Blockstream Raises Over $5M for BASIC Notes, Plans Series 2 to Profit from Bitcoin Mining-Rig Prices

According to CoinDesk, Blockstream has successfully raised $5.075 million in Series 1 of its Blockstream ASIC (BASIC) notes, surpassing its $5 million target. The company plans to allocate $4.876 million of the funds to acquire Antminer S19k Pro ASIC mining machines. Blockstream is now preparing for a Series 2, with the target amount yet to be disclosed. The bitcoin infrastructure firm aims to capitalize on historically low prices for mining hardware ahead of the 2024 bitcoin halving. BASIC is a bitcoin-denominated investment vehicle designed to accrue gains from the price of ASIC mining equipment, which Blockstream anticipates will rise post-halving. The investment strategy involves leveraging Blockstream's long track record, leading market position, substantial scale, broad expertise, and strong relationships across the ASIC supply chain to acquire and warehouse new and unused ASICs at attractive prices. The company plans to strategically sell them back into the market as the industry rebounds within the next 12-24 months. While bitcoin halvings, the four-yearly event when the reward for mining new BTC gets cut in half, are historically positive for the bitcoin price, they also mean mining firms have to offset the smaller rewards by purchasing newer and more efficient machines to ensure their books are balanced.