Bitcoin

Read

BASIC

James

Major crypto mining firm Blockstream looks to raise $50 million to acquire mining equipment in anticipation of the next Bitcoin (<a href="https://crypto.news/price/bitcoin/" data-type="link" data-id="https://crypto.news/price/bitcoin/" rel="noopener noreferrer nofollow">BTC</a>) halving. 
During a recent interview with Cointelegraph, Blockstream’s mining sales head James Macedonio said that the firm wants to capitalize on what he described as a “huge separation” in the prices of Bitcoin and mining application-specific integrated circuits (ASICs). 
Blockstream plans to use Luxembourg-based digital securities marketplace STOKR to raise funds through the Blockstream ASIC (BASIC) Note. 
Macedonio explained that the company would initially only secure $5 million in its series one offering, with each note worth $115,000. It will use those funds to buy ASICs on a large scale to store and resell after the demand for this hardware rises in 2024. The $50 million target will be reached in $5 million tranches. 
 You might also like: <a href="https://crypto.news/blockstream-raises-125m-to-be-directed-to-mining/" rel="noopener noreferrer nofollow"> Blockstream raises $125m to be directed to mining </a> 
The BASIC notes are meant to be a Bitcoin basis investment vehicle and are promised to “generate a Bitcoin-on-Bitcoin return.” Blockstream also expects that most investments will be made in Bitcoin as well. 
Macedonio highlighted that ASIC prices are about one-tenth of their peak reported in December 2021. 
<blockquote class="wp-block-quote"> 
 “The price of Bitcoin is half of what it was, but ASICS are a tenth of what they were, and historically they’ve been highly correlated.” <cite>Blockstream’s mining sales head James Macedonio</cite> 
</blockquote> 
Not only the prices of cryptocurrencies have fallen, bringing down many companies with them. Macedonio also underscored how the rising energy prices further made mining less profitable, decreasing demand for mining hardware. Now he anticipates ASIC prices to rise again, and Blockstream plans to capitalize on this price movement. 
Blockstream plans to acquire the most efficient Bitmain and MicroBT ASICs on secondary markets. Still, Macedonio admits that a rise in Bitcoin’s price will also drive the prices of less efficient machines. He predicted that “if Bitcoin goes to $70,000 or more, people will try to get their hands on any ASICs they can just to start mining because their profitability would be so great.” 
 Read more: <a href="https://crypto.news/blockstream-ceo-adam-back-responds-to-us-crypto-pressure/" rel="noopener noreferrer nofollow"> Blockstream CEO Adam Back responds to US crypto pressure </a>

Blockstream to raise $50m to expand ahead of next BTC halving

crypto.news

Other articles published on Aug 16, 2023

Donald Trump is Crypto Whale Holding $2.8 Million in Ethereum Wallet, New Financial Statement Shows

6 Risk Management Strategies You Must Know

SEI Token Soars Over 3,000%

U.K. Users Could Not Buy Cryptocurrencies Over PayPal Until 2024

Shido Testnet & Explorer are Officially Launching 15th of September!

Shiba Inu Celebrates Festival of Fire With Hundreds of Millions of SHIB Burned

Join our free newsletter for daily crypto updates!