Key facts:
The crypto asset provides benefits without investors having to run its infrastructure.
The first batch will go on sale through a security token offering.
The services and infrastructure company on Bitcoin (BTC), Blockstream will issue on its sidechain (side chain) Liquid, a security token that it has called Blockstream Mining Note (BMN). The asset, which will go on sale on April 7, was conceived with the idea of offering direct exposure to mining to new investors located outside the United States.
One BMN token is equivalent to 2,000 terahashes per second of hashrate from one of Blockstream’s mining facilities. The crypto asset grants exposure to bitcoin mining, without the need for investors to run their own infrastructure.
The first lot of 62.5 BNM will go on sale through a security token offering (STO) on the market for alternative assets STOKR. The company’s goal is to reach an amount of USD 15 million in 36 months. The minimum to invest is USD 240,000 or its equivalent in BTC or Tether, as detailed by Blockstream in an official statement.
Security token offerings are fundraising systems through which new tokens are launched. Like the initial coin offering (ICO), the process allows anyone to become an investor in a project.
The BMN token issued on Blockstream’s Liquid network, offers investors exposure to Bitcoin mining without operating their own infrastructure. Source: stork.io
Three months after the launch of its STO, the company will launch mining linked to its BMN token, which it estimates will be July 9, 2021. The mined bitcoin will be stored cold before being delivered to the token holders at the end of their term within three years.
More institutional investment towards bitcoin
Blockstream’s proposal with its hashrate-based token adds to the multiple alternatives that currently exist to attract institutional investment towards bitcoin. Many of them demand the product offering of the digital asset manager, Grayscale.
In fact, Michael Sonnenshein, CEO of Grayscale revealed earlier this year that institutional investment was diversifying in the bitcoin ecosystem. At that moment CriptoNoticias observed about the entry into the bitcoiner world of new savers or hodlers who could hold their positions long-term to guarantee future returns.
More recently, this same medium reported that institutional investors would choose to have 20% of their reserves in bitcoin. The statement is from the CEO and chief investment officer of Ark Invest, Cathie Wood who indicated that, as bitcoin becomes more accepted, institutional investors will choose to “put 60% of their reserves in stocks, 20% in bonds and 20% % in bitcoin ».
