The digital asset space welcomes a recently-launched token by Blockstream. Asides from being the firm’s latest creation, the token is also backed by its mining facilities. The firm announces some expansion plans awhile ago, and this new creation could be its next step into offering more digital-related services. The tech company explained on March 29 that it had created a token supported by the firm’s mining production.
The new creation is a necessary addition to the crypto space as many institutions have decided to create their own digital assets to meet people’s needs. As a tech-based company, Blockstream’s new move could change things in Canada’s crypto space. The token offers numerous services, and that is why it’s a great addition.
BMN gives exposure to the mining sector
The new creation offers another option for investing in Bitcoin mining stocks. This has given the firm avenue to offer non-US buyers an opportunity to get exposed to the digital asset’s mining through the tech company’s input. The security token is the means for qualified investors to get exposure to the sector.
The Blockstream Mining Note Security Token, also known as BMN, represents around 2,000 terahash per second of hashrate from its mining production. The company explained that it would keep the Bitcoin mined through its facilities in the cold storage for three years and given it to the token holders once the time reaches.
Block stream revealed that it would commence mining plans by the next two months, with some significant phases released by the third quarter of this year. The BMN security token will be listed on STOKR, a European-based investment platform for numerous virtual assets. The firm would offer the first set of tokens for sale by April 7, and each token would be sold at $240,000 each, and this price tag is also the minimum price allowed.
The firm explains some benefits BMN gives to holders
The new tokens would allow getting hashrate produced by Bitcoin’s miners at the institution’s mining facilities. The token would have fallen some laid down regulations and give buyers with legal recourse and also transparency. The firm shared the latest information on its website, with the CEO, Adam Back, explaining some essential benefits from buying the token compared to actually investing in mining facilities. He opined that packaging mining in a tradable token gives investors more flexibility than investing in the traditional mining infrastructure.
The entrepreneur added that people could quickly access Bitcoin mining by purchasing the BMN on the secondary market. The post on the website explained how expanding participation in Bitcoin’s proof-of-work strengthens the digital asset’s security and other added benefits. According to the blog post, it’s a good situation for both the investors and the broader network.
Many people have been enjoying exposure to Bitcoin’s mining option, which has enriched many people. This has also led to mining firm’s growth as they sell Bitcoin at a higher price than the price many years ago. The asset’s success has helped both small and large businesses within the crypto space grow and expand.
