Today, Blockstream opens the series 3 round for its second Mining Note<\/a> \u2014 the BMN2.<\/p>\n The note will be available to eligible non-US investors<\/a> and has been repriced from the series 1 and 2 rounds, which occurred on July 18. This round of the BMN2 is priced at $31,000 petahash per second (PH\/s), or a hash price of $21.23. Investors who purchased the BMN2 in the series 1 and 2 rounds, during which the note sold at a higher price, will be awarded extra BMN2 to make up for the difference in price between the first two rounds and the third.<\/p>\n The issuance of the BMN2 comes on the heels of the success of the first Blockstream Mining Note, the BMN1, which provided a 32% return over BTC.<\/p>\n The BMN2 will be a hashrate-backed security token offering (STO) issued on Blockstream\u2019s Liquid Network<\/a> by Luxembourg-based virtual asset service provider (VASP) Stokr<\/a>. The note offers 1 PH\/s at Blockstream\u2019s North American mining operations for four years.<\/p>\n \u201cHashrate contracts are typically 30 days up to six months,\u201d James Macedonio, Senior Vice President of Global Sales at Blockstream, told Bitcoin Magazine, highlighting how the duration of Blockstream\u2019s note differs from other financial products like it. \u201cRarely do you see [contracts] even go to 12 months.\u201d<\/p>\n Blockstream is offering the note in 1 PH\/s increments because petahash has become the industry standard for measuring hash price, and the contract\u2019s duration corresponds with the four-year Bitcoin halving cycle.<\/p>\n \u201cWe wanted to lock in a hash price for customers for four years, which will basically run until the next halving,\u201d he said.<\/p>\n The minimum investment for professional investors is $10,000, while non-professional investors have a $115,000 minimum investment threshold. Shares of the STO will be fungible and will be available for trading, in both full and fractionalized form, on secondary markets including\u00a0Bitfinex<\/a>, SideSwap<\/a> and Merj Exchange<\/a>. Macedonio explained that Blockstream\u2019s pricing is competitive, as the note will sell for a 50% discount to the current spot hash price.<\/p>\n \u201cIf you’re looking to buy hashrate, this is going to be a lot cheaper than buying a hashrate contract on the open market,\u201d he said.<\/p>\n The BMN1, which offered 2 PH\/s over a 36-month term, mined 1,242 bitcoin, delivering up to 103% cash-on-cash returns and the aforementioned 32% return over BTC. Blockstream is aiming to provide similar returns to investors with the BMN2.<\/p>\n \u201cWe priced the BMN2 to a level at which we feel investors will get the same type of return,\u201d said Macedonio.<\/p>\n \u201cWe 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,\u201d he added.<\/p>\n Blockstream will reward investors who roll over from BMN1 to BMN2 with a 3% bonus in additional BMN2 securities.<\/p>\n Blockstream Mining Notes offer investors looking to gain exposure to bitcoin mining a unique value proposition.<\/p>\n \u201cWe get really cheap energy rates and we get good pricing on equipment, as well,\u201d said Macedonio. \u201cSo, we can offer a hashrate at a really cheap price compared to other folks.\u201d<\/p>\n Macedonio highlighted that the BMN2 is priced at the equivalent to hosting mining equipment at 4.5 cents per Kilowatt hour (kWh), whereas large customers currently pay upwards of 6.5 cents\/kWh for hosting arrangements.<\/p>\n He also noted that, with BMNs, investors don\u2019t have to buy machines, nor do they have to worry about machine failures or power curtailment. Plus, investors don\u2019t experience a lag in putting the money down for their investment and machines going online when they purchase BMNs.<\/p>\n \u201cI don\u2019t think there\u2019s another product out there that competes with it,\u201d said Macedonio.<\/p>","protected":false},"excerpt":{"rendered":" Today, Blockstream opens the series 3 round for its second Mining Note \u2014 the BMN2. The note will be available to eligible non-US investors and has been repriced from the series 1 and 2 rounds, which occurred on July 18. This round of the BMN2 is priced at $31,000 petahash per second (PH\/s), or a […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-27788","post","type-post","status-publish","format-standard","hentry","category-crypto-news"],"_links":{"self":[{"href":"https:\/\/bitcoins-101.com\/wp-json\/wp\/v2\/posts\/27788","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitcoins-101.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitcoins-101.com\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bitcoins-101.com\/wp-json\/wp\/v2\/comments?post=27788"}],"version-history":[{"count":0,"href":"https:\/\/bitcoins-101.com\/wp-json\/wp\/v2\/posts\/27788\/revisions"}],"wp:attachment":[{"href":"https:\/\/bitcoins-101.com\/wp-json\/wp\/v2\/media?parent=27788"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitcoins-101.com\/wp-json\/wp\/v2\/categories?post=27788"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitcoins-101.com\/wp-json\/wp\/v2\/tags?post=27788"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Details of the BMN2<\/h2>\n
The Success Of BMN1<\/h2>\n
BMNs Stand Apart From Similar Products<\/h2>\n