Blockstream Mining Starts Third Investment Round for Hashrate-Backed Tokenized Note

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Will Canny is a finance reporter at CoinDesk.n

The round will be priced at $31,000 and give investors a share of the bitcoin produced by the mining company.Blockstream Mining said it is opening a third round of investment for its hashrate-backed tokenized note, which gives participants a slice of the bitcoinTwo earlier rounds of the BMN2 note raised a total of around $7 million. The third will be priced at $31,000 and give holders the of hashrate. The sale will last for three weeks, a company spokesperson said in an interview.

Crypto markets are becoming increasingly financialized, and hashrate-backed contracts are not new. What’s unique about Blockstream’s note is its duration. Most contracts lock in the hashprice for up to 12 months, James Macedonio, Blockstream's SVP global head of mining sales and business development, said. BMN2, an EU-compliant security token, gives exposure to the bitcoin hashrate over a 48-month period.blockchain and is a proxy for competition in the industry and mining difficulty.

"With the bitcoin mining market currently experiencing historically low hashprice levels, BMN2 allows investors to strategically enter the market at an opportune time," the company said in a July release announcing the note.last month, Wall Street giant JPMorgan noted that the hashprice is about 30% below levels seen in September 2022 and about 40% below the level before

BMN1 was highly successful. It “mined over 1,242 BTC and delivered returns of up to 103% over its three-year term,” Stokr said on its website. It is the"highest payout in real world asset security token history," according to Arnab Naskar, co-founder and co-CEO of Stokr.

 

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