Blackstack announced that it has raised over $20 million in a token sale approved by the US Securities and Exchange Commission. Blockstack raises $23 million in first-ever SEC-Qualified Token Sale.
Retail investors in the United States were able to participate in an SEC-qualified token offer for the first time.
Blockstack co-founder Muneeb Ali wrote:
More than 4,500 individuals and entities participated in the 2019 token offerings. Blockstack PBC has entered into agreements for more than $23M in these offerings. This includes both the SEC-qualified token offering and their offering to investors outside the United States made under Regulations.
The company investors include Union Square Ventures, Lux Capital, Recruit Holdings, Arrington Capital. Also, Hashkey Group, Fenbushi Capital, Frontier Ventures, Spartan Group, and other funds.
According to SEC filing, Blockstack raised $15.5 million explicitly through the sale of 74.3 million Stacks tokens. This is through its Reg A+ sale in the U.S. Another $7.6 million through the sale of 30.6 million tokens through its Reg S offering in Asia.
The company claims that the SEC-qualified offering has finally opened the door to expand its App Mining program. Through this program, the firm plans to start distributing Stacks (STX) tokens to developers who are building high-quality applications on the Blockstack network.
The App Mining program is planning to pay developers up to $1 M STX per month by May 2020. This may speed up Blockstack network expansion.
“One of the company’s objectives to work with U.S. regulators was to open our network to a wider audience and wanted to reach out more retail buyers that could be Blockstack network user,” the blog post said.