Blockstream's Strategic Move: Launching New Notes Sale Geared to Capitalize on Resurging BTC Mining Rig Prices

Blockstream introduces the BASIC note, an innovative investment opportunity denominated in bitcoin, strategically crafted to capitalize on the expected rebound in post-halving ASIC mining equipment prices. Building on the success of Series 1, which exceeded its $5 million target, Blockstream announces the upcoming Series 2, affirming confidence in the sustained growth of bitcoin mining-rig prices.

In the inaugural Series 1 phase, Blockstream successfully raised $5.075 million, directing the majority, $4.876 million, towards the acquisition of Antminer S19k Pro ASIC mining machines. The target for the upcoming Series 2 remains undisclosed, as communicated by a Blockstream representative.

Blockstream employs a strategic approach, aiming to leverage what it identifies as "historically low prices" for mining hardware in anticipation of the 2024 bitcoin halving. The BASIC investment vehicle, denominated in bitcoin, seeks to generate profits correlated with the prices of ASIC mining equipment, with Blockstream anticipating an upswing post-halving.

The investment strategy for BASIC revolves around utilizing Blockstream's extensive experience, market leadership, substantial scale, comprehensive expertise, and robust relationships within the ASIC supply chain. The plan involves acquiring and storing new and unused ASICs at favorable prices, intending to reintroduce them strategically to the market as the industry undergoes a resurgence over the next 12-24 months.

Despite the historical positive impact of bitcoin halvings on bitcoin prices, mining firms grapple with the challenge of compensating for reduced rewards by investing in more advanced and efficient machines. Blockstream adopts a proactive stance, positioning BASIC as a strategic initiative to navigate the evolving dynamics of the mining sector. This showcases confidence in the enduring value of bitcoin as an asset and underscores the resilience of the mining industry.

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