Blockstream Offer Investors Exposure to Bitcoin Mining with BMN Security Tokens
Blockstream, a Bitcoin mining company, is planning to tokenize Bitcoin mining, according to a release.
1BMN To Cost $240,000
Blockstream Chief Adam Back said that this would give investors access to Bitcoin mining without investing in the traditional mining hardware.
The investment opportunity, which will be publicly-listed as a security token offering (STO), targets non-US qualified investors and gives them access to hashrate mined at Blockstream’s colocation facilities.
The mined token will be called Blockstream Mining Note (BMN for short) and represents 2,000 terahash per second of the company’s computing resources.
Each Bitcoin mined would be held in cold storage for a period of three years before they are released to their hodlers, the company notes.
One BMN would cost investors $240,000 and would go on sale on April 7. The first tranche of 62.5 BMN would be available on European digital assets investment marketplace STOKR as fungible assets.
BMN mining operations will begin officially on July 9, with subsequent BMN tranches released in Q3 2021. Interested investors can get their hands on these tokens by paying cash or through crypto-assets like BTC and dollar-pegged USDt.
Blockstream will offer the BMN token on its sidechain, the Liquid Network.
Blockstream says it aims to raise about €12.5 million (about $14.5 million) from the first tranche and will raise €85 million (about $100 million) in total.
Hashrate Tokens Appealing To BTC Investors
Hashrate tokens are recent additions to the ever-expanding crypto space. It works more like a derivative and was launched by Bitcoin miner Poolin and the largest crypto exchange by trading volume Binance in December 2020.
They serve as a roundabout way high-net investors can gain Bitcoin exposure without owning the digital asset or setting up a mining business. This makes it easier for liquidity to flow into the Bitcoin mining market. They are usually traded on over-the-counter (OTC) secondary markets before moving into the exchanges.