Blockstream Plans to Raise $50M to Buy Miners

Bitcoin infrastructure company Blockstream is seeking to raise up to $50 million to buy and store mining equipment it believes is undervalued on the secondary market. Blockstream is launching the Blockstream ASIC (BASIC) Note in partnership with Luxembourg digital securities market STOKR. James Macedonio, head of mining sales at Blockstream, said that Blockstream will first raise $5 million for its Series 1 BASIC Notes, each worth $115,000, to buy ASICs on a large scale and store them in bonded warehouses. Then sell it back to the market as hardware demand picks up in 2024. The 24-month investment note will be open to accredited international investors. And Macedonio said the company expects to see returns within 12 to 18 months, given that Bitcoin’s next mining reward will be halved in April 2024. . Blockstream primarily plans to purchase Bitmain and MicroBT miners, which Macedonio emphasized are popular and have historically had good resale value.