Faer Isles Distillery seeks funds through cryptocurrency
A new distillery on the Faroe Islands is offering whisky fans the chance to invest in its construction using cryptocurrency.
The proposed Faer Isles Distillery will be constructed on a 23,000m² site near the village of Kvívík on the Faroe Islands. The site will house a distillery, warehousing facilities and a visitor centre.
Whisky production at the Faer Isles Distillery is slated to commence in 2023.
In order to raise the capital required to construct the new site, the distillery has launched two funding drives, its Founders Club and a cryptocurrency-backed security token offering.
The Founders Club forms the first phase of the distillery’s fundraising drive and will offer whisky fans a reward package featuring three special edition bottles, including the site’s first gin, single malt new make spirit and three-year-old whisky.
Priced at €200 (US$236), Founders Club membership also includes discounts and special offers for exclusive tastings, events, and merchandise. Funds raised through the Founders Club will be used to commence commercial production.
The second phase of crowdfunding will launch later this year and will be used to fund full-scale commercial production at the Kvívík site.
To raise the capital required, Faer Isles Distillery will launch a security token offering, which will enable people to invest in the company through shares that are traded directly from the licensed issuer using cryptocurrency. The offering will be available to members of the Founders Club from 1 December and will be rolled out to the general public from 31 December.
Using online platform Digishares, investors will be able to purchase shares in the distillery using cryptocurrencies, as well as regular money.
The distillery claims it will “probably be the first whisky distillery in the world that is funded this way”.