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.

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.”

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.

Get an edge on the cryptoasset market

Access more crypto insights and context in every article as a paid member of CryptoSlate Edge.

On-chain analysis

Price snapshots

More context

Join now for $19/month Explore all benefits

Like what you see? Subscribe for updates.





Source link

Latest articles

Data shows institutional demand for Ethereum surged despite the recent crash

Data shows institutional demand for Ethereum surged despite the recent crash | CryptoSlate Earn up to 12% APY on Bitcoin, Ethereum, USD,...

Legendary investor who bought Bitcoin at $350 says this rally is just beginning

American investor Bill Miller says Bitcoin’s (BTC) fabled bull run is only getting started despite the asset’s nearly 700% price increase...

JPMorgan says Bitcoin is showing ‘weakness’ as fund inflows fall

Analysts at US bank JPMorgan say the Bitcoin (BTC) market is showing signs of weakness, as per a report on financial...

You can now pay for a WeWork office using Bitcoin and other cryptocurrencies

U.S. real estate firm WeWork, which provides office and work solutions, announced it now accepts Bitcoin, Ethereum, USD Coin, Paxos, and...

Related articles

Leave a reply

Please enter your comment!
Please enter your name here