Blockstream, the global leader in Bitcoin infrastructure technology, has today announced the upcoming Series 2 launch of its Bitcoin-denominated investment vehicle, the Blockstream ASIC (BASIC) Note.
Key Facts:
- Series 1 was oversubscribed, demonstrating strong investor demand.
- A total of $4.876m was allocated to the acquisition of Antminer S19k Pro ASIC miners.
- Blockstream’s focus on efficient miner acquisition and strong industry relationships positions investors uniquely for the upcoming 2024 halving.
- The BTC : ASIC price ratio remains similarly attractive for the upcoming Series 2.
Continuing its collaboration with Luxembourg-based STOKR, a leading platform for digital securities, this latest launch once again targets qualified non-US investors, building on the initial success of Series 1, which closed above US$ 5 million.
Launched in September 2023, Series 1 of the BASIC Note, which aims to capitalize on current historically-low prices for Bitcoin mining hardware or ASICs, was heavily oversubscribed, marking a significant milestone for Blockstream and its investors.
As part of Series 1, Blockstream secured a significant number of Antminer S19k Pro ASIC miners. With the S19k Pro’s hashrate of 120 Th/s (23 J/T), the choice of machine aligns with Blockstream’s focus on acquiring the most efficient miners on the market, as both large public and private miners bring new capacity online and refresh their fleets in preparation for the 2024 halving.
A total of $4.876m from the $5.075m Series 1 raise was allocated to the acquisition of these ASIC miners with the remainder being held back for costs. In the period of time since the quote was fixed and the miners were purchased, ASIC quotes have risen 9.25% on the back of bitcoin price appreciation.
“The strong response to our BASIC Note Series 1 underscores the growing interest in Bitcoin-centric investments,” said Blockstream’s CEO and Co-founder, Dr. Adam Back. “With Series 2, we aim to capitalize on this momentum, offering non-US investors a strategic entry point into the Bitcoin ASIC market through a bitcoin-basis product. Our focus on efficient miner acquisition and strong industry relationships positions us uniquely for the upcoming 2024 halving and beyond.”
The BASIC Note is focused on BTC denominated returns, and is off to a good start with an attractive entry point, despite being early in the Note’s lifecycle. The BTC : ASIC price ratio remains similarly attractive for Blockstream’s upcoming Series 2, with ASIC prices being below typical direct manufacturer pre-order prices per TH in normal market conditions. With Bitcoin up > 180% YTD, and ASICS still < 55% of Jan 2023 prices, the BTC denominated ASIC pricing is about 6.6x lower than in Jan 2023.1
The BSIC1 token is also now available for peer to peer swap via SideSwap. SideSwap is a settlement infrastructure client of the Liquid Network.
Acquisition Strategy
Blockstream’s position as a leader in Bitcoin mining has fostered strong relationships throughout the Bitcoin mining value chain, including with key ASIC producers and brokers. Blockstream was able to leverage the strong relationship with SunnySide Digital to obtain a significant savings on the machines, a strategic move in a market where larger players have been actively purchasing ASICs in bulk for the past few months.
With the introduction of Series 2, Blockstream continues its focus on delivering forward-thinking financial products, laying the foundation for Bitcoin-based capital markets. While the specific financial target for Series 2 remains undisclosed at this stage, Blockstream invites non-US investors interested in the BASIC Note Series 2 to register their interest for more detailed information.
For access and ongoing updates, register on STOKR directly here. Every Series will have its unique set of BASIC Notes, issued via the Liquid Network.
For more information on the Blockstream (BASIC) Note, reach out to James Macedonio (jmacedonio@Blockstream.com) who is handling the Asset Management of the Note.
More details about the offering can be found here
Ongoing updates can be found here.
About Blockstream Mining
Founded in 2014, Blockstream is the global leader in Bitcoin and blockchain infrastructure. Blockstream Mining offers turnkey Bitcoin mining services and solutions designed to provide institutions full transparency and control over their mining operations. By providing secure state-of-the art facilities for a reliable miner colocation, coupled with exceptional technical talent infrastructure, Blockstream Mining purpose-built data centers meet the strict physical and network security requirements of global institutional and enterprise customers. Keeping mining carbon emissions to a minimum, current mining sites are located in the US and Canada, using a majority of non-fossil power sources.
About STOKR
STOKR is a leading digital marketplace for alternative investments, connecting entrepreneurs and asset managers to next-generation professionals. On STOKR, institutional and other qualified investors can access diverse and high-quality investment opportunities and directly control their investment assets. As a CSSF (Commission de Surveillance du Secteur Financier, Luxembourg), supervised Virtual Assets Service Provider, STOKR offers turn-key solutions for asset mangers and entrepreneurs looking to raise capital in the EU through all elements of institutional-grade asset tokenization, including sophisticated investment structuring, smart contract management, AML/KYC verification, payment rails (crypto and fiat), and the full life-cycle management of digital securities.
1 ASIC price history < 25 J equipment https://data.hashrateindex.com/asic-index-data