Blockstream has launched the third series of BMN2, a security token providing direct exposure to the Bitcoin Hash rate of the firm. The token, also known as Bitcoin Mining Note 2, comes at a time when the interest of investors in Bitcoin mining is at a new height. The fact that it is an EU-compliant security token makes it attractive. All qualified non-US investors can participate in the launch.
The Bitcoin token essentially entitles holders to 1 PH/s, or Peta Hash per second, from Blockstream’s mining hash rate. The firm’s objective through this launch is to enable investors’ participation before bitcoin sees another halving event after 4 years. It is looking to replicate the success of its earlier iterations. It made its debut in 2021 and reached maturity in July of this year. Over three years, the noted return was 32%.
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Chris Cook, the CIO at Blockstream, stated that the purpose of creating BMN was to deliver a consistent hash rate to maintain an investment outcome that is steady and strong. Furthermore, Chris added, the idea was to navigate around the complexities of bitcoin mining. This includes factors like energy curtailment, hardware challenges, and price fluctuations.
In July, the primary offering of the token went live. It has gathered approximately $7 million, according to Blockstream. The BMN2 Series 3 hash price is $21.23 for 2 years, or 48 months, which roughly translates to a total of $31,000 PH/s.
Mining operations for the security token have commenced at a hosting rate of below $0.045 kWh, in contrast to the industry average of $0.065 and $0.075 for enterprises and retail customers, respectively.
In the last 24 hours, the price of bitcoin has increased by 0.14% to $56,693.03. The token is poised to surpass the mark of $84,000 in the next 30 days. People speculated that the price would surge significantly after the Halving concluded on April 20 this year. The next halving is tentatively scheduled to happen in 2028, for it happens once every 4 years.
The Bitcoin Halving process essentially reduces the rewards for miners by 50%. This results in a decrease in the supply. As a result, the price of BTC rises, adhering to the demand-supply principle, which dictates that a limited supply leads to a higher demand.
After the Federal Reserve publishes economic and financial reports, there is speculation that the price of BTC will rebound. This is likely to boost investment in risky assets and, hence, fuel adoption of any offering remotely associated with cryptocurrencies. Given the positive outlook of the bitcoin mining industry, Blockstream could potentially witness a surge in participants.
It remains to be seen how the third series performs in the market, plus how investors react to the outcome.