Your Exit Strategy: How PMN Can Be Traded on Secondary Markets

The liquidity challenge for private Bitcoin investments

For many investors, the idea of gaining exposure to Bitcoin through a mining-based product like PMN (Pivotal Mining Note) is compelling — especially when it’s structured under rigorous U.S. securities laws and backed by professional custody.

But one question often arises:

“If I want to realize gains or adjust my portfolio before the full term ends, how do I exit my position?”

This is a crucial consideration. Many traditional private placements, particularly in the alternative investment space, are notoriously illiquid. They often lock investors in for years with no clear secondary market.

That’s why PMN was designed from the ground up not only for security and compliance — but also with future liquidity in mind.

Built for secondary markets: INX and beyond

PMN is structured as a digital security, issued in compliance with U.S. Regulation D and S exemptions. This means it’s not just a traditional paper-based private placement. Instead, it’s recorded on blockchain infrastructure in the form of an ERC-1404 security token.

This gives PMN the ability to be traded on regulated Alternative Trading Systems (ATS), such as:

• INX, a FINRA and SEC-regulated platform specifically built to handle digital securities, providing investors with a compliant, on-chain secondary market for tokens like PMN.

• Other licensed security token exchanges emerging in key jurisdictions, including Singapore, Hong Kong, and the EU.

With these platforms, investors can potentially sell their PMN holdings before the full term concludes — unlocking the kind of liquidity traditionally unavailable to private mining funds.

Why this matters for portfolio flexibility

Imagine you’ve allocated capital to PMN for its unique advantage of accumulating Bitcoin through mining at potentially lower effective costs. But halfway through the term, macroeconomic conditions change, or you simply want to rebalance your portfolio.

Because PMN is designed with future secondary trading in mind, you may be able to list your tokens on a regulated digital asset exchange and find buyers who want exposure to the remaining mining economics.

This makes PMN not just an innovative vehicle for capturing Bitcoin production — but also one with planned exit optionality, aligning with modern portfolio management needs.

The future: DeFi integrations, staking, and beyond

It gets even more exciting. Because PMN is issued as an ERC-1404 compliant token, it maintains all the security transfer restrictions needed for regulatory compliance — but within the Ethereum ecosystem.

This opens the door to powerful future possibilities, such as:

• DeFi collateralization:

  Imagine using PMN as collateral on permissioned DeFi lending platforms, unlocking liquidity without fully exiting your position.

• Staking for additional yields:

  Regulated protocols could one day allow PMN holders to stake tokens and earn incremental fees, effectively creating a layered yield on top of the underlying mining output.

• Structured derivatives:

  With programmable compliance baked in, financial engineers could create options or structured products that reference PMN, offering investors ways to hedge or amplify exposure.

A token engineered for liquidity and growth

Most private Bitcoin mining vehicles were never designed for anything beyond a locked multi-year hold. PMN flips that paradigm:

• Regulatory-grade digital security: built under U.S. securities exemptions with all the investor protections of a private placement.

• ERC-1404 token standard: allows programmable compliance, investor whitelisting, and future integration with blockchain-based financial ecosystems.

• Secondary market readiness: positioned for compliant trading on regulated digital security exchanges like INX.

The bottom line

With PMN, investors aren’t just buying into the economics of Bitcoin mining. They’re holding a modern, blockchain-native security with far greater exit flexibility than traditional alternatives — and with the structural potential to someday access DeFi, staking, or bespoke derivatives.

In a world where private markets and blockchain capital markets are converging, PMN stands at the forefront, offering not only smart Bitcoin accumulation but also pathways to future liquidity and innovation.