Mining Note BMN1

The company offers its product worldwide. Targeting broader geographic markets leads to greater revenues and increased costs.

Blockstream has been producing a range of cutting-edge Bitcoin infrastructure since 2014. Blockstream’s Bitcoin mining operation, Blockstream Mining, started in 2017, motivated by widespread concern that mining decentralization was declining. Blockstream Mining provides enterprise-grade Bitcoin mining colocation services to some of the world’s leading cryptocurrency institutions.

Bitcoin mining is the process by which Bitcoin transactions are verified and added to the Bitcoin public ledger, and also the means through which new Bitcoins are released. The Bitcoin mining industry is global and growing rapidly as demand for Bitcoin grows worldwide. In 2021, Bitcoin miners set a new record for weekly revenue after bringing in $354.4 million in a week.

Blockstream Mining provides end-to-end Bitcoin mining colocation services which makes it easier than ever before for institutions to enter the Bitcoin mining space. High-tech facilities and tight on-site security ensure that the operations meet even the most demanding client’s needs. Currently over 300MW of capacity available, Blockstream Mining continues to scale as the industry grows.

The company offers its service worldwide. Targeting broader geographic markets leads to greater revenues and increased costs.

Demand for Bitcoin network security is global. Blockstream Mining operations are currently based in the United States and Canada and may expand to other low-geopolitical-risk, high rule-of-law regions. Blockstream mining colocation clients are based globally.

Competition shows that a market is attractive and there is a space to grow and develop in a niche area. To keep a competitive position, it is highly recommended that the company keeps up with the latest technologies and innovations.

The BMN pioneers a new securitization model for Bitcoin mining but at the heart of the service is a tried-and-tested hosting solution that powers the mining operations of some of the leading institutions in the Bitcoin industry. Existing competition in the institutional Bitcoin mining space includes the likes of Hut 8, Riot Blockchain, Cipher, and Marathon Digital Holdings. Each of these listed companies runs efficient and professional Bitcoin mining operations. However, investors are currently only able to obtain equity investment in these companies. The BMN, on the other hand, provides investors direct access to the BTC proceeds of the mining operations, enables the self-custody of the security, and provides more transparency on the mining operation through live performance reporting.

We ask for the Tax ID since this offering falls under specific reporting requirements. For example the Common Reporting Standard requires investors to provide more information on their tax status.

Your tax information will be disclosed to the Luxembourg tax authorities annually for tax compliance purposes required by the Common Reporting Standard implementation.