Blockstream raises $36m through sale of Bitcoin hashrate-backed security tokens

The infrastructure company Blockstream placed the sixth tranche of Bitcoin hashrate-backed security tokens. As a result, the firm lifted the total amount raised through the sale of Blockstream Mining Note (BMN) to €30.9 million (~$36 million).

The sale of the latest BMN tranche yielded the company €13.9 million (~$16.1 million).

According to the statement, the sixth tranche was the largest, after which the number of tokens surpassed 122 and the number of investors grew to nearly 70.

Blockstream announced the issuance of BMN in March 2021. Each security token provides the holder with 2,000 TH/s of the company’s mining hashrate. The mined cryptocurrency over the three years from the start of mining will be stored in cold wallets until delivery to the eventual owner.

The company believed the offering would appeal to investors seeking a quick, low-cost way to join Bitcoin mining—without the need to purchase equipment, operate it, and maintain it.

As of October 21, nearly 1.68 BTC have been mined per BMN. Mining has lasted 108 days of the 1,096 days stipulated by the agreement in the form of a security token.

Blockstream’s partner in the BMN issue is the regulated platform STOKR, through which the asset’s initial offering is conducted. Participation is limited to accredited investors outside the United States.

The company announced the listing of BMN on Bitfinex’s securities trading platform. In September 2021 launched the regulated Bitfinex Securities platform in Kazakhstan.

Trading of BMN on it is expected to begin in the coming weeks, with the asset set to be among the first to be listed.

In August, iFinex, Bitfinex’s parent company, invested in Blockstream as part of a Series B financing round worth $210 million.

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