Originally published on: September 05, 2024
Blockstream Mining, a leading player in the Bitcoin mining space, has unveiled a unique opportunity for investors by introducing a new security token – Blockstream Mining Note 2 (BMN2). This token is innovative as it is backed by the hashrate of Blockstream’s mining operations, as announced on September 5th.
Providing Direct Exposure to Blockstream’s Hashrate
The BMN2 token offers investors direct exposure to the Bitcoin hashrate generated by Blockstream’s sophisticated mining facilities spanning across North America. Priced at $31,000 per token, each BMN2 represents a 48-month claim on one petahash per second (PH/s) of Blockstream’s mining hashrate, which is a crucial indicator of the computational power utilized to mine Bitcoin blocks.
Investors Stand to Gain with Discounted Hashprice
Blockstream is essentially offering a four-year share in the proceeds derived from its Bitcoin mining endeavors in exchange for upfront investment. Investors can take advantage of a significantly discounted hashprice of $21.23, compared to the current spot market hashprice of over $40 as of September 5th, as per data from hashrateindex.com.
Responding to Changes in the Bitcoin Mining Landscape
Following the Bitcoin network’s halving event in April, which reduced mining rewards by half, Bitcoin miners have been actively seeking avenues to fortify their financial positions. JP Morgan reported that major Bitcoin mining entities raised approximately $1.2 billion in equity during the second quarter of 2024 to adapt to the evolving market dynamics post-halving.
Blockstream’s Commitment to Innovation and Consistency
This marks the third issuance of the BMN2 token by Blockstream, with the first instance raising close to $7 million in July. In 2021, Blockstream introduced a similar token, BMN1, which matured in July and delivered an impressive 32% BTC return over its 3-year term.
Chris Cook, the Chief Investment Officer at Blockstream, emphasized the company’s dedication to providing a reliable investment avenue through the BMN products. Notably, BMN2 has been structured to comply with European Union regulations and is exclusively accessible to qualified investors outside the United States.
In conclusion, Blockstream’s BMN2 token represents a pioneering approach to investment in the Bitcoin mining sector, offering investors a strategic entry point into the burgeoning cryptocurrency ecosystem.
