The tokenised ‘note’ will provide a fractionalised ownership share in Blockstream’s Bitcoin mining proceeds – an alluring offer for professional investors when you consider that Bitcoin mining equities such as Marathon have outperformed BTC consistently in 2021.
With only 25 tokens up for grabs – valued at the institutional price-point of €350,000 each – the capital raise will complete at the end of January.
This is the first major security token issuance of 2022 – and many will be watching closely following a report from analysts at JP Morgan which predicted significant growth in the financial tokenisation space this year.
In a conversation with Coin Rivet, Paolo Ardoino – CTO at Bitfinex – walked us through the outlook for the issuance platform in 2022.
“A big rise in security token offerings has been anticipated for a few years now,” explained Paolo.
“The capability for blockchain-based technologies to radically disrupt the incumbent exchange model for the listing of securities makes it inevitable that we will see a major shift on this front.
“Will 2022 be the year? I’d prefer not to speculate on such wider market developments.”
Paolo Ardoino explains Bitfinex Securities’ ethos
Barriers to entry remain initially high, with the BMN issuance, like many security token offerings, primarily aimed at high net worth investors with a minimum sum of $100,000.
A recent publication by leading securities tokens analytics firm STO Markets suggested that issuance platforms will need to reduce barriers to entry for retail investors to create more liquidity on secondary markets. However, Paolo explained that Bitfinex Securities’ overarching strategy is more focused on connecting emergent Fintech firms with muc- needed capital injections.
“It is important to note that Bitfinex Securities is focused on securities in the space of innovative fintech start-ups, often disenfranchised from incumbent stock exchanges such as Nasdaq – these are businesses that have a turnover of between US$50 million and US$100 million,” he added.
“Unlike other exchanges that have merely sought to tokenise established corporations such as Facebook or Apple, Bitfinex Securities is focused upon enabling innovative fintech start-ups to flourish and grow. These companies could be the next Facebook or Google at the end of this decade when Web 3 goes from being a topical buzzword to a new reality.
“The Bitfinex Securities platform will be at the forefront of enabling innovative businesses using decentralised ledger technologies to raise capital, grow and ultimately succeed. In 2022 you will witness the beginning of this journey at Bitfinex Securities.”
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.