Blockstream Introduces Series 3 of Its Blockstream Mining Note 2 (BMN2)
Blockstream, a leader in Bitcoin infrastructure technology, is proud to announce the launch of Series 3 of its highly anticipated Blockstream Mining Note 2 (BMN2). This new series presents a fixed cost investment of $31,000 per petahash per second (PH/s) over a four-year period, offering a streamlined and cost-effective method for qualified investors to participate in Bitcoin mining rewards.
Enhanced Investment Opportunity
The BMN2 is a European Union-compliant security token linked to Bitcoin hash rate, managed through Blockstream’s cutting-edge mining facilities throughout North America. This latest series builds on the success of the initial BMN1, which debuted in 2021 and concluded in July 2024, delivering a 32% return in Bitcoin over its three-year term. Arnab Naskar, Co-founder and Co-CEO of STOKR, praises the BMN1 for delivering “the highest payout ever recorded in the history of real-world asset (RWA) security tokens.”
Competitive Advantages
Since the introduction of BMN1, the Bitcoin mining investment sector has expanded, with new options such as hash rate contracts and hosted mining services emerging. Despite this growth, these alternatives often lack the advantages provided by BMN2, including secondary market liquidity, long-term fixed rates, immediate exposure, and market timing protection.
BMN2, which officially launched on July 18, 2024, has already attracted nearly $7 million in investments. This new series offers a favorable hash price and includes enhanced protection measures, such as a 50% reserve of the stated hash rate (1PH/s per day) to mitigate risks related to miner failures and efficiency reductions.
Investment Details and Market Context
Available to qualified, non-US investors through Luxembourg-based virtual asset service provider STOKR, BMN2 is priced at a competitive rate of $21.23 for 48 months. This rate is notably lower than the current spot market hash price, making it a compelling option for Bitcoin holders, investors, and businesses looking to engage directly in Bitcoin network maintenance. Each BMN2 token corresponds to the Bitcoin generated by 1 PH/s of Blockstream’s mining hash rate, providing a reliable stream of rewards linked to mining performance. The BMN2 offers a strategic investment opportunity ahead of the upcoming Bitcoin halving.
Operational Efficiency and Sustainability
Bitcoin mining for BMN2 has begun at an operational rate of less than $0.045 per kilowatt-hour (kWh), which is substantially below the industry average of $0.065 for enterprises and $0.075 for retail customers. Blockstream’s sophisticated mining technology facilitates these advantageous terms, furthering the decentralisation of the Bitcoin network. Additionally, over 80% of the power used for BMN2 is sourced from carbon-neutral energy sources, including wind, solar, and nuclear, making it a sustainable investment choice.
“Operational excellence and integrity are fundamental to our mining operations,” stated Chris Cook, CIO of Blockstream. “We are aware of the complexities involved in Bitcoin mining, from hardware issues to energy management and price volatility. The BMN product is designed to ensure a steady hash rate, with the goal of offering a robust and dependable investment return.
A Legacy of Innovation
Blockstream’s expertise in Bitcoin mining is well-established, with its origins linked to CEO and Co-founder Dr. Adam Back’s invention of the HashCash algorithm, a key component of Bitcoin’s proof-of-work protocol. Dr. Back’s pioneering work has been instrumental in the development of Bitcoin and continues to shape Blockstream’s mining products, including the BMN and BASIC notes.
