Blockstream Launches Blockstream Mining Note 2 (BMN2) Series 3

On Thursday, Bitcoin infrastructure developer Blockstream launched series 3 of its security token, the Blockstream Mining Note 2 (BMN2).

Overview of BMN2

BMN2 is an EU-compliant security token available to qualified, non-U.S. investors, providing exposure to Bitcoin hash rate from Blockstream’s North American enterprise-grade mining facilities in collaboration with STOKR, a Luxembourg-based virtual assets service provider. The launch responds to increased investor interest in the mining industry.

Each BMN2 token entitles holders to the Bitcoin produced by 1 PH/s (Peta hash per second) of Blockstream’s mining hash rate, allowing strategic market participation ahead of the next Bitcoin halving. It aims to replicate the success of BMN1, which launched in 2021 and achieved a 32% Bitcoin return over three years, marking a record payout in real-world asset security token history.

Investment Landscape

The Bitcoin industry has matured since 2021, with various investment products emerging. However, Blockstream asserts that these lack the liquidity and stability offered by BMN2. Blockstream’s CIO, Chris Cook, highlighted the complexities in mining Bitcoin and the goal of BMN2 to deliver consistent hash rates for steady investment outcomes.

Below Market Hash Price

BMN2 has raised nearly $7 million since its primary offering in July, providing an investment opportunity expected to outperform Bitcoin purchases on the spot market. It incorporates safeguards, such as a 50% reserve of the stated hash rate, to guard against miner failures and other challenges.

The term “hash price” reflects the expected earnings from 1 PH/s of hashing power daily. BMN2 Series 3 offers a hash price of $21.23 for 48 months, significantly lower than the current market rate of approximately $41 PH/s/day.

Mining operations for BMN2 began this week at a competitive hosting rate of less than $0.045 kWh, while 80% of the energy consumed comes from carbon-neutral sources. Blockstream CEO Dr. Adam Back is noted as the inventor of the HashCash algorithm, a critical component of Bitcoin’s security architecture.