Blockstream Launches Third Series of Bitcoin Mining Notes
Blockstream, a prominent player in Bitcoin infrastructure technology, has announced the release of the third series of its Blockstream Mining Note (BMN2). This financial product allows qualified, non-US investors to gain exposure to Bitcoin mining operations without the need to purchase or manage mining equipment. BMN2 is a hash rate-backed security token that provides returns based on the Bitcoin mined at Blockstream’s facilities over a four-year period.
The BMN2 security token, following the European Union’s regulations, enables investors to own a portion of Blockstream’s Bitcoin mining output. Each BMN2 token represents 1 petahash per second (PH/s) of Blockstream’s hash rate, which directly correlates to the amount of Bitcoin produced. Investors benefit from the mined Bitcoin without needing to oversee mining hardware or operational logistics.
The new BMN2 is similar to its predecessor, BMN1, which launched in 2021 and concluded earlier this year with a 32% Bitcoin return over its three-year term. BMN2 features improved hash rate protections, such as a 50% reserve of the advertised hash rate, providing safeguards against hardware malfunctions and efficiency issues.
BMN2 tokens are priced below the current spot market hash price at $21.23 per terahash, creating an opportunity for investors to enter the market at a competitive rate. The ongoing offering raised nearly $7 million in its initial launch, and Blockstream expects additional interest leading up to the next Bitcoin halving event, a significant moment for the mining industry.
Mining for BMN2 tokens has already commenced, with operations running at an energy cost of less than $0.045 per kilowatt-hour, below the industry average. Over 80% of the energy used in these facilities is sourced from renewable resources, including wind, solar, and nuclear power, aligning with sustainability goals in Bitcoin mining.
Collaboration and Future Expansion
Blockstream’s partner in the BMN2 offering is STOKR, a European digital securities platform that manages the token sales and compliance processes. The company aims to raise $10 million within three weeks for this third series of BMN. Blockstream also works with Gemini, a cryptocurrency exchange, to manage the Bitcoin generated through the mining operations.
In addition to the BMN2 launch, Blockstream has announced plans to release a new Application-Specific Integrated Circuit (ASIC) miner by late 2024. This ASIC hardware is expected to improve mining efficiency and support Blockstream’s growth in the Bitcoin mining sector.
About Blockstream
Founded in 2014, Blockstream specializes in Bitcoin and blockchain infrastructure. The company provides Bitcoin mining services and solutions, offering mining colocation and transparent mining operations for institutional clients. Blockstream’s facilities are primarily located in the United States and Canada, using energy sources that prioritize sustainability.
About STOKR
STOKR is a digital asset platform based in Luxembourg, facilitating the issuance and management of tokenized financial assets. It enables businesses and asset managers to tokenize real-world assets and digital securities, offering a range of services including compliance, payments, and investor relations.
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