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

Blockstream and Stokr bring the third round of the BNM2 hashrate-backed security notes that will allow investors to profit from Blockstream’s mining operations.

Blockstream’s mining wing, Blockstream Mining, has partnered with Stokr, the Luxembourg-registered digital asset investment marketplace, to offer the Blockstream Mining Note (2). The BNM2 is an EU-compliant security token issued on Blockstream’s Bitcoin layer 2—the Liquid Network. Those investing in BNM2 tokens can directly gain from the company’s mining proceeds. With that, they get their hands on mining rewards without managing strenuous mining operations.

In an announcement, Blockstream mentioned, “By removing these barriers of entry to mining, investors can participate more easily in Bitcoin’s proof of work, contributing to its overall security and censorship resistance.” BNM2’s predecessor, BNM1, was a massive success as it offered investors about 108% returns over three years. It also generated 35% in gross returns, amounting to 350 bitcoin. This additional gain came atop the 108% returns from BNM1, beating strategies involving acquiring bitcoin from the spot market. Adding all that, investors are collectively making 1,200 bitcoin from the predecessor.

The successor, BNM2, “entitles holders to the bitcoin produced by 1 PH/s (petahash per second) of hashrate at Blockstream’s North American mining operations, providing a consistent stream of bitcoin rewards directly linked to mining performance.” Investors have already begun accruing returns through the first two rounds of the note’s offering, which started on July 18. Blockstream is offering a hashprice of $61.64 per PH/s for a four-year term. These rewards will be generated by the company’s mining efforts from North American facilities in Georgia, Texas, and Montreal.

The first two rounds of BNM2 offering have already raised $7 million. Blockstream aims to raise another $10 million through the third round, which will last three weeks. The company is issuing each note at $31,000.