Blockstream Completes $5M Series 1 Raise, Set for Acquisition of New ASIC Miners

Leading Bitcoin timechain technology firm Blockstream has announced the successful completion of its Series 1 Blockstream ASIC (BASIC) Note raise, securing an impressive $5.07 million.

After a successful $5M raise in the first Blockstream ASIC (BASIC) Note series and the swift acquisition of new Antminer S19k Pro miners, we are excited to announce the launch of an upcoming second series on @stokr_io.https://t.co/ZCkdFpeKNI pic.twitter.com/W876wY2FTU

— Blockstream (@Blockstream) December 13, 2023

A significant portion of this amount is scheduled for the acquisition of ASIC miners. According to Blockstream, $4.87 million would be deployed towards buying new, boxed Antminer S19k Pro ASIC miners, with the remaining funds allocated to cover associated costs.

The quoted price for the acquisition has been secured and will be facilitated through Blockstream’s partnership with SunnySide Digital.

Blockstream noted a 9.25% increase in the price of ASIC miners, given the proportionate appreciation in the value of Bitcoin. This makes the BASIC Note an attractive opportunity for investors.

The BASIC Note series is a Bitcoin-denominated investment vehicle, enabling investors to capitalize on the potential upside of low ASIC miner prices to generate a Bitcoin-on-Bitcoin return on their investment.

ASIC, or Application-Specific Integrated Circuit, refers to sophisticated crypto-mining machines crucial for validating transactions and adding them to blocks on the Bitcoin network.

While these machines are efficient, they are infamous for high energy demands and significant costs. Blockstream’s BASIC Note allows interested users to acquire shares at potentially low prices on ASIC miners for the foreseeable future.

In addition to the successful Series 1 capital raise, the firm announced the deployment of its second Note series dubbed Series 2, following the positive outcome of the first iteration.

This upcoming fundraising will take place on the Luxembourg-based digital assets securities platform STOKR in the coming weeks.

Like the first series, the second batch of investments provides users with entry points into the undervalued Bitcoin ASIC marketplace, maintaining the same Bitcoin-to-ASIC price ratio.

Meanwhile, the blockchain firm did not state how much it intended to raise in this latest attempt. Explaining the rationale behind this investment vehicle, Blockstream revealed that ASIC miner prices often tend to shift based on Bitcoin price cycles.

In bear markets, the price of ASIC miners tends to fall below that of the leading cryptocurrency, and the opposite occurs in bull markets.

Given this, the BASIC Note strategy enables investors to leverage Blockstream’s expertise in the ASIC mining field to tap into profitable positions through tokenized shares.

Targeting Non-US Investors

Similar to the first series, Series 2 is laser-focused on bringing non-US investors into the crypto space. Blockstream is crystal clear on its investor audience due to the lack of regulatory clarity in the North American nation.

The company also stated that it would maintain the same minimum investment threshold as Series 1. Hence, investors need to post $115,000 or an equivalent value in Bitcoin, Liquid Bitcoin, or the USDT stablecoin.

To access the upcoming Series 2 BASIC Note investment event, eligible investors are prompted to register on the official STOKR listing website.