Blockstream launches the second round of its series 3 today. Mining Note — the BMN2.
This note is a reminder that the date will be available to eligible non-US investors This round has been repriced to reflect the price of series 1 & 2 which were held on July 18th. The price for this round is $31,000 per petahash (PH/s) or a hashing price of $19.23. Those who bought the BMN2 during the Series 1 and 2, when the price was higher, will receive extra BMN2s to compensate for the price difference between the two previous rounds.
The BMN2 follows the success of Blockstream Mining Note 1, which generated a return of 32% over BTC.
BMN2 Details
The BMN2 is a security token (STO), backed by hashrate, that will be issued on Blockstream’s Liquid Network By Luxembourg-based Virtual Asset Service provider (VASP). Stokr. This note provides 1 P/H at Blockstream’s North American mines for four years.
“Hashrate contracts are typically 30 days up to six months,” James Macedonio – Senior Vice president of Global Sales, Blockstream – told Bitcoin Magazine about the differences between Blockstream’s note and other similar financial instruments. “Rarely do you see [contracts] even go to 12 months.”
Blockstream offers the note at 1 PH/s intervals, as petahash is now the standard industry measurement of hash prices. The contract duration also corresponds to the Bitcoin halves cycle every four years.
“We wanted to lock in a hash price for customers for four years, which will basically run until the next halving,” He said.
For professional investors, the minimum investment is $10,000. However, non-professionals must make a minimum of $115,000 to qualify. The STO shares will be fully fungible, and can be traded on both secondary and third-party markets. Bitfinex, SideSwap The following are some examples of how to get started: Merj Exchange. Macedonio stated that Blockstream’s price is very competitive. The note sells at 50% off the current hash spot price.
“If you’re looking to buy hashrate, this is going to be a lot cheaper than buying a hashrate contract on the open market,” He said.
The success of BMN1
The BMN1, a 2 PH/s unit that was offered over a period of 36 months and mined 1,242 BTC, delivered up to 103% return on cash, in addition to the 32% profit over BTC. Blockstream aims at providing similar returns for investors through the BMN2.
“We priced the BMN2 to a level at which we feel investors will get the same type of return,” Macedonio.
“We sold BMN1 at about a 60% discount to what would have been the hash price at the time. With the BMN2, we’re selling at about a 50% discount to the current spot hash price. Future series pricing will be dependent on what the hash price is at that time,” He also added.
Blockstream is rewarding investors who convert from BMN1 securities to BMN2 additional BMN2 security with a 3% Bonus.
BMNs stand out from similar products
Blockstream Mining Notes are a great way for investors to learn about bitcoin mining.
“We get really cheap energy rates and we get good pricing on equipment, as well,” Macedonio. “So, we can offer a hashrate at a really cheap price compared to other folks.”
Macedonio stated that hosting mining equipment costs 4.5 cents for every Kilowatt Hour (kWh), whereas hosting is currently charged by large companies at upwards of 6.5 Cents/kWh.
BMNs allow investors to avoid buying machinery, and worry less about failures of machines or energy curtailment. When they buy BMNs, there is no delay between the time it takes to put down money for an investment and when machines are online.
“I don’t think there’s another product out there that competes with it,” Macedonio.
“This article is not financial advice.”
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Source: bitcoinmagazine.com
