Blockstream tokenizes its Bitcoin mining power 🚨 This article is 4 years old...
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Blockstream tokenizes its Bitcoin mining power
Bitcoin development firm Blockstream will allow qualified investors to buy portions of its BTC mining hash rate.
2 min read
Updated: Apr. 1, 2021 at 3:57 am UTC
Blockchain development firm Blockstream has revealed its new security token, dubbed Blockstream Mining Note (BMN), that will be backed by the company’s Bitcoin (BTC) mining capabilities.
“The Blockstream Mining Note (BMN) provides more flexibility than traditional investment in physical mining infrastructure by packaging BTC mining into a tradable Liquid BTC-based token,” Blockstream announced yesterday.
Now even more investors can get involved in #Bitcoin mining. The #BlockstreamMiningNote (BMN) provides more flexibility than traditional investment in physical mining infrastructure by packaging #BTC mining into a tradable @Liquid_BTC-based token. ?⛏️? https://t.co/J2PSJndwEE pic.twitter.com/OJMWOwobuN
— Blockstream (@Blockstream) March 30, 2021
The goal of BMN is to offer qualified investors outside of the U.S. a simpler way to allocate their capital in the Bitcoin mining sector. Each token will represent 2,000 terahashes per second—a metric used to quantify Bitcoin’s blockchain computational power—from Blockstream’s mining facilities.
Per the announcement, corresponding amounts of BTC will be mined for BMN and locked in cold wallets for three years. After that time passes, the rewards will be distributed between BMN holders accordingly. Blockstream plans to launch its BMN mining operations by July 9.
“Investors can more easily adjust their exposure to Bitcoin mining by trading the BMN on secondary markets,” Blockstream’s CEO Adam Back and CIO Chris Cook explained in the annoucement, adding, “It’s a win-win for investors and the broader network.”
See https://t.co/W6zlfDQRpq some more details (BMN is available to non-US qualified investors)
— Adam Back (@adam3us) March 31, 2021
Blockstream’s BMN security token offering will be launched on European investment marketplace STOKR. Each BMN will be priced at roughly €200,000 ($235,000), which is also the minimum investment for accredited participants. However, BMN will later be tradeable on secondary markets that don’t impose such restrictions on their users.
“The first €12.5 million (~$15 million) tranche is confirmed to go on sale on April 7th, 2021, with a 36-month term from the commencement of the BMN mining operations. The offering is open to non-US qualified investors with a minimum investment of approximately €200,000 (~$240,000), or the equivalent in Bitcoin (BTC), Liquid Bitcoin (L-BTC), or Tether (USDt),” Blockstream added.
"BMN will entitle its holders to hash rate produced by #Bitcoin miners at #BlockstreamMining colocation facilities around the globe. As a security token, $BMN is subject to certain regulatory requirements and provides investors with legal recourse and high-level transparency." ⛏️ https://t.co/n9HyuWFTpF
— Blockstream (@Blockstream) March 30, 2021
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Liam Frost
Liam Frost is a freelance journalist and editor with over 15 years of experience working for various media outlets across the world.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Blockstream
Blockstream is a provider of blockchain technologies, on the forefront of work in cryptography and distributed systems.
Adam Back currently holds the position of CEO at Blockstream, a cutting-edge technology company dedicated to advancing bitcoin and blockchain technology.