Each BMN2 security token entitles holders to the bitcoin produced by 1 PH/s (Peta hash per second) of Blockstream’s mining hash rate.
Blockchain technology firm Blockstream has launched the third series of its Blockstream Mining Note 2 (BMN2), a security token that allows investors to gain exposure to Bitcoin mining without owning or managing physical mining infrastructure. The blockchain technology firm aims to raise $10 million in this final round.
Introduction of BMN2
BMN2 is a security token that is compliant with EU regulations and is available to qualified investors outside the United States. It exposes holders to the Bitcoin hash rate generated by the company’s enterprise-grade mining operations in North America. It is provided in partnership with Luxembourg-based virtual assets service provider STOKR.
In this round, BMN2 is priced at $31,000 per petahash per second (PH/s), equivalent to a hash price of $21.23. Investors who bought BMN2 during the first and second series, when the token was sold at a higher price, will receive additional BMN2 to compensate for the price difference between the earlier and third rounds.
The release of BMN2 follows the successful performance of the initial Blockstream Mining Note, BMN1, which delivered a 32% return in BTC.
According to the company, BMN2 has raised nearly $7 million since its initial offering launched in July. It provides an investment opportunity with the potential to outperform direct Bitcoin purchases on the spot market.
Blockstream is also issuing the note in 1 PH/s increments, as petahash is now the standard unit for measuring hash price. The contract’s length aligns with Bitcoin’s four-year halving cycle.
The minimum investment is $10,000 for professional investors, while non-professional investors must meet a $115,000 minimum. Shares of the security token offering (STO) will be fungible and available for trading, in both full and fractional forms, on secondary markets like Bitfinex, SideSwap, and Merj Exchange. The note will also be available at a 50% discount on the current spot hash price.
Hashprice is a Bitcoin mining metric indicating a miner’s terahash revenue. In other words, it represents the average daily value, in fiat currency, of the reward a miner receives for each terahash calculation (USD/TH/s per day). These rewards encompass both transaction fees and newly minted Bitcoin.
The Success of BMN1
The BMN1, which also provided 2 PH/s over 36 months, mined 1,242 bitcoins and achieved up to 103% cash-on-cash returns and a 32% return over BTC. Blockstream aims to offer comparable returns to investors with the BMN2.
Blockstream will reward investors with a 3% bonus in additional BMN2 securities for transitioning from BMN1 to BMN2.