Adam Back Launches Blockstream’s New Bitcoin Mining Security Token

Canadian blockchain tech company Blockstream announced on March 29 the launch of a security token backed by the company’s mining product.

It offers an alternative to investing in bitcoin mining stocks, with the company providing exposure to bitcoin mining to non-U.S. accredited investors through the Blockstream Mining Note security token. BMN represents 2,000 terahash hashrate per second from Blockstream mining facilities.

The Bitcoin mined for BMN will be kept in cold storage for three years and will be distributed to the final token holders at the end of that time period.

Blockstream plans to start BMN mining operations by July 9, with the following payments expected to be released in the third quarter of this year.

For more details, see https://t.co/W6zlfDQRpq (BMN is available to non-US accredited investors)

— Adam Baker (@adam3us) March 31, 2021

The BMN Security Token Offering or STO will be conducted on STOKR (European Alternative Digital Asset Investment Marketplace). The first batch of security tokens will be available from April 7, each priced at approximately $240,000, which is also the minimum investment amount.

“BMN will entitle its holders to the hashrate generated by #Bitcoin miners on #BlockstreamMining hosted servers around the world. As a security token, $BMN is subject to certain regulatory requirements and provides investors with legal recourse and a high level of transparency.” ⛏️https://t.co/n9HyuWFTpF

— Blockstream (@Blockstream) March 30, 2021

In an announcement published on the Blockstream website, CEO Adam Back and CIO Chris Cook highlighted the benefits of acquiring security tokens compared to investing in mining infrastructure:

“By wrapping mining in a tradable token, BMN provides investors with greater flexibility compared to traditional physical mining infrastructure investments — investors can more easily adjust their exposure to Bitcoin mining by trading BMN on secondary markets.”

“By expanding investor participation in Bitcoin’s proof-of-work, BMN also strengthens Bitcoin’s security and censorship resistance. It’s a win-win for investors and the broader network.”

Exposure to Bitcoin mining has been a lucrative option for many investors. Cointelegraph reported on March 22 that stocks of the top four mining companies have risen by 5,000% over the past 12 months, while Bitcoin has increased by 900% over the same period.