Blockstream to Raise $50 Million for Bitcoin Mining Equipment

Blockstream Plans to Raise $50 Million for Mining Equipment Ahead of Bitcoin Halving

Major crypto mining firm Blockstream is seeking to raise $50 million in order to acquire mining equipment in preparation for the next Bitcoin halving. The company aims to capitalize on the price difference between Bitcoin and mining application-specific integrated circuits (ASICs). Blockstream will use the digital securities marketplace STOKR to raise funds through the Blockstream ASIC (BASIC) Note. Initially, $5 million will be secured through a series one offering, with each note valued at $115,000. This money will be used to purchase ASICs at a large scale, which will then be stored and resold once the demand for the hardware increases in 2024. The remaining $45 million will be raised in $5 million tranches.

Key Points:

Blockstream plans to raise $50 million to acquire mining equipment for the next Bitcoin halving.
The company aims to take advantage of the price difference between Bitcoin and ASICs.
Blockstream will use the STOKR platform to raise funds through the Blockstream ASIC Note.
The initial offering will secure $5 million, with each note valued at $115,000.
ASIC prices are currently one-tenth of their peak in December 2021.

Blockstream plans to acquire the most efficient Bitmain and MicroBT ASICs on secondary markets. The company expects ASIC prices to rise again, and wants to capitalize on this price movement. However, a rise in Bitcoin’s price may also drive up the prices of less efficient machines. If Bitcoin reaches $70,000 or more, people will try to obtain any ASICs available for mining due to high profitability.

Hot Take:

Blockstream’s plan to raise $50 million for mining equipment ahead of the Bitcoin halving demonstrates the company’s strategy to take advantage of the market conditions. By capitalizing on the price difference between Bitcoin and ASICs, Blockstream aims to secure a significant return on investment. However, the success of this strategy depends on the future price movement of Bitcoin and the demand for ASICs. As the crypto mining landscape continues to evolve, companies like Blockstream must adapt and seize opportunities for growth.