Blockstream, a top-tier Bitcoin infrastructure company, has joined forces with STOKR, a trailblazing digital platform for alternative assets based in Luxembourg. Their collaboration has created a new investment offering: The Blockstream ASIC (BASIC) Note.
During the latest bitcoin bull market, the prices of bitcoin mining machines, also known as ASICs, witnessed a significant surge. It was followed by a big crash, which went down in December 2022. The value of ASICs tends to have a pattern: They seem to be undervalued during bear markets, while enjoying outperformance during that time. in the bull run. This pattern points to a potential profit shift when measured in bitcoin terms.
This new BASIC investment vehicle seeks to raise $5 million through the sale of its Series 1 BASIC Notes, priced at $115,000 each. The goal? To own ASICs in bulk now, store them and then sell them strategically as the market recovers, especially keeping in mind the upcoming Bitcoin halving event in April-May 2024.
Considering the stunning success of the Blockstream Mining Note (BMN), which attracted $50 million from global investors through eight rounds between 2021 and 2022, the introduction of the BASIC Note has already gained a lot of attention in the market. This investment tool is designed to focus on a bitcoin-centric return strategy and fees are charged only when the product outperforms bitcoin.
Interestingly, the investment product will be positioned as an EU-compliant digital security by Liquid Network.
The rationale behind the BASIC structure includes:
- Market Forecasting: There is a predicted surge in the price of bitcoin, possibly from late 2023 to 2024. This is expected to be accompanied by an increase in ASIC prices.
- Supply/Demand Dynamics: With the impending Bitcoin “halving” event on the horizon, miners are likely to update their machinery, which will drive demand for modern, energy-efficient tools.
- Liquidity and Access: As capital gradually becomes available, miners will likely have better access to resources to acquire ASICs.
Blockstream CEO and Co-founder Dr. Adam Back said, “Since our founding in 2014, Blockstream has continued to be a leader in Bitcoin mining, from providing a world-class mining infrastructure to delivering innovative investment vehicles such as the Blockstream Mining Note .The BASIC Note comes at an opportune time in the market, presenting a unique and carefully timed investment opportunity for any bitcoin-focused portfolio.
Arnab Naskar, the Co-founder of STOKR, sees digital securities revolutionizing the capital markets and believes that products like BASIC Note will play an important role in bridging traditional finance with Bitcoin.
It should be noted that the BASIC Note is not accessible in every jurisdiction. Each Series will feature its own distinct set of BASIC Notes, issued through the Liquid Network.