Blockstream Mining has announced the release of a new security token, BMN2, which is backed by Bitcoin mining power. This initiative aims to raise funds for expanding the company's mining operations.
BMN2 Launch
On September 5, Blockstream announced the launch of a new security token, Blockstream Mining Note 2 (BMN2), which is backed by Bitcoin mining power. The token is designed to provide direct exposure to hashrate operated by Blockstream’s mining facilities across North America. Each BMN2 token, priced at $31,000, represents a 48-month claim on one petahash per second (PH/s) of Blockstream’s mining hashrate.
Token Mechanics
Blockstream is offering four-year claims on the proceeds from its Bitcoin mining operations in exchange for upfront funding. Investors benefit from a significantly discounted hashprice of $21.23, while the spot market hashprice exceeds $40 as of September 5. The BMN2 token complies with European Union regulations and is only available to qualified investors outside of the United States.
Context and Background
Amidst the reduction in mining rewards following the Bitcoin network’s April 'halving', major miners have been looking to shore up balance sheets. According to JP Morgan, five of the largest Bitcoin miners issued around $1.2 billion in equity during Q2 2024. BMN2 is Blockstream’s third issuance of such a token, launching in July and raising nearly $7 million in its first issuance. In 2021, Blockstream issued a similar token—Blockstream Mining Note 1 (BMN1)—returning 32% in BTC over its three-year term.
Blockstream Mining continues to seek new approaches to fund its operations and support sustainable growth by offering investors an opportunity to gain access to Bitcoin mining revenue through new security tokens.
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