Blockstream Offering Third Round of Tokenized Note, Offering Exposure to Its Hashrate

As an analyst with a keen interest and over two decades of experience in the evolving world of blockchain technology and digital assets, I find the latest collaboration between Blockstream and Stokr to be an intriguing development. The BNM2 Hashrate-backed security notes represent a unique opportunity for investors to profit from Blockstream’s mining operations without the hassle of managing the strenuous mining operations themselves.

Blockstream and Stokr introduce the third installment of Bitfinex’s BNM2 Hashrate-Backed Securities, enabling investors to capitalize on the profits generated by Blockstream’s mining activities.

Blockstream Mining, a division of Blockstream, has teamed up with Stokr, a Luxembourg-based digital asset investment platform, to introduce the Blockstream Mining Note 2 (BNM2). This EU-compliant security token is issued on Blockstream’s Bitcoin layer 2—the Liquid Network. By investing in BNM2 tokens, individuals can enjoy the benefits of Blockstream Mining’s profits directly, as they bypass the need to handle the laborious aspects of actual mining operations, such as management.

In a recent statement, Blockstream explained that by eliminating obstacles in Bitcoin mining, investors can now join Bitcoin’s proof-of-work process more effortlessly, thereby enhancing its overall security and resistance to censorship. Previously, the BNM2 initiative, following the successful BNM1, provided investors with approximately 108% returns over a three-year period. Furthermore, it yielded a gross return of 35%, equivalent to 350 bitcoin. This extra profit was on top of the 108% returns from BNM1, surpassing strategies that involved buying Bitcoin directly from the market. In total, investors have collectively earned around 1,200 bitcoin from the predecessor.

Investors are entitled to receive bitcoins generated by BNM2, which is proportional to the mining performance at Blockstream’s North American operations, and these bitcoins serve as a steady income source. The first two rounds of this investment opportunity commenced on July 18, and investors have already started earning returns. Blockstream offers a price of $61.64 per PH/s for a four-year contract period, with the rewards coming from mining activities conducted at their facilities in Georgia, Texas, and Montreal.

As an analyst, I’ve observed that the initial two phases of the BNM2 offering have successfully amassed a capital of $7 million. Blockstream, in its continued fundraising efforts, intends to gather another $10 million through the upcoming third round, which will span over a three-week period. The company plans to sell each note at a price point of $31,000.

2024-09-07 18:02

Blockstream Offering Third Round of Tokenized Note, Offering Exposure to Its Hashrate

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