Blockstack Applies for SEC-Regulated $50m Token Sale with Harvard Endowment Participating
Full-stack decentralized computing network Blockstack has applied to the United States Securities and Exchanges Commission (SEC) to launch a $50 million token sale. This news comes from an SEC filing published earlier today.
The token sale would be an industry first, in that it would be an SEC-sanctioned offering.
Proposed under SEC Regulation A+ framework, the sale would be operated via a subsidiary called “Blockstack Token LLC” and would include the sale of 295 million tokens called Stacks.
Per terms specified in the filing, the tokens would be sold between $0.12 and $0.30 per token, as well as Blockstack’s App Mining program, which involves receiving coins in exchange for developing applications that run on Blockstack’s decentralized application (dApp) network.
If the offering is approved, the filing notes that Harvard’s endowment fund — which comprises 13,000 subsidiary funds and totals nearly $40 billion — would be among the participants:
“The token advisory board consists of seven members. Three … are designees of affiliates of the Harvard Management Company, Lux Capital and Foundation Capital, respectively, limited partners of the QP Fund which have purchased an aggregate of 95,833,333 Stacks Tokens.”
The SEC’s Regulation A+ exemption — introduced under the Jumpstart Our Business (JOBS) Act in 2012 — allows small companies an alternative to traditional initial public offerings (IPOs) by authorizing them to sell securities to the public, rather than just accredited investors, as is the case in traditional IPOs. Using the exemption, corporations can raise up to $50 million (Tier 2), or $20 million (Tier 1), over a twelve month period.
In a blog post published on the Blockstack website, CEO Muneeb Ali stated that the offering could be a landmark for the crypto space and “set a precedent for others in the industry.” He went on to add:
“Recently, U.S. markets have been closed to crypto projects given regulatory uncertainty, and we believe in opening the U.S. markets to innovation in this area. We’ve been working with securities lawyers to create a legal framework that can enable blockchain protocols to comply with SEC regulations.”