BASIC Note Series 1 Closes Successfully with ASICs Acquisition, Series 2 to Launch on STOKR
Blockstream Finance

BASIC Note Series 1 Closes Successfully with ASICs Acquisition, Series 2 to Launch on STOKR

Blockstream Team

After a successful $5M raise in the first Blockstream ASIC (BASIC) Note series and the swift acquisition of new ASIC miners, we are excited to announce the launch of a second series, which will be made available on STOKR in the upcoming weeks.

The latest series offers investors another attractive entry point into the undervalued Bitcoin ASIC miner market, with the BTC to ASIC price ratio remaining similar to that of Series 1.

BASIC Investment Strategy

The BASIC Note is a bitcoin-denominated vehicle that allows investors to capitalize on the potential upside of historically low ASIC prices to generate a bitcoin-on-bitcoin return.

Note ASICs pricing 25-38 J/TH is less energy efficient vs ASICs under 25 J/TH. Chart data source: Luxor's ASIC Price Index.

Bitcoin and ASIC prices have been closely correlated in previous Bitcoin cycles. During bear markets, ASIC prices can fall below bitcoin's value, while in bull markets, they tend to surpass it. This indicates a potential upside when denominated in BTC. The BASIC Note strategy leverages Blockstream's expertise in the Bitcoin mining sector to capitalize on the correlation between Bitcoin and ASIC prices and the promising signs of recovery in the ASIC market, anchored by the upcoming Bitcoin halving in 2024.

This BTC to ASIC price ratio remains similarly attractive for Series 2, with ASIC prices below typical direct manufacturer pre-order prices in normal market conditions, on a price per terahash basis. Moreover, as Bitcoin has witnessed a surge of more than 180% YTD, ASICs are still priced at less than 55% of their January 2023 equivalent, with the bitcoin-denominated ASIC pricing approximately 6.6 times lower—leaving room for plenty of upside for new investors.

Series 1 Closure and Acquisition

Out of the $5.075M Series 1 raise, $4.876M has been allocated to acquire new, boxed Antminer S19k Pro ASIC miners, with the remainder of the funds used to cover associated costs. Since the quote was fixed and the miners purchased, there has been a 9.25% increase in ASIC quotes due to bitcoin price appreciation.

Blockstream secured the Antminer S19k Pro ASIC miners on November 29 for weighted dollar average of $38,596 per BTC. Chart data source: Luxor's ASIC Price Index.

We were able to leverage our strong relationships throughout the Bitcoin mining value chain, working closely with SunnySide Digital to secure significant savings on the ASICs. This was strategically valuable, considering many major players have been buying ASICs in bulk for months now.

The Antminer S19k Pro ASIC miners are highly energy efficient, boasting a hashrate of 120 Th/s (23 J/TH), and align with our strategic focus of acquiring the most advanced mining equipment to stay competitive in future sell scenarios. Heading into the 2024 halving, we anticipate large miners will bring new capacity online and refresh their fleets, removing the surplus of miners from the market and creating new ASIC price highs.

Upcoming Series 2 and Secondary Market

Our partner STOKR has distributed the first series of the BASIC Note (BSIC1) to investors, and the second series (BSIC2) will be on sale in the coming weeks. Like the previous series, the offering is open to qualified non-US investors with a minimum investment of USD $115,000 or the equivalent in Bitcoin (BTC), Liquid Bitcoin (L-BTC), or Tether (USDt). 

Although there is a minimum initial investment for the primary offering, BSIC1 notes can now be transferred in OTC sales or traded on SideSwap down to a denomination of 0.01 (USD $1,150) for greater price discovery.

To gain access to the upcoming BASIC Note security token offering and for regular updates, eligible investors can go through the registration process on the official STOKR listing. Please also join us on the Blockstream Finance Telegram to discuss other Bitcoin mining investments like the Blockstream Mining Note as well as the overall market and macroeconomic news.

The information above has been prepared solely for informational purposes only. It is not an offer to buy or sell or a solicitation of an offer to buy or sell any securities. Full terms and conditions are available on STOKR.

We will never reach out directly to investors through social media or instant messaging. If you receive any messages from someone claiming to be from Blockstream and offering mining investments, report them to us through the Blockstream Scam DB.

If you have specific preferences, please, mark the topic(s) you would like to read: