Blockstream Unveils Third Series of Security Tokens for Bitcoin Mining Exposure

SUMMARY

Blockstream has introduced Series 3 of its BMN2 security token, offering direct exposure to the company’s Bitcoin hash rate.
The launch is timed with increased investor interest in Bitcoin mining opportunities.

Blockstream has launched Series 3 of its Blockstream Mining Note 2 (BMN2) security token, offering investors an opportunity to gain direct exposure to Bitcoin mining operations. This latest series, in collaboration with Luxembourg-based STOKR, is outlined for qualified non-U.S. investors and adjusts to the developing interest in Bitcoin mining. Each BMN2 token represents access to the Bitcoin created by 1 petahash per second (PH/s) of Blockstream’s hash rate, with mining operations starting this week.

The BMN2 token is compliant with EU regulations and aims to imitate the success of its predecessor, BMN1, which launched in 2021 and concluded in July 2024 with a 32% return in Bitcoin. Blockstream’s new offering is outlined to give a steady investment result, tending to common industry challenges such as hardware issues, energy costs, and price fluctuations. The token is estimated at $31,000 per PH/s for a four-year term, well beneath the current market hash price, which upgrades its appeal.

Blockstream claims BMN2 offers benefits over other mining investment products, such as hash rate contracts and hosted mining contracts, by providing superior liquidity, fixed rates, and market timing security. The security token also incorporates safeguards like a reserve of 50% of the stated hash rate to mitigate potential issues with miner failures and diminished proficiency. The company has raised roughly $7 million since the primary offering went live in July and is focusing on an additional $10 million from this third round.

The BMN2 token’s interesting selling point is its amplified duration compared to ordinary hash rate contracts, which usually last up to 12 months. With a fixed hash price of $21.23 for 48 months, it offers a vital passage point for investors amid historically low hash price levels. This aligns with Blockstream’s objective of capitalizing on current market conditions before the next Bitcoin halving event.

Blockstream, co-founded by outstanding Bitcoin developer Dr. Adam Back, has utilized its mastery to guarantee the BMN2 token is a vigorous investment vehicle. The proceeds from the BMN2 deals will bolster the management of the physical framework and energy costs related to Blockstream’s mining facilities located in Georgia, Montreal, and Texas.

As Blockstream continues to evolve in the Bitcoin mining space, the BMN2 Series 3 token speaks to a promising opportunity for investors looking to lock in with Bitcoin mining while mitigating some of the inborn risks. The token will also be accessible for trading on the crypto exchange Bitfinex, further upgrading its accessibility and appeal.