Blockstream’s Bitcoin Mining Security Token Projected to Outperform Direct Bitcoin Investments

Blockstream, the global leader in Bitcoin infrastructure technology, has launched series 3 of its highly anticipated Blockstream Mining Note 2 (BMN2), responding once again to heightened investor interest in Bitcoin mining opportunities.

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BMN2, an EU-compliant hash rate-backed security token, provides direct exposure to Bitcoin hash rate operated by Blockstream’s state-of-the-art, enterprise-grade mining facilities across North America. BMN2 is designed to replicate the first iteration of the Blockstream Mining Note (BMN1), which launched in 2021 and matured in July this year, delivering a 32% bitcoin return over its 3-year term. Arnab Naskar, Co-founder and Co-CEO of STOKR, a digital asset investment platform, declares it “the highest payout in real world asset (RWA) security token history.”

The Bitcoin industry has matured greatly since the launch of BMN1 in 2021. Bitcoin mining-adjacent investment products, such as hash rate contracts and hosted mining services, have become available to investors and businesses. However, these products and services lack investment conveniences — secondary market liquidity, long-term fixed rates, instant exposure, and market timing protection — freedoms that BMN2 provides.

BMN2—the primary offering of which went live on July 18, 2024 raising just under $7M—follows a similar economic model to BMN1, offering a highly competitive hash price for investors and an investment opportunity that can outpace bitcoin purchases on the spot market. Further, BMN2 includes hash rate safeguards that exceed that of its predecessor, including a reserve of 50% of the stated hash rate (1PH/s per day) to protect against potential miner failures, reduced efficiency, and other non-force majeure issues.

Available to qualified, non-US investors via Luxembourg-based virtual assets service provider, STOKR, BMN2 is offered at a set, discounted hash price of $21.23 for 48 months. Bitcoin hash price refers to the short-term profitability of bitcoin mining and measures the revenue that Bitcoin miners can earn. The BMN2 is prominently priced well below the current spot market hash price to incentivize bitcoin holders, investors, and businesses to directly partake in maintaining the Bitcoin network. Each BMN2 security token entitles holders to the bitcoin produced by 1 PH/s (petahash per second) of Blockstream’s mining hash rate, ensuring a consistent stream of bitcoin rewards directly linked to mining performance. BMN2 provides a well-timed onramp for investors to strategically take part in the market before the next bitcoin halving.

Bitcoin mining operations for BMN2 commenced this week at an equivalent hosting rate less than $.045 kWh (kilowatt-hour), which is substantially lower than the industry average of $.065 for enterprises, and $.075 commonly available for retail customers. The strength, reliability, and performance of Blockstream’s advanced mining fleet allows for the extension of favorable terms to the greater Bitcoin community to contribute to the network’s decentralization. Additionally, over 80% of BMN2 power is derived from carbon neutral sources—wind, solar, and nuclear—making it a conscientious investment opportunity that aligns investor interests, community collaboration, and offers an attractive entry point relative to the historical hash price market.

“Operational excellence and integrity are at the core of our mining business,” said Chris Cook, CIO of Blockstream. “We know first-hand the complexities involved in mining Bitcoin—hardware challenges, energy curtailment, and price fluctuation, to name a few. We created the BMN product to deliver a consistent hash rate with the goal of maintaining a strong and steady investment outcome.”

Blockstream’s leadership in Bitcoin mining is well-established. It traces its roots back to CEO and Co-founder Dr. Adam Back’s invention of the HashCash algorithm behind the proof-of-work protocol, a fundamental component of Bitcoin’s security architecture. Dr. Back’s pioneering work laid the groundwork for Bitcoin, and his ongoing contributions with the BMN and BASIC note, another Blockstream mining offering, to continue to shape the future of the entire real world asset industry.

For access to the BMN2 security token offering and regular updates, eligible investors can register at https://stokr.io/featured-assets/blockstream-mining2.

About Blockstream Mining

Founded in 2014, Blockstream is the global leader in Bitcoin and blockchain infrastructure. Blockstream Mining offers turnkey Bitcoin mining services and solutions designed to provide institutions full transparency and control over their mining operations. By providing secure state-of-the art facilities for a reliable miner colocation, coupled with exceptional technical talent infrastructure, Blockstream Mining purpose-built data centers meet the strict physical and network security requirements of global institutional and enterprise customers. Keeping mining carbon emissions to a minimum, current mining sites are located in the US and Canada, using a majority of non-fossil power sources.

About STOKR

STOKR is at the forefront of transforming financial assets for the digital era. As a leading digital investment platform, STOKR helps asset managers, fund managers, and issuers to tokenize and manage a diverse range of financial assets. STOKR’s platform simplifies the entry into the world of digital securities with a comprehensive suite of services that includes dedicated investment structures, state-of-the-art technology infrastructure, and full-scale support in payments and compliance.

With STOKR, clients can effortlessly issue digital securities and foster strong investor relationships, benefiting from enhanced liquidity thanks to the integration with secondary markets. STOKR’s approach removes the technical complexities typically associated with digital securities, offering a seamless investment experience. Leveraging over six years of innovation and expertise in the digital securities market, STOKR provides a sophisticated and secure environment for capital raising.

Registered as a Virtual Assets Service Provider (VASP) with the CSSF in Luxembourg, STOKR is committed to the highest standards of regulatory compliance, ensuring a reliable and trustworthy platform for all stakeholders.

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