Deep Dive: PMN – The Smarter Way to Accumulate Bitcoin

Most people’s first step into Bitcoin is to buy it outright on an exchange. That’s understandable — it’s straightforward, and for years it’s been the default. But this also means taking on the full force of Bitcoin’s notoriously sharp price swings.

Look at recent data: as of mid-2025, Bitcoin’s annualized 90-day volatility still hovers around 46%, based on analyses from Fidelity Digital Assets. That’s only slightly below Netflix, a company known for its roller-coaster stock. In Q1 this year, Bitcoin soared past $109,000 before dropping back to roughly $90,000 amid global macro jitters. Such movements are routine, and while long-term holders have historically been rewarded, they’re also left weathering nerve-wracking drawdowns with no mechanism to keep accumulating along the way.

This is where large institutional players have long taken a different tack. Instead of simply buying and waiting, they integrate Bitcoin production directly into their strategies by investing in mining infrastructure. One North American digital asset fund we’ve tracked structured a $50 million Bitcoin allocation by placing $30 million into large-scale mining contracts and the other $20 million into spot purchases. Over three years, that balance consistently produced fresh Bitcoin, reducing their average cost basis compared to pure spot buying and cushioning them from the market’s timing risk.

Historically, such an approach simply wasn’t available to ordinary investors. Setting up your own mining operation requires more than money — it demands relationships with ASIC manufacturers, long-term power agreements (often directly with hydro plants or industrial grids), on-site engineering teams, and expertise to keep everything running as Bitcoin’s network difficulty evolves. Even small “DIY” efforts frequently falter, undercut by home-level power rates and a lack of professional maintenance.

What structures like PMN accomplish is to open these institutional-grade advantages to individuals. From a financial perspective, capital is pooled to negotiate industrial-scale mining deals that simply wouldn’t be possible at a personal level. This isn’t someone with two machines in a garage; these are operations securing millions in hardware at volume discounts and operating in regions like Georgia in the U.S., where dedicated mining facilities feature redundant power transformers, liquid immersion cooling, biometric security, and 24/7 monitoring centers. We’ve visited these sites ourselves and have seen firsthand the caliber of infrastructure — far beyond ad-hoc warehouse setups.

From a technical standpoint, investors gain indirect exposure to hash rate without having to manage power contracts or machine upgrades. It’s akin to owning a share in a modern manufacturing plant rather than trying to build your own workshop from scratch.

Of course, all of this would be academic if not backed by a strong legal framework. The painful reality is that many small mining schemes have burned investors. In 2020, for example, thousands of retail participants joined informal Telegram groups promising 20% monthly returns from pooled mining, only to see operators vanish with the funds. By contrast, PMN is structured under the U.S. Securities Act, using Regulation D for accredited domestic investors and Regulation S for international participants. A Private Placement Memorandum (PPM) lays out in black and white exactly how funds are deployed, how Net Proceeds are defined (in this case, mining output after mining pool fees, custody, audit, legal, and tax costs — but explicitly not electricity and hosting), and precisely what investors’ rights and obligations are. These rights are even recorded on-chain, adding an extra layer of transparency that complements the formal legal documentation.

The operational side is equally disciplined. Rather than investors wondering if their machines are actually online, these mining facilities sign formal service level agreements (SLAs) guaranteeing uptime — often above 95% — with financial penalties if standards slip. The Bitcoin produced doesn’t linger in vulnerable local wallets. Instead, it flows directly to insured, institutional custodians like BitGo or Coinbase Prime. This is a far cry from retail mining operations where security is often a personal laptop and a prayer.

Naturally, even well-structured mining carries risks. Bitcoin’s network hash rate recently climbed to over 950 exahashes per second, a roughly 56% increase over the past year, meaning each unit of hash rate now earns fewer BTC than before. Market prices remain volatile — in just a few months this year, Bitcoin dropped more than 17% from its highs, alongside ETF investors pulling $3.3 billion from the space. Regulatory environments also evolve; when Kazakhstan cracked down on mining in 2021, operators were left scrambling to relocate equipment, highlighting the geopolitical risks embedded in this industry.

But by investing through a vehicle designed to pool professional mining contracts, with costs and rights explicitly defined, individual investors can access a disciplined Bitcoin accumulation mechanism that operates very differently from simple buy-and-hold strategies. Rather than hoping to catch the perfect dip, they accumulate Bitcoin continuously as it’s mined, smoothing out exposure to both price volatility and the timing trap that so often undermines retail portfolios.

Imagine an investor holding a share equivalent to 0.05% of a facility’s total hash rate. If that mine produces 500 BTC a month, this investor would receive roughly 0.25 BTC monthly — a steady stream that builds a position over time, independent of trying to guess the right moment to buy.

This is how professional accumulation works: through infrastructure, through process, and through engineering exposure to Bitcoin’s ongoing production, not just its market price. For investors who see Bitcoin as a long-term part of their portfolios, this approach offers something a simple spot wallet cannot — a genuine engine of stability and growth inside an otherwise highly volatile market.