Blockstack, the New York-based blockchain software provider launched in 2017 to create the infrastructure for a decentralized internet, has announced it intends to raise $50 million in a token sale that would leverage the SEC’s Regulation A+ crowdfunding exemption.
While the move still requires regulatory review, the sale would enable Blockstack to raise capital through the U.S. securities markets via a subsidiary, Blockstack Token LLC, which would sell a token called Blockstack Stacks (STX) in a securities offering designed to be more flexible than an IPO.
Introduced in 2012 under the JOBS Act, the Regulation A+ exemption enables equity crowdfunding campaigns to offer and sell securities to U.S. investors via two tiers, either for $20 million or $50 million, each over a 12-month period. A company can initiate a Regulation A+ offering by filing an offering statement with the SEC, which Blockstack officially submitted today.
Muneeb Ali, co-founder and CEO of Blockstack, said in a statement: “We’ve been working with securities lawyers to create a legal framework that can enable blockchain protocols to comply with SEC regulations.”
“This can potentially set a precedent for others in the industry, not just for public offerings, but also as a path to launch new public blockchains and establish a path to bootstrapping decentralized ecosystems.”
According to the filing, Blockstack now employs 21 employees and $32 million in total assets.