Blockstream's New Sale of Notes: A Strategy to Profit from BTC Mining-Rig Recovery

• Blockstream Surpasses $5 Million Target with Series 1 BASIC Notes
• Blockstream ASIC: Accomplishments and Future Goals
• Capitalizing on Historically Low Prices for Mining Hardware
• Strategic Investment Approach
• The Impact of Bitcoin Halvings

Blockstream Surpasses $5 Million Target with Series 1 BASIC Notes

Recently, Blockstream succeeded in exceeding its $5 million goal in the first series of its BASIC notes. These notes were conceived with the intention of benefiting from the resurgence of bitcoin mining-rig prices. Now, as they announce Series 2, Blockstream aims to establish its hold in the market once more.

Blockstream ASIC: Accomplishments and Future Goals

The bitcoin infrastructure firm raised a remarkable $5.075 million through its Blockstream ASIC (BASIC) note Series 1 in September. With this amount, it plans to allocate $4.876 million for the acquisition of Antminer S19k Pro ASIC mining machines. Although the goal for Series 2 remains undisclosed, there are high expectations considering the company's previous successes.

Capitalizing on Historically Low Prices for Mining Hardware

In a recent announcement, Blockstream expressed its intent to exploit the historically low prices of mining hardware. This strategic move comes in anticipation of the bitcoin halving event scheduled for 2024. BASIC, which is a bitcoin-denominated investment vehicle, is strategically designed to accumulate gains from the price of ASIC mining equipment. These gains are expected to increase post-halving.

Strategic Investment Approach

The investment strategy for the notes has been described as follows: BASIC intends to acquire and store new and unused ASICs at attractive prices, and then strategically reintroduce them into the market as the industry rebounds within the next 12-24 months. This is made possible through leveraging Blockstream's extensive experience, advantageous market position, substantial scale, wide-ranging expertise, and well-established relationships across the ASIC supply chain.

The Impact of Bitcoin Halvings

Bitcoin$42,260 -0.64% halvings, which are the quadrennial events when the reward for mining new BTC is halved, have historically had a positive impact on the bitcoin price. However, this also means that mining firms must compensate for the smaller rewards by purchasing newer and more efficient machines to maintain a balanced ledger.

Edited by Jonathan Stoker