Blockstream to Launch Series 2 of Bitcoin-Denominated Investment Vehicle
Bitcoin infrastructure firm Blockstream is preparing to launch Series 2 of its bitcoin-denominated investment vehicle, the Blockstream ASIC (BASIC) Note. The first series closed above its $5 million target and now Series 2 aims to capitalize on the growing interest in Bitcoin-centric investments. This series will target qualified non-U.S. investors who want to take advantage of the historically low prices for Bitcoin mining hardware.
Blockstream is collaborating with Luxembourg-based digital securities platform Stokr for this venture. However, the specific target for Series 2 has not been disclosed by Blockstream.
A Focus on High-Efficiency ASIC Miners
A significant portion of the funds from Series 1, totaling $4.88 million, was used to acquire high-efficiency Antminer S19k Pro ASIC miners. Blockstream leveraged its relationship with wholesale distributor Sunnyside Digital to secure bulk discounts. The remaining funds were retained for covering costs.
Following the purchase of these miners, there was a 9.25% increase in ASIC quotes, driven by the appreciation in bitcoin prices. Despite this increase, bitcoin-denominated ASIC pricing is still approximately 6.6 times lower than it was in January.
The Liquid Network and BSIC1 Token
Each series of BASIC Notes is issued via the Liquid Network, which is a sidechain protocol built on top of the Bitcoin blockchain by Blockstream. Additionally, the BSIC1 token can be exchanged peer-to-peer through SideSwap, which is a settlement infrastructure client of the Liquid Network.
Hot Take: Blockstream Expands Bitcoin Investment Opportunities
With the launch of Series 2 of the Blockstream ASIC Note, Blockstream aims to provide non-U.S. investors with a strategic entry point into the Bitcoin ASIC market. The success of Series 1 demonstrated the growing interest in Bitcoin-centric investments. By focusing on high-efficiency ASIC miners, Blockstream is well-positioned for the future and the upcoming 2024 halving event. The use of the Liquid Network and BSIC1 token further enhances liquidity and accessibility in this investment vehicle.
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