Horizontal Scaling
HashStrategy expands its hashrate by continuously converting raised capital into productive mining infrastructure. The protocol operates through a repeatable fundraising and deployment cycle that enables steady growth in mining capacity as market demand and capital availability evolve.
Each expansion cycle begins with a DAO-approved proposal to issue $HS tokens in exchange for stablecoins. The capital raised is held in protocol custody and allocated toward the acquisition of new mining machines and supporting infrastructure. Execution is managed by the operations team, with oversight from the validator board.
This approach allows the protocol to scale at the pace of capital formation, without imposing fixed growth constraints. As infrastructure is added, BTC-denominated revenue increases, further compounding the protocol’s reserve base and reinforcing its long-term value.
Scaling Process Overview
Proposal: DAO submits a proposal to raise capital via $HS issuance, defining the total target amount and fixed conversion price.
Approval: Proposal passes through governance and is approved by validators.
Fundraising: Stablecoins are raised from public contributors under predefined terms.
Custody: Raised funds are held by the protocol treasury pending deployment.
Acquisition: The operations team sources and executes mining infrastructure purchases with validator approval.
Deployment: Machines are activated and integrated into the mining fleet.
Conversion: $HS tokens are minted and delivered to contributors based on the predetermined price, proportional to the actual capital deployed for acquisitions. Any unspent funds are refunded on a pro rata basis at the time of conversion.
Yield: BTC revenue is distributed monthly via validator-managed reward flow.
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