Blockstream tokenizes its Bitcoin mining power

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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