Blockstream has launched the third series of its BMN2 security token, which provides direct investment in the company’s Bitcoin computing power. The company said the launch comes amid growing investor interest in Bitcoin mining opportunities.
On Thursday, Bitcoin infrastructure developer Blockstream launched the third series of its security token, Blockstream Mining Note 2 (BMN2).
BMN2 is an EU-compliant security token for qualified non-U.S. investors. It provides investment in the Bitcoin hashrate operated by the company at enterprise-grade mining facilities in North America and is being launched in partnership with Luxembourg-based virtual asset service provider STOKR.
The company said in a statement shared with Blockchain that the launch was in response to growing investor interest in the mining industry.
Each BMN2 security token entitles the holder to 1 PH/s (Peta hash per second) of Bitcoin generated from Blockstream’s mining power. The company said the token is designed to provide investors with access to strategic market participation in preparation for the next Bitcoin halving.
The token aims to replicate the success of Blockstream’s first mining note (BMN1), which launched in 2021 and matures in July 2024. The token delivered a 32% return on Bitcoin over a three-year term, which STOKR co-founder and co-CEO Arnab Naskar described as “the highest payout in the history of real-world asset security tokens.”
Although the Bitcoin industry has matured since 2021 and mining-related investment products (such as computing power contracts and managed mining contracts) have been widely available to investors, Blockstream believes that these products lack the secondary market liquidity, long-term fixed interest rates, immediate investment exposure and market timing protection that BMN2 can provide.
“We understand the complexities of mining Bitcoin – the hardware challenges, energy cuts, and price volatility,” said Chris Cook, CIO of Blockstream. “We created the BMN product to provide stable hashrate to maintain strong and consistent investment results.”
Below-market hashrate price Blockstream claims that BMN2 has raised nearly $7 million since its main launch in July. It offers investment opportunities that can outperform spot market Bitcoin purchases.
Additionally, it includes safeguards such as a 50% reserve of declared hashrate to prevent potential miner failures, efficiency drops, and other issues.
Hashrate price is a term coined by Luxor, a Bitcoin mining service company, that refers to the expected value of 1 PH/s of hashrate per day. This metric quantifies the revenue that miners can expect to receive from a specific amount of hashrate.
BMN2 Series 3 offers hash power at a price of $21.23 per month for 48 months, which equates to a fixed cost of $31,000 per PH/s. According to Blockchain’s data dashboard, this price is significantly lower than the current market price of hash power, which is approximately 0.041 TH/s/day ($41 PH/s/day).
Blockstream claims that BMN2’s bitcoin mining operations began this week with hosting rates below $0.045 per kilowatt-hour, compared to an industry average of $0.065 for enterprises and $0.075 for retail customers, adding that 80% of the operation’s electricity comes from carbon-neutral sources.
Blockstream CEO and co-founder Dr. Adam Back is the inventor of the HashCash algorithm, a fundamental component of the Proof of Work protocol and an important part of Bitcoin’s security architecture.
