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Bitfinex Brings Bitcoin Mining to El Salvador with BMN2

Coin WorldThursday, Jan 30, 2025 9:24 pm ET

1min read

Bitfinex Securities, a subsidiary of the cryptocurrency exchange Bitfinex, has announced plans to issue the Blockstream Mining Note 2 (BMN2) in El Salvador during the first quarter of this year. The news was reported by Diario El Salvador, citing the company's Chief Operating Officer, Jesse Knutson.

The BMN2 is a tokenized financial product that enables investors to receive Bitcoin mining rewards by holding the token. The previous iteration, BMN1, was issued in Luxembourg and has paid out over 1,212 BTC (approximately $70.68 million) to investors over a three-year period, resulting in a 108% return on investment. The El Salvador-issued BMN2 aims to lower the investment threshold, eliminating the minimum investment requirement of $100,000 that was present in the Luxembourg version.

The move by Bitfinex Securities to issue BMN2 in El Salvador is a significant development in the cryptocurrency mining sector. El Salvador, which has been a pioneer in adopting Bitcoin as legal tender, is an attractive destination for Bitcoin mining due to its geothermal energy resources and favorable regulatory environment. The issuance of BMN2 in El Salvador is expected to provide investors with an opportunity to participate in the Bitcoin mining industry with a lower barrier to entry.

The BMN2 is a structured product that allows investors to gain exposure to the Bitcoin mining industry without the need for direct investment in mining equipment or infrastructure. The product is designed to provide a passive income stream through the distribution of Bitcoin mining rewards. The success of the BMN1 in Luxembourg has demonstrated the potential of this investment vehicle, and the BMN2 is expected to build on this success in the El Salvador market.

The issuance of BMN2 in El Salvador is also a testament to the growing interest in cryptocurrency mining in the region. El Salvador's adoption of Bitcoin as legal tender has attracted significant attention from the global cryptocurrency community, and the country is increasingly becoming a hub for cryptocurrency-related activities. The issuance of BMN2 is expected to further boost the country's reputation as a destination for cryptocurrency investment and innovation.

The BMN2 is expected to be a significant development in the cryptocurrency mining sector, providing investors with an opportunity to participate in the industry with a lower barrier to entry. The success of the BMN1 in Luxembourg

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