A token subscription facility is a financial arrangement where an investment firm commits to purchasing a certain amount of tokens from a company over a specified period. This can provide the company with the necessary capital to fund its projects and operations.
For example, Comadran Studios recently secured a token subscription facility of $50 million from GEM Digital Limited. This facility will help them develop their blockchain-based game, Medabots1. Similarly, Cunningham Mining Ltd secured a $153 million token subscription facility from GEM Digital to support their operations2. Re: the purchase of American Creek Resources.
These facilities are particularly useful for companies in the blockchain and digital asset space, as they provide a steady stream of funding and help manage liquidity.