Blockstream Corp. is placing a strategic wager on the resurgence of Bitcoin. The Montreal-based company is strategically acquiring Bitcoin mining rigs, with plans to capitalize on a potential price rally by selling them at a profit, as reported by Bnnbloomberg.

Established in 2014 under the leadership of CEO Adam Back, Blockstream stands among the pioneers in Bitcoin infrastructure enterprises. Speculation once swirled around Back possibly being Satoshi Nakamoto, the enigmatic creator of Bitcoin, a notion he has firmly dismissed.

Presently, the firm has its sights set on the upcoming Bitcoin ‘halving,’ scheduled for early 2024, an event that halves mining rewards. Anticipated to trigger a surge in Bitcoin’s price and consequently in the demand for specialized mining machines, Blockstream is gearing up to reap the financial benefits.

Adam Back, CEO of the company, noted, “We experienced significant gains through the acquisition and resale of mining equipment.” This achievement has prompted Blockstream to discern a financial opportunity in this venture.

Last year, the market for mining machines was saturated due to Bitcoin’s price decline. Presently, Blockstream is seeking to raise $5 million to procure, stock, and sell ASICs at a premium rate before the halving event.

James Macedonio, Global Head of Mining Sales at Blockstream, anticipates a substantial price correction. The company is releasing Series 1 notes, priced at $115,000 each, to facilitate the acquisition of ASICs.

This initiative follows Blockstream’s $125 million funding earlier in the year, aimed at expanding its mining co-location services. In 2021, they raised $210 million for mining products, receiving backing from Reid Hoffman, co-founder of LinkedIn.

In summary, Blockstream’s proactive investment in mining rigs underscores their confidence in Bitcoin’s future trajectory. By positioning themselves to leverage potential market dynamics leading up to the 2024 halving, they are seizing the opportunity for strategic gains.