- Blockstream intends to fund $50 million to buy mining hardware.
- Each note in the initial offering will be valued at $115,000, raising $5 million.
- The most effective Bitmain and MicroBT ASICs in secondary markets will be purchased by Blockstream.
A significant cryptocurrency mining company, Blockstream, intends to fund $50 million to buy mining hardware in front of the subsequent Bitcoin (BTC) halving.
The company intends to use the Blockstream ASIC (BASIC) Note to raise money through the Luxembourg-based digital securities platform STOKR.
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Each note in the initial offering will be valued at $115,000, raising $5 million. In $5 million increments, the $50 million goal will be attained.
The BASIC notes are intended to be an investment vehicle with a Bitcoin basis and are guaranteed to yield a Bitcoin-on-Bitcoin return.
Blockstream anticipates that Bitcoin will also receive the majority of funding. Prices for ASIC are currently approximately tenths of what they were in December 2021.
Because mining is now less profitable due to growing energy costs, there is less demand for mining equipment.
The most effective Bitmain and MicroBT ASICs in secondary markets will be purchased by Blockstream. Blockstream agrees that a rise in the price of Bitcoin will also affect the costs of less effective devices.
