dashboards show hash rate, output, and revenue.
Insurance and backup: Site insurance, spare capacity, and alternate hosting protect operations and repayment continuity.
What is your Treasury Policy to ensure Bitcoin price increases are optimized and taken advantage of?
We sell 80% of monthly BTC production using daily TWAP across approved venues (2–3 exchanges plus 1 OTC). Proceeds are converted to USD or USD stablecoin the same day and swept to the custodian. The remaining 20% is kept in cold storage with the custodian.
We also plan to pre-sell (hedge) 35% of production through fixed-price forwards, limiting exposure to any single counterparty to 35%.
Using structured reserves, hedging, and efficient reinvestment, Bitcoin price increases are fully optimized for sustained project growth.
What is the plan to manage potential Bitmain S21+ Hydro obsolescence and capex cycle between 2026 and 2036?
We have a long-term asset management and CAPEX strategy ensuring mining efficiency and profitability between 2026–2038.
Key elements include:
Progressive hardware upgrade cycle: Refresh equipment gradually based on difficulty trends, efficiency improvements, and ROI.
Reinvestment from profits: A portion of mining profits is allocated yearly to an upgrade fund, removing the need for external financing.
Efficient use of current hardware: Bitmain S21+ Hydro miners remain competitive due to high efficiency and water-cooling, which extends hardware lifespan.
How will we manage fluctuations in operating expenses and power costs?
Our power/gas purchase agreements are fixed for 10 years, and our Operations & Management (O&M) contracts are set for 5 years to ensure cost stability. We maintain 60–90 days of operating expenses in cash or stablecoin to support liquidity.
How is operational integrity guaranteed?
Operational integrity is maintained through technical reliability, strict procedures, and constant monitoring.
Measures include:
24/7 remote performance monitoring (temperature, power, output).
On-site technicians for preventive and corrective maintenance.
Spares inventory, including replacement miners, to reduce downtime.
Strong data security and access controls.
Regular audits and performance reporting to stakeholders.
What is your plan to manage regulatory and operating market risk?
Our legal counsel, Templars, provides regulatory guidance across energy, finance, crypto, and environmental sectors. Together, we have created a compliance roadmap that keeps Terrahash fully integrated and responsive to evolving regulations.
Key measures include:
Continuous regulatory monitoring (crypto, environment, finance, energy).
Operating fully through registered Nigerian entities for tax and legal transparency.
Training and employing local technicians and engineers to meet national participation standards and strengthen local capacity.