As of January 1, 2020, Hedera maintained a cash position of over $31 million. Based on various internal financial assumptions, Hedera’s operating expenses for 2020 are expected to be between $2.2 million and $2.5 million per month.
2020 Coin Purchase Agreements
Hedera is raising additional funds to support ongoing operations by selling hbars to a small number of institutional purchasers, with coins to be delivered after a multi-year lockup period consistent with Hedera’s previously published coin release schedule. This activity is discussed with detail in the “Community Town Hall” meeting with Mance Harmon, CEO & Co-Founder of Hedera, in April 2020.
Under the agreed-upon terms of these sales, purchasers will pay $0.015 per hbar, will not receive any of those hbars for the first two years, and then will receive delivery of the hbars in 12 equal monthly installments beginning two years from the close of the sale (i.e., from month 25 to month 36 following closing).
The hbars that will ultimately be distributed to the counterparties under these agreements are hbars that otherwise could have been released or sold by Hedera from the Treasury account during the next 2-3 years. Hedera expects to raise up to an estimated $20 million in these sales, which would account for 1,333,333,333 hbars. The distribution schedule in the “Hbar distribution schedule & circulating supply (2019 - 2025)” section of this blog posting outlines this distribution.
Last updated: June 8th, 2020