Blockstack files with SEC to raise $50 million through regulated token sale

11 Apr, 2019 | Updated: 11 Apr, 2019
by Richard Allen
Blockchain
Blockstack files with SEC to raise $50 million through regulated token sale

New York-based blockchain company, Blockstack has announced it's looking to raise $50 million in a token sale using the SEC Regulation A+ framework.

First launched in 2017, Blockstack aims to create an infrastructure for a decentralized internet. Now, if the firm receives approval from the SEC, the token sale would see the company raise capital through the US securities market through its subsidiary, Blocstack Token LLC, which would sell a token called Blockstack Stacks (STX).

The announcement states the proceeds “will be used to accelerate the development of Blockstack decentralized computing network and app ecosystem.”

The Regulation A+ exemption was introduced in 2012 under the JOBS Act and enables equity crowdfunding campaigns to sell securities to US investors with two tiers, either for $20 million or $50 million, over a 12-month period.

According to the SEC filing, 295 million STX tokens will be offered for $0.30 each.

As CoinDesk reports, the move is consistent with the previous sentiment voiced by the company. In 2017, Blockstack decided against a token pre-sale, arguing that they didn’t provide enough diverse participants to create a truly decentralized software network.

In December last year, Blockstack CEO Muneeb Ali announced his firm had unlocked $25 million in additional funding from investors, which included heavyweights such as Union Square Ventures, Foundation Capital, Winklevoss Capital as well as Blockchain Capital.

Read more: Blockstack gets a $25 million cash injection after launching Stacks blockchain

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