Blockstream Aims for Bitcoin Profit with Mining Rig Investment Ahead of 2024 Halving

  • Sergey Maga
  • 16 August, 2023 02:28
Blockstream Aims for Bitcoin Profit with Mining Rig Investment Ahead of 2024 Halving

Blockstream Corp. is making a strategic bet on Bitcoin’s resurgence. The Montreal-based company is buying up Bitcoin mining rigs. They plan to sell them at a profit if their prediction of a rally holds, according to bnnbloomberg.

Founded in 2014 by CEO Adam Back, Blockstream was among the early Bitcoin infrastructure companies. Back has even faced speculation of being Satoshi Nakamoto, Bitcoin’s pseudonymous creator, which he dispelled.

Now, the firm eyes profit from the upcoming Bitcoin ‘halving’. This event, set for early 2024, reduces the rewards for mining by half. It’s expected to cause a price rally for Bitcoin, and thus the specialized mining computers.

“We made quite a bit of money buying and selling miners,” said Adam Back, the company’s CEO. This success is prompting them to see a financial opportunity.

Last year, the mining machine market was flooded as Bitcoin’s price fell. Now, Blockstream plans to raise $5 million to buy, warehouse, and sell ASICs at a premium before the halving.

James Macedonio, the global head of mining sales at Blockstream, expects a huge price correction. The firm is issuing Series 1 notes at $115,000 each to fund the purchase of ASICs.

This follows Blockstream‘s $125 million financing earlier this year to expand its mining co-location services. They also raised $210 million in 2021 for mining products, with backing from Reid Hoffman, LinkedIn’s co-founder.

In conclusion, Blockstream‘s proactive investment in mining rigs shows confidence in Bitcoin’s future. They are positioning themselves to capitalize on potential market dynamics leading up to the 2024 halving.

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