SEC Approves A $28 Million Reg A+ Offering For Blockstack, A Decentralized Internet Company

This Wednesday, the United States Securities and Exchange Commission (SEC) permitted Blockstack to make a $28 Million offering under Regulation A+. This is a first of its kind offering that gives crypto-based businesses an alternative to an IPO through an entirely new fundraising template.

BREAKING: Blockstack received SEC qualification; first-ever SEC-qualified token offering in US history. https://t.co/IbbodLCLgS

— Muneeb (@muneeb) July 10, 2019

Details About The Offering

According to the announcement, the token offering will open on Thursday, July 11th at 11:00 am Eastern Daylight Time to any purchaser who would like to take part in the Blockstack next-generation computing network, apart from a small number of geographical restrictions. In the same offering, an extra $12 million in tokens will be allocated to Blockstack’s App Mining Program, which rewards the developers who create the top-ranked applications within the Blockstack ecosystem.

In the May filing, the Blockstack Offering Circular was soliciting up to $50 million, which is the max amount under Reg A+. It was offering up to 295 million tokens of their new crypto asset, the Stacks Token.”Up to 215 million tokens would be available at a price of $0.12 to current holders of certain non-binding vouchers to purchase Stacks Tokens. 40 million tokens at a price of $0.30. And up to 40 million Stacks Tokens for non-cash consideration pursuant to their previously mentioned App Mining program.

The offering circular states:

“The offering under the voucher program and the general offering will continue for, at most, 60 calendar days following the commencement of this offering; we may also terminate the cash offering at an earlier time if the general offering has been fully subscribed and the voucher program is either fully subscribed or we have determined, in our discretion, that no additional voucher holders are expected to subscribe to the offering.”

Conclusion

The unusual hallmark of the endorsement is that it allows the general public to invest. Other companies in the past, without having specifically gained approval from the SEC, have undertaken ICOs under Regulation D, a regulation that allows private offerings such as ICOs but with the offering limited to accredited investors.

It is obvious that the general public is excited about this development in the crypto ecosystem. Even popular crypto influencer Anthony Pompliano Tweeted his support saying:

Congrats my friend. Awesome work here!

— Pomp 🌪 (@APompliano) July 10, 2019