Blockstack Files With SEC to Raise $50 Million in Reg-A+ Crypto Token Sale

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 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.

In total, 295 million STX tokens will be offered at $0.30 each.

The move is consistent with past sentiments voiced by founders of the New York-based company, which in late 2017 were critical of token sales to private investors, arguing at the time that they did not enable enough diverse participants to create a truly decentralized software network.

Still, the company has been forced to walk back its ambitions given the U.S. regulatory environment, raising $50 million through a sale of 440 million tokens in December of that year.

More than 800 people were said to participate in the sale.

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."

According to the filing, Blockstack now employs 21 employees and $32 million in total assets.

Blockstack founder Muneeb Ali via CoinDesk archives.